FinTech is a fusion of finance and technology that has brought a paradigm shift in the realm of banking and finance. In other words, FinTech seems like the disruptor for traditional banking and finance operations, which are tedious, time-intensive, and making the sector less profitable. This may be the reason why financial disruptors are making a foray into this industry with advanced methods and emerging technologies (AI, ML, RPA, Blockchain, etc.) to streamline the banking and financial operations and make it easier to understand and manage for consumers as well as businesses operating in the banking and finance domain. In fact, many senior banking executives admitted that collaborating with FinTech application development services providers to introduce a new offering such as a mobile application unlocks a new set of opportunities for banking institutions.
By now, it’s clear that FinTech is one of the promising industries to deep dive into. The global Fintech market was valued at a whopping 5504.13 billion USD in 2019 and is estimated to further grow at an impressive CAGR of 23.58% during 2020-2025. What’s more interesting to note is that nearly 90% of Americans use fintech applications to manage their finances. This clearly indicates that FinTech app development can be a game-changer for banking and finance institutions. If you are also considering financial application development to make the most of the FinTech market growth, you should take a quick look at some key benefits of developing a Fintech application.
1) Unbreachable Security
Security has become one of the key reasons for banking and financial institutions with the rise of online payment. The reason behind this is that cybercrime has increased dramatically over the last few years. It is estimated that cybercrime will cost businesses 10.5 trillion USD annually by 2025. Furthermore, 95% of data security breaches are caused by errors made by humans.
Traditional banking and financial institutions often struggle in protecting customers’ data from fraudulent interventions owing to the lack of state-of-the-art technologies and rising infection capabilities of ransomware, spyware, and other malware. With custom FinTech app development, businesses can avert financial losses, potential vulnerabilities and safeguard customers’ data against cyberattacks. Most FinTech applications employ advanced security mechanisms such as they encrypt sensitive data, utilizing biometric authentication, applying tokenization, and securing APIs to prevent unwanted access to transactions and customers’ confidential data. For instance, Ether, BTC, and other cryptocurrencies use Blockchain technology since it provides complete protection against data tampering. On the other hand, many e-wallets and mobile banking apps use a highly encrypted QR code to facilitate transactions.
2) Greater Convenience
Today, consumers have become highly impatient, especially the millennial generation. They don’t prefer standing in long queues to get the work done. Fortunately, banking and financial institutions can address this challenge with FinTech application development and target their millennial audience more effectively. By investing in FinTech application development, banking and financial institutions can offer their customers ultimate ease and better convenience when it comes to opening a new bank account, transferring payments online, checking an account balance, creating a fixed deposit, etc. In other words, the ease of carrying out operations with just a few taps on the smartphone screen can help banking institutions offer a smooth experience to their customers, which in turn, expands their customer base resulting in more profits.
3) Improved Efficiency
Another key reason behind the rising popularity of FinTech applications among businesses is that it helps them in improving their operational efficiency. With FinTech application development, banking and financial institutions can not only streamline complex workflows but also automate a slew of tedious and repetitive tasks that require intense manual labor. For instance, banking and insurance companies can save a significant amount of time and money by offloading the responsibilities of a customer support executive to an AI-powered virtual bot on a FinTech application. Besides this, banks can also automate the tedious and time-intensive KYC process through FinTech application development. Automating the KYC process reduces the risk of fraud, lowers internal processing time, creates an audit trail, ensures compliance, and establishes a secure ecosystem.
4) Cost-effective App Development
When developing a dedicated mobile application, developers need to write hundreds of thousands of lines of code from the scratch, which in turn, increased the development time and cost. On the other hand, FinTech applications are developed using cross-platforms that allow developers to reuse the codebase for different platforms. In other words, using a single codebase, developers can build a FinTech application for multiple mobile platforms. Code reusability not only cuts down on the development time but also slashes the application development cost in half. Low development time allows businesses to quickly deploy their application in the market and gain a competitive advantage.
Summing Up
FinTech application development is making strides across industry verticals since it comes with a host of business benefits. If you are also planning to invest in FinTech application development to stay ahead of the competition, you should consider partnering with a professional FinTech development company. Hire a reliable expert for your custom application development project from reputed platforms such as Github, Stack Overflow, LinkedIn, Clutch, GoodFirms, etc.
