Fintech, or financial technology, has become a buzzword not in just banking and financial services, but across all major industries. The arrival of fintech prompted an unprecedented tech revolution in the financial services industry worldwide. This changed many traditional methods of delivering financial services. As the world embraces more digital transformation amid the COVID-19 pandemic, fintech will become more pivotal than ever. In this blog post, we’ll talk about the major transformations triggered by areas like fintech application development, digital payment solutions, and blockchain, among others.
Fintech Software Development as a Transformative Force
The wave of digital technology intensified significantly in the banking and financial services industry after the arrival of fintech. Many factors are responsible for the quick spread of financial software solutions in the industry. The most remarkable of them is the way fintech enables the fulfillment of customers’ needs and demands.
Besides, fintech showed the financial services industry how innovation could be a driving force for the industry. A large number of fintech start-ups achieved significant success. It prompted further adoption of fintech as a way of doing something innovative and customer-oriented.
Major Fintech Trends Transforming the Financial Services Industry
Financial software applications and other fintech tools have already reshaped the finance industry like never before. This transformation will intensify over time. With fintech solutions in place, companies have been able to combine efficiency with the ability to meet customer demands swiftly. Here are some key trends dominating the industry.
1.Digital Transformation in Banking
Over the past few years, the banking industry has drastically changed the way it delivers services. Digital payment solutions, for example, has completely transformed traditional financial transactions. Today, banks are able to work seamlessly even during the global lockdowns. Thanks to digital transformation prompted by fintech solutions. The global fintech adoption is forecast to spike substantially across countries by 2025.
2.The Use of Mobile Banking, AI, and ML
Mobile banking has brought banking into the palms of customers’ hands. Banking apps have evolved rapidly embracing technologies like AI and machine learning. Chatbots for banks have transformed customer service. Fintech companies are increasingly working in collaboration with banks to mutually benefit from customer-oriented fintech applications. Growing adoption of fintech mobile apps and other technologies have dramatically improved service quality across public and private sector banks.
3.Improved Service Quality and Efficiency
Fintech solutions have enabled all banking customers to seamlessly complete financial transactions at the comfort of their home. Banks and financial institutions have been able to process customers’ requests in a remarkably short time span. Fintech solutions rely on an array of advanced software development process and testing methods. This also helps software vendors to quickly deliver the required financial software applications withing short development time.
4.Digital Payment Solutions for the Future
Digital payment has remained the single largest factor responsible for the widespread adoption of fintech solutions in the industry. The digital economy has grown substantially across the world. Online payment processes have brought customers closer to financial technology. The rise in popularity of fintech, combined with other socioeconomic factors, is causing a decline in the use of traditional physical money or cash. In developing countries like India, too, digital wallets have become wildly popular.
5.Blockchain, Chatbots & other emerging fintech tools
With the growing interest of customers and investors in digital assets, the popularity of blockchain technology-based bitcoin and cryptocurrency is increasing. Some countries are even thinking of regulating cryptocurrency. A widespread adoption of blockchain would bring unprecedented change in the financial services industry. Chatbots and other AI-based fintech solutions are another area creating a future path for the fintech industry. As customers expectations increase with the rapid evolution of technology, the financial services industry must adopt more innovative fintech solutions across service domains.
Fintech solutions have benefitted significantly from the waves of digital transformation across industry. The banking and financial services industry is the most significant beneficiary of the rapid evolution of fintech solutions development in the software industry. At OrangeMantra, we have a dedicated team for developing Fintech Solutions with the most advanced features. The team has served global No. 1 banks and leading financial institutions with robust financial software applications. As most industries adopt digital payment solutions amid the COVID-19 lockdowns, we’re closely watching the shifting trends.
Q. What is Fintech in banking?
Fintech, or financial technology, has become a buzzword within the banking and financial services industry. It generally means the use of technology across all financial services ad operations. Financial software, mobile apps, and chatbots, etc. are examples of fintech solutions.
Q. Why is digital payment important?
Digital payment solutions have become an important tool for advancing financial inclusion. Digital payment lowers the cost of providing financial services to poor people. It also increases the safety and convenience of customers for accessing services like fund transfer, insurance, and savings.
Q. How much does it cost to build a fintech solution?
Fintech solutions comprise a vast range of financial software, mobile app, and digital wallets, etc. The cost of development depends on what kind of fintech solution you need. Orangemantra offers secure fintech solutions at a competitive price.