Anil Kondla
Last Updated on July 9, 2024 by Team Experts
Technology and digitization have revolutionized the finance sector and brought transformational changes in how they function. So is the rise for FinTech application development in the past few years.
FinTech, as the name suggests, resembles a combination of both finance and tech associated together to give the finance industry the best of both worlds. Organizations constantly leverage the internet of things(IoT), mobile apps, internet technologies, and cloud services to serve the finance industry better. This also gave rise to hundreds of app developers to cater to the demanding needs of finance industries.
The US is also more and more lenient in transforming the US financial sector with FinTech. The study reveals that the annual growth of the US FinTech market transaction value is 8.6% CAGR over a forecast period of 2019-2024. The transformation also took place in various ways as the people lend and invest, opt for loans, and fund financial startups.
Today we are talking about how FinTech apps are revolutionizing the finance industry in various ways. Let’s begin.
FinTech digital transformations
Integration
For every FinTech application, integration is a must-have feature. With mobile apps being popular day-by-day for mobile banking and net banking usage, both individuals and organizations are on the lookout for various financial service offerings by an application.
Mobile payments, financial resource management, crowdsourcing, etc., are becoming the industry’s standard features in any finance application. In addition, FinTech gives finance applications the capability to integrate other third-party systems and offers cross-platform synchronization.
Authentication
Money matters! But, what matters significantly more is the sense of feeling secure that your money is safe. When designing a finance app, security can’t be taken lightly. Money being a sensitive subject, people tend to oppose using brand new applications that aren’t secure.
FinTech apps use the most widely used security measures like two-step authentication. Having well integrated with the third-party applications, the two-step authentication from services like Google Authenticator, Digi-Pass, etc., allows user verification via unique OTP sent to your registered mobile number. Having a two-factor authentication instills trust in users. They feel secure knowing that they have complete control over their account.
IT transformation
Remember when we need to go to financial institutions like federal banks for all our money-related needs and queries. Those memories are going to be a thing of the past. With the advancement in the IT sector, banks also have adopted the era of digitalization. Banks are now leveraging computerized tellers, e-payments, maintaining digital records, etc., to meet the growing demands of their customers by using the digital space.
Data Encryption
Before the era of digitalization, people used to worry only about server room security. Nowadays, with sensitive data being stored on the cloud, hackers are always on the lookout to exploit any security flaws in the system. That’s why financial institutes leverage FinTech solutions and take strong measures to ensure security against hackers’ efforts.
Personalization
FinTech doesn’t only revolve around providing only safe and secure finance experience. Web application development companies also leverage FinTech to provide personalized offers to their valuable customers. By leveraging modern-day technologies like artificial intelligence and machine learning, financial applications can better understand the user’s needs. The applications can suggest insurance policy, savings guidance, promotional offers, etc.
Data Tracking and Analysis
Every user wants to know about their financial expenditure in the past or current fiscal year. Fintech apps provide users the feasibility to track and analyze their financial activities and transaction history with ease. Every finance application comes with an informative dashboard with a visual representation that allows users to have a better experience and deduce any unusual fluctuations in their financial habits.
Blockchain Technology
We are all pretty familiar with the famous quote – “to err is human,” meaning that making mistakes is part of human nature. With the integration of Blockchain with FinTech technology, users will be allowed to modify or delete their single transaction once it has been confirmed. The practical application of this technology is using it in the stock trading app to track the complete lifecycle of financial transactions.
Conclusion
Fintech applications are growing and thriving more than ever. As a result, people rely more on financial services for all their needs, whether taking/paying loans, digital payments, personal banking, Insurance, etc. There is no doubt that with Blockchain, AI, and ML, FinTech applications will replace the finance industry and banking sector in the years to come. Meanwhile, which of the above transformations do you think will create the most impact for the FinTech sector? Do let us know in the comments below.
