Do you remember managing your finances using pen and paper? Today, that seems almost like a story from the past.
Financial matters can be complicated, and we want our transactions to be quick, easy, and secure. That's why technology has become so important in the fintech industry - it's one of the most digitised industries in the world but still has lots of room for growth!
As a founder, investor or a fintech software development company, this is an exciting area to be involved in. In this article, we will discuss some digital trends which are likely to drive future growth within the industry, as well as which areas are especially promising.
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Statista projects that 63.8 million people will be using open banking in 2024 - a staggering increase from 2020 that is nearly fivefold!
Open banking leverages API technology to safely share financial information with non-traditional financial institutions for the benefit of the account holder. This gives third-party providers access to users' financial details which can then be used in regards to budgeting, expense tracking, lending, etc.
Additionally, this allows banks to make a customer's finances available for inspection by insurers, retailers and other businesses before providing a loan or issuing insurance coverage etc., making it easier than ever for users to shop online quickly & securely or receive a loan without any hassles.
Mobile banking apps are now a must-have for modern banks, although these apps have only been available for around 10 years.
Users of today's mobile banking solutions can check their balances, locate nearby ATMs, manage and block cards and accounts, make deposits, lend money and make payments - all from the convenience of a smartphone.
As the functionality is quite vast, stringent security and user data protection measures are necessary.
P2P payments have been steadily gaining traction in recent years - not just among younger generations, but older ones too. According to Bank of America’s report, half of the seniors who haven’t used P2P payment apps yet reported that they were likely to do so in the future.
This trend has only been accelerated due to the COVID-19 pandemic. P2P services are especially beneficial for small businesses or freelancers who need to accept payments for their goods/services; non-profit organisations keen on fundraising; and individuals looking to transfer money quickly and easily.
Wealthtech is a term describing digital solutions that help us manage our finances more effectively; this may include:
These days, it's all about online brokers - PCs and mobiles are the preferred method of trading! These brokerages offer real-time data browsing, notifications of all kinds, technical analysis tools, automated trades and more - but if you want to become competitive in the fintech industry by creating a trading app of your own, consider including news/information on selected tickers, stock & trade management features, educational materials for users, and an easy-to-use screener.
Now more than ever people and businesses need cash quickly on reasonable terms. Microcredit and lending startups can take advantage of this opportunity with technologies like big data and machine learning to make the best credit decisions.
Regtech services are designed to help financial companies meet all of their regulatory requirements. Though it may sound niche, U.S. banks spend around $70 billion each year to adhere to the rules set by regulators, highlighting the importance of this technology.
Regtech apps are used to automate processes such as identity and bank account verification, reporting, and more. They also provide valuable insights into business decisions by analysing and processing immense amounts of data.
The main features of regtech apps include:
Altogether, 2023 is primed to be a great year for fintech app developers and users alike! It’s a good time to boost your abilities with modern tech and become part of this revolution!
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