Fintech is all over.FinTech solutions are used when scanning a QR code at a grocery store. EMI calculation for the car you want to buy on a digital platform? Fintech. Send money to someone with digital IMPS? Fintech. Users have evolved into digital apps, mobile banking solutions, and more to perform activities that previously required long queues.
Factors such as a growing customer base, growing millennial and Gen Z populations, and openness to new technologies like custom software application development, have made this location favorable to many fintech startup ecosystems, and the number of fintech companies has surged as well.
Why is investing in financial software development still profitable?
There are several reasons why investing in custom financial software development is a good business move for entrepreneurs. Let’s list them.
Table of Contents
Investing in Financial Software Development
Digitizing cash
Take a moment to review five of his recent transactions. Have you used cash in it? Gen Z and Millennials may be unknowingly switched from cash to digital transactions.
For fintech companies, this transformation is key not only to sector growth but also to financial forecasts.
Huge app space
Mobile apps, born of both new-age FinTech firms and banks, have played a major role in the adoption of the FinTech model and the subsequent surge in companies entering the space via apps. . Today, mobile phones have become the new wallets where users store their money and use it for various transactions. It also became a ledger containing the history of transactions and how to track future expenses.
Limited visits to banks
customers are starting to look to new banking and fintech options and abandoning the traditional banking system. They are relying on new-age financial firms for support previously limited to banks and NBFCs. Support for loans, equity investments, etc.
In such scenarios, FinTech companies are given the opportunity to launch new markets for customers who are fed up with the old ways of providing financial services. All they have to do is invest in custom financial software development.
Expanding innovation potential
Fintech as a sector is seeing new companies addressing old problems, but still ripe for innovation. Just when you thought you had an app or software for every outdated banking process, new use cases emerge. After all, who would have thought that cryptocurrencies would eventually gain an edge over fiat? When it comes to FinTech, there are no limits to the development of new models.
Different Fintech Business Ideas
A key factor in becoming a leader in the Fintech space is understanding the model you want to use to announce your entry. He currently has 50 different FinTech models to consider for starting a business, and it wouldn’t be surprised if several more were added by the end of this year. At a high level, however, the FinTech ecosystem is made up of many subsectors –
Banking
FinTech fills the gaps in efficiency, flexibility, and accessibility exhibited by banking institutions. With a range of customer-facing tools such as app-based remittances, neo-banking debit and credit cards, and microcredit, fintech has a lot to offer when it comes to banking use cases.
Fintech companies are bridging the gap between traditional banks and new-age technology companies by harnessing the power of APIs to make it easier for customers to get the data and information they need in real-time. burying.
Investment
has always been a major player in the financial world. Quite new, however, is the emerging trend for Gen Z and millennials to start investing and focus on building broader portfolios of stocks, bonds, gold, and cryptocurrencies.
This need to be financially independent has spawned several of his FinTech applications, investment-based such as Coinbase, Robinhood, etc., becoming profitable entry-level businesses.
App Inventory View: Assets There are several ways to add functionality to your application.
In-app wallets, AI-based automated fund allocation across various stock options, and even the ability to separate objectives and goals from investments within the app.
Insurance Technology
Insurance companies have long been labeled as profitable businesses, not for all groups. Fintech startups are now starting to offer their customers lower premiums, longer payback periods, faster withdrawal of funds, and automated claims processing.
They are basically recipes for making insurance more accessible to a wider range of people from different economic backgrounds.
What is new in this space is the emergence of several fintech companies expanding into new insurance categories such as pet insurance, workers’ insurance, auto insurance, and sachet insurance.
Payments are still popular in the FinTech model industry. Many businesses are finding new use cases such as making payments, creating invoices, and tracking upcoming payments. Easier. There are also companies that deal with everyday problems such as B. Share cash with friends, send money internationally, etc. All that can be said about this fintech subsector is to remain open to innovation.
Lending
Similar to insurance, the world of lending has changed significantly with the advent of financial software development services and solutions. Some companies offer simple zero-paper lending facilities, while others use artificial intelligence analytics and detection to measure a borrower’s ability to repay, approve, and release a loan, all within 24 hours. I have.
Another model that has recently been in the spotlight in the fintech industry is the peer-to-peer model. Here, users of the platform can get loan assistance from other users on the platform or the company behind the platform. Examples of this can be seen under names like Zopa, Lendable, and others.
Crypto-Driven Platforms
Cryptocurrencies are the legal tender of tomorrow.
This is the general consensus people share when mentioning cryptocurrencies. Today, half of
the people invest in it and use it for transactions, while the other half have learned enough to explore the domain on their own.
For businesses, cryptocurrencies offer different models – cryptocurrency development, crypto exchanges, metaverse-focused cryptocurrencies, etc. There may be several others, and many of these Even within subsectors, there can be hundreds of different fintech business models. All you need to do is understand your area of interest. . Which features will end up being part of FinTech applications depends on the model chosen in the previous section. For example, crypto exchange platforms come with features like live market movements, and payment apps have the potential for QR codes. From model to model, the list of features varies greatly.
Financial Software Top features
Secure Authentication
Authentication is an important aspect of Fintech apps. It is the primary method for securing applications through multi-factor authentication such as email, phone number verification, OTP-based registration, and biometrics.
In short, this is the stage that shows users how grim the experience can be, especially when security is taken into account.
Model-specific features
This set of features forms the core of the product. For example, if you’re building a personal Financial Software or app, features like multiple account linking, an expense and income summary dashboard, AI-based highlights on what you can do to avoid reducing your spending, and tabs for recurring payments. included. The list of stock trading apps will be another.
Payments
Payments are usually a common element of fintech software. Whether he is dealing with B2B vendor management software or general lending applications, all his FinTech users want the ability to make secure, real-time payments to other users.
How this feature is provided depends on the model. You can choose to add a QR code or bank for bank transfers, payments from in-app wallets, and more. The list of additions to this feature is long.
Dashboards
Any data-driven app (healthcare, fitness, or in our case fintech) needs a tracking and management system. A dashboard can help here. The in-app dashboard helps you see all your income and expense data, market updates, upcoming deals, and more
In one place, in an easy-to-digest format. Today, dashboard functionality usually comes with the ability to create and download reports, giving users a more in-depth view of their financial situation.
Notices
Custom Notices are the most regular line of communication between FinTech companies and their customers. They are sent to notify users of credit or debit cards, changes in investment rates, new offers, loan application status updates, and for a variety of other reasons.
The key here is to develop a strategy for sending notifications in a non-intrusive or timely manner.
Integration
In order for the FinTech app to be useful to users, it needs to integrate with third-party software. Typically, it is bank third-party software, security software, notification systems, and payment software.
When properly integrated with the appropriate APIs, users can check out, find the nearest bank, track money in different accounts, and more.
Conclusion
Advanced technology creates opportunities and challenges. For the financial industry, software development challenges can include the complexity of modernizing legacy applications to the cloud, cybersecurity risks, continuous adaptation to change, and other related issues.
Therefore, it’s important to have the right tools and methods to effectively and accurately implement all digital initiatives. Digital transformation won’t happen overnight, but with the right tools and technology, the gap between the old and new landscapes can be quickly bridged.
