Over the last couple of decades, digitalization has had a huge impact on every industry sector as well as on consumer behavior. The switch to digital technology may have seemed gradual but these days, organizations unable to meet market and customer needs will lose revenue. The Fintech industry is also experiencing unparalleled development thanks to new technologies like Blockchain, AI and IoT used in application development.
Defining the Term “FinTech”
According to Investopedia, “At its core, fintech is utilized to help companies, business owners and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms that are used on computers and, increasingly, smartphones. Fintech, the word, is a combination of “financial technology”.
Cand organizations in the fintech sector have been able to develop and deploy innovative products that are replacing traditional methods. Some of the solutions now available are mobile wallets and payment methods, online banking, alternative financing options, peer to peer payment services and so on. Technology has made it easy for customers to avoid dealing in cash and waiting for checks to clear – instant transfers have eliminated the middleman altogether.
Though Fintech companies are not expected to replace banks completely, the availability of new ways to deal with payments is challenging banks to adapt and adopt new methods. According to forecasts, the Fintech industry market share is expected to reach 17% or higher by the year 2023. According to a Capgemini 2018 report, Fintech companies have raised $110 billion USD plus in funds since 2009. Some of the technologies being used by almost every application development company are:
Blockchain – a ledger which is decentralized and offers users fixed data and has high fault tolerance.
Regulation Technology – It uses Big Data and machine learning to help with user identification, managing risk, payment transaction monitoring and facilitating financial market trading.
What are Some of the Advantages of Engaging with a Custom Application Development Company?
Whether it is a bank or a lending institution, app development companies play a key role in keeping up with the competition as well as brand differentiation.
Out of the comfort zone: Software companies hire talented application developers with industry experience to build seamless products that work on multiple platforms. There are a plethora of opportunities and the future for innovation is very promising. Even banks are getting into this arena and adapting to offer their customer base new ways to save money and make payments.
Focusing on customers and good service: What has helped Fintech companies to make inroads into an arena which was a traditional banking system stronghold was making a customer the focal point. By using AI, Big Data and other data mining software, an application development company can tailor its products to cater to digitally savvy customers. The focus is on offering convenience, ease of use as well as the safeguarding of personal information.
Ability to leverage customer and market data: Though traditional banks have a staggering amount of available customer data, fintech companies managed to use available information to understand and create great products for the end-user. Machine Learning and AI are making a huge difference in simplifying and managing customer needs.
With the business environment in a constant state of flux, it can seem intimidating to understand customer needs and develop products that can help in business growth. There are several areas in which a custom application development companies can help. Developing the right tool/application can make the difference between struggling to keep up or growing exponentially.
ParamInfo is an established mobile app development company with vast experience in the Fintech field. We recognize the need to help our customers and use available technologies and software to develop cutting-edge tools for our customers. With a team of highly qualifies software developers, we offer the best and personalized solutions to organizations in the Fintech sector can be your partner in growth. Contact us today and let us offer you an insight into what we can do for you.