The pandemic that has ravaged the world over the last couple of years has affected every business realm. However, it has also brought about a new way of life where the homestead is the center of activity. This shift has opened new avenues of business opportunities, especially in the rapidly evolving domain of FinTech.
Financial service-providing companies and traditional banks are racing to revamp their offerings to best suit the modern customer’s needs in these times of disruption.
Business monoliths embrace today’s FinTech assets with equal fervor as an individual paying his credit card bill via net banking. Everyone now has stakes in the game, and with a bevy of services available both for businesses and individuals, FinTech is here to stay!
But Fintech apps are not just a fancy new toy. With aligned FinTech solutions, clients can steer clear of exceeding expenses, navigate through the quagmire of financial speculation and the risk that comes with it and deal with routine banking processes from the comfort of their homes.
Here Are 7 Emerging Financial (Banking) Technology Trends for 2023:
As the transformation from manual to digital speeds up across sectors, I present seven game-changing FinTech mobile app development trends for 2023. So kick back with an iced Java, and let’s get to it!
1. Digital-only banking
The financial sector pricks up its ears and notices as soon as virtual banking services like peer-to-peer transfers, contactless card payments without a transaction fee, global payments, and chances to purchase cryptocurrencies are mentioned.
The reason is simple. These methods offer speed and eliminate additional transaction fees. Businesses often hire specialists in this field to stay informed about the latest developments and gain a comprehensive understanding of cryptocurrency. In some cases, they may even rely on experts in crypto recruiting for this, as not all HR departments possess sufficient knowledge to make informed decisions when hiring in this area.
Physical visits to banks have been down by 36% over the past five years, given the growing number of digital-only banks. The benefits of mobile banking apps include extensive cost efficiency, rapid banking processes like bill payments, deposits, PIN resets, Big Data analysis, and rapid fetching of balance reports and other transaction-related documents.
In addition to the convenience and cost efficiency offered by digital-only banking, online small business bank accounts have also gained popularity, providing entrepreneurs with easy access to their business revenue, and allowing for better financial planning.
2. Biometric security systems
Another popular FinTech app development trend is digital financial services safeguarded by biometric security solutions for user identification.
Fintech companies across the board are tightening up their security measures as safeguarding oneself against cybercrime becomes one of the finance industry’s major aims.
Given its protection to both the customer and the financial institution, the biometrics business is booming.
3. Blockchain technology
In a recent report from Business Insider Intelligence, it is stated that 48% of bank representatives believe that Blockchain tech will have a massive impact on banking. A report from The Finacial brand states that 46% of financial service employees feel that blockchain technology can help in improving transparency and facilitate effective data analysis and management.
Blockchain technology sparked a gold rush among peer-to-peer business platforms for Fintech app development to gain decentralized commercial interaction capabilities. Many banks have used Blockchain technology to cut costs, speed up processes, and improve internal operations efficiency.
4. Artificial intelligence in the banking sector
As bank revenues have grown to exceed country incomes, Artificial Intelligence (not unlike the popular film of the same name) has been brought in to help handle the problem. Banking institutions are now fine-tuning their operational procedures and obtaining the necessary assets to use AI solutions to generate even more revenue.
A report by Statista states that the implementation of AI will reduce operating costs by 34%. That converted into hard numbers is over a trillion USD.
On the customer side, AI uses chatbots to deliver effective customer service, which increases customer happiness while also speeding up transactions and eliminating interruptions.
5. Payment alterations
There are several payment options in the Fintech industry. Contactless, mobile, smart speakers, and eWallets, when combined with AI and Machine Learning, provide increased security.
The number of people who utilize contactless payments has increased to 760 million in the last year, according to Statista. Mobile wallets are the latest craze in the world of alternative commercial transactions. An ideal wallet also has credit points that may be redeemed, increasing its appeal.
6. Autonomous finance
Customers can mobilize their funds by using an autonomous finance app. Autonomous finance apps simplify the loan approval process and manage overdrawn accounts, allowing users to make real-time decisions about when, where, and how much to invest.
Fintech apps are the foundation of the self-driving financial business. Fintech Apps use AI and machine learning to manage users’ funds while providing effective, efficient, trustworthy, and secure services.
Starting with an automated investment advisor who offers data-driven financial plans applicable to mutual funds and eventual retirement goals, Fintech Apps use AI and machine learning to manage users’ funds while offering effective, efficient, trustworthy, and secure services.
7. FinTech services using voice technologies
Customer service voice assistants can quickly resolve difficulties and give data, such as balance inquiries, regular payment settings, and a predefined financial strategy.
By accessing biometric data for payment authorization, voice payments are also available. In 2023, voice payment will be one of the fastest-growing Fintech developments.
3 Fintech Services That Are Drawing Customers Away from Traditional Banks
Global BFSI and para-banking players have begun to build excellent solutions that foster a high-value relationship between enterprises and their customers, given that an ever-increasing contingent of customers is shifting from traditional banking routes to the efficiencies of FinTech.
It goes without saying that FinTech solutions also assist enterprises in upgrading their transaction processes while offering enhanced access levels to relevant datasets.
a) Digital-only banking services
An example of what digital transformation can offer financial service providers is the recently popularised digital-only banking service. Digital-only banks now make even more sense given social distancing and self-isolation norms while also being exceptionally cost-effective to both sides, the bank and the customer.
The bank no longer needs to invest in real estate and customers can conduct all their financial actions from the comfort of their homes.
b) RPA in FinTech
Robotic Process Automation is a sphere with the best brains in the biz buzzing with ideas. Automating repetitive, mundane tasks via software is now possible and is pivotal in streamlining the delivery of financial services. RPA applications now enjoy widespread usage across the globe and help in customer onboarding, claims, loan processing, and customer support.
c) Voice integration
Upping the ante even further, The FinTech sphere now has tech solutions with voice integration using voice payments to hyper-personalize the enterprise’s services. The enterprise stands to gain a massive pool of data while enjoying smooth transaction processes. Conversational banking facilitated through the tech prowess that digital transformation offers have boosted the efficacy of the institution’s marketing efforts.
Top 6 FinTech Assets Currently in Use
The FinTech industry sports a suite of assets and banking solutions that range from process automation to virtual plastic currency. These assets are increasingly bridging the gaps normally seen between a customer and a traditional bank. Some of the popular FinTech assets currently in use are:
- Super banking apps: this revolutionary app brings all the customer’s bank accounts under a single app. Customers can link bank accounts from different banks and securely execute their banking tasks.
- Point-of-sale apps: The digital payment model is rapidly increasing in popularity and sports widespread adoption. Digital transformation has delivered a comprehensive solution that helps retail chains by offering multiple payment methods (cards, digital wallets, etc.) while also acquiring valuable data.
- P2P payment apps: Peer-2-Peer payment apps built using cutting-edge tech expertise resulting in capabilities like biometric authentication, face recognition, NFC, etc. Being commission-based, these apps have proven highly lucrative for the client’s businesses.
- RegTech apps: RegTech apps automate buyer verification, identification, data management, transaction monitoring, and analytics. The regulatory environment has become increasingly strict for the FinTech sector, and such tech assets play a mission-critical role in data security and compliance.
- InsureTech apps: InsureTech app leverages AI, IoT, and open API, allowing it to quickly and effectively analyze big data pertaining to elements ranging from customer behavior to risk analysis to the assessment and implementation of the latest market trends.
- Digital wallet apps: Digital wallets are now extremely common, given the convenience they offer. Customer no longer has to carry their cards or even a physical wallet. With the value proposition of easy and secure digital transactions and user bonuses in the form of discount coupons and offers, digital wallets add an element of the reward to the relationship between the client and its users.
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Still, Wondering If You Need FinTech Assets?
The financial services industry is witnessing massive evolution. With the emergence of technologies like AI, ML, and IoT, Fintech companies can offer customers services the likes of which the traditional banking sector has never seen. While many banking and traditional financial institutions are rushing to level up with Fintech assets, a few big names are banking (sic) on orthodox models.
The transition from legacy environments poses one of the greatest challenges to traditional BFSI, which is why many institutions are reluctant to do so. Most financial institutions understand and recognize the value and force that Fintech assets could bring to the expansion of their operations and customer base. Therefore, they are working on building effective compliance processes to fulfill and function within the ever-evolving jurisdictional and global regulations.
Remaining competitive and (even more importantly) relevant is a need that traditional financial institutions have woken up to in the world post-COVID. With forward-thinking institutions pushing for transformational (read: Fintech-powered) capabilities, it is only a matter of time before the entire BFSI industry realizes what they are missing.
Also Read: Cybersecurity Predictions and Trends
FinTech assets completely justify the investment, especially in the uncertainty that the world is facing. With Traditional banks flocking to incorporate tech assets into their service offerings in a bid to retain their customers, FinTech software solutions that are now in existence thanks to major players adopting digital transformation have helped clients accelerate collaboration and have fuelled innovation in the scope of financial services, crafting enhanced experiences at micro and macro levels.
As the financial services industry warms to custom software creation and subsequent digital transformation, prominent FinTech businesses increasingly sport unique banking and financial tech solutions.
Thanks to advances in technology and high-quality custom mobile apps offered by companies that develop mobile apps, the financial services business is thriving better than ever. FinTech assets have created new paths that go beyond regular transactions.
Given that an increasing number of clients are transitioning from traditional banking routes to the efficiencies of FinTech, global BFSI, and para-banking providers have begun to offer exceptional solutions that establish a high-value relationship between enterprises and their customers. FinTech solutions help businesses improve their transaction processes while providing increased access to relevant datasets.
Beyond the initial demand for speedier payments, the FinTech revolution now provides real-time financial data, secure authentication, and faster transactions. So, if you are a financial institution looking to advance, FinTech is the path ahead.