Top 5 Financial Software Development Trends [Fintech]
With the rise of the COVID-19 pandemic, mobile applications have seen unprecedented growth across several sectors. There was already prominent growth of financial software development or Fintech mobile applications in the past few years. 2020 took it to a whole new level. With continuous lockdowns, social distancing, and secure workplaces, everyone shifted towards doing online financial activities, which significantly surged the importance of Fintech mobile applications.
Before we get too far ahead of ourselves, what is Fintech? Fintech is all about the technological advancements in the world of finance. This could be something from the humble advent of credit cards all the way to cryptocurrency and instant stock trading apps like Robinhood. Heck, you can even get an instant credit score now from places like Credit Karma (while dodging a hailstorm of credit card offers).
Here is a nice summary of what Fintech is from CNBC.
1. Purchasing In-App
The technological advancements and increase in the use of smartphones have triggered the importance of making a purchase within an application. This a mobile devices capability to complete the transaction of a particular product/service while using an app from any number of categories (like gaming and fitness). The market size of in-app purchasing is projected to reach $340.76 billion by 2027. Users are finding it more convenient to perform financial transactions within an app.
The e-commerce industry and subscription-based services are some of the significant sectors utilizing In-app purchasing aggressively. The quickness and convenience of completing transactions within an app are grabbing consumers’ attention. Additionally, Fintech security measures keep transactions safe and secure. So, there is no doubt that in-app purchasing will continue to become a common financial practice adopted by businesses of all sizes.
2. Mobile Banking
Mobile banking has been exponentially rising before the COVID-19 pandemic, but it is increasing even more aggressively now. Users who were not familiar with doing financial transactions online are becoming more comfortable with such banking applications. Similarly, the reluctance towards cash use has also encouraged cashless transactions. Mobile banking enables users to transfer funds from one account to another by just pressing few buttons. Also, mobile banking facilitates many other matters, such as bill payments, online purchases, bank account statements, etc.
Without any geo-restriction, mobile banking apps are letting users handle their finances from anywhere they want. Part of that anytime/anywhere banking are virtual bank tellers. That means with the help of 24/7 virtual assistants, simple voice or text commands can get your deposits done or even anticipate your needs.
3. Digital Wallets
Image from Apple Pay
A digital wallet is another Fintech trend we are seeing getting attention and popularity. A digital wallet is a service (usually a mobile app) that enables users to pay for items electronically by presenting their phones at the cashier counter. Like your everyday wallet, a digital wallet can also store your driver’s license, bus or train passes for transportation, gift cards, and more. Digital wallets are bringing advancements and convenience in shopping, thereby normalizing a once seen novelty in the financial transaction field.
Some even consider it more secure than traditional wallets due to the lack of a physical card and the enhanced security that the phone provides. Some of the best digital wallet options include Android Pay, Samsung Pay, and PayPal.
4. Blockchain Technologies
Since the rise of Bitcoin, cryptocurrencies and blockchain technology has gained tremendous attention. With the adoption of blockchain and Fintech, financial organizations are expecting to streamline and modernize their operations. The adoption of cryptocurrency at a larger scale is actively discussed among fintech-associated financial organizations. It will result in growth towards contactless transactions and redesigned economic infrastructures. Therefore, the banking sector and other financial organizations are projected to present a significant increase in blockchain adoption in the next few years.
Even now, you can deal in Bitcoin at certain ATMs. Companies like MacDev Paintball have started accepting numerous cryptocurrencies as payment options (Bitcoin, Ethereum, and even Dogecoin).
5. Big Data, Machine Learning, and AI
Image of how machine learning works from Data Flair
Machine learning and AI represent a growing trend in business to run lots of data in order to spot trends. As you might imagine there are some juicy possibilities in the fintech world. A simple example is to monitor things like a person’s overall financial health over a broad range of areas, like investments and credit. The next time you apply for a loan, don’t be surprised if you’re put under the microscope through thousands of factors right down to your social media accounts.
On a higher level, companies like sparkcognition are greatly empowering financial institutions by providing insights in real-time, reducing human error, and preventing cyber-attacks before they can even happen. These examples are just the top of the iceberg. If there’s any industry that likes to crunch numbers, it’s the financial industry.
COVID-19 has hit fintech mobile applications positively, but the situation before COVID-19 was also in favor of the active evolution of fintech mobile applications. The future of the banking and financial sector will trend primarily on technological advancements, and mobile applications will play a significant role in it.
If you’re looking to develop a financial app, our team at Zco is here to help. Contact us today.