Have you ever wondered why software development for Fintech has become so popular or why every business seems to need a fintech software development agency? Well, before we go into that, let’s have a look into what Fintech is all about. Fintech means financial technology; it involves integrating technology such as mobile apps, online banking sites, and self-service portals into the insurance, investment, economic, and banking sectors to replace traditional banking and face-to-face communications.
Over the past few years, Fintech has witnessed significant growth in becoming an integral part of today’s modern world, with its acceptance increasing from 16% to 64% between 2015 and 2019. However, Fintech went on an entirely different level in 2020 due to the CoronaVirus pandemic causing unforeseen changes that shook the finance industry, among others. As the mandatory social distancing and lockdown orders got serious and many workplaces were closed, everybody was left with no choice but to switch to completing their financial activities online. This led to a considerable increase in the need for Fintech software development services. In this article, we will review some top Fintech software development trends of the year.
Top 3 Trends of Software Development for Fintech
1). Mobile Banking
Though the use of mobile apps for banking operations has increased significantly over the last few years, the COVID-19 pandemic has caused it to rise exponentially, with many people getting more comfortable with making financial transactions on their phones and in the comfort of their homes. Enhanced by fingerprint biometrics, mobile apps make many banking services available at the tip of one’s fingers rather than waiting in a long queue in the bank.
Mobile banking is also a viable solution to cyber threats as it helps in protecting confidential details effectively.
2). Artificial Intelligence (AI) and Machine Learning (ML)
AI is one of the essential financial software development services, and it plays a significant role in the finance industry – particularly banks. It involves the use of automated machines to enhance productivity and effectiveness in several banking operations. For instance, AI is beneficial in tackling cyber threats and financial fraud. Also, the algorithm of AI and ML is such that it helps record financial transactions with high precision, thus, enhancing more customer-focused service.
According to Autonomous Research LLP, Artificial Intelligence is predicted to lessen banks’ cost of operation by a whopping 22% around 2030.
3). Blockchain Technology
As Bitcoin and some other cryptocurrencies rise In popularity, blockchain technology has also gained massive attention in the finance world. Blockchain is a highly protected decentralized ledger that can be distributed among multiple users. It has no single authority, thus, helping fintech-related businesses to compress several authentication processes into one – needing no middleman. This feature allows people to make financial transactions with lightning speed, security, and complete data transparency.
Blockchain is also considered to be protected against cyber-fraud and money laundering as it is a decentralized system. Many financial organizations are gradually realizing the possibilities of blockchain technology and are looking for ways to incorporate it into their businesses, while some already did. According to experts, the FinTech blockchain market is projected to grow from $370.3 Million in 2018 to $6,228.2 Million by 2023, at a Compound Annual Growth Rate (CAGR) of 75.9% during the forecast period.
Elements of Blockchain Technology:
- Rewards and Loyalty Programs
- P2P Services
- International Payments
Check this article to see a list of the fintech software development company that offer top-quality services.
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Wrapping It Up
Software software development for Fintech has taken the finance industry by storm, and it is more of a necessity than a choice for many modern business organizations. The future of the banking and finance sector hangs primarily on technological and digital advancements, and the trends discussed above will play a massive part in the revolution. Therefore, partnering with a financial software development company is an excellent choice towards making your business operationally efficient and keeping it relevant.