Fintech Software Development: Industry Trends
The field of software development that is currently most in demand is financial technology, or fintech. Pretty much everyone interacts with finances and transactions on a daily basis, and inventive minds can think of many ways to make those interactions better. Like many other types of solutions in the modern world, solutions to people’s financial requirements can be delivered through software.
An overview of current trends in fintech is shown below, which shows how varied and full of opportunities the industry is. The overview can serve as a source of motivation for anyone considering a fintech investment or starting a fintech-related company.
However, the most crucial step is to start. You can develop a fintech app with the right fintech software development services that will help your business remain competitive in a rapidly evolving field.
Let’s dig a little deeper into the financial technology industry and examine the trends that are now affecting how software is developed.
Use machine learning and AI
According to Autonomous Research, artificial intelligence will help the banking and finance sectors cut costs by 22% by 2023. How? Nothing is complicated.
Platforms supported by AI and machine learning prevent businesses from engaging in illegal account access. In addition, both systems support the analysis of large data sets to solve problems and reach sound conclusions.
FinTech apps that use biometrics
When using biometric identification for online payments, facial recognition and fingerprint verification are most appropriate.
About 1 billion smartphones will have some form of face unlock in the next few years, as Counterpoint predicted in their whitepaper. Face recognition and fingerprint verification, originally used to unlock phones, are now commonly used to access mobile apps and make personal NFC payments using mobile devices.
Biometrics give consumers full control over their finances and personal information and are challenging to forge. In addition, compared to other ways, it is the least expensive and has high accuracy.
Implement blockchain
Transparency and information security are the key principles of the blockchain. Based on a distributed database, each participant can contribute a new record, but cannot change previous blocks of data. It promotes trusted connections between customers and service providers.
Access to big data
It is believed that quintillions of bits of data are collected every day from millions of devices. Fintech firms use Big Data to extract information from the raw data. It facilitates the formulation of successful marketing strategies and business development prospects by providing analytical information on consumer behavior.
P2P (Peer-to-Peer) loans
Credit unions, microloans, marketplace lending and P2P (peer-to-peer) lending are the most popular types of alternative financing.
Three parties are involved in P2P lending, a special type of alternative lending technology, including a borrower, an investor and an online third-party platform. The basis of the interaction is provided by the third-party platform. As a result, the investor can lend money to the borrower without a bank’s involvement. Since peer-to-peer lending platforms do not own the loans themselves, they are cheaper and provide better value.
Buy now, pay later (BNPL)
Buy now, pay later (BNPL) is another type of short-term financing that allows for future payment for goods or services. This often works without interest, making it a well-liked type of financing. Customers who use installment loans make a down payment on an item and then pay the remaining balance later.
The BNPL industry is expected to flourish and major international companies are already embracing this fintech trend.
New developments that are meant to meet increasing customer demands come up every year. To be relevant and competitive, it is crucial for business owners and managers to understand where financial technology is today and where it is going.
