With the outbreak of COVID-19 like most of the other industries, the bank branches were also forced to shut down. But as you know financial sectors, as well as the banking sectors, are the emergency service providers so, the bank branches couldn’t close down all their services. It triggered the need for the financial sector to adopt a digital financial system to continue their services to the customers with the help of Fintech Software Development. As you know, though COVID-19 regulations are easing now in most of the countries and banks are already reopened, still, customers are now becoming comfortable with the new-normal situation. As a result, you can now experience ever-expanding integrations between fintech and digital technology. It mainly focuses on automating and improving the use and provision of services to the fintech software companies along with the consumers.
So, if you run a fintech company, you must follow The fintech development trends to see how your business can be flourished from the top sectors of fintech development over the next few years.
Look at the Top Fintech Development Sectors:
Thanks to the combination of finance and technology that makes the lives of the people smoother than ever. Moreover, the development process will keep going with new ideas.
Now, look at the top 10 fintech software development sectors that can help you to grow your financial business and can help for your next project.
1. Payment & Billing Software: According to a recent study, digital payment is the largest fintech sector with its huge transaction value that amounts to US$2,672,420m in 2017, and the number is growing day by day. It combines two major sectors: Mobile Payments & B2B payments.
- Mobile Payments: Nowadays, more and more people are using mobile payments instead of using their credit cards. It became possible with the introduction of mobile wallets and contactless payments with Apple Pay, Android Pay, Samsung Pay, Google Wallet to name a few.
- B2B payments: The value of B2B cross-border is also not few in numbers; it has crossed $159 trillion by leveraging the latest technologies and effective tech solutions for overcoming its challenges such as accuracy, flexibility and security.
2. Money Transfer/ Remittance: Fintech has completely transformed the way people perform their banking transactions such as sending or receiving money. There are several remittance companies such as Transferwise, WorldRemit, TransferGo that make it possible by leveraging Blockchain, NFC, Face and Voice biometrics and several other innovative technologies. These companies work uniquely.
For instance, users of Worldremit can send money to more than 110 countries and recipients can get the money through several platforms such as bank deposits, mobile money, and delivery in the most secure manner.
3. Digital Banks: Statista shows that a large number of people, especially the adult population, bank digitally. It is because digital banking enables the users to perform most of the banking operations through the digital platform.
For instance, Atom Bank is a digital-only bank that offers face and voice biometrics, chatbots and AI tech. Another important reason for its popularity is that it is a cost-effective banking model.
4. P2P Lending Platforms: P2P lending is one of the key sectors of fintech. It can enable the fintech business owners to automate and stimulate several functions such as loan procesing, reducing cost, offering user-friendly solutions to the users.
Thus, it engages new audiences, employs intelligent algorithms, uses automation technology, ensures a smooth journey towards faster approval. For instance, RateSetter is a leading peer-to-peer lending service with a wide range of users, especially in the UK.
5. Crowdfunding: The popularity of Crowdfunding is growing day-by-day all across the world, especially in the US and UK. It aims to increase money for a business no matter existing or new through the collective effort of many people. But make sure you have access to the Internet and hire the best Fintech Software Development Company while using and accessing Crowdfunding.
Some examples of Crowdfunding platforms are Kickstarter, Indiegogo and Seedrs etc.
6. Personal Finance Management: It provides one-stop-solution for the users to help them handle several tasks such as finances, income, and expenditures. Along with entailing categorization, data visualizations and spending trends, several PFM Fintech companies may access the bank account, open banking API and some other data of the users.
For instance, Robo-Advisor, recently the largest PFM sector, can be considered as a new type of investment advisory service that is automated and based on specific algorithms. Some other leading PFM fintech companies are CompareAsiaGroup, CreditKarma, Nutmeg, Yodlee etc.
7. Insurtech Apps: The primary digital solutions leveraged by Insurtech are Data Science, mobile solutions and IoT along with several other digital solutions. There is no denying the fact that with the help of the Insurtech financial app, the field has grown remarkably especially due to the use of mobility solutions, IoT, and business intelligence. Most importantly, it allows the insurers to manage risks effectively and boost ROI.
Some notable Insurtech solutions are BIMA, Metromile which are improving rapidly and effectively with the help of so many insurance companies.
It works as an effective tool that eliminates the need of the customers to visit an agent physically. It is because the insurance app is such a channel that it reaches the customers.
8. Trading & Investment App: It is such as a mobile or progressive web app, users that allow the users to buy, sell, hold stocks, shares, forex, cryptocurrency, funds and check their valuation.
Addepar and Hedgeable are the two leading Trading and Investment platforms.
9. Blockchain-Based Apps: The blockchain market is also growing at a rapid speed. A recent study shows that the Blockchain market has grown at a CAGR of 55.59% between 2017 to 2022. The stroking features of Blockchain are decentralization, the immutability of records and fault tolerance of the system that makes the Blockchain continue to bloom.
Many companies including global retail and commercial banks are now implementing Blockchain technology for international payments with high security. So, if you run a financial sector, make sure you hire the best Banking Software Development Company that can help you to integrate Blockchain-based apps.
10. Regtech App: It is mainly used for solving regulatory challenges and problems of several innovative technologies such as big data, cloud computing, machine learning etc. It is improving day-by-day in several specific areas such as risk in data collection, monitoring the payment integrations, identifying the clients, finding out new regulations and many more.
The Bottom Line:
Unlike the years before, now fintech service is not only limited to the desktop or laptop. Rather it has now expanded on the smartphones. It has become possible only through the innovations of the Fintech Software Development Company that introduces a wide range of applications. that are continuously updating and growing with technical advances. Now people all across the world can explore and take advantage of the largest Fintech Software Development sectors.