The Important Finance Industries Disrupted by the Fintech App Development
- by Mehul Rajput
- 9 minutes read
- 21.2k Views
Fintech is the acronym for Financial Technology. This means that when the financial services juxtaposed with the technology, it led to the emergence of a new innovative solution known as the Fintech.
We can say it with firm assurance that the evolution of fintech has brought a revolution in the financial industry influencing every domain including the banking services, the mobile wallet, stock trading and equity funds, the insurance sector, and the Blockchain technology etc.
Now, talking about the total value of global Fintech investments, the investment value increased up to $210.1 billion in 2021.
So, let’s discuss the crucial areas or segments of fintech services where investing can become profitable.
1. Mobile Banking Apps
The banking system has almost gone digital slowly after the computerization process. With Smartphones and devices perking up, most the banks have already started offering their personalized apps, where entire services can be availed at a single destination.
Customers are no longer required to visit their bank branches and waste time in cash deposition or withdrawal, availing bank loans, and so on.
A report by Gartner states that 25% of the 50 global banks have native mobile banking facilities. Moreover, according to research, the number of online and mobile banking users will expected to reach 2.5 billion worldwide by 2024.
Therefore, banking services are one profitable zone that should propel the start-ups and small businesses to develop a fintech app. It has been further found that mobile banking apps are growing at a faster pace than conventional banking.
Read also: How to Develop a Secure Mobile Banking App?
2. P2P Lending Apps
People usually borrow money from banks but at the same time, there are many who avail loans from other person such as relatives, friends, or moneylenders. This is the specific condition when the role of P2P lending apps would come into play. They can offer or receive the loan amount upfront without going to any bank.
The P2P loans are gathering the spotlight with increasing popularity. Here, usually the loan amount is not large and so the borrower does not require any guarantor for issue of funds. And the creditor and borrower they agree upon certain terms and conditions. The rate of interest is also minimal and so such major formality or paperwork is needed.
3. Mobile Payment Apps
We all know that mobile wallet apps like Paytm or PhonePe has received overwhelming response from the audiences. This is another lucrative sector for the fintech apps.
These apps offer a plethora of services such as mobile and DTH recharging, payment for electricity or phone bills, booking railway, flight, or bus tickets, and many more. You just have to create your account using a registered mobile number and then link your wallet with your bank account to add money.
It also serves as a fastest medium of P2P payments where one individual can send money to another just by adding his mobile number or scanning the QR code. What’s interesting is you can even pay bills for small grocery items, fruit, vegetables, and other day-to-day products.
Other worthy examples are that be of PayPal, Stripe, or Braintree. They have their own payment processing method and usually they don’t need any bank or financial institution for setting any link. The user directly receives the money in his account and he can spend or withdraw it as per his needs.
There are some P2P apps that allow you to make payments using the banks. Today most of the key banks have their own apps, but they still provide the facility for P2P payments for transfer of money. We can cite the example of Dwolla.
With the passage of time, the social media platforms have also penetrated into the arena of P2P payment apps. Taking this journey forward, social media giant, Facebook started the messenger payment feature and we saw the birth of Samsung Pay, Android Pay, and SnapCash etc. As far as the risks concerning elements are concerned, companies have tried to initiate fingerprint or iris scan, Blockchain encryption and etc.
4. Loan Apps Boosting the Fintech Industry
There are a few loan apps as well that are specifically developed to simplify the process of availing personal loans.
The LendUp can be presented as a very good example. It is a web and mobile-based application allowing the Americans to apply for short-term loans all round the clock. The app can make spontaneous decisions and the users benefit by earning extra points through LendUp Ladder program. The more points you earn, the more chances you get to avail the loans.
Sofi is yet another app that offers personal, mortgage, or educational loans as well other financial aid online. The rates are fixed based on the user’s educational qualifications, work experience, income, and expenditure etc. These personal finance apps are playing an important role in promoting the fintech industry.
5. InsurTech Apps
The insurance and the fintech app development are expected to blossom side by side. The global InsurTech market size was valued at $3.85 billion in 2021 and is expected to expand at a CAGR of 51.7% from 2022 to 2030.
In addition, the other futuristic technologies such as Internet of Things, Artificial Intelligence, and Machine Learning etc. have played a crucial role in data gathering and offer personalized services. Examples of this category include BIMA and Metromile. It has eliminated the risk factors and users also don’t need to get in touch with the insurance agents.
6. Wealth Management Apps
There is also a strong nexus between the wealth management apps and the fintech apps. People want to invest and manage their money online smartly and so you have Wealthfront as a venerable example that helps in managing the finances and preparing an investment strategy.
It acts as your digital financial adviser. You need to choose an account type according to your needs. Betterment is another app that focuses also on offering solutions on retirement plans, IRAs, and tax consultation etc. apart from common services.
7. Stock Trading and Investment Apps
A lot of people do invest their money in the stock market to purchase the share of various companies. Previously, when using the conventional way, they had to largely depend on the share brokers and also open a separate account for conducting the day-to-day trading.
RobinHood is a good illustration to put forth as it simplifies the process of stock trading. There is no such minimum investment, no maintenance cost, no commissions and you can also have an access to your deposits. The stock trading apps are proving boon for the fintech solutions sector.
8. Money Transfer Apps
There was a time when sending money abroad was a hectic task but not now. With amazing and unique apps such as Ripple and Transferwise, you can do that work in just a few seconds.
The apps have advanced features such as the Blockchain technology, the NFC, face, and voice biometrics etc. to send your money in the most secured manner. Transferwise is cheaper and peer-to-peer payment system.
9. The Blockchain Based Apps
Ever since the cryptocurrencies have arrived on the board, the Blockchain technology has been surging to the upper heights. According to an estimate, the Blockchain market is predicted to grow at a CAGR of 85.9% from 2022 to 2030.
It is based on the decentralized ledger distribution that records the transactions between the two parties. The Blockchain has influenced a number of industries including the healthcare, insurance, real estate, capital markets, peer-to peer payments, and so on.
So how can the fintech industry remain untouched? It’s for sure that it would disrupt it to a great extent. In fact, many in many countries, even the banks have started to deal in the cryptocurrencies. We can name Santander, a global and commercial bank as an illustration.
10. Regtech Apps
The Regtech apps are particularly designed to address concerns related to future technologies. It may include data gathering, cloud computing, machine learning, artificial intelligence, and much more etc.
It minimizes the risks in data security, monitoring, secures the transactions etc. As far as the examples are concerned, Trunomi only gather the data after taking the consent of the user.
The finance industry is going through a transition period after fintech apps have got an in-depth penetration into the different sectors. The fintech solution companies are taking the leverage in creating technologically upgraded apps, which focus on banking, insurance, stock trading, Blockchain, and others taking the business and investment to another level.
The customers are getting comprehensive benefits of the future aided technology and they are transferring the money and doing transactions with much ease and without any doubts in mind.
Do you need a fintech app that helps to skyrocket your business prospects? Well, we are here to help you out. Come and reach us today!