FinTech is the combination of Finance and Technology. As the name suggests, it is the process of embedding the technology in the Finance operations to optimize the process and workflow. The different types of technology that Finance business owners can leverage in the apps are mobile devices, internet, cloud services, Blockchain, etc.
With technological advancements, people demand more flexible apps that can provide easy and fast solutions to their problems.
As per Statista, Fintech revenues worldwide are expected to reach a value of 188 billion euros by 2024, projecting an increased growth rate of 12% from 2018. The rising popularity of FinTech apps is enough to showcase how people are widely using these apps.
Now, the question is, what benefits do Fintech apps provide that are transforming the Finance industry?
Continue reading to find out.
1. Blockchain in FinTech
Needless to say, Blockchain technology is on the rise; it is extending its use cases to various sectors, including FinTech. With the help of this technology, professional FinTech app development companies are developing highly secured and transparent apps.
Since the Blockchain ledger does not allow transactions to be deleted or altered, it results in enhanced traceability and transparency in trading.
2. Automation in Loan Process
Applying for a loan is a complex and time-consuming process in the traditional procedure. With the evidence of FinTech apps, the loan can now be done right from the mobile phones, and that too with proper security and authentication.
Smart contracts in the loans have automated the whole process, including analyzing the loan documents, loan policy, etc. This practice usually takes place in Blockchains.
3. Vast Trading Opportunities
The Fintech industry is rapidly moving towards various business sectors, including banking, insurance, trading, investment, funding, etc. Digital wallets made online transactions much more manageable with internet access.
FinTech apps have provided unique types of trading opportunities as well. For instance, Fintech business owners can leverage NFT marketplace development. Many experts believe that NFTs can become a suitable medium for trading.
4. Builds Trustworthy and Secure Applications
As digitalization increases, online security attacks and data theft is increasing. Therefore, it is necessary to provide robust security in your apps. Especially with sensitive apps like FinTech, it is essential to have reliable and secure apps where users do not worry about security measures.
FinTech apps provide two-factor authentication to secure user accounts. Also, Blockchain technology implementation in the FinTech apps enhances security with improved traceability and transparent transactions.
5. Data Tracking and Analysis
Finance systems deal with a lot of data; therefore, it is necessary to provide a smooth workflow of the services. Users of FinTech apps should be able to monitor and evaluate their financial transactions. Also, they should adequately receive information regarding their transaction history and financial activities.
Moreover, FinTech apps improve the user’s online experience by providing a visual representation of the relevant information on the dashboard.
As we have seen the multiple use cases of FinTech applications in various industries, we can predict that FinTech has the potential to transform the finance industry. So, if you also want to invest in the FinTech industry, hire a FinTech app development company to develop a full-fledged FinTech app.