For years, one of the biggest beneficiaries of advancement in technology has been the finance sector. From the computerisation of banks to the Automated Teller Machine (ATM) to online banking and mobile banking to digital payment apps to finance and banking software solutions, the whole sector has come a long way boasting the hi-tech evolution at a continuous pace. With the increasing pace of technological evolution in the finance sector, smarter solutions also became a big competitive factor as well.
Hi-tech innovation in the finance sector has come with a tremendously disruptive effect. Many top brass executives in the finance sector feel that the emergence of new technologies and smart as well as agile applications can only favour the tech-driven companies in the competition.
In this post, we are going to explain the key ways tech innovation is taking place in the finance sector and making way for smarter applications.
The entire business world and the individuals subscribing and using the financial services and products day in and day out are increasingly finding these smart applications and innovative methods irreplaceable for great user experience. Let us explain here briefly some areas of finance sector where the hi-tech innovation and automation had the maximum impact.
For any enterprise embracing smarter finance solutions to take care of most transactions and payment processing in an effortless manner, has become popular as such solutions boost the operational efficiency besides saving cost and effort.
Just consider how much trouble enterprises used to deal with when depositing outstation cheques or giving payment through cheques or bank drafts. Today, payment is carried out instantly through a single tap on the mobile screen. Customer payment now can be processed through multiple digital wallets, instant pay options or Point of Sale apps. Processing employee payroll also has become easier than ever before.
The role of Fintech has been really great in faster processing of payments and securing faster and smooth delivery of goods in a convenient manner. First of all, for making payment customers gave an array of options and gateways including loyalty points, digital wallets, instant banking apps, cryptocurrencies and digital money and many others. Such a wide variety of payment options, gateways and channels built by finance App Development companies ensure great customer experience for businesses across niches.
Earlier evaluating the creditworthiness of a person used to be evaluated with some simple and straightforward parameters. A simple credit score based upon some stringent considerations worked as the guiding line for most financial institutions when disbursing loans and credits.
In contrast to this, the modern credit scoring check up method having the boost of artificial intelligence (AI) and Machine Learning (ML) now can evaluate the creditworthiness of any person with more precision by taking into a wide variety of factors and by continuously learning about the person over time. This reduces the risk associated with financial credits while can make credit available to a greater number of people.
With the Fintech solutions in place, financial advisory services have become smarter than ever before. As the financial services continue to become more competitive than ever before with increasing pressure on the commission rate, showcasing and promoting products to customers with a highly personalised approach has become more necessary than ever before. Smart and intelligent financial advisory services equipped with artificial intelligence and data-driven analytics actually helped financial organisations tremendously for recommending products.
Another major area where Fintech solutions made a massive impact on banks and financial organisations is fraud detection and control. Thanks to Machine Learning and artificial intelligence technologies today’s financial service apps can continuously update themselves about the new security vulnerabilities and threat perceptions. By remaining updated on frauds and new security threats today’s Fintech solutions safeguard transactions and financial data better than ever before.
Now that we have discussed some of the crucial Fintech applications and methods that helped businesses and the improved customer experience in unprecedented ways, it is time to explain the key advantages of hi-tech innovations and automation that revolutionised the finance industry.
Now you can make all your investments through simple interactions right on your mobile screen. Whether you want to invest in banking products like recurring or fixed deposit or want to go for mutual funds or want to buy stocks, all of these can be done just through a wide variety of Fintech apps.
Thanks to Fintech apps you can instantly access all your bank accounts, other financial accounts, transactions and updates in real time. Mobile banking apps, third-party digital wallets and fintech apps for investment and finance are allowing you to transact and do banking from anywhere and everywhere.
Fintech apps powered by robust social communities can continuously validate their solutions through credible social proofs. You can always build the trustworthiness of your financial products through real-time social communications and opinions from the connected audience. Any Android Development Company working on ecommerce solutions knows the importance of integrating reputed payment channels validated by users. On the other hand, users can remain free of concerns thanks to such integrated social validation.
Thanks to Fintech solutions there is a huge increase in the competition and this is creating a more level playing field for the entire financial sector. The Fintech solutions are also pushing for cheaper rates and more value for money for customers. As access to information became instantaneous, the buyers and subscribers are now more well-informed and are in a better bargaining position than ever before.
For most finance companies and banks that embraced Fintech solutions for their customer service and operations, inefficiency could be curbed to a great extent. As Fintech apps are pushing for more self-service based solutions, driving automation became easier than ever before. This, in turn, is helping financial companies and banks to curb manpower and cost.
Fintech apps are now smarter enough to allow a lot of customisation options in all aspects. From personalised recommendations of financial products and solutions to customising menu options based upon previous user activities, customisation in Fintech apps are pushing for greater user engagement and business conversion.
Thanks to Fintech apps, financial transactions have become more transparent and trustworthy than ever before. The transparency in the financial sector is a key aspect to ensure trustworthiness and reliability. With detailed and transparent information about charges, interests and billing components, the customers can have more piece of mind and financial institutions can enjoy more reliability.
Over the past several years, an overwhelming number of fintech startups with innovative ideas have emerged. These companies are inspiring many other companies to brainstorm ideas that can push automation for the finance sector with more force. Let us see a few examples of such promising fintech startups.
Fintech apps are already everywhere and they penetrated across all business niches and categories. They are gradually on the rise to replace conventional transactions, payment processing and banking tasks with smarter solutions. There is no wonder that a vast majority of apps downloaded across both the Google and Apple stores, are characteristically finance apps. Naturally, the future seems all bright for the Fintech apps.
Apart from the increasing integration of Fintech across business apps and websites, we can expect an increasing number of smart finance apps to penetrate the hi-tech wearable space. For financial and banking industry, Fintech apps will be the key mover for future growth.
WRITTEN BY: Atman Rathod
Atman Rathod is the Founding Director at CMARIX Technolabs Pvt. Ltd., a leading web and mobile app development company with 17+ years of experience. Having…
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