2021: Year of Fintech Product Opportunities
It is no secret that the COVID-19 outbreak has boosted the acceptance of some of the fintech technology developments that are most exciting. Shifting to a digital-only format was essential for stability for some financial industry players. Founded financial firms are now going to compete with start-ups and adapting fintech applications, formerly hesitant to identification and analysis.
People seek to use more efficient ways to purchase products and services — digital-based and contactless.
- How does pandemic influence FinTech?
- Which transnational patterns do you look for?
- How do you differentiate the product?
- What are the market trends for other FinTech products, and how do RIA/FA software and analytics tools fit in?
- What tactics for user engagement will set you up for success?
The plan on creating is forcing FinTech firms and start-ups to keep moving and pivoting through these tough times.
The Fintech technology industry will rise by 2025 to $305 billion according to the Research And Markets survey. This is a 20% CAGR. With the COVID-19 crisis opening up doors to various growth opportunities, Fintech is currently one of the fastest-growing industries worldwide.
According to the latest Finch Capital app industry review,
- FinTechs have largely exited by historic acquisition rather than floating, which is unlikely to change. We are seeing FinTech clients like Stripe, Chime, and Shopify who have clearly had their eye on strategic investments accelerate those plans because the need for cash by smaller FinTechs leads to better terms being agreed upon; it is probably the disruptors who are going to be able to move more quickly than the incumbents to take advantage of this environment.
- Loss-making FinTechs like credit unions, Robinhood, OnDeck Capital, are all well-backed firms, gaining customers through a highly empathic and human message. They are highly dependent on a small group of core banking service providers, it is true, which limits their ability to differentiate from a product standpoint.
As we move into the post-crisis recovery, digitalisation, and trust with fintech start-ups are gradually the focus of the financial market’s leadership.
Top Fintech Trends for 2021
As we move into the post-crisis recovery, digitalisation, and trust with fintech start-ups are gradually the focus of the financial market’s leadership. We also studied and developed those Fintech developments for 2021 based on our insights and experience. Let’s figure out what it’s all about.
Open Banking
Open banking is a highly innovative technology that brings together FinTech and banking to enable the integration of data between entities. Directly linked to PSD 2 (Second Payment Services Directive), banks are expected to publish their data in an encrypted logical manner, so that information between approved entities can be more conveniently exchanged electronically. It helps third-party apps to track banking and other financial information for customers by exchanging data with API and AI.
Many players in the industry expect now that open banking will change the bank system as we know it. And without excuse, not without cause. It is estimated that open banking produced $7.29 billion in 2018, with an expectation of $43.15 billion in the coming 2026. FIs require fintech and Fintech needs Community banks and credit unions. And open banking alliances, arising from this demand, will offer consumers a fully seamless look at their financial accounts to be more management-friendly. The findings would enable smarter financial decision making, decreased debt, and increased long-term asset creation, helping banks, fintech employees, customers, API business numbers, and even under-served populations.
Even when opening banks is feasible, open banking creates certain open challenges such as information security and protection risks management. Yet expertise and coordination across organizations will help to prevent issues and connect customers with added-value services.
Artificial Intelligence & Machine Learning(AI/ML)
AI can be a push multiplier for banks and a leader for every industry in this area. We do not have real AI right now, but algorithms based on rules. Companies create machine learning that will allow the AI to learn these rules alone and which really would blur the difference between something based on a rule and something very much in line with how we think.
The risks and opportunities here are huge, but it makes sense for the time being to look at the technologies we currently have that seem exciting in itself. Chatbots and robo advisors are potentially best at the lower end of the market catering. But you need specific tools to search mountains of data and spot prototypes at the higher end. This would be really helpful for the mainstream because it is also something that is being used now.
Big Data
Big data and AI are interconnected strongly. Smart devices leave a digital legacy in the form of different data tabulating and sending fintech software for review. AI algorithms analyze these data to make useful insights into existing business prospects, user action, and product trends.
Blockchain and Cryptocurrencies
The base of Blockchain allows for cryptocurrency. Dream of cryptocurrency, such as the internet and cryptocurrencies, as a key technology. The future of cryptocurrency remains unsure, but the blockchain is something with several things in the area that I certainly see using.
Blockchain is just a safe way to record all types of transactional data and data. It can be used to do anything, including payments, land records to contract administration. It is very immune to attacks and external manipulation. But, to make it huge, blockchain needs the attention of big technology firms and banks to encourage growth, or at least to finance it.
The funds are actually getting crowded and as with all sectors, most projects have fallen apart and the ability of normal people to invest in ICOs has really fallen behind. That is why I think that specialist investment vehicles must be developed to invest in ventures that can handle properly and manage risk rather than just a website and a few YouTube videos.
RegTech
RegTech stands for the technology of control. The regulatory environment is expected to change by delivering heavily regulated financial sectors’ technical innovations. Regulatory monitoring is everything about this economic field which is why firms invest tremendous sums on it to stop spending any more whether or when an infringement occurs.
In fact, RegTech encourages businesses to use innovative technologies to automate the process of dealing with current rules and regulations. Regulatory reporting, transaction tracking, risk-making, and regulatory apps may classify all regtech solutions. With RegTech banks and other financial institutions, operating overheads will significantly be reduced, consumers cautious and everything financially secure. In addition, the technology is commended for the speed, agility, integrative capacity, and study.
The vast amounts of regulatory specifications are controlled practically through automation, powered by Big Data and Machine Learning. These advanced software solutions from RegTech are designed to analyze the trends contained in broad historical data pools and learn about them. This makes it easy to recognize issues or even to report scams.
Microservices
Microservice Technology is a way to build an application as an integrated service mix. One sure benefit of microservices, without altering the whole app framework, is that you can conveniently add a utility. Technology from Microservice boosts AI and blockchain and minimizes the building benefit of the Fintech application.
Fintech app ideas for fintech startups
If you think about launching a Fintech venture, it’s time. When post-crisis numeration picks up, early adopters of fintech app solutions are better placed than delays. No matter whether you are an existing finance business that is executing a digital change or a startup, here are some of the ideas for the 2021 Fintech start-up application.
Lending apps
The COVID-19 lockdown triggered a financial crisis that pushed many firms to seek quick funds to fulfill their needs. AI and Big Data analytics facilitate the lending process by reviewing user data, behavior, credit history, and shopping behaviors to show that a customer qualifies for the loan. Lending systems automate the process of loan assignment. Money with loan applications can come from banks or peer to peer loans (i.e. borrowing money from other individuals).
MoneyLion is a good example of a Fintech app for loans and deposits. The app also assists consumers in handling their personal finances, delivers positive feedback, and an increasing user base.
Electronic mortgage apps
The COVID 19 crisis had initially directly impacted the hypothecary market, necessary for people to secure a mortgage. As the world started to grow from the crises, the mortgage exchange rates went up and freshly created e-mortgage apps reduced the application process for the mortgage. E-mortgage applications are now contactless since the COVId-19 outbreaks are likely to become a new reality.
Better.com, an app to buy properties and recalculate new mortgages are among the best hypothecary applications for 2020. FairwayNow, which aims to receive home loans from the government, is another case of an outstanding app in this category.
Insurtech apps
Due to the global pandemic, new fintech applications based on reasonable insurers are on the increase. Insurtech apps gather, store, and process user data using AI and data science, define the risks involved, and facilitate the process of insurance underwriting. Insurers can speed up market processes and increase the Efficiency of their User experience by using Fintech app solutions.
The apps in this section target several insurance sectors. For example, myCigna is an app that Cigna, a major health insurance provider, has given to ensure customers claim health insurance and monitor healthcare costs. Allstate Mobile is an insurance platform that allows users to apply instantly for insurance claims and provides a wealth of other features that are beneficial to car owners.
Mobile banking apps
Today, clients are turning to digital banking to reach banking facilities rapidly and conveniently. The need to manage the gap between them has allowed them the right decision during the crises, and huge market demand has laid the stage for the age of internet banks only, like Ally Bank. The well-known mobile banking applications have also been created by commercial banks such as Wells Fargo, Bank of America, and Huntington Bank and engage with beginners.
Users typically have digital access by a Fintech banking app to transactions like close and open accounts, cash deposits, internet transactions, credit card orders, etc. It also includes AI chatbots for quick consulting and financial counseling.
Personal finance apps
Managing personal budgets, not to mention saving and spending, remains a major issue today. We have not been financially eligible and financial planning seems to be some of the best start-up concepts of Fintech. Robo-advisers today are getting more popular with support for investment, retirement, and savings.
Applications such as Mint offer the financial perspective of companies, including deposits, credit card balances, and savings.
Peer-2-Peer payment apps
If you’re searching for fresh fintech innovations, you might want to explore peer-to-peer payment applications. These applications are designed to move money between people: between friends and family, for example. The money is moved to the digital wallet of the beneficiary from the user’s account. Today, peer-to-peer payment applications have been connected to banks, digital wallets, or decentralized payment platforms such as PayPal.
Take a closer look at Venmo and Zelle if you are curious about developing Fintech applications for paying P2P. Zelle also partners with selected online stores when distributing funds to friends and relatives.
Trading and investment apps
Stock apps and investing of assets are some of the hottest topics in Fintech apps today. A fusion of blockchain, IA, and machine learning is used for trading and investing applications in order to enhance economic growth significantly. Algorithmic trading reduces human error and emotional effects to make informed, data-based decisions respond to shifting market dynamics spontaneously and helps traders to operate on many accounts separately.
AI and data analytics help consumers gain fast insights and make better choices on capital earnings. Many trading and finance applications, like robo consultants, help users learn about investing and exchange.
Robinhood is one of the fast winning trading apps on the US market. The app is expected to cost over $7.5 billion in investment and stock trade.
Crowdfunding apps
Think about developing a startup for other entrepreneurs while you are dreaming up fintech ideas. Crowdfunding tools help budding business owners collect funds for projects. They also provide crucial proof-of-concept resources to them: they will easily see if investors are interested in adding their business project on a crowdfunding site. Obviously, in this application segment, Fundraising has a wide range of customers and can be an enormous part of a top-class crowdfunding software.
There are, still, some niches that provide their apps for crowdfunding: For example, Patreon allows innovative professionals to crowdfund content while Causes were targeted at non-profit projects and initiatives.
Regtech apps
Alternatively, you can develop an application to help firms meet with policies and laws and avoid complications with regulatory problems. Regtech applications have been designed for the monitoring of new laws, the analysis of attacks, the implementation of safety tests, and the conversion of specifications into specific actions to deter fines.
Cappitech is an Israeli Fintech company that automates regulatory reporting and submission. Regtech applications also help organizations keep an eye on the security of their records. Dathena, a Singapore-based fintech firm, provides businesses a variety of tools to simplify safety policy enforcement and data protection.
Digital payment apps
You should also pursue taping the wireless payment niche. This segment is already a little crowded, but strong demand exists for simple and easy money transfers. In this group, there are mobile wallets, digital currency, money transfer apps from buyer to seller, and multinational money transfers.
For example, Revolut would allow you to pay money to most nations, including cryptocurrencies, in more than 150 currencies.
Conclusion
The development of the financial services market is growing. In reaction to customers’ demand, the FinTech developments that we discussed above emerged. Evidently, they help users implement better services that allow increased access to financial records, enhanced compliance, faster processing of transactions, safe identification, and better customer lifecycle support.
The revolution in FinTech is fast increasing. To stop being left behind, listen to your clients, win their confidence by delivering transparent and smooth experiences, value them and their privacy, see business developments, and still decide to invest in technology that is in line with what consumers want.
If you’re thinking about how to create a fintech app, contact us now and our experts at Savvient Technologies will give you a free consultation. From writing an app specification to overall technical and marketing support, our team will guide you through every step of the app development process.
About Us:
Savvient Technologies is headquartered in Australia, focusing on providing solutions via Custom Application Development, Product Engineering, Enterprise Solutions, Business Intelligence, and Analytics along with Quality and Testing Services. and if you’re searching for your successful software development service, contact us or email at hello@savvient.com.au now.
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