With recession looming around the corner and funding drying up, investors and entrepreneurs are bracing themselves for the worst. In these unpredictable times, it is completely understandable if there is a lack of trust and opportunities in the business world.
However,
we must keep in mind that establishing a business is a marathon and not a
sprint. For long-term stability, it is crucial we look in the right direction
regarding the industry to invest in. And the one that stands out is the Fintech
industry. Although a lot has already been achieved, there is still a long way
to go.
Fintech
payment solutions and other services have changed the way people look at their
finances now. According to Daniel Harman, Co-founder of Dark Square Capital,
“people want more control over their finances.” With more inclusion
and awareness, we are witnessing a change in the risk averse approach of
people. They are willing to take risks and are now demanding better services
and transparency.
With the
integration of advanced technologies, the banking sector is in a fine shape to
fulfill every financial desire of people. In fact, we believe that offering Fintech
app development services in specific niches like investing, trading,
insurance, etc., will have the most to gain from these technological changes.
But what
are the technologies that are shaping the future of Fintech? What is making Fintech
the most lucrative industry to invest for long-term?
These are some questions that we will answer in this blog.
Artificial Intelligence to the Rescue
Artificial Intelligence is a word that gets thrown around a
lot. And for good measure. If used properly, it can solve business problems
with custom fintech software development and offer solutions at such a
level that it can disrupt an entire industry. We have witnessed this with the
digitization of financial services.
·
Better Utilization of Customer Data
Earlier, financial institutions were using AI in a scattered
manner, focusing only on particular use cases. However, leaders in the banking
sector are transforming their businesses by systematically integrating AI into
every stage of their digital operations. Another fact that has made a
difference is realizing that quality data is important to make efficient
algorithms.
That has led organizations to utilize customer behaviour data
properly with financial software development to gain a competitive advantage. This has created a rather
unique collaboration of financial services providers with non-financial players
to offer an unrealistically smooth customer experience that wouldn't have been
possible before.
·
Better Data Analysis
With high-quality data, the result of data analysis will also
improve the service of customer-facing applications. Personalized user
experience, tailored products, and intelligent chatbots are just the
tip of the ice-berg. There is much more that AI can do in the backend that will
help you identify what is best for your customer.
Hyper Automation for Better Accuracy
Hyper automation is taking over a lot of tasks in almost
every industry. Replacing manual labor with automation to perform repetitive
tasks has reduced cost and time and improved accuracy. The Fintech industry is
also witnessing the same trend. Rajat Agarwal, Chief Credit Officer at Cleo
believes that the future of fintech will make financial services “affordable
and accessible to the majority of people by leveraging technologies” and RPA
has the ability to do that.
RPA, which comes under hyper automation along with AI, deep
learning, etc., is already a key part of digital transformation, making it
simple for businesses to utilize software robots like chatbots. However,
companies are now expanding the scope of RPA in Fintech application
development in the USA. They are now using RPA to assign the management of
workflow data and business interactions to robots, automating and standardizing
business execution.
·
RPA + AI
High repeatability, clear logic, and solid stability make RPA an inseparable part of the Fintech ecosystem.
Future RPA will integrate AI more thoroughly, enhancing its ability to handle
more complex business scenarios and streamlining the delivery of financial
services. This will turn out to be revolutionary for not just Fintech, but for
every industry.
· Automating Financial Processes
Most financial institutions are already using RPA to automate
financial processes and accounting tasks with financial industry software
development. Some other areas where RPA is being used are-
·
Process automation for payables and receivables
·
Fund appropriation at shared finance and
accounting service centers
·
Work hour adjustment and review
·
Automation of financial recording, reporting,
and treasury processes
·
Period-end accounting and settlement
Automation boosts productivity while lowering human error and
enabling companies to adjust to demand fluctuations. Although RPA is already
well-established among major financial players, industry experts anticipate
that it will spread more widely throughout the sector. For this, you can hire
fintech software developers to integrate RPA and AI and boost productivity.
Cloud Computing Takes Care of Mountains of Data
With the increase in the use of fintech services, the data generated is also increasing at an exponential rate. It would have been a monumental task to keep track of this data and organise it properly if cloud computing wasn’t there.
Cloud has helped shape critical trends and will continue to
do so in the future to drive Fintech growth with custom fintech app
development.
· Data Aggregation
Organizations can store data like details about account
balances, spending patterns, budgets, and cash flow securely on the cloud. That
will enable every financial software development company to gather data
from banking databases appropriately for processing. This data's accessibility
and confidentiality are both very beneficial to users as well as
financial institutions.
·
Security
Security is a top priority whenever any financial information
is involved. Therefore, cloud computing's strength and security allow fintech
leaders to focus on their business knowing their data is secure. Unlike
traditional IT systems that are vulnerable to cyberattacks, cloud computing offers
excellent resistance with the help of its security architecture.
·
Self Service Application
The ability of the user to manage a bank account easily with
an app without any intervention from a third-party has given them a sense of
control. With this control came the freedom to manage their finances where they
can make transactions, access financial information, and build a budget on
their own.
Cloud computing has enabled Fintech companies to build their
own apps and not rely on IT infrastructure and data centres while making
flexible storage and computing services more affordable. Fintech software developers are having a ball maintaining these applications with the
help of cloud computing.
In addition, the cloud is giving rise to fresh formats like
open banking and banking-as-a-service, upending the traditional partnership
between clients and financial service providers.
What
is Open Banking?
The concept of open banking talks about financial
institutions publishing services and information through APIs. Customers will
be able to access their personal information with the help of these APIs. Also,
they will have the option to decide whether or not to give third-party
companies access to the data.
What
is Banking-as-a-Service?
BaaS is a comprehensive service that enables fintech firms
and other third-party organizations to use APIs to connect with a bank's
system. This facilitates open banking services while assisting organizations in
constructing new financial services on top of the regulated infrastructure of
the provider bank.
Do You Want to Build a Future-Ready Fintech Solution?
Narola Infotech is a Fintech software development company with over 17 years of experience. Our Clutch rating of 4.9/5 is proof that our clients trust us and are satisfied with our delivery. If you want to work with a dedicated and expert group of people, feel free to contact us at any time.
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