Much of the modern-day industrial world has never seen anything like the coronavirus outbreak before. While industrial grapple with its devastating effects, digital banking and fintech is seeing consistent growth. Many industry experts believe these are remarkable times for the financial services industry in terms of technological evolution. For example, trends like finance app development are already surging across countries.
Ramped-up Digitization in Banking and Finance
One of the greatest driving factors in this rapid growth across various areas of fintech is changing consumer behavior. Suddenly, after the virus outbreak, customers are more enthusiastic about using digital solutions for banking and financial services.
Such shifts in consumer behavior have created great opportunities for banks and financial services institutions to engage with customers. Banks are scaling up areas like banking app development to address rising digital needs. Financial services institutes have become more tech-dependent than ever.
However, the change in consumer behavior also brings some formidable risks to the traditional financial services industry. A growing number of small and medium enterprises are showing a willingness to bank with new fintech players like Google, Amazon, and Paytm (in India).
The rise of technology-based financial services, therefore, also demands an increased level of engagement with customers. Rapid advances in banking software services and related areas make this easier for bankers and finance professionals.
The Rise and Rise of the Cashless Economy
In its early COVID-19 safety guidelines, the W.H.O. warned that banknotes could be the potential mediums of infection. The organization encouraged people to use contactless payment options instead of using cash. The world eventually switched to digital payment options. The major driving factor, however, was not W.H.O. guidelines but the shutdown of physical marketplaces.
A significant number of people today understand the risks of contracting the virus associated with traditional cash transactions. This awareness, too, has played an important role in driving this trend of cashless payments. Countries like India have long vouched for a cashless economy. The coronavirus outbreak is adding fuel to that global effort. Fintech businesses are using this as an opportunity by scaling up areas like fintech app development.
The Impact of Increasing Online Shopping
As market shutdowns force more people to shop online, digital payment options are used widely for all kinds of online transactions. Digital payment platforms like Amazon Pay, Google Pay, and PayPal have seen an unprecedented rise in demands during this pandemic. This also increases the pressure on other fintech companies. Customer experience is more important than ever. Many companies are closely looking at their finance app development strategies to ensure seamless user experience.
And its not just about user experience. With most financial transactions happening digitally, fraudsters will be looking for opportunities. Phishing attacks could potentially become more common. Businesses, therefore, need to make sure that they ensure complete fraud protection in all transactions.
Fintech Solutions for Cashflow Management
Most businesses today are reeling under an unprecedented financial crisis. The most devastating financial impact of the pandemic a staggering decline in cash flow. With limited cash flow happening across all industries, every transaction will be monitored closely. Hence if you are choosing a new banking app development service, or reviewing the existing one, prioritize transparency and compliance.
The use of efficient fintech solutions creates immense scopes for a controlled financial infrastructure. It gives you features like expenditure forecasting, data analytics dashboards, and insights into consumer behavior, among other things. These benefits are already prompting businesses to choose services like finance app development as part of their digital transformation. These trends will only grow over the coming weeks and months.
Most analysts agree that consumer behavior and usage trends will change further during and after the pandemic. Many of these shifts are likely to help the fintech industry. However, there are potential risks and growing scrutiny. So, every business and fintech company needs to plan its services and expansion plans. Traditional banks and financial institutes need to look at emerging fintech companies and catch up with the trends.
At Mobi India, we have years-long experience of working with both big fintech companies and small businesses. We help clients to seamlessly embrace the waves of fintech solutions. Our customized fintech app development services have enabled businesses worldwide to deliver impeccable customer experience.
Q. What are Fintech Solutions?
Fintech (short for financial technology) solutions are software-based tools and applications used in financial services. A growing number of businesses are using fintech solutions and digital payment options to improve customer experience.
Q. How much does it cost to build a fintech app?
Fintech solutions comprise a vast range of financial software, mobile app, and digital wallets, etc. The cost of development depends on what kind of fintech solution you need. Mobi India builds secure fintech apps at a competitive price.
Q. Why is digital payment important for businesses?
Digital payment solutions have become an important tool for advancing financial inclusion and growth. Digital solutions like apps lower the cost of providing financial services to poor people. It also increases the safety and convenience of customers for accessing services like fund transfer, insurance, and savings.