Investors in the financial sector seemed to have kicked off the year with a great start – placing huge bets on the fintech startups. Within two weeks of ushering in the New Year, fintech startups have bagged record deals worth more than $100 million – a staggering number, no doubt.
Fintech is the use of innovative and advanced technological solutions to find solutions for the problems of the financial industry. The fintech firms provide digital products and access to enhanced financial solutions to consumers at lower costs.
Drawn in by the promise of digital transformation in the finance sector, many organizations – both startups and tech giants – are lining up in queues to build apps based on new technological advancements. There were more than 10,000 fintech startups in the Americas as of February 2021, making it the fintech startup capital of the world. The consumer appetite for digital financial products has seen tremendous growth in recent years with the eager adoption of digital wallets, banking apps and payment options.
5 Features of a Great Fintech Application
The enormous investment in fintech app development solutions had the whole world – literally everyone – talking. So, we decided to dig a little deeper into the world of financial technology to understand – what features make a fintech app great?
After doing some extensive research, we have zeroed in on 5 features that have come out as the absolute winners.
1. Customer-centric Features
As a fintech app development solutions company, you should make sure the apps are tailored to meet the specific needs of your customers. Banking apps inherently involve a lot of complex procedures and methodologies. This inevitable process can sometimes be time-consuming for customers, making them opt out of the service.
Anyway, it is better to deliver the most value straightforwardly. This way, customers would be more than willing to try the application, and the financial institution will also enjoy increased patronage.
Personalizing the banking experience of customers can increase the overall value of the app. By using big data, fintech apps can help deliver a specialized digital payment solution to unique customer problems. For instance, if you are looking for investment options, the app should intuitively guide you in the correct direction with minimum information input.
Here AI (we’ll come to that in a bit) can also become a potent tool that offers smart suggestions and quick solutions to user’s queries’ based on their spending/investment habits.
2. Big data Analysis
The financial service industry collects vast amounts of data – customer’s personal information, investment data, savings and spending data, credit scores and more.
Besides, most of the data collected are unstructured and unorganized – meaning it would require a truly sophisticated algorithm to work out any feasible trend from it. Still, this sector also gathers tons of structured data.
Structured data such as tax statements, mortgage papers, income records and loan documents are used to draw valuable insights on investment planning.
With the digital transformation in the finance sector booming, it relies on big data analytics to sift through massive data sets and develop customized financial reports for users.
The changing market scenario has made it convenient and compulsory for fintech apps to incorporate robust tracking and accessing tools. Data analytics is being used to generate and manage customized reports and general transaction reports. These apps also allow you to make savings goals, giving freedom and control to you.
3. Artificial Intelligence
Artificial Intelligence is creating a buzz in almost all industries, and it is now the turn of the financial sector. Fintech app development solutions should focus on integrating AI into the apps to provide enhanced operational efficiency, better customer support, accurate reporting and records, early detection of fraud, better wealth management and quick query resolution.
Along with machine learning, AI provides intelligent and automated solutions to users. Moreover, the addition of chatbots in the applications makes banking all the more easier for customers.
4. Virtual Office Arrangements
To further take the digital transformation in the finance sector forward, fintech apps adopt virtual offices to offer faster and effective services to users. The groundwork has been laid, and many fintech apps are quickly offering remote assistance to customers.
However, fintech solutions providers should look at ways to convert physical documents into digital format. And to make these digital files accessible to remote customers without losing document integrity or risking data protection.
5. API Integration
Customers look for a simplified and yet safe digital payment solution from their fintech apps. It is one of the essential feature requirements of customers when it comes to financial applications.
Users want an app that makes it easier and safer for online transfer of money, asset management and investment management. For instance, it is a good idea to have two-way authentication for fintech apps as the focus should be on securing customers’ financial assets. One option that’s predominately used is SMS, but another option –using 3rd party apps – is also gaining prominence.
Another great feature in a fintech app: its ability to interact seamlessly at both the customer and business end of the application. Besides, the app should also help in easy integration with third-party solutions and APIs. APIs are used when the application needs certain functionalities that are lacking in the app. Besides, it is not possible to develop or rework the app over and over again.
It is quite clear that the future of the finance sector, in general, and the fintech app development solutions, in particular, is quite bright and booming. While these are some of the most coveted features in a fintech app, the industry may be hauling in more valuable and innovative features in the near future. Some of the other features that can take customer service a notch higher could be voice-assisted banking, security enhancement using biometrics and automation of certain financial services.
While a few cream-of-the-crop apps have already incorporated these functionalities, it is yet to become the standard offering in applications. Well, the future of the financial sector is promising, and we can only wait for app developers to woo us with feature-rich fintech apps soon.