This article will take a closer look at the fintech startup app concepts that should be explored in 2022 and beyond, examine the fundamental features of fintech apps, and lead you through the step-by-step process of creating a fintech app. But first, let's take a look at the current situation of the fintech business.
Fintech market overview
Without a question, the COVID-19 outbreak has accelerated the deployment of several prospective fintech technological improvements, notably in the financial services industry. Transitioning to a digital-only format has become important for certain banking participants' long-term viability. Previously hesitant financial institutions are increasingly competing with startups and creating financial technology solutions (fintech).
According to a ResearchAndMarkets study, the fintech app sector will be worth $305 billion by 2025, growing at a compound annual growth rate of 20%. Financial technology (Fintech) is one of the world's fastest-growing industries, thanks to the COVID-19 crisis, which has spawned a plethora of new business opportunities.
Lending platforms, mortgages, and life insurance services are the clear winners in Finch Capital's latest fintech app market analysis. This is true for both new fintech businesses and experienced financial market actors. As we approach the post-crisis recovery, we will see an increasing number of incumbents in the banking industry embrace digitization and compete openly with fintech firms.
The latest developments in fintech technology
In a nutshell, artificial intelligence, the Internet of Things, and blockchain will remain at the forefront of the financial revolution. The technologies that accompany fintech app development, on the other hand, should be investigated further.
1. Artificial Intelligence
Artificial intelligence (AI) is regarded as the most significant breakthrough affecting the financial technology sector. According to Research and Markets, the global market for artificial intelligence in financial technology is expected to reach $22.6 billion USD by 2025.
Artificial intelligence is used in fintech apps to automate routine tasks, give personalised financial advice, detect fraudulent conduct, and analyse massive volumes of data to reveal insights and trends. In many aspects, artificial intelligence in financial technology is still a young technology that has yet to reach its full potential.
2. Big Data
Artificial intelligence and big data are tightly connected. Electronic devices leave a digital mark in the form of a deluge of data, which fintech applications gather and send to third-party analysts for additional analysis. Artificial intelligence algorithms then process the data, turning it into helpful insights about new company opportunities, customer behaviour, and industry trends.
3. Blockchain
Blockchain is a distributed electronic ledger that is used to record transactions. A single entity is represented as a group of data elements connected by a 'chain.' A centralised server is not required to keep data on a blockchain; instead, the data is distributed over the whole blockchain network. The security and integrity of financial transactions are assured since there is no central node that hackers may target.
4. Data Security
Security is essential while developing a financial application. To protect their clients' information, fintech organisations must use modern technologies such as Source Code Analytics, penetration testing, and the DevSecOps approach in addition to regular procedures.
Furthermore, in order to comply with the EU General Data Protection Regulation (GDPR), fintech companies must demonstrate their commitment to secure client data and take all necessary precautions to avoid security threats such as malware attacks and identity theft.
5. Microservices
Microservice technology is a means of creating an application that is made up of a number of interconnected services. One obvious benefit of adopting microservices is that you can easily add a service without changing the general structure of the programme. Microservice technology is a complement to artificial intelligence and blockchain technology, and it can help to reduce the cost of establishing a fintech application.
Ideas for Fintech Apps for Fintech Startups
If you've been considering launching a fintech startup, this is a great time. As the pace of post-crisis digitization accelerates, early adopters of fintech app solutions will be in a better position than those who wait. Whether you are a large financial institution seeking a digital transformation or a startup searching for fintech startup app ideas in 2021, the following are some to consider.
1. Lending apps
The economic difficulties caused by the COVID-19 closure encouraged many firms and individuals to seek short-term loans in order to satisfy their urgent financial commitments. Artificial intelligence and big data analytics-powered lending apps expedite the loan assignment process by examining customer data, behaviour patterns, credit history, and shopping activity to evaluate whether or not a client qualifies for a loan.
Banks or peer-to-peer lending firms may supply funding for loans made through lending apps (i.e., borrowing money from other individuals). MoneyLion is a great example of fintech software that combines lending and saving features. The programme also helps users manage their own money, and it has gotten several favourable reviews as well as a growing user base.
2. Electronic mortgage apps
Initially, the COVID-19 issue had a negative impact on the mortgage business, making it more difficult for consumers to secure a mortgage. Mortgage rates have reduced as the world has begun to recover from the financial crisis, and newly created e-mortgage applications have simplified the mortgage application process significantly.
Contactless mortgages are currently accessible through e-mortgage applications, which are projected to become the new standard in the aftermath of the COVID-19 outbreak. Better.com, a home-buying and mortgage-recalculation software, is one of the top mortgage apps for 2020. Better.com is a home-buying software that also recalculates current mortgages.
Obtaining home loans through the government is another excellent example of a mobile app in this field. FairwayNow is another great example of an app in this category.
3. Insurtech apps
As a consequence of the global pandemic, there is a growth in the number of creative fintech apps focusing on low-cost insurance coverage. Artificial intelligence and data science are used in insurtech applications to acquire, process, and analyse client data, find and assess risks, and streamline the insurance underwriting process.
Implementing fintech app solutions may help insurance companies enhance the quality of their customer service and the speed with which they conduct business. This sector's applications serve a wide range of insurance-related sectors. MyCigna, for example, is a smartphone application produced by Cigna, a worldwide health insurance company, that supports clients in claiming health insurance and tracking their healthcare spending.
This vehicle insurance software, developed by Allstate, makes it easy for users to submit insurance claims swiftly, as well as provides a slew of other valuable features for car owners.
4. Mobile banking apps
Customers currently choose digital banking since it offers them quick and easy access to financial services. Strong market demand has opened the path for the growth of digital-only banks like Ally Bank, and the need to maintain social distance has made them the appropriate option during this moment of economic turmoil.
Traditional banks, such as Wells Fargo, Bank of America, and Huntington Bank, have also built their own mobile banking applications and are competing in the mobile banking field with newcomers.
Customers frequently use fintech banking applications to gain digital access to procedures such as account closing and opening, deposits, making online transactions, ordering credit cards, and other similar activities. It also has artificial intelligence chatbots for quick consulting and financial aid.
5. Personal finance apps
Managing personal money, much alone saving and investing, is a challenging undertaking for the great majority of people in the world. We are not born financial gurus, yet financial advising services remain among the most popular fintech business app ideas. Robo-advisers, which assist with investing, retirement, and savings, are becoming increasingly popular.
Mint and other customer-facing financial applications give a holographic view of their money, which can include loans, credit card accounts, and investment portfolios.
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