What are the Challenges that can be Overcome by Fintech Software Development?

 

What is the Market Overview of Fintech Software Development?

Actually, there are many arguments to make to realize how profitable it is to use a business model in fintech. When it comes to business, the number is always one of the main priorities.

• Global fintech market is expected to grow at nearly 20% per year and its value should reach US $ 305 billion in 2025 (GlobeNewswire).

• 60% of credit unions and 49% of banks in the US seriously appreciate the partnership fintech (FinancesOnline).

• 25% of the market in fintech holds digital payment processing (McKinsey).

• There are about 12,000 fintech startups that are taking place across the world.

• 46% of the company's global fintech believe that artificial intelligence technology is worth investing in.

• 77% of financial institutions will remain focused on the modernization of the increase in customer retention operations (PWC).

• 46% of consumers prefer to use only digital channels for personal banking (Singularity University).

• 93% of companies worldwide use at least one cloud-based service. (Spice Works)

This strong Fintech digital solution has proven their value by providing the desired output to many industrial segments. Also, Fintech continues to develop into a more sophisticated version. Maybe this is the main reason why the number of Fintech projects grows every year and bring new progressive solutions to the financial sector.

According to Statista, the digital payment sector is expected to be the largest market in the world. Also, Fintech's total investment reached $ 55.3 billion in 2019. It was clear that the digital world slowly began to recognize Fintech and its strong advantage.

To apply excellent business ideas, you not only need cutting-edge technology, but the most important thing is a talented development team with the ability to create high-quality software products, law-abiding.

Come on the lead!

What are the Challenges that can be Overcome by Fintech Software Development?

Main Strategy for Fintech Data Protection

Financial sphere is not like the other requires enhanced data protection because the results can be reflected in losing money. It's like a magnet for cyber criminals.

However, regardless of the increasing number of cyberattack globally, any company can take action to minimize cyber threats. A proactive and not reactive approach to security eliminates the risk for financial companies and its customers.

• Fintech security challenge.

The Fintech industry has a large amount of sensitive information such as bank accounts, passwords, and personal data.

First, let's consider the security challenges in the Fintech industry.

• Data ownership.

It is important to control rights delegated to certain people.

• Compliance with security protocols

Fintech companies must strictly follow the rules and norms of the country where they operate. If not, it can cause bad consequences.

• Third Party Component Management

To provide opportunities expanded to customers and not fail with security streams, financial institutions must strictly control every third party fire

You cannot build your Fintech script  randomly, you initially have to analyze the market and choose the type of financial application. And we will help you know the trouble.

Let's start with 4 large Fintech software development fields that you can invest in.

Data aggregation, BI, and automation

With simple words, business intelligence refers to the use of data to detect patterns and make important business decisions. For this, someone needs a number of extraordinary data, a system to manage volume (large data) and process it, and automate excessive tasks wherever possible. These three processes must function together at a certain time point.

With the help of business intelligence, you can monitor customer behavior, detect market trends, find gaps in security and fix them, improve user experience, and do more. With the merger of predictive analytic, business intelligence can also notify you the right time to take precautions even before worries appear.

One of the simplest applications of this lies in measuring the repayability of borrowers with the process of automatic background checks from previous records and overall online behavior. The more data touch points in a system, the more data is generated.

 Chatbots.

For a glimpse of the potential chatbots on the market, understand that by 2020, more than 85% of customer interactions with the company will not involve humans. This means it will be a chatbots that will receive our requests and requests, process them, and take the necessary actions.

For industries such as Fintech, where there is a need that is inevitable for the help and support of the year, the very appropriate chatbot is absolutely important to prevent unwanted consequences.

• Processes that can automatically use chatbots:

• Personal Finance Management

• Financial advice

• Micro investment.

• Customer support

• Reduction processes such as verification, pin change, processing refund requests, and more.

Powered Blockchain Solution

From being a tech jargon, Blockchain has become a mainstream today. The company gradually realizes Blockchain technology potential and finds new ways to include it into their business. This adoption is believed to encourage technology growth in CAGR 55.9% by 2021.

For those who do not know, Blockchain is a very safe decentralized book that is distributed among members. There is no single authority in Blockchain and all members know all transactions, make it uniquely transparent. Therefore, this technology is considered anti-cheater and ideal in overcoming money laundering problems.

• Blockchain Implementation:

• Gifts and Loyalty Programs

• P2P service.

• Coverage

• International payments and more

Insuretech.

What appeared in 2010 quickly continued to become Mammoth in the Fintech sector. Statistics revealed that the amount of funds in this sector amounted to $ 1 billion in 2017.

The combination of the word insurance and technology, insurtech offers:

• Personalized service

• Optimized Risk Management Features & Recommendations

• Dynamic price offers and more

• To achieve this, the developer of insurtech utilizes the potential of IOT, can be used, data science, artificial intelligence, and mobility solutions.

Conclusion

Underline? Fintech is officially the main direction that will change financial services forever. This is a serious player in a rapidly growing global economy and, for sure, here to stay.

Seeing the prospect of Fintech software development and the Fintech Top company that has been functioning, there is a place for deep thinking here. What can you learn from their strategy? The most obvious answer is to add competitive value to your Fintech product. That's what made them succeed in the first place.

However, you can find your own competitive advantage - because even the Tax Software Development market is booming, there is always a certain place for creativity.

Even if you don't represent the financial industry. As the latest trend country, there is room for everyone who is willing to monetize their business.

Just make a step into the world of Fintech solutions with professional help in hand!