How FinTech Startups Are Making Life Easier
March 7, 2022
6 min read
You can now seamlessly send money to a friend using mobile apps like GooglePay, PhonePe or deposit a check by snapping a photo of it with your smartphone. You can take an Ola or Uber ride without handing the driver cash or even your credit card. Over the past few years, these transactions have become so woven into the fabric of day-to-day existence that they no longer seem revolutionary.
The finance sector has undergone some massive transformations to enhance the delivery of financial services and products to customers. The evolution within the financial services industry has been nothing less than phenomenal. One of the most impactful developments in this segment is the FinTech sector that has revolutionized the banking and finance industry.
While traditional banks are not going anywhere in the near future, more than 30 percent of respondents still seek financial support and advice from their primary bank, according to World FinTech Report 2021. FinTech-powered solutions thrived during digital asset exchanges, payments, savings, and other services saw an average YoY growth of almost 20 percent.
The massive shift to digital is not the only driving force. It is backed with AI-driven digital transformation and chooses FinTech solutions because of faster delivery, personalized services, swift query resolution, and accessibility. The trend is expected to boost the emergence and development of FinTech startups seeking to serve clients only.
The FinTech industry is all about leveraging cutting-edge technology to solve traditional banking problems and help with financial inclusion. It is generally used by businesses to manage their day-to-day financial operations and processes.
It initially denoted the use of technology on the backend of financial institutions but slowly developed into a new segment altogether that is more effective in providing financial solutions to businesses and individuals. From retail banking to fundraising and investment management it includes all major aspects of banking and financial services.
FinTech Solutions Reduces Burden On Traditional Banking
The emergence of tech solutions has ramped up the competition in all industries and financial services are no exception. A few years ago, making a transaction or getting a loan was a lengthy and tiresome process, where banks were in charge, not clients.
However, financial technology shifted the focus to a user, whose comfort, convenience, and security have become some of the top priorities. As the technology has matured, we have seen more and more FinTech firms serving not only regular users but also enterprises.
As a result, financial management has become simple and accessible like never before. Here are the top five solutions that make our life easier.
1. Easy Banking Solutions
Long queues in banks are a thing of the past. Gone are the days when people used to take a day off to conduct their banking-related activities. Now one can easily avail all the banking features from the comfort of their home using their smartphones.
FinTech has simplified banking and changed the way we operate finance management altogether. From making online payments for e-commerce purchases to availing loans with just a few clicks, FinTech has simplified our lives by transforming the banking segment. Personal banking-related services have been much more efficient and convenient to avail. You can even check your financial data at any time of the day.
2. FinTech Cards
While banks are still hesitant about adopting technologies and becoming flexible for the sake of the client’s comfort, FinTech is not. One of the leading FinTech innovations is brand-new cards that offer a better cashback rewards program or facilitate loan approval.
FinTech cards are created at the intersection of banks and tech, where the former is responsible for the financial side, while the latter, for the customized offers. These cards provide the same banking services that you normally receive when issuing a credit/debit card in a traditional bank but with better terms.
Finch Money is a new-age mobile application for stock investors. It is one of the leading platforms in the finance and investment sector in the USA. Finch Money is designed to help millions of Americans unlock the benefits of investing, develop healthy financial habits, and take steps towards financial freedom. Its all-in-one checking and investing account lets investors earn returns directly on their checking balance while providing instant access to their money.
Day One as a technology partner for Finch Money offered end-to-end solutions for the Finch Money project. From ideation and conceptualization, mind maps, wireframes, analysis, UI designs, DB design, development, testing, integration, hosting, and launch. Know more about FinTech App Development.
In 2020, Finch Money raised a total of $1.8M in funding to launch the app, by leading investors in FinTech and Global Banking – Mendoza Ventures, Barclays, Frontier Venture Capital, Techstars Investors, and Draper Frontier. It is now estimated to have a valuation at $20M and Day One feels proud for successfully building the FinTech app for the US-based market.
Day One’s R&D Lab has successfully developed and delivered the mobile app which is being used by thousands of stock investors. We designed the mobile app for iOS and Android devices, for investment tracking and management both for beginners and professional stock investors. Download FinTech Case Study.
3. Personalized Investment Advice For Everyone
The FinTech industry uses cutting-edge technology to overcome traditional financial challenges. Traditionally the investment advisory services were limited to high net worth individuals and businesses. A major reason for this was the high-fee structure of investment advisors.
The growth in the FinTech sector has made advisory-bots more accessible and affordable to provide advisory related services by using sophisticated algorithms. Bots have shown significant improvement and perform equally well. In the coming future, more companies will deploy Machine Learning to provide personalized investment guidance to customers on a large scale.
FinTech is among the most rapidly growing industries as the demand for FinTech products and services is on the rise. FinTech provides a better way to do financial transactions and also does it economically saving time and money both for the customers.
4. Blockchain and Cryptocurrency
We are already witnessing how cryptocurrency is transforming the future of the finance and banking industry. The core technology at the heart of cryptocurrency is blockchain. Blockchain first became evident to the world when Bitcoin was introduced. Blockchain has other significant uses in the finance industry related to security and other purposes.
A cryptocurrency is a form of digital money that uses cryptography to secure transactions. Digital currency makes the transfer of wealth far easier between two parties. The highly decentralized nature of blockchain makes it almost impossible for users to cheat the system and carry out any fraudulent transactions.
At Day One, we believe that dApps are here to stay. It’s advanced tech for keeping networks secure, transparent, and even scalable, cost-effectively and efficiently. As a top blockchain app development company in the USA, we can help to bring the tech to your business and reap the benefits of it.
Insurance technology or Insurtech is one of the FinTech trends that is going to evolve in the near future because of its customer-centric approach. Acknowledging the power of personalization, major insurance companies started to adopt financial technologies and tailor their offer to the current market demand: custom products.
With the help of Artificial Intelligence and machine learning, you can now get predictive underwriting, personal offers, and pricing based on your risk level. It means that if a consumer has a healthy and safe lifestyle, their policy will be cheaper than for those who do not.
What Drives FinTech Startups Beyond Future
FinTech is maturing and getting more and more advocates that leave traditional banks and insurance companies for custom offers and quick processing time. All this became possible due to technology that powers the FinTech evolution.
1. Artificial Intelligence and FinTech
AI-powered models are among the major drivers that allow detecting fraud and ensuring transaction security. Besides, AI technology improves customer support via chatbots, targets clients’ acquisition based on their behavioral patterns, data analytics, and many more.
2. Machine Learning and FinTech
Machine learning usually accompanies AI when processing data for advanced analytics or security. ML algorithms are capable of analyzing tons of data points within seconds and identifying abnormal transaction patterns that are later inspected by AI algorithms. As a top machine learning service company, at Day One what we do is bring the technology to you. We know it adds value to the business, and we are here to familiarize you with it.
3. IoT and FinTech
Internet of Things acts as a mobile point-of-sale system and a cybersecurity tool that processes and encrypts payment information securely. We know there is no turning away from that as new technology is affecting every single person. From individuals to conglomerates, the blend of AI and IoT is reshaping how things are being done today, and will be in the future. As a top AI and IoT development company in the USA, we are helping you to get there?
Well, there are other technologies like Blockchain and Big Data, the ones discussed above are key FinTech boosters. Nonetheless, not all of them are equally important. Nothing compares to the power of machine learning to personalize everything and anything, from analysis of credit score factors to users’ spending habits. AI-driven insights gathered from non-human interactions via chatbots allow businesses to tailor their offers and establish better connections with users.
That is why the future of FinTech depends on the development and advancements in AI and ML. These two technologies combined allow FinTech startups to take full advantage of data and reach a new standard of customer service in the financial industry.
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