Fintech is reshaping the financial service industry – myth or true?
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In 2019, over $3.5tr worth of online financial transactions were processed. Modern consumers are constantly looking for tools to make sending and receiving money easier. If you own or manage a financial institution, finding ways to engage with consumers should be your main concern. One of the best ways to successfully do this is by investing in financial technology (fintech).
There has been some debate in recent years as to whether or not fintech is reshaping the financial industry as we know it. While there are some people who think fintech is a temporary trend, the evidence doesn’t really support this.
Nearly every banking and loan institution in the world uses fintech in some form to connect with customers. Whether this is an app or web-based online banking portal, these tools are everywhere you turn. Here are some of the reasons why embracing fintech is crucial for the success of your business.
Using fintech to help consumers manage their money
Managing money is something most Americans are not very good at. Many people don’t have savings and live paycheck to paycheck. Providing consumers with a fintech solution that helps them budget their money is a great idea. If you are trying to create a budgeting app to offer your customers, then you need to make sure it is easy to use.
Most people shy away from budgets because they want to avoid using Excel spreadsheets or other difficult to navigate programs. Designing a budgeting app that is both immersive and useful will require some time and testing. Beta testing this app will allow you to see where problems exist and how to address them. Rushing through the budgeting app development process can lead to you providing a program that is unreliable and glitchy.
Make online purchases and payments easier
The number of people who shop online is staggering. Being able to send payments with the push of a button is something most people want. If you own a financial institution, providing this capability to your customers is a must. Failing to embrace this type of fintech can make your business look outdated and unsafe. The last thing you want is for loyal customers to jump ship due to a lack of viable technology.
Popular payment programs like Venmo or the Cash App process millions of dollars’ worth of transactions on a monthly basis. Allowing customers to use their bank account as a payment portal is a great way to engage them with technology they will actually use. The main focus you should have when developing a payment app is security.
Ignoring the need for things like encryption can result in hacks occurring. Providing a secure and easy to use program for your customers is one of the best business strategies you can use.
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Robo-advising is getting very popular
Are you looking for a way to boost the visibility your investment firm has? If so, using a robo-advising app to engage existing and potential customers is crucial. In the past few years, robo-advising apps have exploded in popularity. These programs use algorithms and artificial intelligence to help consumers pick winning investments. Developing one of these apps is only possible with the help of IT and web development professionals. These professionals will have no problem implementing and securing the technology needed to power this program.
The wave of the future
Now that you know more about fintech and how it is being used, it is time to develop your own strategy. With the right tech tools, you can keep consumers interested in what your company is doing.