Fintech referring to financial technology, is about delivering financial services through digital platforms, including websites and mobile apps. These days, fintech mobile apps ranging from mobile banking apps to personal financial planners to mobile wallets to mobile investment and trading apps to several others have become tremendously popular.
Android operating system has a wider reach worldwide and is preferred for Fintech app development more than iOS. The mass appeal and presence of Android compared to more elicit iOS has proved to be more appropriate as a platform to build fintech apps.
For any business, building a fintech app seems to be a new space of opportunity to boost transactions and drive business conversion. Certain non-financial businesses that require processing many transactions daily feel the need for fintech functionalities and applications to streamline their transactions and provide customers with more ease and flexibility.
Is building a fintech app necessary? What are the biggest motivations and reasons for building fintech apps? Let’s explain these reasons one by one.
Bringing the Transaction Cost Down
Fintech apps can easily do away with the collaborators and middlemen for carrying out transactions and can provide a smarter and direct way to make payments, transfer money or make any kind of financial transactions.
Moreover, it can replace traditional paperwork and corresponding energy and resources, amounting to a considerable cost. These cost advantages directly benefit the customers, and the businesses as the cost of transactions go down.
Banks and financial institutions regularly face security breaches threatening their reputation and the financial interests of the customers and the organizations. This is where robust security measures of modern fintech apps come in handy.
From advanced encryption methods to multi-factor authentication to biometrics for authorization, fintech apps use several crucial technologies that can be hard to tamper and pass through. The Blockchain-based decentralized database technology further strengthens the app security with its completely tamper-proof “write-only” protocol.
Superior Convenience of Transactions
Ultimately every business focuses on convenience to help customers transact faster, resulting in more business conversion and customer satisfaction. This is another area where fintech apps helped businesses to cater to customer expectations.
The ease of paying through mobile wallets or mobile banking apps has had a revolutionary impact on businesses across all niches. Having a fintech app has become particularly necessary for many businesses for this reason.
Tapping on the Millennial Purchasing Power
The whole generation of millennials now prefer tech-driven methods to carry out transactions more than any other means, and mobile wallets have become the most commonly used medium for transactions. Since they are more impatient than the elders, the quick transactions facilitated by fintech apps helped them engage more with brands and buy more.
Key technologies setting the trends for the fintech industry
Suppose you want to tap on the opportunities unfolded by fintech with a great Android app. In that case, you need to be aware of the trendsetting technologies that became crucial for fintech app solutions. Some of the key technologies setting the trends for the future of fintech include artificial intelligence (AI), Big Data, the Internet of Things (IoT), and Blockchain.
AI for Fintech Apps
AI and the corresponding technology, Machine Learning, depend tremendously on the data processed through transactions in financial institutions to deliver high precision, data-driven insights that financial institutions and other businesses can use for their strategy and planning.
On the other hand, AI and machine learning can also suggest financial products and solutions suitable for them by learning from user interactions and user history. This potential of learning from customer transactions and accordingly providing recommendations is now being used by the chatbot feature of the fintech app.
IoT (Internet of Things) for Fintech Apps
IoT, or the connected internet-based ecosystem comprising devices, appliances, software applications, sensors, and vehicles, has transformed our everyday living space.
Algorithms are now using the data processed by these systems to gather customer-centric insights that can be utilized by fintech apps as well. From the vigilance security camera in banks to the voice-controlled speakers carrying out transactions from e-wallets, IoT has already made its presence in the fintech app world.
Blockchain Technology for Fintech Apps
Blockchain technology refers to a decentralized database technology that was unveiled for the first time through a cryptocurrency named Bitcoin. While Bitcoin made popular history with a unique offering and skyrocketing growth story, the underlying Blockchain technology took the attention of several sectors as the most secure and democratically accessible transaction method. No wonder you cannot talk about fintech without a dedicated section on Blockchain.
Blockchain is regarded as the most secure and easily accessible technology allowing smooth database management for many sectors. Blockchain doesn’t allow deletion, removal, or changing data but only allows adding new data as separate entries. This completely prevents data tampering. Moreover, Blockchain uses a powerful multilayered encryption method that allows access based on mutual agreement.
With such uncompromising security features, Blockchain technology has penetrated the entire fintech industry in a big way and has been widely used by leading banking and financial solutions. Today, we have several leading Android fintech apps that rely on Blockchain for database management and for facilitating transactions. If you want to hire an Android app development agency for your fintech app project, ensure it has enough experience and skills with all the advanced technologies we have mentioned.
Android fintech apps have taken the lead in transforming financial and business transactions all over the globe. For building a future-ready fintech app, it is always advisable to prioritize Android release by other platforms.