People want to be easy with finances. So we have moved on to paper money and investment portfolios from gold coins stored in chests. Today, fintech software development services make this task unimaginably easier for businesses and users. But, of course, we (humans) strive for ease in managing finances, so products that help us with this are always in demand. According to Forbes, the fintech market reached $91.5 billion last year, nearly double what it was in 2020.
Eliftech experts continuously observe the fintech market’s fast and furious growth worldwide. It is believed that by 2028 the volume will reach $16652.68 billion, which is 2.5 times more than now. For comparison, in 2022, the fintech market was worth $6588.78 billion at a Compound Annual Growth Rate of 13.9%. Furthermore, in 2021, 64.6% of US citizens used online banking, according to Statista, and this percentage is also predicted to rise.
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Which types of apps will be in the most demand in 2023?
While payment apps remain in the first spot for sessions along with stock trading and banking, The most installed apps were payment apps, followed by banking and (not surprisingly) stock trading.
Fintech is here to rule the school: Don’t miss the trends that can elevate your business.
Fintech is committed to banking mobility: Banks are trying to be closer to consumers, moving from offices to our smartphones. In addition, the pandemic has accelerated the growth of digital banking: financial institutions have turned to fintech to ensure security, and many have moved exclusively online. This way, users can completely avoid physical contact.
Use of artificial intelligence: AI is considered one of the main reasons for fintech landscape growth and (finally) the drive to adapt apps to users’ needs. Fintech applications use AI interfaces, customer service chatbots, personalized dashboards, and customized offers.
Development of cryptocurrencies and blockchain: Research into crypto and blockchain ecosystems to improve financial control and management efficiency is gaining momentum. Blockchain technology is considered “the savior” of all things tech. According to fintech analysts, it is developing rapidly and has undeniable advantages in security.
Democratization of the market: Thanks to fintech, the market is becoming transparent, and great opportunities are opening up for businesses, retail investors, and ordinary users. Therefore, accessible and easy-to-use trading platforms, money management tools, and new funding business models, including digital assets, are appearing on the market.
Explore the modern opportunities and types of fintech applications open to businesses
If you came to the point of business maturity that requires you to build a fintech app but somehow got distracted by the coolness of it all and can’t decide on a singular idea, there are a vast array of options to choose from. Let’s explore the primary types of fintech apps that have conquered the landscape and gained users’ trust worldwide.
Digital & Mobile-Only Banking: Banking applications allow customers to manage their accounts and use financial services without visiting a bank office. This category includes both mobile and online banking. The application functions cover everything a person can get in a physical bank: opening an account, checking and managing a balance, transferring funds, making payments, obtaining a loan, etc. The main advantage is that banking applications provide access to money 24/7.
Payment Systems: Payment processing applications conduct all transactions on behalf of the developer company. As a result, they take on the role of an intermediary that links payment service providers with customer card information. As a result, payment processing fits perfectly into the mainstream e-commerce system and makes it convenient for customers. In addition, such applications offer businesses debit and credit card transactions and other online payment methods.
InsurTech: Such applications are helping to develop the insurance industry by adding more accurate ways to assess risks. They make it easier to apply for insurance coverage and work with claims. The scope of fintech for insurance goes beyond simple applications. Fintech for insurance uses the Internet of Things, smart gadgets, and artificial intelligence better to assess a person’s lifestyle and risk profile. Even though the technology for insurance is a relatively new niche, it is developing rapidly. The market for insurance fintech applications in 2022 was estimated at $2.72 billion.
Trading & Investments: Investment apps are the leading platforms dedicated to democratizing investing, making it accessible to everyone, not just the rich. The investment app eliminates intermediaries, reduces commissions, simplifies trading, and makes betting and shopping as convenient as possible. The introduction of Robo-advisers also simplifies investment, as they are an automated broker that manages the user’s portfolio and makes transactions. Robots use artificial intelligence and machine learning to assess each client’s financial position and level of risk acceptance.
Wealth Management: Helping people manage their finances – keeping track of income and expenses – is one of the most important functions of fintech. In personal finance applications, interaction with users is always intuitive: they need to select a goal, link a bank card or account, and monitor cash flow. Centralizing data in one place makes managing finances and tracking customer habits much easier.
Trends VS. Best practices: Don’t forget to o better while chasing the fashion
Remember that trends do not negate “the classics” of twenty-first century FinTech, like:
Custom software development
Integrations & APIs
Digital payments solutions
Robotic process automation
Human-faced UX/UI design
Legacy system modernization
Asset management platforms
Banking software engineering
Accounting software creation
However, fresh trends extend fintech functionality through integrations, automated workflows, new practices to structure data, and paying attention to compliances and the latest market regulations.