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Why Should Businesses Invest in Fintech Apps?

Fintech is the trendy short form of financial technology referring to the tech-driven means of providing financial services. By fintech apps, we can refer to a multitude of solutions ranging from mobile banking apps to e-wallets or mobile wallets to cryptocurrencies to connected terminals for retail transactions, to many others. These fintech solutions have revolutionized modern banking and financial transactions in many parts.

Many businesses, irrespective of their niche and category of services or products, now rely heavily on fintech solutions. Since businesses are increasingly becoming aware of the advantages of hi-tech means in facilitating transactions, fintech apps are getting popular all over the globe. Fintech apps also play a significant role in ensuring business process automation to help industries suffer less from human errors and benefit more from fast-paced and automated task completion. 

Through Fintech apps, businesses also have flexible access to an array of advanced technologies ranging from big data, Artificial Intelligence (AI), machine learning, Business Process Automation (BPA), blockchain, cryptocurrencies and several others. A fintech app allows a business to closely watch the customer's spending habits and transaction patterns that can be further analyzed to produce actionable business insights.

From whatever way you try to explain, fintech apps are here to stay and thrive for the array of advantages for businesses of all sizes and niches. This is why businesses are increasingly embracing fintech apps to ensure the smart automatic operation and smooth, flexible, speedier transactions for their customers. If you are still not convinced about the advantages of fintech apps, here we explain them one by one.

Reducing the Cost of Service

Fintech is widely preferred because of replacing the collaborators with a smart and direct solution for carrying out transactions. For example, app development cost in India starts from $300 000. A well-run business can save multiple times this cost by streamlining financial operations through fintech apps.

Navigating the world of finance can be "tricky enough", especially when streamlining operations. Automating multiple financial operations not only shrinks the steps involved but also sidesteps the bottlenecks that rack up substantial processing costs. By fusing these smart automated financial transactions with top-tier bookkeeping and accounting programs, businesses can perform tasks at a fraction of the cost.

Apart from reducing the cost of transactions directly, smart and data-driven financial transactions also ensure better Returns on Investment. Since fintech solutions based on customer data facilitate well-timed transactions and approvals, this results in more cost savings and boost more sales. It has been found that fintech-powered banks, financial companies and retailers generate several times more ROI compared to others who still don't rely on fintech.

Robust Security

Traditional banks and different financial institutions often consider it challenging to safeguard the transactions and customer data from fraudulent interventions. It is especially important because of the sophisticated hackers and advanced malware infection capabilities. Fintech solutions give businesses better protection against cyberattacks.

Most fintech apps rely on advanced encryption to prevent unwanted access to customer data and transactions. The mobile and e-wallets mostly use the strongly encrypted QR code to facilitate smooth transactions. Cryptocurrencies and several other fintech solutions are now using Blockchain-based decentralized database technology that completely prevents data tampering. Real-time monitoring and visibility of transaction data is another powerful security attribute of fintech apps.

Ultimate Ease & Convenience

All businesses including financial companies, consider ease and convenience as one of the key factors to boost the morale of their customers. By embracing fintech apps and advanced technologies for financial transactions businesses now can ensure more customer satisfaction resulting in increased business conversion and better brand image. The ease of carrying out transactions with just a few taps on the handheld screen is helping businesses to convert more sales than with traditional modes of transaction.

Fintech solutions also helped streamline the finance operations and processes with easy to use tools just at the fingertips of customers. The cutting-edge technologies are helping the banking and insurance sector in streamlining disbursing processes based upon real-time credit score monitoring and claim settlement processes by real-time tracking of customer data.

Addressing Millennials

The entire millennial generation has emerged as one of the trendsetter forces for many sectors. When it comes to financial transactions, millennials use mobile wallets and similar hi-tech means more than other age groups. Millennials are typically restless in their consumer behavior and prefer everything to happen at the speed of light. This is where fintech apps just fit in. Since the market of millennials is constantly expanding all over the globe, no business can undermine the importance of addressing their preferences and taste.

Most fintech startups and trending e-commerce brands know how millennials can help them achieve breakthroughs in terms of branding, sales and competitive gain at the national and international levels. Millennials are most attached to the ease of utilizing data to offer highly personalized services. When it comes to completing transactions and purchasing goods based upon individual preferences and tastes, smart fintech solutions are way ahead of traditional ones.

The Power of Blockchain & Cryptocurrencies

Finally, Blockchain has emerged as the era-defining technology for modern businesses and financial solutions that are turning smarter, agile and tech-driven. As of now, Blockchain has been the biggest proponent of fintech solutions. Blockchain by offering a unique decentralized database system transformed financial transactions, bookkeeping, accounting and financial planning. The biggest advantage of using Blockchain is boosting data security to the maximum.

Though major cryptocurrencies already depend upon blockchain technology, there are several other ways Blockchain has penetrated businesses. Blockchain-based fintech apps are popular for facilitating token-centric transactions leaving aside the risk of frauds and unwanted intrusions. In the years to come, the power of Blockchain decentralized databases will penetrate more layers of data operations across industries.

Wrapping Up

Fintech solutions by leveraging cutting-edge technologies are helping businesses to become smart, agile, customer-centric and more secure than ever before. Banks and financial institutions no longer require no wonder fintech apps, businesses of all niches increasingly prefer them.

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Victor Martin

Victor Martin

CMO

SquareRoot

Member since

26 Jan 2017

Location

Dublin

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This post is from a series of posts in the group:

Business Knowledge for IT

This community aims to provide links, resources, book suggestions, tips and insights to facilitate learning and development of IT professionals in financial services, and to develop a forum for IT professionals to exchange views on various related items.


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