Most of us would still remember heading to the bank to cash the checks or drawing up family budgets on a piece of elusive paper. Today, Fintech app development could well be an old lady’s tale. The last decade has seen a dramatic transformation in the financial industry driven by technology.
Besides being disruptive, the amalgamation of finance and technology has added extra convenience to the entire financial ecosystem. It has made financial transactions more secure, easy and cost-effective.
It is not a wonder that the global fintech market is growing exponentially and is predicted to reach $305 billion by 2025, with a CAGR of 22.17% during the 2020- 2025 period. This novel technological advancement is gaining prominence and adoption at an accelerated rate worldwide, replacing conventional financial transactions. Since fintech software solutions significantly improve customer experiences, it is here to stay.
As a fintech app development company, if you have invested in developing a profitable fintech app, you have an excellent chance at success with the right approach. However, you still have to know which financial fields are most lucrative for your apps and which fintech apps might be the most profitable.
Let’s quickly know which fintech app development fields to choose to start the most profitable business.
While developing a digital payment solution is complex, you have a winning application when you analyze the market trends and create solutions that most benefit users. In this article, we will discuss 7 winning opportunities that could influence the fintech sector in the future.
- Digital Payment Solutions
The entire banking scene has dramatically changed in the past decade. People no longer appreciate the traditional forms of banking – visiting the banks or ATMs to transfer money or deposit checks. Digital banking is making their everyday financial transactions more accessible and less time-consuming. Besides, they can also invest, trade, make payments or transfer money at their convenience.
According to a survey by FDIC, in 2019, 34% of consumers mentioned mobile banking as their primary banking tool, with a close 22.8% choosing online banking, 21%, and 19% picking bank tellers and ATMs.
Here’s another statistic to shed more light on the growth of the fintech app market – in 2009, fintech start-ups received only $1.1 billion from venture capitalists. Consider this figure against the total investment of $44.1 billion in fintech by 2020. And with the pandemic pushing the adoption of digital payment solutions even further, this trend will continue even after the pandemic settles down.
2. Blockchain Applications
The financial sector is quickly incorporating blockchain technology to offer improved and countless benefits to users.
Blockchain is a secure and decentralized ledger in which information is stored and transmitted as a sequential chain of blocks. Every transaction is automatically updated in the database. Since it is not maintained in a ‘central server,’ it is considered more accurate, transparent and fraud-proof.
As such, implementation of blockchain technology in the financial domain can bring in innumerable benefits such as:
- Faster payments
- Lower transaction fees
- Reduced operational costs
- Improved security
- Secure and quicker International payments
3. Insuretech Solutions
Insuretech Solutions means using technology in the insurance sector to build efficiency and accurately assess risk.
The global insurance tech market was valued at $2.72 billion in 2020. And this figure is expected to see a CAGR of 48.8% between the 2021 and 2028 periods.
In addition to artificial intelligence, telematics, blockchain, machine learning, and IoT is helping insurance companies analyze large datasets, decipher market trends, understand customers’ needs, assess risk, perform policy comparisons and offer customized solutions to customers.
4. Trading Applications
The days of making frantic telephone calls to dealers and brokers to manage your shares are almost over. Fintech software solutions companies are developing apps that simplify complex investment and trading concepts.
On the other hand, users quickly adopt these trading platforms and apps to gain insights into shares, forex, stocks, funds, and currencies and invest cleverly. Instead of relying on brokers to offer them investment ideas, users are now looking for apps to gather real-time market data, use analytical tools, provide instant notifications, and more.
5. Personal Finance Management Application
Personal finance is another winning idea to consider by any fintech app development company. Customers are becoming more aware of savings and budgeting. They are constantly looking for tools to help them manage their finances more effectively. Customers are looking for tools to track their income and expenses, credit and debit card payments, transactions, savings, and investments.
Apps that include digital wallets to manage income and expenditure, digital brokers to work on trading, automated advisors to provide investment tips, and asset management tools to help save are usually sought-after by customers.
6. Peer-to-Peer Digital Payment Solution
This is another prevalent fintech solution. A P2P solution, in financial terms, is the ability to transfer money between bank holders regardless of the banks the accounts are registered with and the payment systems being used.
One reason for the growing popularity is the need for third-party players or commission fees to be cut down drastically. Some of the advantages of P2P transactions are convenience, easy-to-use and speed.
7. CryptoCurrency Applications
This upcoming segment is hitting the most headlines in recent years. It is yet another idea for fintech software solutions to focus on. Cryptocurrencies are panning out to be the next next big thing to hit the financial sector. Crypto exchange platforms or apps will allow users to trade cryptocurrencies for assets or digital currencies in the decentralized market.
Apps can enable users to trade one cryptocurrency for another or receive crypto tokens in exchange for fiat money. With these apps, customers can also buy or sell crypto coins.
The fintech market is evolving at a staggering rate. Many fintech software solutions companies are jostling with each other to develop successful applications. However, only some start-ups or every idea is a winner here.
The first step towards a successful launch of a fintech app is seeking a qualified and experienced fintech app development company. Besides, developing a successful application demands creativity, expertise, hard work and fair investment