Finance is undergoing a profound transformation. Digital technologies are reshaping payments, lending, insurance, and wealth management – a process that the COVID-19 pandemic has accelerated. While this is making financial services in many economies more diverse, competitive, efficient, and inclusive, it may also increase concentration in markets.
While technological advances are not new to finance, digital innovation has brought major improvements in the connectivity of systems and in computing power and cost, which have resulted in large volumes of newly created and usable data. For example, mobile phone usage has surged globally, social and economic activity has shifted online (often to platform-based businesses), and new technologies like cloud computing have become widely adopted.
Digital innovation could drive a range of industrial organization outcomes. On the one hand, digital technology enables niche providers to reach a target customer base and be economically viable. On the other hand, customer acquisition, funding, “assembly,” and switching costs tend to favor larger providers of digital financial services.
Fintech refers to digital technologies that have the potential to transform the provision of financial services spurring the development of new – or modify existing – business models, applications, processes, and products. In practice, the term “fintech” is also broadly used to denote the ongoing wave of new digital financial services (DFS). Examples of these
technologies include web, mobile, cloud services, machine learning, digital ID, and application programming interfaces (APIs).
A fintech firm specializes in offering DFS to consumers or enables other providers to offer DFS. While many of these companies are relatively new to the financial sector, others are by now well-established public companies. Numerous big techs have started to offer DFS, leveraging their large customer bases and the data they have on transactions and activities that give rise to payments or a need for credit, insurance, or other financial services.
The combination of finance and technology is nothing new. Financial institutions have a long history of adopting new technologies – ATMs, credit cards, and chip and pin were once the new radicals. However, FinTech is disrupting the shape and delivery of financial services on a much bigger scale. From micro remittances and peer-to-peer lending to smartphone budget planners and mobile payments, new businesses are bypassing the established financial middlemen and institutions. They are delivering products and services directly to consumers.
Given that half of the world says it is using at least one FinTech service, you’re probably using one already. And if you live in India or China it’s even more likely, with 75% of consumers already using FinTech products.
From mobile banking and insurance to cryptocurrency and investment apps, fintech has a seemingly endless array of applications.
The industry is huge — and will continue to expand for years to come. Acmo Network Private Limited develops and designs exceptional fintech solutions for your company that helps our clients to reach new heights of success.
There are several popular software types within the FinTech industry that are developed by our company:
Lending software (loan origination and commercial loan)
With this software, startups and established businesses can secure their working capital with easy, fast, and related platforms. When it comes to businesses, before the advent and adoption of fintech, a business owner or startup would have gone to a bank to secure financing or startup capital. If they intended to accept credit card payments they would have to establish a relationship with a credit provider and even install infrastructure, such as a landline-connected card reader. Now, with fintech, those hurdles are a thing of the past.
Banking software (online banking and mobile banking)
Banks use fintech for both back-end processes—behind-the-scenes monitoring of account activity, for instance—and consumer-facing solutions, like the app you use for checking your balance. Mobile banking is a large part of the fintech industry. In the world of personal finance, consumers have increasingly demanded easy digital access to their bank accounts, especially on mobile devices with the help of banking software. It grants users essential banking operations like transactions, payments, currency exchange, and account management via an accessible mobile or desktop app.
Insurance software (CRMs and software for agencies)
Insurance software seeks to use technology to simplify and streamline the insurance industry. It establishes a smooth insurance process using InsureTech features like payment processing, document uploading, 24/7 customer support, and claims filing.
Investment management software
More than ever, the barriers to investing are being broken down by the use of Investment Management Software. This software will utilize algorithms to automate investment advice to lower its cost and increase accessibility. It provides investors with a reliable tool to make the investment process safer using automated accounting, investment risk analysis, and shares management.
Payment processing software
Businesses rely upon this for payment processing, e-commerce transactions, and accounting. In the wake of the COVID-19 pandemic, more and more businesses are turning to this to enable features like contactless payments or other tech-fueled transactions. With the help of this software, you can implement convenient online payments and digital wallets linked with multi-layer security, top-notch data integrity, and multi-step authentication.
Personal finance software
Individuals use fintech for everything from tax calculations to dabbling in the markets, with no prior investing experience necessary.
RegTech (risk management and fraud detection)
RegTech seeks to help financial service firms meet industry compliance rules, especially those covering Anti-Money Laundering, and know your customer protocols that fight fraud. Therefore, make your business decisions risk-free with risk management software, and secure operations using fraud detection systems, and identity management tools.
Billing and invoice software
Automate invoicing process, keep track of payments, manage subscriptions and make the most out of real-time reporting to always have access to new coming data.
Fintech is flourishing with innovations and newer ideas are getting shaped into apps. Now, the role of Fintech has become more defined, reasonable, and vital. If you think you can’t keep up with all financial buzzwords from bitcoin to NFTs, then don’t panic, you are not the only one. The ever-growing spur of Fintech has been continuously innovating to develop customized financial software solutions. Everything you do, even the smallest financial transaction highly defines the value of fintech within businesses.
Fintech cannot be taken as just another innovation, it is here to stay, innovate and change the current way of operations. Thus, this necessitates us to have a good understanding of financial services, mobile payments, online insurance, mobile banking, payment methodologies, third-party app integration, secure payment services, and similar other needs. Don’t be afraid, Acmo Network will be with you at each step of adopting new fintech solutions.