Since the last decade, we have observed many Fintech startups and organizations rising and gaining a lot of growth opportunities in the international market. Be it international payments or managing securities online, users all over the world are deliberately using Fintech products like online banking to digital trading applications.
Every day, a lot of new users coming online with the help of cheaper internet connections and smartphones in hand; the banking sector leapt and started going mobile first! Thus, a lot of new challenges and opportunities arrived in the fintech market.
Here are some of the new challenges and opportunities for fintech companies and startups to solve with modern-day technologies in 2021.
Customer expectations and demand complexities are always on the rise. From the day when the first bank went online and let its users do online transactions, the same day new scope and opportunities started to pile up for the fintech industry.
Recent fintech applications do not only solve the money transfer and simple problems of their users. Managing security portfolio of users, managing commercial transactions, dealing with customer support, lending money and processing EMIs online; the fintech industry is managing a lot of things with a single application only.
Fintech startups also gain timely investments from medium and large banks to gain bigger market share and partnerships in the market. Managing all these partnerships, features for users and at the same time collaborating everything under one umbrella becomes a challenge and solving it with modern technologies is the need of the hour.
Laws and regulations
Be it GDPR norms, EU Directives, Indian reserve banks or any other country in the world have made strict regulations for the fintech industry. Especially, when it comes to the safety of users’ data and privacy, it becomes essential to maintain them healthily!
Every operation from payment settlements, lending money and securities, investment management and selling services online becomes a liability for the fintech company. Where many startups fail in the implementation of various laws, there are some of the fintech companies working in the same direction to provide a good platform to let other digital companies adopt and use to safeguard their users around the world.
Well, fintech itself includes finance and technology in it! And when someone does something innovative, it becomes a solution for the finance industry.
Next-generation technologies like Blockchain, Machine learning, AI, IoT and industrial automation is helping fintech to scale businesses even better. When you talk about next-generation supply stores and even small scale offline transactions with virtual money, things would come in handy.
Better solutions for business and payment integration to provide better infrastructure to the user is still improving drastically. While everyone is going mobile, small scale digital transactions and even government transactions are going online to save time and money.
Blockchain is also bringing a revolution in the fintech industry. When you calculate the effects Blockchain can bring to fintech, from secured payments to cryptography and building entire platforms on the smart contract is the next big thing in the fintech industry.
Enhancing customer experience is all it takes to build a perfect fintech product. Most of the customers have nothing to do with the tech used to build a product in their hands. All they need is a fluid experience and convenience.
Talking about convenience for users, the ability to make small payments at their corner medical store to using credit scores online, everything comes as hope to the fintech service provider.
Enhanced and easy to use user interface and user experience is a crucial part of fintech to gain more users on their platform and retaining them forever. Little surprises and features are just some marketing gimmicks applications provide; providing comfort, seamless automation, convenience to pay even with slow internet access is the key to success.
Also, the functionality of the application is not the only thing the fintech service provider needs to calculate. Voice technology, personal artificial intelligence-based assistance, the omnipresence of tap to integrations are also coming into the mainstream.
In developed or developing countries, all the governments have data security rules for fintech companies. From storing customer data on local servers to not letting other companies access the sensitive data is mandatory for most of the bodies.
Also, to gain users’ trust in the system, using robust architecture to safeguard each transaction and data is very important. Data transmission via APIs across various platforms is also important for the integration and collaboration of various services. A better understanding and development of such a stable and scalable platform is necessary.
Personalization and future-proofing
With the new marketing trends coming from the user perspective, updates are necessary. Keeping the applications feature reach, secure and scaling is necessary for every fintech organization.
Most of the fintech companies are running behind building super applications where users can purchase anything related to money and even products which they are currently buying using various digital and offline platforms.
The economy is changing rapidly and so is the adopters and its creators! Is your fintech startup ready to take on the challenges and converting them into opportunities with technology??