In 2020 and later, the technology of open banking makes it easier than ever to set up integration with a bank or fintech platform. It gave a huge boost to the fintech industry:
Social networks connect payment tools, e-commerce platforms embed convenient accounting systems, and real estate rental services connect credit and insurance services. And this is all thanks to fintech growth. But how could it be used by your business?
Let’s start with understanding what fintech is.
What is a fintech?
Fintech (financial technology) – technologies that help financial services and companies manage the financial aspects of a business. They include software, applications, processes, and business models.
NFC payment via Apple Pay, shopping on Instagram, checking out an investment account, or paying tax in one click – financial services are gradually becoming invisible. You can hardly imagine your life without all these things now, so as your customers.
The customer is putting less and less effort into transactions. The user expects that fintech functionality will already be built into the service or application, and he or she will not have to spend time selecting and configuring suitable solutions.
How to make fintech technologies work for you?
A variety of payment methods and forms of acceptance, acquiring, and antifraud are a must today. Alternative payment methods – contactless payments, electronic wallets, invoicing, social commerce – are pulling the share of payments by bank cards or cryptocurrency.
The consumer is not usually interested in who provides the service – he pays attention to the product brand. Paying for a cab, the client thinks he is using the aggregator’s payment service. And when applying for a loan in a supermarket, he thinks that the retail chain is issuing the loan. It’s important to the user that everything works efficiently, and how it functions “under the hood” is no longer important.
The integration of new financial technologies does not require a radical transformation of business at the infrastructure level, nor does it require large investments. But it’s still important to use fintech software development services that can help you connect modern payment services to your business. Or it could be a full digitalization process – this can be the integration of acquiring, the introduction of a bonus program, or the internal automation of individual processes such as insurance or credit systems. Let’s take a closer look at the things that fintech could take care of.
Which business processes could be solved by fintech?
- Personal finance – mobile and desktop apps from startups that help individual users handle and manage their finances
- Payments – fintech tools that solve the problem of 2 billion people by giving access to basic financial services.
- Credit – provide options of lending directly to your business without the bank’s involvement.
- InsureTech – insurance offering automated products: mobile apps, payout automation, Internet of Things interaction. It allows you to provide insurance options for your product on the go, without any bureaucracy.
- Crowdfunding – collective financing option that provides cooperation between the creators (designer, etc.) and investors. Kickstarter and Indiegogo are the most popular representatives of this kind.
- Cryptocurrencies – a type of digital currency without a central payment system.Using these “currencies of the future” you can expand the variety of payment options your business provides.
What does this all mean to business?
In the next few years, new ways of initiating payments will emerge in the fintech market. Large participants in the payment market will be able to create new opportunities for customers – for example, payment requests, payment subscriptions, recipient confirmation, invoice management, etc. And integrating fintech into your business opens up gigantic opportunities that shouldn’t be missed.