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Mobile FinTech software for Financial Institutions
If you ever paid something with your phone or transferred money with an app, you are closer to FinTech than you think. FinTech has been changing the industry and the demands of users for a while. It includes not only technologies but products, and business models. As the world is getting more digital, FinTech modernization can’t be omitted by such financial institutions as banks. Tons of paperwork, signatures, and clarifications now can be performed in a few clicks due to FinTech’s impact. Payments and transfers are now smoothly done online, from P2P (people to people, individual transfers) currency exchange to B2B (transfers between legal entities) payment and transfer services. Now, things that were considered a perk are a necessity.
FinTech evolution is giving users new ways of payment, which is why things like cloud desks, smart terminals, and mass payment services appear. The fast-growing success of FinTech is also rooted in a better user experience achieved with help of robo-advisers, chatbots, and apps for financial planning, and money-saving. These attributes attract clients, and that is why bank institutions adopt FinTech brand-new ideas.
Banks as a part of financial technologies
Despite the fact that approximately 1.7 billion people worldwide are unbanked, the existence of such institutions is essential. The very concept of a bank is changing. Over the years, it turned from brick-and-mortar into a well-functioning digital space. Thanks to the FinTech approach, it attracted more and more young-age users. Since customers are getting more easygoing with technologies, it is a necessity for banks to adopt new financial trends to compete for customers’ attention. The most common innovations for the banks are:
▪ Cloud technologies and Big Data – with the help of cloud tech, institutions can centralize their network and provide services from any point of the world without installing additional applications. As for Big Data, with its collected info, banks can improve user experience and provide better-personalized offers.
▪ Application Programming Interface (API) – enables applications to exchange data and functionality quickly and securely. The most illustrative example of such integration is a payment in the e-Commerce store. The customer only needs to enter their card details on the front end of the application and the API will create a unique token for this transaction. This means that the payment processor doesn’t require access to the user’s bank account, which prevents potential hacking threats.
▪ Omnichannel banking – bank customers may interact with the institution as they like, with an application, website, in-face communication in the bank branch, or via a call center. Omnichannel allows gathering and synchronizing all the information to cover customers’ needs. For example, customers may start the transaction with one channel and finish it with a different one. Data is preserved and doesn’t require additional entering with the same request. All the actions like payments, loan applications, and card requests, can be done by mobile apps, tablets, and smartwatches fast and smoothly. An additional benefit of such omni-interaction is the integration of chatbots. With a little help from Big Data, they collect your request and provide you with better and personalized info. As a result, improved user experience leads to customer loyalty and better conversions.
▪ Artificial Intelligence (AI) – is a global trend nowadays, so its integration into payment systems is no longer a surprise. With the help of AI, banks can analyze their customer’s habits, payment activity, and operation history and suggest the best offers without interference or annoyance. Another benefit of AI is fraud detection. Intelligent algorithms can spot anomalies and suspicious activity in a matter of seconds. According to a Business Insider report, banks are projected to save $447 billion by using AI apps.
Key benefits of FinTech for financial institutions
▪ Savings: FinTech applications enable improving business efficiency thanks to quick and automated procedures, leading to savings in terms of money and time.
▪ Flexibility: FinTechs help financial institutions design more agile workflows, preserve data, and facilitate financial operations for users with no attachments to place and time (24/7 access).
▪ Efficiency: FinTech technology allows to automate of repetitive procedures as well as reduce human error and focus on main points, along with chatbots and extensions.
▪ Analysis: Thanks to AI, banks can improve the estimation of processes with more detailed information and data, allowing them to save expenses and outstand competitors.
▪ Customer loyalty: FinTech improves the user experience and user satisfaction by offering financial products and financial services adjusted to their needs.
Statistics show that currently, there are more than 6 billion users worldwide (Statista), and this number is expected to grow 3x in ten years. The global pandemic facilitated the mobile boom. Due to its demand, companies ensure their users have everything they need: restaurant and medication delivery, movies, and banking. FinTech adjustments made old-school banking systems and operations into new mobile banking. Bank in mobile allows users to perform payment transactions, loan money, check their balance, control the transactions and always be aware of their current status thanks to notifications.
Mobile banking benefits:
▪ 24/7 bank account access
▪ Smooth and quick money transfer
▪ Fast and secure access to the account (biometric and multifactor authentication, one-time passwords, dynamic CVV code)
▪ The notification setup (money incoming, unauthorized access attempts)
▪ Broader functionality (e-wallet, no card withdrawal, unlinked to card accounts)
▪ User-friendly UI design
▪ Personalized support (chatbots)
▪ Higher user attraction and better engagement
▪ A better understanding of user behavior
▪ Competitive advantage
▪ Easier A/B testing
▪ More ways to reach out to users
▪ Cost saving
The increasing demand for self-service and personalization of products and services facilitated the growth of the mobile banking market. As statistics show, this trend is going to be lasting and opens lots of business opportunities. Over the four years, Proffiz tech experts developed mobile solutions for the business, fintech, and printing industries. If you are willing to improve the existing product or create it from scratch, you can rely on our experience and expertise. Here, you can find out more about our work.
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