Appearing in banks to make a financial transaction is almost a thing of the past. Not only for the transaction it is also true for bill payments, bank withdrawals and loan approvals. All inconveniences of appearing in banks, filling forms and credit investigations are becoming less due to advancements of technologies in financial institutions. Fintech made Transactions are more secure, faster and more accurate now.
How Fintech Trend is Growing?
Fintech is growing at a rapid rate in financial institutions because Fintech companies are revolutionizing how money is being handled. Transactions can now be done remotely with just a few taps on screen with the introduction of online banking. Innovative blockchain solutions improved the process by leaps and bounds and various countries are slowly embracing it. Financial solutions are benefiting both consumer and country economic growth while making it more secure and saving time. By these advancements future of Fintech is becoming more bright.
A number of mobile apps are available and financial apps are downloaded by approximately 63% of mobile phone users. Application Programming Interfaces (APIs) can develop software to bring products and services of a business to the hands of mobile users. Around 66.72% of the world’s population owns a mobile phone, so it is crucial for companies to provide their services or products through a mobile interface. Traditional banking is still popular but Fintech is slowly attracting a huge volume of people because financial transactions can now be completed online, this provides ease to customers.
Robotic Transaction Process Automation
The increasing number of customers and services is increasing the number of connected devices and the creation of products based on the individual’s data sets. Regulatory bodies have seen impacts of AI-based AML and KYC software that is more capable than the traditional approach. Solutions that deal with regulatory reporting, compliance, transaction monitoring, and risk management will continue to develop. A company can automate repetitive human processes by using robotic process automation software. For instance, a robot can handle a company’s CRM software or it can enter data in Microsoft Excel. It can use the same applications and work in a more efficient and reliable way.
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Global Mobile Payments
Traditional banking is slow while mobile banking is fast and far more accessible and smartphone is driving it more. The worldwide mobile banking industry is massive due to financial exclusion (conditions when physical financial services are not available). The proof of providing identification, filling up forms, other bank applications and the distance to a brick-and-mortar location is a barrier for customers in their daily financial activities. Mobile payments removed all these hurdles and made it easy for financial institutions to process the payments without meeting the client physically and without wasting time.
Fintech App Development
A European Union regulatory directive PSD2 is designed to increase competition within payment industries and protect payment solutions. Banks will be able to enhance their existing products by actively promoting open banking innovation and banks can control how their data is being used. Banks can’t deny Fintech as almost 80% of institutions have established a relationship with Fintech companies.
Blockchain implementation has driven the adoption of mobile banking. Businesses and individuals having access to services and products are known as financial inclusion such as loans, credits and bank account. If people who are involved in the transfer of money over the globe are increasing in numbers it means financial inclusion is increasing and if they are decreasing it means financial inclusion is decreasing. With financial inclusion, it will create more opportunities for individuals and businesses for the transfer and movement of money over the globe.
With increasing Fintech solutions it means business is expanding and will face more regulations than before. Instead of hiring more employees for compliance apply the RegTech solution to save cost and time. However RegTech solutions are more reliable in monitoring than humans. They address compliance checks, identity management, regulatory reporting and transaction monitoring. It also helps banks and other financial industries in KYC as complete identity verification solutions and AML efforts. Currently, 15% of employees in a financial institution work in compliance according to a report. That’s a large chunk of man force and RegTech can reduce it.