The COVID-19 pandemic has disrupted business operations around the world forcing many organizations to shut down. Even during the tanking of many global economies, the financial industry didn’t reach the low levels of the 2007-2008 crisis.
All this is thanks to the innovations developed in the financial services & of course, due to government schemes. The Fintech industry is known to be one of the fastest evolving industries thanks to custom software development.
From traditional banking to digital banking, calling brokers to trading on your own, from paper currency to cryptocurrency, fintech software development has changed the way financial services work.
In 2019, the global Fintech market grew to a value of approximately $111,240 million with a CAGR (compound annual growth rate) of 7.9% since 2015.
This growth is expected to continue with an improved CAGR of 9.2% and the value might grow to nearly $158,014.3 million by 2023. And this growth is expected to go strong with a CAGR of 10.2% to $191,840 million by 2025 and to $325,311 million with a CAGR of 11.1% by 2030. [source: The Business Research Company Report]
So, how did custom fintech software development paved the way to success for financial services around the world? Read this article till the end to find out 5 software development innovations that shaped financial services!
Financial services companies have come a long way serving multitudes of customers. The one thing that has exponentially improved is security. From simple User ID & Password protection to integrating captcha to adding biometric security capabilities, custom fintech software development have helped shape financial services.
Currently in the banking sector and other financial sectors like trading, fingerprint verification and facial recognition are widely used. And with the introduction of TouchID fingerprint & facial recognition features in iPhones, biometric verification became more accessible and easier.
There are total 5 biometric verification methods as mentioned in the table below (source: Thales)
The fintech banks & institutions keep your data secured through these advanced verification methods. These biometric information are almost impossible to forge but out of the 5 methods, fingerprint verification is widely used for its high accuracy and low cost.
Artificial intelligence in fintech services has paved the way to success, better security and personalization. Custom software development has built AI regulatory software systems for specific businesses that also analyze tons of data to offer personalized digital products.
In this digital era, data leaks, online money laundering, and cyberattacks are quite common. But thanks to custom software, fintech services have become smarter and more secure.
Custom software development can be leveraged to build anti-money laundering software solutions to safeguard the users.
According to statista, most respondents to a survey stated that enhancing fraud detection is the most crucial feature of AI. How does artificial intelligence help? It uses supervised & unsupervised learning algorithms to understand consumer behaviours. This helps to understand identity better and prevents unauthorized activities.
What is Robotic Process Automation (RPA)? These are designed through custom software to identify, learn & mimic human actions & human interactions with digital systems. RPAs help to automate certain repetitive tasks, reducing costs & enhancing overall efficiency.
RPA helps to automate tedious, repetitive and mundane tasks such as data entry. Having investment robots on your fintech software or portal could make things easier for the users as they streamline their work flow.
These robots are especially useful to help investors make well-informed trading decisions based on data.
Blockchain is not a new technology but fintech institutes around the world are gradually accepting it. The database of blockchains are distributed and hence, accessible to multiple users.
Any user could add a new record but the records couldn’t be changed, hence, making blockchain technology transparent & secure. All the transactions are verified by multiple users and hence, they’re quite accurate & This is the result of custom software development.
The blockchain market was around $3 billion in 2020 and is expected to grow over $25 billion by 2025. The growth is exponential and certain nations are accepting cryptocurrencies, adding more growth to blockchain technology.
The banking industry is transiting to mobile banking using mobile applications. Why? Because most of the banking consumers want
Provide your clients with secure access to their financial information on tap from any location. Work with us to create powerful software solutions that encourage ease of collaboration and communication between financial staff and clients.
From providing notifications to your users in real-time, to offering enhanced flexibility with mobile banking, there are numerous benefits of mobile app development services for finance companies.
Also read: Why Is Custom Software Development Crucial For The Financial Industry
Now, you might have a better understanding of how custom fintech software development brings innovation into the fintech industry. Thanks to the implementation of constant innovations and new technologies, financial services are becoming more user-friendly and enhancing customers’ experience
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