Companies from different industries have shown a great inclination toward FinTech applications. In fact, it is amazing to know that the FinTech industry is expected to reach a whopping $324 billion by 2024.
Therefore, we have a clear idea that companies are interested in FinTech application development to create highly secure and reliable financial applications. This helps them improve their existing services and banking infrastructure.
Creating a mobile app is more beneficial for financial companies as it allows them to capitalize on a much larger market. In this blog, we are going to talk about the latest FinTech application development trends in 2023.
Before understanding the trends, it is important to know what exactly fintech app development is:
What is a FinTech App Development?
A FinTech app is basically a mobile application that allows mobile users to access financial services from the convenience of their mobile devices. Additionally, these applications provide more streamlined operations compared to traditional digital financial solutions.
Financial companies often look for a fintech app development company to digitally transform their operations. Therefore, they can improve their services, operations, and reputation in the market.
FinTech technology has been around since the early days of ATM technology and online banking. However, the smartphone revolution brought about a significant transformation. In place of traditional financial institutions, new FinTech companies have sprung up taking full advantage of the best FinTech app development services.
Latest Fintech App Development Trends in 2023
The FinTech industry has been growing rapidly wit remarkable innovations and drastic digital transformation. 2023 will be a year of drastic changes and innovations.h
New tools and technologies could change the face of the FinTech industry with more transparency, openness, and security. The following are the fintech app development trends that will dominate the market in 2023:
1. Blockchain Technology Provides Security and Transparency
Blockchain technology has had the biggest impact on the FinTech industry with decentralization and distributed ledger. For this reason, many financial institutions are already trying to get the most out of this technology by hiring the best FinTech app developer company.
Blockchain could be very useful for financial companies to reduce risks, ensure security and provide greater transparency to stakeholders. In addition, it is also a big step towards the efficiency and profitability of financial processes.
Businesses like insurance companies can greatly benefit from smart contracts to seamlessly enforce their policies. In addition, many additional investments can be reduced by eliminating intermediaries in the provision of financial services. Most importantly, Blockchain technology’s peer-to-peer concept is more effective than any other technology.
2. Artificial Intelligence (AI) for Innovation and Automation
Artificial intelligence technology has been very helpful in providing accurate predictive analytics with the help of historical data. Furthermore, this technology has been implemented in various industries such as healthcare, entertainment, sports, and manufacturing.
The financial industry is also a big implementer of artificial intelligence technology. As a result, the industry can gain some of the most useful analytics insights from big data. Also, AI is known for enabling automation in the financial industry.
You can provide effective predictive analytics to minimize risk and maximize profit. Chatbots with natural language processes and facial recognition systems can also be used to improve the customer experience and security of financial platforms.
3. Emphasis on Big Data
The financial industry has to manage gigantic amounts of data every day to maintain various operations. Also, data management is not just limited to pen and paper or simple Excel sheets.
Today’s financial data is structured and unstructured, making it incredibly difficult to process and obtain useful information. According to a leading android App development company, Big Data has been trending for a couple of years in the Fintech industry. It is a very useful technology to process tons of data and provide meaningful information to finance businesses.
Consequently, these insights are very helpful in making important business decisions. So it becomes incredibly easier to understand a large amount of data from multiple sources with Big Data.
Neobanking will revolutionize banking with mobile apps, cloud computing, and API integration. It offers an improved user experience, lower fees, and greater flexibility, making it a strong rival to traditional banks.
5. Regtech – Regulatory Technology
In 2023, Regtech will increase trust in the system by ensuring that financial institutions operate safely and correctly. The technology stack includes Artificial Intelligence, Machine Learning, and Blockchain enabling more accurate and efficient monitoring of financial institutions and helping to identify and prevent potential problems.
6. Biometric for Effortless Authentication
Major financial companies now consider biometric authentication to be a very important part of the FinTech application development process. It speeds up and increases the security of the authentication process.
FinTech companies will continue to prioritize this to identify the correct user and also prevent identity theft. Friction reduction is also an essential benefit of biometric identification. Above all, users do not need to manually enter a password to access features. They can simply use their fingerprints or face to log in to the app.
We may also use biometric authentication as a form of two-factor authentication when verifying a transaction. It effectively saves the user from errors, fraud, or inconvenience. So, if you are also building a FinTech app, don’t forget to hire mobile app developers in India to implement this innovative feature.
7. Gamification For Concept Engagement and Simplification
Not everyone is ultimately literate enough to understand all of your financial services. Therefore, it is critical to introduce an interactive solution in order to educate users and keep them engaged for longer periods of time.
Many industries are also using their own attempt at gamification to include gaming activities in their offerings and experiences. As a result, the FinTech sector has the potential to educate its customers, enhance the customer experience, and boost levels of customer engagement.
In 2023, there will be more financial companies trying to implement their educational videos, personalized programs, cash-back rewards, etc.
In 2023, a new approach to enhancing Fintech security is microservices. They are also excellent value for money and will gain popularity in the coming year.
Also known as small form factor server architecture, microservers are reliable, robust, dense, and dense. Each microserver is designed to minimize capital costs, power consumption, and size. Combined, they can host small-scale applications and data that don’t require all the services of traditional enterprise hardware.
Making predictions for the coming year is difficult. However, 2023 will undoubtedly be an important year for the financial industry due to the myriad of regulations, technological advances, and market trends.
It is significant to keep up with industry-influencing fintech application development trends such as DeFi and blockchain, Artificial Intelligence, and P2P lending. Even if you don’t work in the fintech sector, developments in this area can have a significant impact on your company.
Therefore, it is best to look to the professionals at a mobile app development company for a smart solution for your business. They will assist you as per your requirements.