We'll look at the present state of the fintech industry, current trends for 2022 and beyond, and the number of resources required to run an effective project.
What is Fintech?
Let's begin with the most basic aspect: what exactly is fintech?
Fintech (or Fintech) is a broad term that refers to all the technological advancements in the financial sector. Mobile apps for banking trading platforms Blockchain, contactless payments as well as financial data analysis, NFT - all these words fall under the category of fintech. Many people utilize these services without even realizing it.
While the term is a source of many discussions but it's not a revolutionary concept. At the beginning of the century, fintech was mostly used for business solutions, but over the passage of time, more solutions that cater to customers came out on the market. Nowadays, the primary goals of fintech are to ease interactions with financial institutions and improve the relationships between banks and consumers.
It's not an overstatement to declare that the fintech market is huge. CB Insights states that 41 fintech companies that are supported by venture capitalists are worth $154.1 billion. One of the major factors that have caused the fintech market to become large is the number of money banks invest in and assisting with technological advancement.
This sector of business has proven that it is relevant in the wake of the pandemic. Banking apps and online payments have become essential solutions for people's smartphones because they let them manage their finances without having to leave the house or interfacing with others.
Fintech apps are of different types
Since fintech encompasses a variety of different business sectors It is easy to categorize the solutions into different kinds. These are the most well-known of them:
- Digital banking applications
These apps are ideal for those who need to control their money and bank accounts and also make transactions fast and without having to interact with other individuals. Mobile and Web banks were created to meet these requirements. Additionally, there are digital-only banks that came on the market, and traditional financial institutions started to come up with more online options. With their assistance, customers can establish accounts, check their balance, make payments, and request a loan.
- Trading and investment apps
Fintech of this kind is utilized in a variety of markets, including Forex, stock, and capital markets. With their assistance, you can manage your investments and take part actively in trading. These software solutions allow you to not only manage your investments but also make profits from your trading and investment transactions.
- Consumer Finance applications
These apps don't have any trading or payment functions as it's not necessary to use these apps. The primary goal of these apps is to help users reduce their expenses and save money. expenditures. In addition, they can budget their expenses prior to time, so they do not have to overspend more than they have to.
- Insurance applications
The name says it all these apps are used by those in the industry of insurance, both for companies and customers. This kind of app could include everything from a basic CRM for an insurance company's website to mobile apps for customers to look over their insurance policies, and even take out a different one if they need to.
- Digital wallets
There are several businesses that provide their customers with this feature (PayPal, ApplePay). Their aim is straightforward that is to allow users to save their funds and pay for purchases. The primary benefit associated with digital wallets is security therefore if you decide to develop a service like this take a close look at how users' funds are secured from fraud and unauthorized access.
- Regtech apps
The term "Regulatory technology" (or Regtech) is software that helps businesses stay within the guidelines of all regulatory and legal declarations. With fintech software solutions, business management is able to monitor modifications in the laws and regulations as well as analyze transactions and track every risk. Furthermore, the Regtech application should be able to detect fraudulent activities and other unusual ones.
Fintech market Overview
We've heard it said many times the fintech industry is a flourishing business with plenty of potentials however, without evidence that it is, all words are nothing more than words. To help you determine whether fintech is the right choice for your needs, we've listed a few figures to think about:
- A majority of Americans use online banking. (Statista)
- The value of fintech-related investments is estimated at $33.9 billion. (Statista)
- The number of fintech startups is 10,755. There are 9,323 companies in the Americas and 9,323 within the EMEA region and 6,268 in the Asia Pacific. (Statista)
- E-commerce is growing at a rate of about 10-12%, which makes it among the largest technology growth drivers for fintech. (IndustryARC)
- As high as 28 percent of the banking and payment services may be at risk due to the new business models that are emerging in fintech. (PwC, 2020)
- Companies that have automated banking processes can achieve a 100 percent ROI in the three-to-8 months. (Medium, 2020)