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The term financial technology i.e., FinTech refers to emerging
technology that aims to enhance and simplify financial services
distribution and usage. FinTech, in essence, is used to assist
businesses, company owners, and consumers in properly managing their
financial practices, activities and puts to use proprietary software and
algorithms found on computers and smartphones. The term “FinTech” refers
to a mix of financial technologies. Even you can build non-financial app with FinTech.
Let’s dive in deeper.
When the word “FinTech” first appeared in the twenty-first century, it
was originally applied to the technologies used at the back-end networks
of existing financial institutions. However, there has been a transition
to more consumer-oriented offerings and, as a result, a more
consumer-oriented concept since then. FinTech currently encompasses a
wide range of markets and businesses, including education, retail
banking, marketing and nonprofit, and wealth services, to name a
handful.
FinTech also covers the development and usage of cryptocurrencies such
as bitcoin. While this area of FinTech gets the most coverage, the main
money is indeed in the conventional global banking business, which has a
multi-trillion-dollar market capitalization.
FinTech companies are piggybacking on traditional banks’ different
offerings and flipping the existing market structures in the finance
sector, from opening new accounts to insurance underwriting and credit
profiling. With a surge of venture capitalist funds flooding into the
FinTech ecosystem, “challenger” banks are seeking to demolish banking
behemoths quicker than Blackberry was demolished from the cellular phone
market.
Overview of the FinTech Industry
the most exciting fintech application developments. For certain players
in the financial sector, transitioning to a digital-only format became
critical to survival. Known financial organizations, which were
historically slow to accept innovation, are now competing with
entrepreneurs and creating fintech applications.
The fintech app industry would be worth $305 billion by 2025, with a 20
per cent CAGR. FinTech is becoming one of the world’s fastest-growing
markets, thanks to the COVID-19 issue, which has created multiple market
opportunities.
FinTech Developments
Before we get into the specific fintech product creation areas that might
be of interest to you as a potential app user, let’s first look at the
major financial technology developments.
1. Robotics, Artificial Intelligence, and Process Automation
AI and associated innovations are among the most crucial fintech market
developments. By 2021, spending in AI would have crossed nearly $60
billion, with the finance sector investing $10 billion.
2. Big Data
Big Data is now one of the top fintech developments. It’s easy to
explain! 40% of our everyday choices are taken unconsciously out of habit,
which implies we execute algorithmic acts nearly half of the time. As a
result, if a business understands the customer’s daily style, it will
blend into his environment, and he’ll purchase its product (or order its
service) out of habit. The law applies to all businesses, including
financial institutions (those trying to persuade the user to choose their
fintech payment solutions).
3. Data Security
71% of businesses of various profiles have had their consumer data
compromised (or lost) at least once, and 46% of data thefts happened in
the previous year. In this respect, the GDPR project was initiated in
2018. (GDPR stands for General Data Protection Regulation). It aims to
safeguard the personal data of European Union residents. Also,
non-compliance with these regulations may cost businesses up to 20 million
euros. Furthermore, it is estimated that about 80% of foreign corporations
would not fulfil any of the criteria.
15 Best Ideas to Build Non-Financial App with FinTech
not heard of in the town, here is a list of the 15 best ideas.
1. Payment Gateways
These are websites that enable consumers to pay for the product or
service on a merchant’s website. Today, there are various payment
options accessible today, including debit & credit cards, digital
wallets, and cryptocurrencies. Banks typically demand exorbitant rates
to process transfers from any of these various ways. However, FinTech
firms incorporate all of these payment methods into simple applications
that online retailers can conveniently afford to embed on their website.
Businesses that offer actual goods or services to end consumers are
likely to utilize these payment apps.
2. P2P Lending
It is where one party borrows money from another person.
Peer-to-Business (P2B) lending happens anytime a corporation borrows
capital from one or more people. Through steering funds to pre-approved
and screened borrowers, these financing models allow investors to
receive higher returns than those available in debt markets. FinTech
firms, such as Funding Circle, build websites that link borrowers and
lenders, and they typically take a commission from the borrower’s
repayment.
3. App for Maintaining Financial Records
This form of the app will assist users with keeping track of their file
payments, invoices, taxation, and other financial documents. Such an
application will also save them the trouble of holding and transporting
paper receipts as required.
4. Platform for Cryptocurrency Trading
This is a groundbreaking and one-of-a-kind app concept for finance
entrepreneurs. The platform can provide users with the opportunity to
participate in the decentralized cryptocurrency market. However,
bitcoins are sold here rather than other digital assets. Any of the
strongest aspects of the crypto exchange network includes transparency,
lower costs, quicker processing, and the highest protection degree.
FinTech companies must weigh several key considerations before selecting
each of these ideas, including regulatory criteria, fundraising, finding
niche opportunities, and gathering knowledge regarding obstacles and
competitor applications. After conducting sufficient analysis, the
startup could seek an app development company’s services to recruit
seasoned developers.
5. Digital Wallets
Think of digital wallets as a cross between a basic bank account and a
gateway for payment. In this business model, a consumer will pre-load a
certain sum of virtual money into the wallets and then use it to make
online or offline purchases with retailers that support digital wallets
as a payment method. Digital wallets are a great idea to build non-financial app with FinTech.
A digital wallet market model usually includes supplying consumers with
the ease of making transfers in return for a nominal price charged to
companies in the form of a retailer discount rate and the float they
will make on money owed in consumer/business accounts. Businesses that
offer actual goods or services to end consumers in shops are traditional
wallet end users.
6. App for Electronic Mortgages
Initially, the COVID-19 recession harmed the housing industry,
rendering it more difficult for individuals to get a mortgage. Mortgage
prices fell as the world started to rebound from the recession, and
recently developed e-mortgage software streamlined the mortgage
application process. Contactless mortgages are currently available via
e-mortgage applications, and they are expected to become the universal
norm after the COVID-19 epidemic.
7. App for Bill Reminders
A bill alert software may be a lifesaver for anyone who often fails to
pay their gas, water, cell phone, credit card, and other bills on time,
resulting in excessive late payment fees. Try developing an app that
alerts consumers of upcoming bill due dates. This concept will
undoubtedly be well-received by consumers.
8. Asset Management
Do you know about purchasing options or investment funds without paying
a commission? FinTech firms such as Robinhood enable investors to
transact for free in return for their results. They send this
information to high-frequency traders, who will then manipulate the
asset’s price. And if the consumer pays a marginally higher price for
their asset, the difference between the sum saving on trading costs and
the small price rise is always favorable.
9. Digital Banking
Imagine the typical brick-and-mortar bank moving entirely online — no
physical location, no bank tellers, no mail. N26, a challenger bank,
provides no-frills person and company bank accounts through fully
digital infrastructure. The business model is almost similar to that of
a bank with physical outlets, except that consumers will profit
significantly from lower costs due to significant cost cuts in personnel
and real estate.
10. App for Point of Sale
This kind of app will be very beneficial to brick-and-mortar companies.
Consider creating an app that allows companies to receive purchases from
various forms of cards, digital wallets, electronic payments, and other
methods. Since consumers no longer focus on a single form of payment,
such an interface will help companies generate revenue and provide an
unrivalled consumer experience.
11. Alternative Insurance Underwriting
In the country today, two people of the same height and weight, who are
also non-smokers who may not use alcohol, would be charged the same life
insurance rate. However, one individual may be a fitness enthusiast,
while the other may be a couch potato who is more prone to die of
diabetes. These erroneous premium figures occur due to averaging out
(also known as normalizing in actuarial terms), as risk rates currently
do not account for variables that are not quantifiable.
FinTech firms like alternative credit scoring are developing vector
computing mechanisms based on alternative data points like social cues,
lifestyle, and medical records. These InsureTech firms, when paired with
intelligent and self-learning technologies, will decide whether or not
to offer insurance, provide various terms and conditions, and provide
alternate payment methods.
12. Digital Insurance
Here is another great idea on the list to build non-financial app with FinTech. FinTech companies in the insurance sector, including automated banks,
are moving these conventional services to the digital environment.
Offering life and health insurance with improved underwriting
procedures, these FinTechs will charge higher rates depending on the
client. This enables them to provide aggressively reduced risk than
conventional insurance providers. These forms of insurance, along with
targeted ads, have the potential to open up new business opportunities
that insurance firms have just started to consider. Lemonade, for
example, is involved in the residential insurance sector.
13. RegTech Apps
Alternatively, you might develop an interface to assist companies in
dealing with laws and legislation and minimizing the threats involved
with compliance concerns. Thus, RegTech apps are designed to monitor
emerging rules, detect threats, conduct enforcement tests, and translate
standards into specific measures that businesses must take to prevent
fines. RegTech applications also assist companies in ensuring data
protection.
14. App for Payday Loans
Payday applications bridge the gap between fintech startups and
borrowers in an intriguing way. Startups can lend a certain sum to
customers as a loan to help them cope with financial emergencies. Such
as paying medical expenses, energy bills, EMIs, other bills, and so
on.
Users must enter their bank account information into the app for the
fintech startups to deposit funds into it. As a result, the users will
cash out their money at any moment, and the applications log any
purchase they make.
Essential characteristics of payday loan apps:
-
Guaranteed confidentiality of users’ bank information and
data -
In only a few taps, you may obtain a loan for a certain
amount - There are no hidden fees
- Notifications and alerts about upcoming payments
15. Blockchain Apps
Blockchain technology is beneficial to all businesses in the BFSI
market. Whether they are a fintech developer or an existing finance
firm. These applications will provide consumers with a plethora of
alternatives while still providing increased protection when conducting
online purchases. These apps often enable users to conduct transactions
using cryptocurrencies. Some of the more common
blockchain-based applications include We trade, Circle, and others.
FinTech can handle everything from spending a dollar to purchase
chocolate online to preparing a multimillion-dollar budget. However,
these advances are bringing many tremors and are continuously
transforming how money is invested and used. And who knows,
cryptocurrencies might become the very face of removing cash from our
lives.
Conclusion
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