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 COVID-19 pandemic has undoubtedly boosted the acceptance of some of 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.
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
To build a non-financial app with FinTech that is also innovative and 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.
This was a round-up of ideas on how to build non-financial app with FinTech. Finance firms are already using FinTech to boost their processes, promotions, distribution, user service, earnings, and overall deal efficiency.
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