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The financial industry is no longer effective without various technologies that help to meet the needs of its customers. This is why fintech is one of the world’s fastest-growing sectors because it is safer and more convenient than traditional financial services.
Accordingly, more and more solutions like software and applications appear on the market that simplify financial management. Today we’ll talk about what fintech apps are and why are they so in demand.
What is a fintech app?
Fintech apps are financial-services-related online or mobile applications. Such tools are increasingly common these days, since most financial services are supplied online to enhance efficiency and speed of execution.
Fintech also refers to an industry in which firms leverage innovative financial technology and solutions to compete for consumers’ hearts and money with established banking institutions. These are often tech firms and businesses that employ financial tools to improve their offerings.
Previously, fintech was seen mainly in the context of internal financial institution advancements. It is now as near to the consumer of financial services as possible since it is the foundation of all online transactions – from money transfers to utility payments.
There are several types of fintech applications, depending on the area of finance:
- Digital payments apps. Digital payments are cashless payments that are quick and safe. Fintech applications such as online payment systems, e-wallets, and digital currencies make it easier to make electronic payments.
- Digital lending apps. Lending applications and software that promote communication and settlement between lenders and borrowers are referred to as digital lending apps. Fintech apps are used by financial organizations such as banks and independent lenders to streamline and manage loan operations.
- Digital banking software. Banks develop fintech applications to provide clients with a handy method for customers to manage their bank accounts, and it is also a convenient way for bank workers to handle their clients’ data.
- Digital investment apps. Investors may use digital investment fintech applications to investigate various financial assets and stock markets in order to effectively invest in them. These applications provide users with the most recent news and critical data, allowing them to make savvy decisions about their investing goals.
- Customer credit software. Apps for consumer lending assist users in managing their personal money. Users may simply monitor their costs, create budgets, and spend with the aid of the proper features and capabilities of such programs.
Why are fintech apps so popular?
2020 was notable for the tremendous rise of fintech apps. People were unable to travel to their customary venues, including banks, due to the lockdown. Individuals and shops, understandably, began seeking for alternatives and new contactless payment solutions and addressing to fintech app development companies more often. So, circumstances worked in favour of the industry, and fintech applications took full advantage of them.
The popularity of applications is more about necessity: people have been actively looking for and continue to look for ways to perform familiar tasks remotely. Most of the new downloads in the US are now trading or investment applications of large banks.
Fintech has discovered the key to the long-term attention of even those who download apps out of need or boredom. Thus, these apps are now being used by an increasing number of individuals. The mobile ecosystem is experiencing continuous growth, so if you want to develop something like this, now is the high time.