FinTech refers to technologies that apply innovations in the financial sector, most often banking. In addition, fintechs include cryptocurrency, blockchain, smart insurance, and cybersecurity.
The use of technology allows you to create unique products or solutions that provide new opportunities. They are not only for the client, but also for the business. For example, now online banks have the ability to conduct instant identification of a person. And there are many other operations that previously took a long period of time. Thanks to this, the activity of users in mobile applications of banks has grown by 354% over the past 5 years. And it continues to grow. More and more users are identifying financial applications as the main channel for managing their finances. It’s conducting banking operations and for further planning of the website.
Financial Applications Market
In 2018, the global digital banking market was estimated at about 6 620 million US dollars. By 2025 it will already be about 8 646 million US dollars. Indeed, mobile banking has become an integral part of a person’s daily life. According to a study by Business Insider Intelligence, 89% already use mobile banking. While among millennials there are even more users – 97%. This is because financial products based on artificial intelligence are increasingly meeting user expectations. Due to the significant advantage over standard functionality. Personalization and the ability to analyze it, helps to bring FinTech applications to a new level.
The main advantages of banking applications are that the user can:
- perform any operations many times faster;
- use banking services, regardless of location;
- better control your financial flows: view the entire transaction history;
- instantly issue loans / installments / receive deposits with the receipt of funds without visiting offline branches.
At the same time, the users themselves note that they use banking applications to check the balance or transaction history (81%), pay bills (63%), check the deposit (45%), contact the support service (45%).
Fast Data Processing
Artificial intelligence technologies make it possible to quickly process huge amounts of data and processes in real time.
Chatbots and Online Helpers
This functionality allows you to reduce the time for solving problems. It’s starting with template user requests to providing individual solutions to each client.
An AI-powered automated bank support representative can handle many incoming customer requests. By receiving user data from mobile devices, the mobile banking application processes it using machine learning. It’s done in order to provide the necessary information or redirect the user to the right source.
Card Management System
This technology will enable automation for both credit and debit card management systems and make the entire process safer. This enables the client not to go through a lengthy authentication process. It’s for example, in case of loss or theft of a card
Voice Banking
It is likely that voice commands will become the dominant user tool over the next few years. According to research, by 2020, up to 50% of search queries on the global Internet will be generated using voice.
The voice interface for users makes the process of interaction with customers more accessible. Thus, developers of the fintech segment should think over ways to implement this innovation, following the progress, or stay behind.
Withdrawing Money from ATMs using the Application
Thanks to near-field technologies or a QR code, you are already withdrawing funds. But there are banks that already provide the opportunity for users to make transactions without a card, using the application in cooperation with such systems:
- Apple Pay;
- Google Pay;
- Samsung Pay.
Biometric Authentication
Research by MasterCard shows that users are increasingly willing to use biometrics. It’s as an alternative to password replacement. They see it as a more convenient and safer process. More and more financial companies are investing in developing mobile banking authentication. This will allow users to log in safely and conveniently from anywhere in the world.
Promotion of Banking Applications
Promotion of FinTech applications is significantly different from promotion of utilities. This is due to the specifics of the product. The communication strategy should be tied primarily to the brand and communicating the benefits of the product. They both are for the new application and for the existing one.