The influx of mobile phones has changed many things in the modern era. Just because of the high penetration rate of mobile phones, there have been many changes in the way we deal with things, and in addition to this, a completely new platform has been developed for marketers and developers. The penetration rate of mobile phones is so high that currently more than 5.5 billion people are using mobile phones and this number is going to keep on increasing in the upcoming years.
One of the best gifts that the world of mobile phones has given to the world is mobile apps and now the market of mobile apps has become so huge that every person using a mobile phone is using at least 60 to 90 apps and almost all of them are necessary.
Well, just like all other sectors, mobile apps have affected the modern day fintech industry as well. Fintech stands for financial technology. This simply means when the financial industry incorporated with technology, it gave birth to a new solution that is known as fintech.
In the modern era, we can say that the evolution of fintech has improved the financial industry in many ways. The rise of the fintech industry has affected many other sectors like stock trading, mobile wallet, and even the banking sector. You will be surprised to know that the fintech industry has become so big that it will become a $46 billion industry by the end of 2020.
Technology is playing a leading role in the improvement of fintech industry and therefore, mobile apps have also contributed towards improving the fintech industry. If you are wondering how then keep reading to stay illuminated.
Gone are those days when you had to carry your passbook or visit the bank in order to do any type of financial transaction as we are living in a digital era where most of the banking processes were completely digitized after the influx of computers. But this was just the first step in digitization as soon after the arrival of mobile phones, most of the banks out there started offering their customer personalized apps where each and every type of service offered by the bank can be accessed through a single app.
It was because of the mobile phone apps that customers were able to deal with every banking procedure without wasting time and effort. You should know that around 25% of the 50 global banks around the world are offering native banking apps to their customers and it is expected that this percent is going to keep on increasing.
Loan based apps
If you will go through the traditional process of availing loans then it will not only become a complicated process but it will also turn out to be a time taking process as well. But thanks to the modern day digitization that we are now many loan based apps that are offered to the customers with only a single motive; making the loan approval process easy and simple for the customers.
You can take the example of the app LendUp which is a web and mobile based app and it allows all the people living in America to apply for short term loans without any hassle. By using this app, you can apply for short term loans round the clock and you will never have to worry about the banking hours. One of the best things about this app is it can make spontaneous decisions and there is also a ladder program through which you can benefit.
Mobile payment apps
If you are looking forward to exploring one of the most lucrative sectors of the fintech apps then you should go through the mobile payment apps like PhonePe and Paytm. These apps allow the user to make a wide range of payments like DTH, electricity, mobile recharge, bus, railway and flight tickets, and much more. The user just needs to enter his or her banking details in such apps and then they are ready to go with a one tap payment feature.
In addition to making several kinds of payment, these apps are widely used for sending money to friends and family members as well. And since digital payment has become an important part of most of the firms as well, one can easily set up a business account and then can start receiving or sending money as a firm.
You will get many options to send money to your friend and family members like in some apps, you will have to enter the banking information while in others, just entering the mobile number will do.
Both the insurance and fintech app development are being expected to rise side by side. Well, both the insurance and fintech apps have started showing results already as the insurance sector, in particular, has grown to about 100 billion EUR in the year 2016.
Even all other types of technological improvements like machine learning and AI have also played an important role in offering personalized services and data gathering as well. You can take the example of both Metromile and BMA in order to understand the impact of fintech on the world of insurance and how mobile apps are playing a crucial role in fueling the growth of the fintech industry.
Why are mobile apps of the fintech industry setting benchmarks for all industries?
Have you ever thought why mobile apps of the fintech industry are turning out to be a role model for all other industries? Well, here are a couple of reasons.
High focus on user-friendliness
Not everybody likes finance and this is the main reason why not everybody wants to deal with it directly. Most of the people consider finance as a boring topic and they always want to avoid it as much as possible. But it is the user-friendliness of the mobile apps being used in the fintech industry that makes it successful.
The basic motive of these apps is to understand the human requirement and since the interface of these apps is very neat and clean, they are able to fulfill the customer expectation without any issues.
Value adding features
There are many value added features that you will get with a mobile app built for the fintech industry and this is what makes it stand out from the crowd. For example, all the fintech apps of the mobile platform will allow you to see your spending and history through charts and graphs. Such type of feature allows the customer to view their spending and keep tabs on it.
Such type of feature allows the user to make improvement in their daily spending and this is how mobile apps of the fintech industry are proving to be highly useful.
The best security features
It’s true that when it comes down to apps, then most of the people consider the security provided by the app to be the top parameter. Well, mobile apps built for the fintech industry beats all other apps when it comes down to security. Financial data is one of the most important types of data and this is why the mobile apps of the fintech industry have to be highly secure.
There are many different layers of safety included in such apps so that even the best hackers out there can’t get their hands on your financial data.
Mobile apps have played a very important role in transforming the fintech industry and it will keep on shaping the future of the fintech industry since the use of mobile phones and mobile apps are going to keep on increasing in the future. From loan approval to sending money, everything is now being done through mobile apps and this is what makes the fintech industry a lot better.