Can you recall the last time you paid bills offline? Or the time you visited a bank for some transaction? If you can’t, congratulations! You’re already a part of the ever-evolving world of FinTech. Why? Because you have already ditched the traditional approach by adopting the latest trends. The major thriving force behind FinTech is the nature of financial transactions, as they are always vulnerable to numerous threats. However, with the involvement of technology, transactions have become extremely streamlined with the utmost assurance of safety. Individuals who were earlier chained to the traditional approaches in finance are now get luring towards new digitalized FinTech era.
Everything about the beginning of a new fintech mobile apps era.
Mobile phones and app development companies have played a critical role in sculpting ‘FinTech’ into what it is today. With more than 5 billion smartphone users worldwide, companies have taken the charge to propel the goal of digitalization by developing FinTech apps. JP Morgan Chase & Co., Bank of America, Wells Fargo, Citigroup, Goldman Sachs group, are a few of the renowned banks in the US to have their own mobile banking apps. You can smartly manage your account details, pay bills, make payments, receive alerts, deposits cheques, and transfer money in just a few seconds, etc. These apps can simplify your life by providing flexibility, convenience, and easier accessibility anytime, anywhere. No wonder mobile banking apps are the heart of digital transformation in the finance domain.
Mobile payment apps are basically mobile wallet apps. Some of the noteworthy examples include Google Wallet, Stripe, Braintree, Apple’s Passbook, PayPal, Square Wallet, Chirpify, Venmo, Groupon, Zipmark, and Dwolla, etc. You need to create an account with your email id and registered mobile number. Link these details with your bank account, then you are all set to go. However, in some cases, you don’t even have to link such wallets with your bank too. You can directly pay or receive money through the app account only. Transactions can too take place at a stupendous speed. This is the quickest method for making payments, either by adding the recipient’s mobile number or by scanning the QR code. 90 million Americans use mobile payment apps in their day to day lives. Mobile banking apps are getting huge popularity and acceptance over conventional banking practices. In the US, if we talk about digital payments, the transaction value will grow at a CAGR of 8.6% between 2019-2023 resulting in the total amount of US$ 1,339,005m by 2023.
(Also read, Financial Services and Digital Transformation)
P2P (Peer to Peer) lending apps are an emerging online platform. They are posing a great challenge to traditional banking setup in the context of loans. In layman terms, it connects the borrowers with the lenders for transactions involving nominal amount. It is a hasslefree platform with the minimum loan amount, minimal interest rate, and, terms and conditions are also specified well in advance. PwC is predicting the P2P market to reach $150 billion or higher by 2025. The major P2P lending websites include Upstart, Funding circle, Prosper Marketplace, CircleBack Lending, Peerform, and Lending club, etc. Some of the best P2P payment services of 2019 are Paypal, Google Wallet, Venmo, Square Cash, Zelle, and Facebook Messenger.
Loan apps are also quite popular apart from P2P and mobile payments app. These loan apps are developed to simplify the lengthy loan procedures. Lendup, SoFi loans, Upstart Loans, Credible, CashAdvance.com, and kabbage, etc are a few of the well-known apps. Sofi is personal finance and a wealth management company, which is best known for refinancing student loans. It is also into mortgage lending, and refinancing, personal loans, parent loans, and parent PLUS refinancing. Americans generally take personal loans to buy vehicles, pay bills, for contingency emergencies, home renovation, medical issues, tuition fee, to take vacations and for repaying debts. The loan industry in the US is huge, which creates a dire need to involve this segment in FinTech.
We also have Credit Score apps to our rescue. Few examples of famous credit apps are Credit Karma, CreditWise, myFICO, Experian, Credit Sesame, etc. With no inconvenience, you can easily generate your free credit score report, get the necessary information, regular updates, notifications, and can get an entire overview of your own profile.
Money transfer apps have ameliorated the overseas money transfer mechanisms. The most trust-worthy money transfer apps include Venmo, Dwolla, TransferWise, Western Union, CurrencyFair, PayPal, WorldRemit, Square Cash, OFX and Azimo, etc. These money transfer apps possess certain characteristics and facilitate quick transfers, ease in usage, trackable transactions, and are well secured against threats. However, the best app is one which can provide you accurate exchange rates, the highest speed in transactions, no hidden costs, and at nominal charges. InstaRem is a well-known app for remitting funds.
These fintech apps can also help you in managing and tracking your funds like Finch (For millennials for more financial insights), Honeydue (For partners to streamline financial transactions), Runway (For planning the cash in startups), Seedly (For managing finances), and Mint (For keeping a track on your budget).
Insurance apps are also getting a huge significance. Insurance as a sector is the heart of the US economy. Unfortunately, the field is struggling with certain setbacks too like cumbersome claiming procedure, frauds, unethical transactions, deceitful motives, and so on. With insurance apps, the clients can now take care of their policy changes, timely report claims, policy services, and on time policy payments, etc. Auto, health, and life insurance apps are majorly used in the US on iOS and Android platforms. Such apps have not only reduced the uncertainties but also the need and dependencies for middlemen like insurance agents. They have made policyholders vigilant and have instilled self-awareness among them. Geico, Progressive, State Farm, Allstate, Esurance, Berkshire Hathaway, and Liberty Mutual, etc, are the top-notch insurance companies in the US. They have their own insurance apps acting as a cushion against malpractices and providing comfort, flexibility, and ease to the insurees.
Investment and wealth management apps are now on the list of favorite apps among investors. Similar to the case of insurance, the investment industry is also prone to deceitful motives. That’s why, the smart investors nowadays want to handle their own portfolio, and only want to indulge in the online transactions with no mediators involved. Technology like chatbots is replacing middlemen in investment related affairs. From smart assistants, they have now become smart advisors. Such apps can guide on mutual funds, share market, tax-related issues, and retirement planning. Now, you can have your own investment strategy. The prominent investment apps you cannot afford to miss are Vault (retirement), Stash (for new bees), Acorns (automated investment), Clink (micro investing), Stockpile (stock gifting), Personal Capital (personal wealth management), E-trade (electronic trading platform), Wealthfront (college savings), Emma (financial advice), Bundil (investments), Trigger (stock marketers), Coinbase (managing cryptocurrencies), and Robinhood (free stock trades), etc.
Blockchain-based apps are basically the cryptocurrency apps, which can assist you in trading, managing, and safeguarding your digital assets. Bitcoins have made the blockchain technology famous worldwide. The blockchain is like a new tool for developing mobile apps. This technology provides benefits like inbuilt security, reliability, simplicity, continuous upgradation, and transparency. Such apps take care of confidentiality and maintain the privacy of users on priority. The technology that works in the backdrop for the blockchain transactions is an open-source technology, which is freely available and adds as a plus point. Not only it reduces time and cost, but also makes the adoption of updates way too easier. Organizations can rely on blockchain-based mobile apps to streamline their supply chain management, to share transactional data, and to ensure maximum safety.
Regtech apps focus more on future technologies. It is one of the notable trends of FinTech 2019. The introduction of such apps can be really handy for users to make real-time transactions. They help in lowering the burden of KYC. Regulations and strict compliances have caused a lot of inconvenience in the finance industry. However, from the point of cybersecurity, they are crucial. So, the companies involved in providing regtech solutions are working closely with regulatory bodies and their clients to streamline these underlying complexities.
Technologies like IoT, artificial intelligence, cloud computing, and blockchain have made a huge impact by disrupting the finance industry as a whole. However, this is just a beginning, a lot more is yet to come. These technologies are still on emerging stage with their full potential yet to be realized.
Are you the one looking out to create a best FinTech mobile app for your company? If yes, then don’t wait, we at Zymr are here to assist you in all your questions, concerns and queries.