#fintechapps Archives

Mobile App Development Guide for the Insurtech Sector

Posted on 15/05/202102/06/2021 by Anteelo Master

The insurance sector is known to maintain multiple touchpoints with its clientele. Thanks to business models that safeguard people from unexpected circumstances, they are detail-oriented and require heavy paperwork at most stages of customer enrollment. But the rapid, and recent, technological advancement has seen the finance sector introduce fleets of new digital solutions that place them right at the fingertips of people. As a result of this wave of digital transformation, pre-existing companies and startups in the insurance sector, are exploring the prospect of mobile applications. Lest we forget to stress, aggressively. The new insurance applications, if we can call them that, would need a touch of finesse considering the diversified nature of operations. So what should software developers concentrate on when it comes to Insurtech app.

It is to answer this throbbing question that we have this mini mobile application guide ready for you to take your first steps towards creating innovation in your insurance business.

Why Does An Insurance Company Need a Mobile App?

Insurance, by tradition, has been powered by middlemen. Although taking them entirely out of the picture may not be plausible, mitigating their involvement will grow profit margins, naturally.

Mobile apps allow real-time B2C interaction, without intermediaries. The positivity also flows down to the customer experience, which can never be exaggerated. And insurtech would be too smart for its own good, not to explore this option.

There are three main components that play a vital role in formulating the proverbial pyramid of an insurance company. The pyramid. which had played a major role in helping Wefox raise $110M in 2019.

This includes first the insurer that incorporates and markets financial products. Second, are the third-party entities that provide the services covered by the insurer. And the third is the end-user, the customer who has opted in to be insured.

Mobile insurance solutions offer the following advantages to insurance companies at the top of the pyramid:

Establish Customer Contact

Buyers are more conscious of spending than before. As per stats, 85% of the customers conduct online research before placing their purchase order. Insurance mobile apps make a fine impression in convincing people of instant support in dire need. A study discovered that up to 63% of its sample population was inclined to communicate with a chatbot. Therefore we have reason to believe registered policy-holders will favor to download and track policies over mobile. Building on this, they can draw a comparison between multiple products and shortlist the ones with better benefits.

Increase User Reach

Provide good customer service and turn clients into business affiliates. Referral programs can get you more buyers to loop in provided your mobile insurance solutions are state of the art. There are dual benefits to this. First, optimizing customer recruitment cycles would free up time for insurance agents to target bigger, better clients. And second, you can advertise your mobile insurance platform in related apps to target more customers with semantics marketing.

Study Customer Data

The insurance industry can tap into mobile analytics which they can analyse to an extent like never before. Insurance applications can easily gather the following types of structured data:

Identity Data – This includes name, D.O.B, physical address, telephone information, email Id, and or links to social media profiles such as Facebook, Twitter, LinkedIn, etc.

Quantitative Data – This is transactional data such as bank account details, credit score, frequency of payments, etc.

Descriptive Data – Insurers may need their customers to disclose property details, car ownerships. professional standing, educational background, along with the family tree.

Qualitative data – This includes subjective/behavioral details such as favorite color, hobbies, etc.

Collecting such vivid information, companies operating in the insurance market can subsequently filter the best-fit prospects for upselling.

Facilitate Convenient Services

One of the most common KRAs of those in the finance-frontline is client visits. This could be either for background checks or personal form submission or a routine update of information. Be that as it may, the current COVID-19 crisis does not permit face-to-face screenings. Moreover, the coronavirus onset has led to a rise in demand for insurance applications. As per a study by Lincoln Financial Group, digital alternatives increase the likelihood of people opting in for life insurance. Make hay while the sun shines.

Universal Features for Insurance Apps

Anteelo, as one of the renowned financial app development company, has appreciable experience in creating cutting edge on-demand digital products. Coupling experience with client feedback, we recommend against loading an app with features just to make it look fab. There has to be synergy between the color palettes, smart use of white spaces, typographic fonts, and strategic positioning of icons and images. Only then does an app have a life of its own. After taking care of such design elements we can refocus our aim towards integrating the right feature sets.

To give you an overview of the Fintech sector that is attracting investors’ attention, there are four categories of apps that can be developed in the insurtech domain:

Life Insurance
Car Insurance
Travel Insurance
Health Insurance

Apps must have a strong backend. They should be able to withstand peak rises in traffic, or if the company decides to implement a new software system without many amendments to the architecture.

Based on our experience, we will first list the mutual features that can be found in all of the above categories. These features formulate the kernel of a general application guide for Fintech app ideas. Barring few niche specifications, the following features remain steady and ever-present especially during a fintech app development of any kind:

1. Admin Panel

This is the introductory page where the basic information about the insured person is displayed. Make sure it is lean, clean along with clear call to action buttons. Take the Geico insurance app for instance. It’s a car insurance app and hence the profile page displays information related to vehicle IDs, roadside assistance, payment buttons and an option to switch policies. Pretty simplistic.

2. Policy Details

This page displays the details of the policy, the manner, and the extent of your benefits. Continuing the same example, since Geico is an auto insurance app, it displays information about several policies that a single user could be enrolled into such as one for the car, the other for a bike, and so on.

3. Quote & Filters

A very useful feature particularly in finance app development. In the previous section, we listed the kind of data that an insurer could collect through a mobile app. The Quote-tab offers a feature where the app can fetch your data from its records and either connect you to an insurance agent or directly state the price of a policy. Assuming the company has the resources to work with Big Data, it can pitch discounted prices or more benefits to customers based on their frequency of asking/exploring new policies.

4. File a Claim

Integrating a claims-filing section remains the most prioritized stage of financial application development. The run-around days to lodge claims are a thing of the past. Submitting proofs should be as simple as clicking a picture, be it from the scanner of the app or the camera of the phone. If the entire process can be concluded on a single page, all the better.

5. Payment Gateway

No points for guessing, integration of payment gateway is super necessary for any form of finance mobile app development. The gateway should accept payments from all major network providers such as Visa, Master Card, etc. In addition to that automated billing for EMIs or a single click payment process should be integrated.

6. Customer Support

Chatbots are not extraordinary anymore. Automated responses act as a quick-fix for run of the mill questions. But what about accidental circumstances. You can’t expect a user who’s stranded with a broken vehicle to rely on pre-feeded answers. As a result, integrate a Request a Call Back or Connect with a Representative option. Such in-app call functionality will serve to make the app what it actually is, a disaster averting, quick response machinery.

7. Push Notifications

Businesses, in general, don’t miss opportunities to enter a new market segment, let alone insurance companies. The latter might even tweak its business models, should the need present itself. Whereas seasonal offers are heard of, the idea of a flash sale was experimented with by Liberty Insurance in the not quite distant past. You need an excuse for giveaways and so do the customers for buying your products. Therefore, send regular push notifications informing people of their outstanding sum and any upcoming policies they can swap their current ones with.

8. Document Upload/Storage

How would the customer upload their documents, let alone a photo, if the Fintech application development did not incorporate it? Not only must the mobile app allow document upload from local file directories but also import, if need be, from third party servers as in the case of emails.

In our lifetime, and we’ve only just begun, Anteelo – the Clutch backed top Fintech app development company – has worked with over 12 Fintech companies whose solutions facilitate a user base of over 5 million people.

Where Does Your Business Go From Here?

To the stratosphere if you shake hands with one of the most promising Fintech app development companies. We don’t like self-glorification. It would suit you more to go through our comprehensive product suit and decide for yourself. But just so we know we did our bit, if there is anything under the sun in Fintech/insurtech, that you’re interested in, we’d be happy to burn our night lamp for you.

Most Popular Mobile Payment Apps

Posted on 20/09/202011/06/2021 by Tushar

Whenever we talk about the latest trends that the mobile app development companies will be hit by in the coming times, one of the trends among the top 10 is mobile payment apps.

With the industry expecting to benefit over $86 Billions from the domain’s mass adoption, mobile payment apps are on a sure shot growth chart – both in terms of users and the generated revenue.

Although, seeing the users shift from currency notes to mobility, a number of brands have emerged in the revolutionary field, there are only a few which the users have grown accustomed with and are using for their everyday transactions.

In this article, we will look into the seven mobile payment apps – both for fiat money and cryptocurrency that are now witnessing maximum downloads and acceptance.

But, before we begin, let us look into the various type of mobile payment options that are presently in the market.

Different Type of Mobile App Payments

1. SMS Payments

SMS based mobile app payments simply mean paying for a product through a text message that is sent by one user to another. Since it does not involve knowing the card and bank details, it is considered one of the most safest and credible mPayment methods.There are websites like instamojo that offer payment gateways to aid SMS Payments. What they do is that they create payment links which can be then send over to the customers or your friends, who get multiple payment options like Net Banking/ Debit and Credit Card/ UPI/ Wallets when they open the link.

2. Mobile Wallets

Popular examples of Mobile Wallet Apps would be Apple Pay and Google Pay. The idea of Mobile Wallet app or the answer to how mobile wallet works is that it is a platform where you can save your card information, so that when you buy products, you won’t need to carry your card with you, physically, card on you. Apart from aiding direct purchases with the ease of saved card information, users can also make on spot purchases through barcode and fingertip scan induced payments, which come packaged as part of their smartphone app. Since mobile wallets deal with bank information, they make use of the EMV technology which includes creation of one time password that is then sent to the user’s bank to verify.

3. NFC

Although a fairly new entrant in the mobile payment market, NFC payment apps have already themselves a widespread adoption. Using the Near Field Communication technology, smartphones connect with each other or with Point of Sale devices and then payment can be made with the help of radio frequency identification method. But, in order to make successful NFC payments, the devices need to be at least 4 inches close to each other.

4. WAP Payments

WAP Payments mean making payments on a web page or application through an active internet network. Whenever users directly buy a product off a website from their smartphone, without going through mobile apps that save their card information, they are making WAP Payments. For Example: Suppose you like a shirt on Amazon, now when you make payment on Amazon by filling in your bank account data, you are doing a Mobile WAP Payment. Almost all your other mode of Mobile Payments such as mobile wallets, sms payments, are a part of WAP Payment.

Now that you know the different ways you can make payments using nothing but your smartphone, here are the mobile payment apps for business and P2P payments that are currently witnessing maximum demand from the 59% of global millennials who are on a verge of kicking currency notes out of their life and becoming 100% digital, money transaction wise.

The Most In-Demand mWallet/mPayment Apps

Here is the list of the top 10 Payment and Mobile Wallet Apps for Android and iOS that have gained immense popularity for themselves within a decade (as for the cryptocurrency ones, within a time span of two years).

Smartphone Apps Used for Making Payments

Apple Pay

Apple Pay app is present on every iPhone device on and after iPhone 6 and iPhone 6 Plus. The app that has created new standards for iPhone application development companies, is accepted as a mode of payment in over millions stores worldwide like Trader Joe’s, Staples, and Walgreens, among a number of other international retail chain.

Moreover, using Apple Pay, users can purchase stuff off from Safari browser. There are a number of online stores, which also accept Apple Pay option at the time of checkout. The application is present for use in the United States along with a number of other countries.

Android Pay

Available for download in the Android devices, Android Pay app is also accepted at over million of U.S. restaurants and stores such as Jamba Juice, Babies “R” Us, and Fuddruckers.

The application also help users make purchases online when you are using Chrome as browser or are initiating some in-app transactions. At the checkout stage, Android Pay auto-fills the payment and address information, which allows users to skip the tiresome process of manually filling in the information, completely. With the perks that Android Pay comes with, make it one of the best mobile payment apps for business.

PayPal

Making mobile payments using PayPal is one of the easiest and most convenient modes of transactions. The users only need to link the PayPal account with phone, set a PIN and go ahead with completing the checkout process at an accepted payment terminal.

PayPal makes transactions safer by giving the merchants payment and not card detail or other bank information. The popularity that comes attached with the application has gained it over 227 million active users.

Smartphone Apps Used For Making Peer to peer Payments

Venmo

Venmo is a free of charge money-transfer application introduces by PayPal, which allows the users to securely and quickly request or send money among family and friends only with a touch on their mobile app. The application is available in both iOS and in a wallet app for Android version.It needs you to create an account via Facebook or email. Once you are set up, all you have to do is link and then verify the bank account details including the debit and credit card info and you’ll be ready to begin. Money can be transferred from your Venmo to the bank account within 24 hours.

Google Wallet

Available for download on both iOS and Android devices, The app enables users to send, ask for, and then receive the payments from people they know. Operative primarily in the United States, it is prerequisite for the users to have the phone number and email address of their peers whom they are sending or asking money from. All the transfers are done through the debit card information that is registered on the app. Google Wallet charges no fees for money transfer.

Cryptocurrency Wallet Apps for Smartphones

Jaxx

Jaxx is one of the renowned blockchain digital wallets that make it easy, safe, and convenient to carry your cryptocurrencies around.

The app comes in all – Android, iOS, and Desktop versions. It utilizes a mnemonic seed for backing up the wallet or for transferring it to another device. The app enables you to scan the QR code, get funds, view the crypto holdings, among a number of other services, all within the scope of a single intuitive app.It comes with a number of advanced features as well, like multiple platforms wallet linkage and shapeshift integration. These features make the app an ideal wallet for the technology savvy group of users.The only shortcoming with this one crypto wallet app is – it comes with quite a steep learning graph, and the features may or may not work equally well with every single one of the new integrations. But in some more time and with some tweaks, the app will establish itself as a reliable solution.

Bitcoin Wallet App by Coinbase

The Bitcoin Wallet app is one popular app, which enables you to manage your personally held Bitcoins. The app is backed by crypto brains at Coinbase – a name that attaches automatic trust with Bitcoin Wallet. Using the application, one can easily sell, buy, and even spend their Bitcoins, all the while managing their crpto account.

One can think of The Bitcoin Wallet app as the PayPal app, but only for Bitcoins. Using it, users can even request and send Bitcoins to other people. The safety feature that it comes attached with, allows its users to remotely disable the access to their phone in case the device is stolen or lost. The user interface that the app comes with is pretty good with a lot of Google Material Design beauty.

Role of Technology In Changing the Future of Consumer Lending

Posted on 18/08/202009/06/2021 by Anteelo Master

Dive into the many changes that now stare at the lending-centric consumer financial services landscape and how technologies are fueling the shift. Every once a decade, technology innovation and customer demand merge in a way that drastically changes the consumer-facing financial service sector.

For instance, when The Motley Fool, eTrade, and Intuit came into the market some decades ago, consumers took it upon themselves to personally manage their finances and invest their savings in places that would get them maximum returns.

In 2021, the financial service industry is again staring at disruption. A number of technological and economic factors have developed a perfect situation where people are deciding how they want to manage their pay, pay for services and goods, finance a car or home, or even how they want to borrow.

To answer these changes and shape the future of lending, a number of tech-driven consumer-facing financial services companies have entered the market to address this consumer behavior shift. The entrants have become the reason why lending has become one of the most profitable finance app ideas.

In this article, we will be diving into the many changes that now stare at the lending centric consumer financial services landscape and how technologies are fueling the shift.

What is Contributing to the Evolving Landscape of Digital Lending?

The changing space of digital lending transformation is bringing a remarkable shift in credit analysis and bank loans. The rise of technology progress and big data has led to a series of alternatives coming into the market questioning the credibility of credit score – a prime factor driving the lending industry.

When we dive into the changes that are taking place in one of the slowest transforming financial services, we can find four factors fueling the digitalization of the consumer financial services space –

Changing consumer behaviors – especially the COVID-19 driven behavior
Rapid technological changes
Changes in compliance and regulations
Innovations happening in the space of simplification of operating models.

The combination of these four factors has given birth to a time where consumer insights are blended with product innovations to make fintech consumer lending a lot more inclusive. In addition to serving only the high credit-worthy consumers, the future of the credit industry is now powered to involve consumer segments with low credit history (low-income households, students, freelancers, etc.).

The digital lending landscape has grown to an extent that it can now be categorized into three sectors –

The ultimate aim of the technology-induced digitalization innovations happening in the sector – across the three subsets – is to digitize the entire customer journey (from KYC to reporting) at speed and at scale at a level where the traditional lending system could never reach.

How is Digital Lending Changing With Technological Advancements?

1. A new way of vetting applicants have come on the surface

New credit mechanisms are building on the proposition that traditional ways of applicants’ approval on the basis of FICO credit score is an incomplete sign of applicants’ creditworthiness.

By using artificial intelligence, new models are being developed. These models factor in information surrounding thousands of data points like employment history, education details, and spending habits to verify if an applicant will be able to clear the debts on time. On the basis of these insights, a new credit score is coming to the surface as the future of consumer lending.

2. AI-backed strategy and sales streamlining

Digital lenders have started asking their partnered fintech app development companies to use machine learning for enhancing loans by making underwriting decisions. The algorithms can help validate if the applicants are telling the truth about their income level.

The process is best suited for people having an insufficient credit history, less income, or anyone who is charged higher interest because of the lack of financial data. Machine learning is also being used heavily for its ability to detect fraud through analysis of customer behavior backed by the time they spend answering applications’ questions, looking at the price options, etc.

3. Blockchain eliminating the need for intermediaries

Through the mode of blockchain, digital lending companies can develop a high trust, low-cost platform. With the complete loan process existing online, people will be able to keep a record of documents and transactions on an anonymous digital ledger platform thus eliminating the need for third parties and intermediaries.

4. Cloud computing solving digital lending sector uptime concerns

The most common corners of the lending sector are – security, storage, and 24*7 upkeep time. Cloud computing solves all these issues in addition to offering a series of additional benefits like

Secure connections
Cost-effective and time-efficient management
Disaster recovery
Simplified online processes
Automation of processes

While these technologies are playing a key role in bettering the state of digital lending, what is important for the sector to keep evolving. A way the sector can keep getting efficient is by knowing the trends that are waiting for them in 2021 as the future of consumer credit.

Digital Lending Market Trends 2021-22

1. NLP will better customer experience

Smart lending systems will be using NLP for recognizing and understanding customers’ questions and converting them into actionable data. There are multiple applications that the digital lending companies will be experimenting with in 2021 –

Lenders will be able to offer advice to basic queries through a chatbot
They will use the technology for analyzing customers’ feedback, getting insights that can help them improve the customer experience.
Analyze the data to better the credit scoring accuracy

2. Regulatory sandboxing

While the consumer lending sector needs constant innovation in order to develop and grow, it also needs regulation for ensuring security, safety, and ethics. Sandboxing is how both factors can be respected in the modern lending system.

It is the mode f testing innovative services in a controlled setting for the regulators to conduct their assessments before a complete rollout. The Compliance Assistance Sandbox (CAS) Policy, announced in 2019 highlights the process.

“After the [Consumer and Financial Protection Bureau or CFPB] evaluates the product or service for compliance with relevant law, an approved applicant that complies in good faith with the terms of the approval will have a ‘safe harbor’ from liability for specified conduct during the testing period. Approvals under the CAS Policy will provide protection from liability under the Truth in Lending Act, the Electronic Fund Transfer Act, and the Equal Credit Opportunity Act.”

3. Greater omnichannel capabilities

Technology will be seamlessly connecting the lender with borrowers through a self-service holistic digital experience. The year will see borrowers picking up on the half application form which they started on their phone, on their laptops.

Omnichannel capabilities that make it easy for them to jump from one platform to another without any shift in experience is what would help the digital lenders rule the year while becoming one of the key mobile app development financial services.

4. Non-banking institutions will continue entering the space

We have already seen Amazon offering loans to small businesses and Apple announcing its credit card. All of these innovations are the advanced stages of companies’ capabilities and how they help their customers reach their goals.

The year will see the consumer finance market getting introduced with a greater number of P2P consumer lending organizations. Backed by the abilities of new-gen technologies like Blockchain and AI, consumer financing companies will be giving banking institutions tough competition.

Now that we have looked into the many ways consumer lending businesses are getting prepared to rule the sector through their partnership with a skilled fintech application development company, let us close the article by looking into some ways you can become the next big digital lender.

How Can You Become a Digital Lender?

There are a number of brands that have placed themselves in the future of the consumer financial at the back of their digital inclination.

Shifting from a traditional lending mindset to a digital bank-oriented one is not an easy task. There will be resistance to change, an unacceptance towards risk, and other things. A digital bank transformation will require a strategic foundation supported across all organization levels. As a lender, you will have to focus on offering an exceptional digital experience to your consumers. The last thing you would want is getting axed by Google on the Play Store at the back of a bad experience and lack of regulations-compliance assurance. Here are some things that we recommend on the basis of our extensive skill set as a financial software development company –

Provide transparent information on the approval guidelines
Develop new training material, gen-z inclined communication about new policies
Provide alternate channels to your consumers. Don’t force them to visit branches.

The secret sauce of your lending business success will be transparency and communication. The more open your business is, the more will be the chances of your consumers to choose alternative lending models. We can help you strategize your lending process digitalization.

Accelerating Fintech Change Through Digital Transformation

Posted on 27/07/202009/06/2021 by Anteelo Master

Fintechs are taking advantage of digital transformation by bringing a start-up mentality to corporates to drive growth in businesses.

Coronavirus was a random economic test that no one could have fully anticipated and as social distancing, lockdowns across the globe and work from home rules became common around the world; companies that had seen the writings on the wall became accustomed to the digital age and were the first winners. In this article, we will be discussing in detail how digital transformation in financial services is accelerating the change in Fintech.

Startups and small and medium enterprises (SMEs) have had to reorganize their digital transformation strategies and look to the lending regulatory agencies for quick funding to restart and adapt to the digital ecosystem.

Fintech is not just limited to startups; it also forces large, well-funded enterprises to continue to compete and innovate if they want to stay afloat. Fintechs creates new ways for customers to access and deliver financial services, with simple ways to make payments on investments with quarterly advice and create a personalized budget with the help of the app. To bring difference using digital transformation, a plan with a strategic approach is required.

Professor Anne-Laure Mention, Director of the Global Business Innovation Enabling Capability Platform at RMIT University, Melbourne, Australia, in her 2019 paper- “The Future of Fintech” highlights the ways Fintechs are disrupting the industry with their faster, cheaper, and attractive service models that are inviting interest from the regulators.

Rapid Growth in Fintech Brought By Digital Transformation

While we know that the financial services industry has a traditional perspective and takes time to adapt to innovation, the pandemic has created a different picture. It has accelerated tangible change by adopting rapid physical and digital transformation, which requires the fintech industry to meet the challenge of equipping businesses with powerful computing systems.

Changes can also be attributed mainly to the rapid change in consumer behaviour and new emerging patterns set by the clear will of cash-less and contact-less activities.

Some stats below describe the rapid adoption of digital transformation.

According to a survey by ZDNet, 70% of companies either have a digital transformation strategy in place or are working on one.
Another report by PTC and CorporateLeaders states that 60% of companies which have undergone a digital transformation have created new business models.
The IDG’s Digital business research includes the top industries for digital-first business strategies with services (95%), financial services (93%) and healthcare (92%) being at the top.

How is Fintech Digital Transformation Making SMEs Efficient?

Greater lending flexibility

In the current system, traditional lending models make themselves ineffective because they are not designed to measure and therefore, seem to impose a barrier on SMEs to earn money. Legacy systems are more expensive compared to fintech companies, which boast a reduced performance model designed to reduce costs. There is also a lack of flexibility in this system.

This is where a cloud-based lending approach can make a difference. Creating an application programming interface (API) that will integrate seamlessly with asset systems and provide an awesome and sustainable digital model that can drive a well-designed lending solution.

Channelling digital fintech offerings

With the increasing pace of digital platform acquisition during the pandemic, digital payment platforms and digital wallets and credit cards have seen a rise in demand in SMEs’ transactions. Additionally, SMEs and startups from across the globe have started taking advantage of the digital profits and loans available through simple, fast and secure fintech solutions backed by robust infrastructure processes. By informing high-end consumers and warm-hearted SMEs they have come up with the idea of using fintech solutions to drive their financial operations.

Processing data for operational efficiency

With innovative digital lending platforms, such as knowing your customer (KYC) and personal identity or KYC based on social security, financial consultants can easily access customer data and get their approval, thus ensuring better efficiency. Data Analytics can be used to improve the understanding of customer portfolios to enable better credit processing. Another useful area where data can be used to detect fraudulent detection, where customer behaviour is recorded and used to analyze potential fraud.

Digital Transformation Trends in Financial Services

Among all industries affected by the pandemic and changed by the digital transformation wave, the finance sector experienced one of the most drastic changes in its transformation. Fintech being one of the industries completely dependent on manual work and person-to-person contact, the road to digital transformation and fintech has been a new journey in this sector. The evolution of digital transformation in finance industry has become a business imperative to improve customer experience through development of new products and services.

According to Binder Dijker Otte (BDO), 97% of financial services firms are putting their resources into digital transformation after reshaping their business models to stay competitive in an evolving sector.

Growing enterprise agility

After the numerous experiences gained from the previous financial crisis, an organization’s ability to expand its agility has become a vital trend in the industry. However, to support the type of constant advancement and improvement that shapes the foundation of agility, financial organizations need quick, reliable access to growing amounts of information without making tedious manual work processes.

Increasing mobile banking

The worldwide pandemic has seen customers rushing to mobile services for their financial requirements and bringing digital transformation in banking industry. While mobile banking is not a new concept, but as the first lockdown was imposed, according to Fidelity National Information Services (FIS), that works with the world’s largest banks, said that there was a 200% rise in new mobile banking registrations in April 2020; while mobile banking traffic rose 85% increasing the need for digital transformation in banking.

The universal utilization of smartphones in our day to day lives has increasingly shifted our choice to digital banking for everyday banking services like electronic bill payments, shared payments and instant transfers.

Increased collaboration

As entrepreneurs and business leaders across different industries embrace the team structure as an operational model and acknowledge the democratization of information, there is nowhere required to work together as solidly as in the financial sector. Since, financial enterprises need to adhere to administrative guidelines that implement a siloed way to select business units. But for other business units, the ability to effectively communicate and work can mean the difference between getting to the end goal first.

Risk assessment

The collection, storage and analysis of big data is extremely important to financial services and digital transformation consulting firms. For instance, the quick and perfect finish of a due diligence process before a huge merger and acquisition can make great differences for the financial investors, organizations and employees influenced by it.

Mobile pay utilities

A decade ago there was a time, when mobile wallets were a totally new concept to the people. As times are changing, thus, so are the methods of putting away riches and making payments. Mobile wallets have become the rule of the payment, be it merchants, shopping malls, and other sellers like to utilize mobile payments versus traditional cash and checks. All thanks to the comfort, security, and ease of availability have provided a route to digital development in finance sector over the years, which keep on developing as the time goes on.

Challenges Faced In Fintech Digital Transformation

The first challenge they face is how to present investors and other stakeholders with a clear view of their proposal, especially if their offer is not in a certain way in the existing markets, and is not allowed by a certain number of customers. These difficulties present challenges in raising funds for commercial investors. These participants will want to see clear evidence that fintech digital transformation is innovative, capable of measuring and mitigating its risks as much as possible.

Fintechs faces a major hurdle in building relationships and trust within clients working with traditional financial services providers. Fintechs needs to fight the myth that their new invention calls for security and data management.

Fintechs needs a very supportive control framework that aligns boundaries, to be able to scale globally with minimal collisions.

The fourth digital transformation challenge comes in the form of international action; 95% of Fintech firms failed when trying to scale up. The reasons for this is that Fintechs are failing to operate beyond regional and national regulatory limits, and are failing to reach customers at critical times.’

Conclusion

Financial innovation presents an important opportunity that exceeds its impact on financial services firms; the whole economy can benefit. It embraces changes in the supply of banks, insurance companies, investment funds and other digital strategy financial services firms, as well as the transformation of internal structures and processes, management systems, new ways of communicating with clients and distribution channels. emerged as the cornerstone of new financial institutions.

Digital strategy consulting firms and Fintech provides new ways for customers to access and deliver financial services, with simple ways to make payments on investments with quarterly advice and create a personalized budget with the help of the app. Fintechs brings corporate thinking to the forefront while also increasing competition, customer focus, and collaboration. These fashions bring clear benefits to consumers in the form of competitive pricing, as well as new and easier services to manage their finances.

After getting to know the growth of fintech through digital transformation, now it is time to select the appropriate digital transformation companies to reach your goals. For any information or query you can contact us at Anteelo– a known digital transformation consulting services company.

FinTech vs. TechFin: What is the Destiny of Global Finance Economy?

Posted on 04/02/202014/06/2021 by Tushar

“There are two big opportunities in the future financial industry. One is online banking, where all the financial institutions go online; the other is internet finance, which is purely led by outsiders.” – Jack Ma

The Finance and banking economy across the whole globe is facing a new level influx of changes coming its way since the past many years. And the changes are in no way showing a picture of stoppage – giving no breather to the finance sector to hold and react.

First from a traditional banking system to digital then from fiat currency to digital currency, and now while the Finance world was still getting habitual to all this modernism, a new trend entered the domain, introducing itself as the future finance and banking ecosystem.

This latest trend in banking technology that is soon making an entry in the world is TechFin. But what is TechFin? And what impact would it carry?

While closely resembling the concept that we have already seen and warmed up to, FinTech, the idea in itself is very different. Something that is now slowly causing the rise in search engine queries and queries that financial software development agencies are receiving: FinTech vs TechFin: Is there a difference? And if there is, then where the future of Finance and Banking lies between TechFin and FinTech?

Let us try to look at the answer of both in this piece.

The beginning of modern financial software development began roughly 10 years ago during the global financial crisis, which convinced the incumbents that they were fighting for survival. This provided a great deal of room for innovators to build businesses, and this is when Square got started, which was a seminal moment.

And as the economy got stable, so did the hold of players who entered with the support of financial application development companies to take some of the banking work away from banks. Ever since Square and PayPal, the innovations in Finance industry saw no stopping. One after another new offerings kept coming in the domain, promising to set newer standards in user experience.

And the movement that started then has today come to a point which was difficult to imagine years ago – the stage where tech and finance merge.

While FinTech had already created a pivotal position in the users’ life, TechFin – a.k.a the movement – is something that will bring a monumental shift in not just the use of financial institutions but also the reason for their existence.

Before we move on to the phases of how FinTech came into existing and where the future of FinTech is headed – TechFin, let me answer the glaring question first – FinTech vs TechFin: What is the difference. For the article will only dissect the other in much detail from here on.

Difference Between FinTech vs TechFin

Putting it simply, FinTech is the concept where the Finance industry starts using technology to offer better customer experience. TechFin solutions are where the Technology Domain enters the Finance sector to change how users interact with the industry.

The examples of TechFin organizations include Google, Amazon, Facebook and Apple (GAFA) in the U.S. and Baidu, Alibaba & Tencent (BAT) in China.

Now that we have looked at what differentiates both the concept, let us talk about the different phases that the Finance sector has seen and identify the space where TechFin entered.

The Evolution of Finance and Technology

The rate at which the Finance and technology industry is evolving is one that is in many ways bringing a stark transformation in the domain. What was Finance decades before is not what it is now and won’t be the same next decade. Let us track the steps of Finance and Technology’s unison movement.

Stage 1: Exclusion

The first step of fintech or techfin evolution is the era when there was no technology in the picture. Financial consumers had to wait in long lines in banks to perform any and all types of money related work.

Stage 2: Mobile Payments

The next phase was when payments – a small fragment of the banking sector came on mobile banking services. Users now standing in queues were making payments of bills, electricity, and water on mobile through apps that came majorly from non-banking institutions.

Stage 3: Mobile Basic Banking – The Now

Seeing the ease that this digital revolution in finance was offering to the millions of their user base, a number of banking institutions also entered the space by developing a financial application for their bank.

Meanwhile, the non-banking technology companies too expanded their offerings and entered services like lending, credit facility etc. This stage, right here is where the Finance industry entered into a competition with technology firms to emerge as the best service provider – the stage which was known in the fintech app development world as online banking.

Stage 4: Full-Service Mobile Banking – The Future of Banking Technology 2020

The stage where the Finance and technology combination is headed on to next, is one where the competition that started in stage four only becomes much cut-throat. The time to come is set to move from FinTech to TechFin. The technology based companies who made an entry in the banking services will only make their presence stronger and the Financial institutions will start involving technology at a greater level in their processes.

Since we have looked into both – what differentiated FinTech from TechFin and the evolution of Finance, it is time to give an in-depth share of attention to what is TechFin and what are TechFin benefits, at the outlook of the basis on which it operates and where does the future of financial services industry lies.

The Basis of TechFin Ecosystem

A. Customer Base That is Willing to Experiment

The biggest perk that operates in the favour of TechFin is the fact that the user base that a technology firm is able to attract. A number that almost always is much greater than the number of users a finance firm is able to acquire.

One of the reasons why technical companies are able to attract more users through their finance app development effort is also because of the subconscious image. When someone uses a banking app, there is a subconscious fear of something going wrong, while the same is not there when the app offering the same service comes from a non-banking parent company.

Lastly, the consumer base that is present in the case of TechFin apps is a lot more diverse as compared to the restricted FinTech user group.

Lastly, the consumer base that is present in case of TechFin apps is a lot more diverse as compared to the restricted FinTech user group.

B. A Strong Technical Infrastructure

The reason why technological firms have an upper hand when it comes to boasting their infrastructure excellence is very obvious. When a technology firm enters the finance domain, it is already armored to handle the user flow of millions in real-time.

After all, even in the race of coming out as the ultimate finance sector leaders, the finance companies take help of technical firms to help develop their infrastructure. This partnership is a key enabler of the future of the financial industry.

C. Better Mechanisms of Data Management

The whole data related cycle in case of TechFin firms is a lot better than that of FinTech agencies. The difference in how well the data flows in TechFin vs FinTech can be seen in the simple fact how users are a lot more comfortable sharing their data with Technological firms as compared to Financial.

While on the one hand, one of the biggest challenges of banking software development is to get quality data out of the users, the technological firms, on the other hand, simply have to give the users a form and they themselves send it back, all filled.

In addition to this, the system and algorithms needed to manage data are in themselves a lot more readily available to a technological company than their financial counterparts.

D. Similar Regulation Set

Unlike normally assumed, the level of regulation levied on technological firms that enter the finance domain are the same as the financial institution’s who involve technology in their offerings. So, there is hardly any legality that is standing in front of TechFin as a roadblock.

The TechFin segment of the Finance sector, as we just read, is paving the grounds to enter and transform the segment. But does it mean the end of traditional banking as we know it?

The answer of where is the future of finance, lies with the finance economy itself. The truth is, the time will come when TechFin and FinTech companies will merge and their offerings will become similar if not competitive.

And when the time does come, the true benefit will lie in FinTech collaborating with TechFin and becoming one with the latter. For, individually, both domains, no matter how far and big they grow, will have some spaces left to be filled. Plus, the mix of subconscious carefulness and easy flowing user experience will only be achieved upon the transformation of FinTech into TechFin. Now, whether the merger happens or not, one thing is certain – the Banking industry is destined to change and Fintech transformation is bound to happen. It is not going to be the ecosystem that Generation X operated in.

Rethinking the banking value chain is a call to action.

Posted on 08/01/201918/06/2021 by Tushar

Financial services is shifting to platforms for business functions and processes, and that’s a good thing. Moving from applications to Software as a Service (SaaS) and then to Platform as a Service (PaaS) can create new value chains. It can also dramatically reduce the number of error-prone manual processes and foster industry collaboration for superior efficiencies.

Leverage open APIs and core banking systems

But financial services organizations can move even further — and to stay competitive, they’ll need to. Open APIs can help them combine bank data with third-party data and services to create innovative capabilities, essentially “hiring” third parties to provide these services. Banks can also provide best-of-breed capabilities as services to others.

As part of this shift, core financial systems and capabilities can become “consumable” via API-driven interfaces, creating specific outcomes. These core systems, such as payments and mobile wallets, essentially become services that both a bank and its third-party providers can consume.

Conversely, services from third-party providers can be integrated into banks’ own platforms. This may sound daring, but some tech giants — Facebook and Amazon among them — already do this, building new capabilities with APIs that can integrate and interact with capabilities provided by third-party providers. Banks can do it, too.

Partner with providers

Providers can also become partners. Some banks have invested in FinTechs, adopting an attitude of “If you can’t beat them, join them.” This should facilitate the development of important new services, including “know your customer” (KYC) and new accounts. A single bank can essentially stitch together a passel of services, then present them to customers under a single bank brand.

This reassessment of the value chain can free banking and capital markets organizations from the need to provide all services end-to-end. Instead, they can add open APIs that allow trusted third parties to provide various microservices.

The right platform can help banks grow through mergers and acquisitions, making it far easier to integrate disparate systems. This same feature can make it easier for banks to integrate the systems of partners too.

At the end of the digital transformation journey, financial services providers will enjoy a new position in their reconstituted ecosystem. They’ll fully understand their position in that value chain, their competitive advantage and areas of specialization, and their need to partner with third parties.