How Can FinTech Trends Influence The Future Of Various Industries?

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15 May 2017
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10 min
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Sergey L.
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How to manage your funds correctly? The answer to this question is not so simple. Financial literacy is rather important ability that everybody should have, especially when one is planning to engage in the financial business. And today you can acquire this literacy using special online tools developed by various IT companies. They are able to assist you in good investments or selection of required financial broker. 

These tools can be called with one word - FinTech. Financial Technology is not a narrowly focused term. FinTech trends imply many various online resources that help people work with their finances starting from special apps to websites.

Let's move further and learn more deeply what is FinTech and what is it developed for.

What is FinTech?

Technological projects in the financial services area are considered to be one of the most perspective and in-demand direction for start-ups. We will offer you some options below to create your start-ups in the financial area. 

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There are two product types developed on the basis of FinTech. The first one provides financial services with fintech apps, so it uses B2B model. This type has been existing for a long time in the market. The second type, which is actively developing these days, is oriented on end-user. Based on B2C model, it was developed for solving a very ambitious task - to compete with the common providers of financial services in attempts to cover as large as possible market share.

Specialization range of FinTech projects varies from online and mobile apps to trading area, currency exchange area, and personal finances management area. 

How does the FinTech impact on the business and private clients?

With the advent of new FinTech services, entrepreneurs changed conventional way of doing business. Usually, upon the foundation of the new company entrepreneurs go to the local bank or investor company to get money for the promotion of the new project. But today entrepreneurs have another way to introduce the fruit of their creativity to the world - using fintech business.

Crowdsourcing, mobile payments, and other services allow entrepreneurs to get access to a large range of financial services. Today it becomes much easier and cheaper not only to get financing for the business foundation but also for its expansion.

Crowdsourcing. This direction makes it possible for people with interesting ideas to draw financing quickly. Any person in the world can become an investor regardless of his or her location. Instead of common presentations for investors, you can spread the word on the Internet and it will accelerate funds involvement. One of the most popular FinTech business models.

Funds transfer. It used to be a headache for all entrepreneurs of the previous generations since the process of money transferring was not quick. Furthermore, people had to spend more money on their monetary transactions due to high percents for transfer. That is why fintech startups also found their market niche. Now there is a service like TransferWise that represents an analog to bank transfer. It allows small companies and private clients to send money at a lower price.

Fintech application for funds transfer

Funds transfer operation

It is just a couple of examples how high-tech startups can simplify business and reduce expenses. There is a large number of other technologies developed by fintech companies, like cryptocurrency for anonymous payments, application of social media personal data for improvement of a debtor rating credit capacity and so on. Everything depends on your fintech business plan.

What impact does it have on private clients?

User behavior has changed due to smartphones popularity growth. Now almost everybody has instant Internet access via mobile phone. Growing number of apps and services with various online capabilities for users facilitated the development of qualitative services for personal finances management, for savings planning, mobile banking etc. Transfer funds, purchase something, take out loans - these operations can be performed as simply as sending a message in your social network.

So it creates both large opportunities for FinTech business development and requirements to services provided. Soon any company will not be able to succeed in its business without implementing fintech services.

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According to statistics, approximately 20 million of companies in Europe don't have the equipment for payment by plastic cards. It results in missing potential proceeds. The main reason why they don't have such service stems from high commission rates for acquiring service.

On the basis of this problem, mobile acquiring service has begun spreading all over the world. Owing to this service, there is no need to use common POS-terminals for plastic cards. Now you need smartphone only and a special app installed. Millions of companies got the possibility to obtain cards. This is the future of FinTech.

Thus, fintech startups make it possible for small companies to compete with big companies, equalizing the quality of provided services. And software development companies like Cleveroad play an important role in this chain.  

But now we would like to offer you the most popular FinTech trends that can be beneficial for your future start-up. 

Trends in FinTech and their impact on various industries

What's new in FinTech trends world at the moment? There are several innovations that gained a wide popularity and have a serious influence on many industries and you should consider it if you want to have your own FinTech service to earn money.

Take out loan using apps

Many people have credit cards that have a specific limit for payment. But if there is no required amount, and somebody needs a larger sum, it is possible to take out the loan online. Such web applications, as well as mobile apps, gaining its popularity, so you should think of the development of such software if you want to start your own FinTech business. What benefits will your users obtain? They can be the following:

1) They can apply for the loan using a proprietary app and get the approval within 15 minutes. It is a substantial advantage of the online loan. All they need to use is their ID cards and other documents necessary for the loan application.

2) In the case of a positive decision on their application, money can be transferred within 1 hour to any banking card they need.

3) After the approval of the loan, users will get access to their personal account where they will be able to monitor their balance, arrears, percents etc.

As you see, it is a convenient modern financial tool and it is one of the main direction of FinTech future. It will completely replace conventional crediting process since nobody wants to stay in line, sign a bunch of documents, and wait for the bank approval. They will just install your app and start using it in a full way!

Fintech innovation trends

Online loan order form

Advisory websites for potential investors

There are many rules of investments in the market. FinTech investment trends can assist you in it. And your potential users should know how to follow all rules properly. Keep it in mind.

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Your financial websites will give the user full-fledged consultation how and where to invest his or her money. Whether it be bank deposits, the stock market, open-end funds, insurance, real estate etc., it just would be wrong to invest money blindfolded. It is a widespread direction in FinTech industry trends.

Appropriate website and apps can always give beginning investors a piece of advice on their specific case. They can find recommendations there indicating the most profitable markets to invest today. Also, when they choose one of them, you should see steps to follow to perform correct money investment. So when you make a decision to develop an investment advisory service, you always need to keep all these important issues in mind. 

This area already has the substantial influence on the business industry, moreover, such websites can teach newcomers what is financial literacy. It has a great potential.

Fintech business: advice for investors

Websites for investors

Online brokers

When people want to trade online in the stock exchange, they just need to find a good broker to cooperate with. What is a broker? It is a financial institution that acts as a mediator in dealing with shares, currencies or commodities.

Online brokers provide the environment where buyers and sellers perform their trading operations. They provide traders with means for buying and selling of financial tools from various assets classes. Brokers perform it with the help of the selection of orders both from liquidity providers and from individual traders.

But here you need to know that even after the beginning of this FinTech business development, you will have to gain the reputation first. Because It is very important to find as much information as possible about the broker. A user should be confident in your reliability. Especially if they want to open a real account, not virtual. 

Selection of a required broker depends on many factors including trade expenses and suitability to the user's trading strategy. However, the first thing you need is a broker's website, of course, that should be developed by you or a software development company.  

Nevertheless, online broker business is definitely included in one of the main financial technologies and it is definitely the future of FinTech. People can trade and gain a profit just using their smartphone or laptop at any point of the world.

Impact of FinTech

Broker's deal

Online insurance

Online insurance is built on the 'low-cost' model. It is focused on fair product cost. This cost is conditioned by the lack of necessity to support offices and branches, thousands of insurance managers and agents. Moreover, online insurance doesn't require wide advertising support on TV. That is why its average price is 10-20% lower. That is why apps for insurance are included in the list of best FinTech apps. 

Insurance agreement conclusion occurs via the Internet. People don't need to visit the office of the insurance company, appoint a meeting with the agent, fill in a bunch of documents and so on. They should just have the opportunity to apply for insurance on yours website or app, enter all their data, and receive an insurance policy via their own e-mail.

Therefore there is a sense to pay your attention to the development of insurance app that will provide your future users with high-quality service. 

FinTech business development: online insurance

Online insurance

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Thus, users can do everything you need just using their mobile devices and your software. So, if you need your own online insurance app or website development for any fintech service, you can always find a good FinTech software development company that will create everything you need.

Conclusion

With the development of financial technologies, there are many new possibilities for business. Now entrepreneurs can propose a large range of services at low cost. And even if you don't have hot interest to the new technologies, you'd better anyway monitor what new things in FinTech area hit the market. Because FinTech development represents an important component of the modern business, and you can be the leader among your competitors only if you use advanced developments of financial technologies. Our company is always ready to help you, so please contact us any time! 

By the way, never forget to sign for our blog - interesting articles are waiting for you!

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