Fintech is one of the most innovative industries to date.
And although you may have the word in passive conversation, but may not know what it really is. But don’t worry, even though it’s a trending topic, fintech is still relatively new in theory.
Another example of this would be banking apps. Banking apps make it easier for people to manage their bank accounts from their smartphones or tablets from anywhere in the world.
In a nutshell, financial technology is centered around applications that involve how consumers perform financial actions online.
Previously, fintech only revolved around back-office technologies, such as banking or bookkeeping. Now, we associate this technology with everything we can do from a financial point of view on an app, our phones or computer.
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Types of Apps
Despite being a part of the same industry, there’s more to fintech than you may think.
Over the course of time, some of the hottest fintech trends have evolved to the point where things that were considered high-effort can now be done digitally through the use of applications.
We’ve already briefly touched upon banking apps and transaction service. Let’s dive a little deeper into the various types of apps people use in today’s society.
Loan Apps
There are many types of loans you can get these days, but they all follow the same premise of giving an applicant a sum of money for a certain purpose.
This amount of money must then be paid back over a set period of time.
However, Fintech has made it possible for everyone to apply for a specific loan from the comfort of their own home.
If you’re looking to further your education by getting a graduate’s degree, you’ll need to acquire a student loan.
While you can use one of many apps, whether it’s a bank or credit bureau, you can get student loans from the app of a private lender as well.
You can fill out all the necessary information right from your computer or smartphone rather than go in person.
Once approved, you can digitally sign your loan documents, provide your banking information and have the fund deposited directly into your account.
Insurance Apps
If there’s one thing that nobody should be without, it’s insurance.
Companies such as Geico, Allstate, State Farm and Progressive all have apps that make applying for and acquiring the insurance coverage you need much easier.
Similar to the loan apps, all you need to do is fill out the necessary criteria and provide the right documentation before the insurance is given to you.
You then have digital access to your insurance policies without ever setting foot in an office.
You can also set up direct payments through either your insurance company’s website or with your bank.
Cryptocurrency Apps
Cryptocurrency is a topic that requires additional research to fully understand, but we’ll cover the basics here.
Cryptocurrency is a form of digital currency that’s used in place of money to acquire products and services.
Gas stations, for instance, may offer their clients special points they can use for other businesses, like discounts for an airline ticket or upgrades in seating.
In today’s mobile game industry, cryptocurrency is used to purchase the special currency to use in the “gacha” or for cosmetic items.
This is just scratching the surface of what cryptocurrency is and what you can do with it.
Some people even found success in selling it themselves. Robinhood, CashApp and Coinbase are to name a few companies who have apps you can use to manage and sell cryptocurrency.
Apps for Mobile Payments
Fintech has made purchases and important payments easier through mobile apps as well.
Many stores, like grocery stores, utilize Apple Pay and Google Pay for easy transactions. Freelance companies pay their employees with apps such as Venmo and Quickbooks GoPayment.
How You Can Create Your Own Fintech
If you have plans to participate in the creation of financial technology product, there are some key aspects you should know first. The first thing you must focus on is a niche.
Maybe you see yourself hosting a cryptocurrency app, or possibly you want people to have an easier time managing their investments.
Since this is the first step, you can take as long as you need until you come to a final decision.
Once you’ve settled on a niche, the next thing you need to work on is security.
If clients don’t feel like their financial assets are secure, it can lead to disastrous consequences for both parties.
Incorporate things such as fingerprint scanning and voice recognition for a secure login. You can also use cloud servers to ensure every user’s data is encrypted and kept safe.
The more authentication features you have, the more secure users will feel.
If any of your clients have trouble using your app or something happens to their finances, they’re going to need somewhere to turn.
This is where installing a chatbot and hiring virtual assistants come in.
Having customer service can help you build trust between your clients while giving you a solid reputation.
It can also solve a variety of issues that don’t warrant hopping on a call.
