Fintech is one of the leading financial technology that offers technology services in the financial industry. Any business that provides financial solutions through technology is referred to as Fintech. Nowadays, there are different financial solutions, including the ones provided by mobile phones and digital currencies. In this regard, companies that apply various technologies including internet, mobile telephony, and others are evaluated as being fintech. The fintech solutions are useful in linking clients to their money to facilitate transactions. Fintech is also vital in facilitating transactions amongst various businesses. In case you’re in the financial sector, Fintech software development services help your company to facilitate transactions. The technology is disruptive as it offsets the challenges inherent in the traditional payment methods. This article offers vital information on the trends to watch in Fintech software development in India.

The current application of Fintech

At the moment, fintech is applied in various fields to offer financial solutions. These include crowdfunding, mobile payments, and Blockchain and digital currency. Crowdfunding which is supported by Fintech allows individuals using the internet to conduct financial transactions using their platforms. Through crowdfunding, businesses can pool resources from different sources and use it for development. The disruptive nature of crowdfunding has witnessed a situation where some firms are now looking for investment capital through approaching investors directly.

The use of fintech has enabled the adoption of digital currency and Blockchain technologies. Through Fintech, buyers and sellers can trade on their various cryptocurrencies. Although many people have not adopted these technologies, they’re nevertheless creating a huge impact on the investment cycles. Another current use of fintech technology is in the area of mobile payments. 

Fintech technology trends to expect in 2020

Fintech technology is evolving at high speed. Evolution brings about disruptive financial technologies. In this connection, the coming year (2020) will witness different changes and development within Fintech. Some of these developments are listed and explained below:

Regulations - Financial industry works within a regulatory environment. The entry of digital banking which is facilitated by Fintech arouses the attention of authorities. This is because banks and other financial institutions carry a lot of financial assets. Lack of enough regulatory framework may spell doom not only to the country but to clients as well. At the moment, the regulatory aspects of fintech technology are accomplished physically through human input. In this regard, in the coming year, fintech may introduce technology-driven regulatory solutions which may not require human inputs. Technologically driven regulations aim to enhance processes and minimize expenditure.

Decentralization of currencies - Although fintech technology is used by financial institutions to denote change, its application was to complement the legacy aspects of banking. However, in the coming years, fintech technology may be used to bring about decentralized currencies services. This move is aimed at conducting transactions faster and lessening the cost of doing business. The cost of doing business will be reduced because banks and other financial institutions may not feature in the transactions.

Enhanced Adoption of Digital currencies - In the year 2020, many investors may start accepting and adopting digital currencies. The cryptocurrency firms are coming up with solutions designed to meet the complex needs of the current tech-savvy investors. The formation of the Virtual Commodities Association is meant to boost the confidence of institutional investors.

Crypto-To-Cash Conversions - Currently, there is a soaring interest in digital and Blockchain technologies. The coming year may witness more product offerings from this industry. Any Indian software development company is keen to come up with enhanced cryptocurrency solutions that will facilitate the conversion of crypto to cash. The company are also developing solutions which will facilitate the movement of crypto to digital wallets.

Life Insurance Carrier - In the coming year, there will be a growing need to apply fintech technology as a carrier for life insurance. The whole idea of using fintech technology for this purpose is to simplify and speed up insurance writing and underwriting procedures.

High-interest cash accounts - At the moment, there are specific fintech firms that are providing enhanced interest cash accounts. Compared to what ordinary banks offer, this offering is much better. However, this trend may be affected by many factors, including insurance rates and risks that banks may accept.

Accelerated Co-development - Fintech technology enables firms to work jointly and share synergies in approaching the market. Therefore, in the coming year, some firms may opt to join up with others for effective co-development.

The emergence of partnerships among Fintechs - In 2020, a trend of formation of partnership among fintech firms may be witnessed. Fintech firms that provide services directly to clients will realize that working jointly will improve the solutions that they offer to the clients.

Protection of the vulnerable - Fintech is keen on offering financial protection to the vulnerable members of the society, including the elderly and young people. Through sophisticated technology, specific merchants are barred from purchases that may be questionable. This move is meant to provide protection when the vulnerable members of the society are using their prepaid visas.

Increase of Robotic Process Automation - The robotic tool offers vital services in the areas of accounting and transaction management. In the coming year, an increase in robotic process automation will be witnessed. This is thanks to fintech technology. This will save valuable time and allow human efforts to be targeted to vital client support services.

The emergence of digital-only banking - Fintech is real, causing disruptions in the financial industry. As a result of the technology, there is a trend of establishing digital-only-banks. This will be a threat to the current brick-and-mortar entities, which in any case require a lot of operational costs. These costs are loaded to clients. Therefore, the idea of digital banks may attract many clients who may move from traditional brick-and-mortar entities.

Payment innovations - Multiple payments solutions have been brought about by Fintech. These include mobile payments, cashless payments, e-wallets and others. In the coming year, many payment innovative solutions will emerge. The number of mobile transactions is set to increase in the coming year. Any fintech software development company India must focus its attention on the above-expected trends of 2020.

Conclusion

Fintech is a technological innovation which has disrupted the financial industry in multiple ways. Players in the financial sector are coming up with various technological solutions based on fintech technology. These technological developments are designed to improve service delivery. In the year 2020, the financial industry will continue experiencing various disruptive innovations based on fintech technology as explained in this article