Benefits of Developing FinTech
Solutions for Your Business
Globally there has been an upsurge in the amount being invested in finTech companies. The combined investments into finTech companies worldwide stood at $135.7 billion in 2019 up from $111.8 billion in 2018. Cutting edge technologies like artificial intelligence, mobile banking, biometric verifications, big data is what is driving this growth. By developing these technologies companies are not only making finance more accessible but also secure and reliable.
At the receiving end of these developments is the consumers. They have benefitted immensely from the recent innovations which have helped them accelerate their entrepreneurial activities. For example, alternate financing options like cryptocurrencies and bank wallets present themselves as game-changers to how finance will be availed in the future.
Companies are interested in implementing finTech solutions to make Point-of-Sale (PoS) experience better for their consumers, forward cash advances, sell insurance policies, and facilitate secure payment gateway. To make this possible it is important to engage with an experienced and trusted company where financial software development can be highly customized and secure.
Here Is How Innovations in FinTech Can Benefit Your Business
Improves Finance Options
Availing quick credit is important for small and new businesses to thrive. Traditional modes of financing have a complex verification process that can take weeks or months for the money to reach the entrepreneurs. This delay in financing results in missed opportunities which can significantly hamper the short-term strategies of a company. FinTech companies are helping organizations tackle this by migrating all the verification and tracking processes online. They are developing solutions that enable consumers to apply and submit their documents online.
This helps companies that extend loans and advances to receive the documents in real-time and process them at a much faster pace. FinTech companies are also developing alternate financing options using digital wallets, cryptocurrencies. and specialized agreements. An example of a specialized agreement is giving out cash advances in lieu of getting a part of their future earnings. FinTech companies can also help you connect with interested investors by providing an online platform to apply for funding.
One major challenge with traditional financial instruments is low penetration rates. In rural parts of the world, banking and non-banking financial institutions are not present everywhere. This makes it impossible for you to reach out to these people. With the push of digital technologies by governments, developing finTech solutions can help these companies to bridge this gap. A software development company can develop customized mobile apps for your company that provide complete financial solutions. Once linked with the bank of the user, they simply need to use mobile applications to perform payments and verifications.
People can use the app to enter into financial contracts without the need of going to far-away banks or offices. This will help you gain access to a larger pool of people. You can also develop multilingual chatbots to facilitate consumer education and provide assistance in performing financial activities. The Unique Payments Interface (UPI) technology developed in India has been an incredible example of how finTech solutions can make payments easier. The UPI allows users to perform inter-bank transactions by just using their mobile phones. The monthly volume of transactions in August 2020 stood at a whopping 1.62 billion.
Scheduling Invoice and Payments
In addition to offering easier credit and payment options. Many finTech companies are also providing solutions for invoicing. Users can create invoices within the payment application and immediately send them to customers or clients via email. A payment link can also be sent to the client which can enable them to directly make the payment from their card/bank account using the link.
What this does is it reduces the costs associated with accounting and transfer of payments. It also considerably lowers the time gap between invoice generation and bill payment. Invoicing and payments can also be scheduled which further makes transferring money an efficient process.
FinTech companies have implemented solutions like biometric verification and 2 Factor Authentication (2FA) to execute payments. Remembering complex passwords can be difficult, especially if one operates multiple accounts. If the passwords somehow get stolen, it can also compromise the security of the user.
Biometric verification and 2FA provide a second level of security that makes it difficult for anyone to siphon money from a user’s account. This is done by sending a unique OTP to the account holder’s mobile phone for every transaction. Entering this OTP is necessary to complete the transaction. You get to gain the trust of your customers by providing them enhanced security.