As we are moving into the future, we see tremendous technological advancements around us. Almost every sector of the world has witnessed an upgrade due to digitalization. And just like other industry sectors, the finance sector has also experienced some remarkable changes in the last two decades.
Do you know that the global financial services market is expected to hit the $28,529.29 billion mark by 2025?
Yes, it is true, and if you are looking for reasons that govern this massive boost, it is digitization. Digitization of services has led to financial inclusion, which has increased the number of people using smartphones and apps. Thus, boosting the finance sector market size.
Let’s move forward and see what changes are currently taking place in the finance world!
Some key aspects of Digitization in the Finance sector
The finance sector is not just limited to banking; there are many other aspects that directly or indirectly influence the finances of the people. Here are some of them!
Payments
Unlike earlier days, you don’t always have to carry a wallet in your pocket as long as you have your phone. The era of online payments has solved the issue of unclaimed balances for many of us. If we analyze the statistics, the global mobile payments revenue will be over $4000 billion by 2025.
The key drivers behind these massive revenue numbers are countless payment apps in the market that you can use to pay for anything. These apps have a user-friendly interface that helps the users pay for:
- Movie tickets
- Power bills
- Online shopping
- Food
- Mobile recharges
And many more! You can also seamlessly link your bank accounts with these apps and make payments whenever you want and wherever you want. Some of the best payment apps around the world are:
- Apple pay
- PayPal
- Google Pay
- Stripe
- Paytm
- Samsung Pay
- Xoom
If you are a Peer to Peer payment app development company, you can be a part of this revolution.
Banking
Banking is no more like going to the bank to get cash anymore. Today, almost every bank has its own mobile application and website that enables users to access all of its services while being at home.
If you are a bank or credit card company, there is no way you can survive in the market without an app.
Banking organizations like HSBC, Chase, Chime, Discover, Huntington, and others provide their customer with state of the art services like:
- Loan payments
- Stock investments
- Bill payments
And more! The wave of digital banking has spread so much that it has led banks to shut down their physical branches. Banks like Wells Fargo, Sierra Bancorp, and Huntington Bancshares have announced that they are going to close some of their branches in some of the states.
The Spark of Artificial Intelligence
With the advent of digitization, artificial intelligence has seen applications in almost every field. For instance, the fitness field has seen massive adoption of AI in the apps like nutrition and workout.
If we talk about the finance sector, the use of AI has not reached its peak but has seen significant adoption. For example,
- Sun Life introduced an AI digital assistant Ella that recommends products to the users based on their interaction with the algorithm. Moreover, it also notifies users regarding the status of their insurance plans by sending messages like, “Your wellness benefits are about to expire.”
- Bank of America has developed a bot named Erica that uses Natural language processing to serve users regarding their banking queries.
- Microsoft has developed an AI system that detects fraudulent finance activities in under 2 seconds.
In short, we can say that AI is impacting Fintech App development and the financial sector significantly.
Fintech
Fintech app development deals with the development of anything that is related to providing financial services to customers. It is a broad term under which there are many advancements going on. The above-described factors are all classified under Fintech. However, it is not just limited to this.
There are other kinds aspect too of Fintech that has affected the financial sector of the world some of those aspects are:
- Budgeting and Spending tracking tools: These tools are used by many people around the world for planning their budgets and track their spending. Some of the fine examples of these tools are YNAB, PocketGuard, Goodbudget, etc. The use of these apps has also affected the financial sector. If you provide Fintech app development services, you need to focus on such apps as the competition is less.
- Chatbots: Automated chatbots are an awesome aspect of a peer to peer payment app development. Most of the payments app have chatbot feature as it helps the brands serve their customers 24×7.
Blockchain
Just like AI, this technology has not been adopted by the entire financial system of the world. Today, most AI companies, stock exchanges, cryptocurrencies, and big banks (JPMorgan and Citi) use blockchain technology.
The core aspect that makes it more demanding is the level of security and transparency. So, if you want to leverage the benefits of blockchain technology, find the best provider of Fintech App Development Services.
Benefits of Digital in Financial Sector
There are countless benefits of digital in the financial sector. Through Fintech App development and Peer to Peer payment app development, firms can offer the following to the users:
- Security
- Seamless payment process
- Reliability
- Time-saving
- Expense tracking
Final words
As far as the development of the financial sector is concerned, it is on the rise. And if we say that the Fintech market is going to rise, it is a fact. There is no stopping to further enhancement in financial services. Hence, if you provide Fintech App Development Services, you will surely experience a surge in your revenue numbers.