Fintech is an important part of modern finance. The traditional understanding of financial operations has changed. Financial technology opportunities allow people to enjoy the convenience and speed of managing financial business. In addition, it has great potential to improve global economic life. Nevertheless, as a new tool, fintech still faces many obstacles and challenges.
The development of financial technology has made some adjustments to the financial life and has become one of the most popular capital fields. According to statista, global financial technology investment increased from US $50.8 billion in 2017 to US $135.7 billion in 2019. Fintech has achieved extraordinary success in the business environment. Moreover, its continuous development has led to new advanced technology, improved business model and more independence in dealing with financial business.
Artificial intelligence and machine learning
Artificial intelligence and machine learning will continue to rise because these technologies help manage large amounts of information and help developers create more efficient fintech software. More importantly, the voice technology driven by artificial intelligence improves the voice assistant to help customers find solutions to daily problems. At the same time, biometric information is used as a tool for payment authorization, which increases convenience and security.
Today, money transactions can be easily completed in just one minute. This also makes the task of financial technology developers pay more and more attention to cybercrime. Many financial technology experts believe that biometric security measures can bring financial technology to a significant new level. The security of the banking sector is necessary, and the financial technology including blockchain makes it a reality.
Financial technology experts believe that in 2021, transactional financial institutions will cooperate more with financial technology companies. Financial institutions are looking forward to an open banking opportunity to allow data networks between banks and fintech start-ups.
Popularization of financial knowledge
Financial literacy requires that financial technology tools help improve the customer experience. More people know how to use financial technology tools or services. People who want to start a business can hire financial technology developers to develop financial technology applications.
Anyway, knowing everything is helpful, and when it comes to money, people can always understand it faster. Financial technology can completely change the whole banking system, and there will be corresponding instructors to help you at each stage.
In May 2018, Europe submitted a new normative document called general data protection regulation, gdpr. This set of rules aims to improve the privacy and transparency of personal data of European residents. However, this is a huge burden for financial institutions because they must find a way to comply with all gdpr requirements in order to avoid paying high fines.
Although many experts from large financial companies and financial technology software development companies are studying this topic, small financial technology start-ups can’t afford it.
Cyber attacks remain a serious concern for fintech software companies. According to a survey by the financial conduct authority (FCA), financial data breaches increased from 25 in 2017 to 145 in 2018. The purpose of modern cyber attacks is to steal and try to destroy or change the system to reduce trust.
Although network security measures are often expensive, fintech software companies should focus on the advantages they provide. Network attack will lead to high cost of system reconstruction and loss of public trust, which can not be restored.
The main difference between fintech services and traditional banks is humanization. Although fintech tries to introduce improved services with the help of machine learning (ML) and artificial intelligence (AI), the component of human participation is weakening. Many people feel uneasy because they know they only interact with machines, not humans. Therefore, it is very challenging for financial technology software development companies to persuade people (especially the elderly) to abandon traditional banking business and use financial technology services.
The integration of blockchain and fintech services can enhance financial security and solve other common problems. Many fintech software development companies have used blockchain technology in destructive and high-risk areas such as fraud management, instant payment and digital currency.
Blockchain can help solve problems:
Smart contracts improve contract performance
Improve capital optimization
Reduce service costs
Reduce error handling and coordination
Diversified and stable credit environment
Lack of professional knowledge
Many countries still lack expertise in fintech application development services. Traditional banks usually follow their own websites and provide customers with unfriendly user interfaces. The trouble of mobile applications leads to low integration of financial technology services and poor customer experience. Providing fintech services in these countries can build trust in people, and then they can begin to understand the development of fintech. Enterprises can set up a unique financial technology development team or hire financial technology developers to solve this problem.
Financial technology is a growing trend in the banking industry. It breaks the boundaries of the traditional banking system, provides innovative and safe solutions, and is very efficient. The future of financial technology depends on the integration of new technologies such as blockchain, machine learning and artificial intelligence, as well as the strengthening of network security measures.
After solving some current problems, fintech software companies are also facing new challenges. Today, in order to stay ahead, it is crucial to meet customers’ technical needs by building user-friendly fintech applications and complying with a large number of requirements of the world organization.