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The fintech industry has been changing rapidly lately. However, this is not the only one of its kind – what’s changing in the financial sector is themselves. New technologies, innovations, and cutting-edge ‘smart tools’ brought to life by startups and investors have opened up a whole new world of possibilities for both businesses and their clients, transforming how we work, how we do business, and even how we conduct our lives. Read about the top 7 fintech innovations that changed the financial industry.
Fintech Innovations That Changed The Financial Industry
1. Artificial Intelligence For Massive Value Creation
Artificial intelligence (AI) has set in motion a fundamental shift in how to finance software development services work. With innovative AI programming, financial services apps are able to handle more complex trading models while also automating the same day-to-day processes that used to be a part of the human workload.
By eliminating the friction that has plagued financial services apps in the past, AI development is creating a whole new value proposition for the financial industry overall.
2. Blockchain Against Established Financial Protocols
For starters, blockchain is not a specific product. Blockchain is an all-encompassing protocol that has been developed with the purpose of establishing trust between multiple parties.
One of its most important purposes is to eliminate any middleman interference in financial transactions (by using smart contracts) while enabling more efficient data management using a decentralized network of computers. As this technology in finance continues to grow and become more widely accepted, it’s safe to say that it will have a lasting impact on how financial services are managed in the future.
3. Cloud Computing For Financial Services Players
The financial services industry as a whole has been stuck in a rut for years. However, cloud computing is bringing major changes that will not only propel it to new heights but also ensure its long-term viability going forward.
On the one hand, cloud computing enables the operations of financial services to be more efficient and cost-effective, while on the other hand, it allows these companies to access better tools and resources, as well as provide more benefits for their customers which increase customer experience.
In the past, cloud computing has been a privilege mostly reserved for companies with a lot of resources or data that they wanted to store. But as this trend becomes more mainstream, the financial services industry is beginning to see the benefits of cloud computing as well.
Not only is it cheap and makes storage easy, but by using it for internal operations, users can also get more from their resources and spend less time waiting on hardware maintenance.
4. IoT For Creating A New Era Of Trust In Finance
In recent years, IoT devices have been introduced into almost every aspect of human life. From refrigerators to smart cars, IoT devices are becoming a large part of how we go about our daily lives.
But when it comes to the financial services industry, IoT has so much more potential, especially in lending. By using an identity verification device to connect with a lender’s app or website, you will be able to easily get quick access to fast loans and the best credit options available at that time.
5. Open Source, SaaS, And Serverless For Lower Barriers To Entry
The financial services industry is rich with software at this point. But until now, most of the new technology for banking or financial services apps has been proprietary. As a result, it can be difficult for smaller players to get in on the action and develop an app of their own.
Fortunately, by using open-source software in your app development strategy and also using a serverless approach when building your fintech application, you’ll be able to build fintech apps more quickly and easily than ever before.
6. No-Code And Low-Code For Easier Application Development
Even though the future of financial apps is exciting, a high price tag can still be intimidating for smaller players. Fortunately, there are a number of fintech apps that have been designed to make app development more accessible and affordable than ever before. One of the best ways to get started with fintech app development is by looking at no code and low-code options, which will allow you to build your first application in as little as three days.
You’re probably familiar with the term ‘software as a service.’ But there is more to it than just that. SaaS is also used in an open-source model, which means you will have access to both the source code and the knowledge base for application development.
SaaS has become a valuable tool for fintech startups and even larger financial institutions, who are able to develop a wide range of their own mobile apps without any additional programming or coding on their part at all.
7. Hyper Automation Instead Of Manual Work
The most interesting developments in fintech apps can be found when you compare your business strategy with the competition. Automation is key to a winning fintech app strategy. Creating a program or flow of actions that automate tasks and lead your customers down a pathway designed to increase conversion rates has become so easy.
In fact, automation allows you to take care of your lead generation and funnel better than ever before, which, as we all know, is vital for success in this industry where time is money. So if you aren’t looking at automation as an option yet, it’s high time you started doing so.
The Bottom Line
The financial services industry has never been more technological. In fact, digital is here to stay and will actually grow as time passes. Fintech startups are rapidly developing new ways of banking, credit, and lending and simplifying the old methods that we all know so well as consumers. And these innovations are bound to be a part of your future too.