The word “fintech” is short for “Financial Technology.” It is used to describe new technologies that are being used to improve and automate the financial services industry. Some analysts believe that fintech will replace traditional banking technologies and end their era. But many others are more restrained in their forecasts, although they acknowledge that fintech has excellent prospects.
Reasons to Invest In A Mobile Finance App
If you are looking for an area for comfortable investment, then fintech is an excellent option. Let’s take a look at several reasons why this solution is beneficial.
1. The rapid development of the industry
According to research data, the global fintech market is worth $112.5 billion in 2021. Moreover, forecasts show further growth. The figures will almost triple by 2028 and reach 332.5 billion US dollars. Experts believe that the global market will show serious growth, and within the forecast period, the compound annual growth rate (CAGR) will be 19.8%.
Thus, many enterprises in different segments of the sale of goods and services rely on the solutions offered by fintech. The reasons for this demand are evident and strong; among them are:
- the ability to significantly facilitate transactions.
- safety and economy in use.
In addition, representatives of the younger generation are well adapted to the opportunities of the digital industry, and fintech allows these opportunities to be scaled up and used effectively. Therefore, over time, this area will only grow stronger and develop. This means that investing in a fintech product has enough grounds and prospects.
2. A wide range of areas for investment
This industry offers many opportunities for creating applications in different market segments. Namely, a great demand among users found:
· Peer-to-peer payment applications.
· applications aimed at digital lending.
· applications related to the digital mortgage industry.
· applications for working with crypto-currencies.
· Digital crowdfunding applications.
The breadth of options for choosing the area to which the application is directed provides enough prospects for a wide variety of startups. In a word, their spectrum is vast. Therefore, each investor can choose the direction that will be optimal for him.
3. You keep up with the times
Any business needs flexible and responsive financial solutions regardless of the scale of work and directions. Applications developed for the fintech industry provide an opportunity to achieve these goals.
They accelerated the financial sector’s growth and helped eliminate several problems associated with a large number of transactions. This made such applications incredibly popular among users. And this is confirmed by statistics, according to which almost 90% of Americans use fintech applications.
If you are looking for a direction in which to start development, then you should understand what drives users to use fintech applications:
- The speed of operations. Thanks to fintech applications, it only takes a few clicks to transfer funds to your friend. This is available with the advent of solutions such as PayPal.
- Interest in cryptocurrencies. According to the survey’s results in 2021, 97% of respondents worldwide consider digital assets. This stimulates the popularity of applications related to exchanging cryptocurrencies and trading.
- Availability of funds. Now it costs nothing to check the bank balance. No need to go to the nearest bank branch or look for an ATM. Just go to the mobile app.
4. Reduce investment in development and support
The threshold for entering the financial market used to be unbearable for start-up entrepreneurs. Compared to traditional banking systems, the development of fintech applications is much lower. And the same can be said about the maintenance of the finished solution.
5. Improve consumer experience
To understand the reasons for the demand for such technologies, you need to understand the mechanisms behind the functioning of the most popular mobile applications for finance. What are they? First of all, these are platforms that eliminate many intermediaries between financial services and their end consumers.
In addition, there are undeniable reasons that users like fintech applications:
- People do not want to go to a financial institution and wait in a queue for a long time.
- The application works smoothly, it has no interruptions, and the service can be obtained without leaving home.
That is why users who value their comfort love to use such applications. They do not have to face all the inconvenience and unnecessary organizational efforts, as well as the time cost to get the necessary services.
6. Increased security
Modern solutions allow you to create applications with a bank-grade security level. This makes them a reliable place to store data and finances. There are a huge number of practices aimed at protecting against cyber attacks. They usually include a set of measures related to preventive measures. You can learn more about them from specialists in the field of development. However, world experience shows positive indicators. The main thing is to put the case in the hands of experts in this particular industry.
7. Young audience
For people who request such programs, the flexibility of life strategies and creativity of thinking is typical. These are those who value their time and comfort and also like to have all the necessary services available around the clock. Fintech applications make it possible to achieve this. As a result, you get access to a young paying audience.
If we talk about the significant advantages that investment in fintech provides, then they can be systematized in the following list:
- A wide range of areas for development in the market.
- Ease of entry into the sphere, transparency, and clarity of the principles on which it operates.
- Thanks to the dynamic development of the industry and trends in it, you can constantly look for new opportunities to strengthen and scale your business.
- A wide range of case studies to help you get a good feel for the environment and perspectives – you don’t have to act blindly.
- Simple ways to attract customers – there is already a strong demand in this industry, as customers have managed to appreciate how beneficial, such technologies differ from traditional banking.
And yet, even though the sphere is relatively new, it is very stable. The annual massive increase in the number of fintech startups clearly indicates that the direction of such applications will be even more developed in a few years.