Today we are experiencing a powerful transforming time where technology is dominating in every sector. be it pharma or financial services, technology is everywhere. No other would have been better than knowing more about fintech applications.
To sensitise our readers of a novel domain of financial technology or fintech, that has been creating waves in the financial sector for at least 5 years now. We kick off this series with a composition on ‘5 essential Fintech app types that you need to know. Happy reading!
What is Fintech?
As per open-source definitions, Financial technology or Fintech is the technology and innovation that aims to compete with traditional financial methods in the delivery of financial services. It is an emerging industry that uses technology to improve activities in finance.
The top 4 categories of fintech
There are four broad categories of users for fintech:
Technologies used for fintech applications
What are the different types of fintech?
There are various types of fintech companies that exist today, which are mostly categorized based on the industry their clients belong to, which include:
What are the different types of fintech apps that exist?
There are various software applications of Fintech that exists:
However, we can broadly classify them into 5 types of fintech apps:
Digital payments refer to making payments in a cashless manner, quickly and safely. Fintech apps with online payment systems, e-wallets and digital currencies facilitate digital payments.
Digital payments tend to be one of the most prominent branches of the fintech industry. Statista estimates that global digital payments’ value will reach USD 6,685,102 Million by 2021.
Banks develop fintech apps for their clients as digital banking has become a very convenient way for their users to manage their bank accounts and for bank officials to manage their clients’ data.
Digital banking fintech apps help users manage their bank accounts online without visiting banks at every minor inconvenience.
Digital lending fintech apps include loan apps and lending software that facilitate conversations and settlements between lenders and borrowers. Financial institutions like banks and individual lenders use fintech apps to simplify loan procedures and manage them efficiently.
Digital investment fintech apps allow investors to research and invest in different financial assets and stock markets. Such apps supply relevant and insightful data to users to make informed decisions about their investment plans and act as a platform to facilitate investments.
Consumer finance fintech apps help their users in personal finance management. Such apps provide relevant tools and features to users to manage their expenses well, plan budgets and indulge in thoughtful spending.
Now that you know about the different kinds of fintech apps let’s look at the various innovative trends to build a fintech app.