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Fintech: Enabler for Business Growth and Improved Customer Experience

Pandemic-driven change in consumers behavior resulted in a boost of fintech applications. More and more consumers turn to digital services, for example use an app to make a financial transaction, to minimize the risk of virus transmission. In 2020, 92% of all mobile transactions were made via Apple Pay in the US.

Organizations across various industries have to innovate in order to compete in the changing market. Some have already started to revolutionize their business operations. Migrant Help together with B4B Payments has launched a completely digitized process to receive prepaid cards and removed the need for additional meetings.


Innovative technologies used to provide financial services are widely used in today’s business environment. Let’s look at the key fintech applications across the industries.

Digital payments

One of the most widespread payment technologies is using smartphones to conduct transactions. Contactless payment has gained even more significant influence with the beginning of the pandemic.


eMarketer 2021

Many industry players such as Target and Starbucks have enabled mobile payments before pandemic-driven adoption. Vitamin Shoppe, a nutritional supplements retailer, and others rushed to launch contactless payments after. Looking ahead, the trend of digital payments that started long ago is likely to grow further.

Loan services

The traditional loan application process involves customers’ visits to a bank to submit the request and waiting time for the approval. Fintech has transformed and simplified this time-consuming scheme. Nowadays, a customer can upload necessary documents and send the application online.

Insurance solutions

The insurance sector also uses digital tools to enhance customer experience and optimize business operations. Thus, data analytics streamlines the process of matching a customer with a best-fit policy and an AI-driven assistant helps to settle a theft claim within minutes.

Common tips for successful fintech initiative

Bringing your fintech idea to life may come as a challenge. However, there are several pieces of advice that can smooth your way towards success. Here are some of them:


Tip 1

Know your product - define what value your product brings to consumers. Collect all the available data - study the market and competitors, learn your strengths and weaknesses, understand the needs of your target audience - and tailor your product accordingly. The more you know about your product, the bigger are chances of your success.


Tip 2

Choose a reliable vendor or team - it is vital to have a high-skilled specialist that can build quality products. You can either hire an in-house team or outsource the development, but make sure to conduct interviews, and check the previous experience and qualifications of each specialist.


Tip 3

Design user-friendly interface - first impressions about your product are 94% design-related. The appealing and easy-to-use design of a product helps to fulfill users’ preferences and improve conversion rate.


Tip 4

Test and learn - develop a minimum viable product (MVP). With its help, you’ll have a chance to analyze users’ interactions and gather feedback. Your customers are the part of the team that can make your product better by pointing out its weaknesses. Thus, you can improve weak points and add some additional features if needed.


Moreover, MVP can be launched much earlier than the final product. Thus, it allows you to modify the code. At the beginning of the process, it can be done with fewer obstacles and more quickly as compared to the final stage which in many cases would require complete product redevelopment.

Key pitfalls and how to avoid them

Fintech companies face a few common challenges, such as data security and regulatory compliance.


  • Users’ privacy and data security are of paramount importance. And with growing cybersecurity risks organizations should be ready to mitigate them. Cybercriminals target even large institutions. For example, in 2020 Pepperstone, an agency execution broker, fell victim to a cyberattack where customers’ data was stolen.
  • There are a handful of regulations that financial institutions must comply with. In some cases, it might strain an organization's resources, but companies have to learn to navigate and evolve regulations into opportunities.

There’s no all-size-fits-all approach that can leave challenges behind, but there are a few things that can help you to mitigate the risks.


  • To secure the data, implement a multi-level authentication process. Consider biometric authentication methods (fingerprints, voice biometrics, etc.). These innovative methods guarantee you enhanced security and keep seamless interactions with your product.
  • Putting together a team of professionals will also contribute to the development of high-quality and safe products. It’s challenging to hire a strong in-house team, so outsourcing options are usually the most popular. It allows you to save time on the hiring process and train new specialists while reaching your goals.

Conclusions

With its diverse use cases among various industries, fintech is likely to grow into a larger market share. However, building a solid fintech solution is quite a challenging task. Make sure that you understand your product, conduct market research, and implement all the features your target audience expects.


Seeking a professional to help you manage all the risks and guarantee smooth development? Get in touch with us!


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