The Financial technology industry, or Fintech for short, has grown and innovated significantly in the last several years. A number of prominent new Fintech app development trends are influencing the direction of financial services as we go into 2023 and 2024. These trends include the incorporation of state-of-the-art technology, changing customer expectations, and the endeavor to improve user experiences.  

Fintech applications, which provide individualized services, expedited procedures, and enhanced security, are completely changing the way we handle our funds. The main developments in Fintech app development will be examined in this piece, along with their effect on users and the financial sector at large. These trends, which range from open banking and blockchain integration to artificial intelligence and machine learning, have the power to completely change how we interact with our money, spurring innovation and changing the financial services industry. 

A Synopsis of the Financial Industry 

Fintech app development trends are quickly evolving into ones that are more profitable for both small and big enterprises. The global need for digital transformation has sped up both the need for existing solutions and the expansion of Fintech offerings. The industry's rapid expansion has given rise to the newest trends in Fintech app development. 

They are a sign that more significant financial and commercial growth is anticipated in the financial technology (Fintech) industry in the following years. For example, the value of digital payments, the biggest Fintech category, reach $8,488 billion in 2022, and projections suggest that by 2027, there may be 5,840 million users worldwide. 

The app development industry will need to stay up with this expansion by adapting its development methodology to new technologies and the newest financial trends. In this case, the best course of action would be to look for Fintech concepts and innovations that improve customer experiences. For instance, applying for a loan using a P2P lending app with a few clicks and having it accepted in a matter of minutes is far simpler than going to a bank in person and completing all the paperwork.

To give your app a competitive edge, whether you're an aspirant or current company owner, you need to be aware of a number of emerging Fintech app development trends. 

Fintech businesses just concluded an eventful year. From Q3 2022, funding volume and transaction count have decreased. 

Fintech businesses raised $29 billion in 1,655 investment rounds in the first nine months of 2023, as opposed to 2,684 rounds worth $54 billion in the same period last year. Rising capital expenditures compelled fintech organizations to investigate new income sources and adopt more lucrative strategies. 

Fintech enterprises, however, will see better times ahead thanks to the expansion of e-commerce, digital adoption, and the change of the banking system. Even with the temporary economic downturn, many succeeded in expanding into new markets. Brazilian Nubank reported a $300 million net profit for the third quarter of 2023, and the company is on track to earn $1 billion by the end of 2024.

Up to 2028, the FinTech business is expected to expand revenues almost three times faster than the conventional banking sector, according to McKinsey. However, as many investors are pressuring FinTech businesses to do, they must mature and adapt their products to reach broader audiences and enhance revenue growth rates and EBITDA in order to make that happen.

Let's explore the fascinating field of fintech app development and identify the patterns that will influence this sector in the future.

Finance App Development Trends That Are Shaping the Future of FinTech

Combining Blockchain Technology with Integration

Blockchain technology creates an error-free, decentralized, and safe network that benefits all users by enabling better digital banking. By including blockchain in your app development process, you can simplify transactions, speed up payments, and improve the security of your financial app. 

Source: Statista

Present-day digital finance networks are known for their tendency to compromise user security, resulting in costly transactions, financial scams, and data breaches. By removing the need for intermediaries (like banks) in financial transactions, blockchain eliminates these kinds of possibilities.  

Blockchain may be integrated into the development process to include smart contracts, secure payment gateways, and improve financial management and security. Among the array of FinTech applications on the market, one that facilitates blockchain payments and financial management is likely to catch attention.

Customization and AI-Powered Functionalities

Users may enhance information accuracy and expedite processes using AI-powered financial service assistance from various mobile banking apps. Similarly, many peer-to-peer lending applications utilize AI-powered assessment algorithms to identify which users are and are not qualified for certain types of loans. It enables them to generate customized loan offers and, more precisely, anticipate dangers. Fintech apps using artificial intelligence provide more personalized features and easier-to-use operations. 

Source: Statista

By incorporating AI technology into the creation of your financial application, you may save time and money while gaining automated conversational help, fraud detection, marketing research and forecasts, and enhanced security and user experience. 

Fintech companies may use AI to fuel sophisticated financial market models that are based on real-time data and provide customers with individualized solutions. In the end, artificial intelligence lowers customer service expenses and aids in better financial decision-making. 

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Expansion of Open Banking

One of the emerging trends in the creation of Fintech apps is open banking. It encourages cooperation between Fintech startups and established institutions. Fintech applications may safely access client financial data via open banking efforts and APIs (Application programming interfaces). This access makes the creation of cutting-edge financial services and features for these applications possible. 

Consider that you are a multi-account customer of several financial organizations, as an alternative to checking your balances and transactions by going into each bank's specific app or website. You may get a comprehensive picture of your accounts in one location with a Fintech app that supports open banking. 

Once the Fintech app has been connected to your different bank accounts, the open APIs the individual banks have made available to the app allow it to access your financial information safely. Your account data, including balances, transaction history, and other pertinent information, is retrieved. The app's UI then displays this data to you, giving you a thorough snapshot of your money. 

Increasing Biometric Utilization

Biometric identification is already a hot trend in finance mobile app development. It has shown its worth in improving user security and privacy by almost completely preventing unwanted access. This technique makes financial data in mobile applications more secure. 

While voice, face, and fingerprint recognition accuracy may not always be reliable, biometric identification is still one of the most significant technologies you can include in your Fintech mobile application. It may shield users and your company's financial information from hackers who are skilled at cracking passwords and pins. 

To put it simply, biometric authentication that incorporates voice, face, and fingerprint identification improves user verification, prevents fraud, and guards against data breaches or theft. By eliminating the need to enter passwords to log into the FinTech app, this identification also enhances user experience. Multi-factor authentication, in addition to biometric authentication, helps to enhance transaction security and thwart unwanted access. 

Decentralized Finance's (DeFi) Growth

A new area of Fintech called decentralized Finance (DeFi) uses blockchain technology to create decentralized financial apps. Fintech applications include DeFi protocols to provide consumers access to decentralized platforms for borrowing and lending. Decentralized exchanges produce farming, and further cutting-edge financial services are also included. The programs above seek to provide users with more financial liberty, transparency, and diversity. 

Financial applications are incorporating cryptocurrency wallets to allow users to store, manage, and trade with cryptocurrencies safely. Through the integration of well-known cryptocurrencies like Ethereum, Bitcoin, and stablecoins, these applications enable users to engage effortlessly in the digital currency ecosystem. These developments in Fintech app development allow users to move money overseas, invest in cryptocurrencies, and make payments from inside the app. 

Robotic Processes Automation (RPA)

In contrast to artificial intelligence, robotic process automation uses readily accessible and verifiable data, as well as inputs and logic driven by both historical and current data, to improve the efficiency of risk assessment, financial statement auditing, and financial reporting. Its automated solutions may considerably speed up your financial app's various procedures. 

Your Fintech app may use robotic process automation to communicate with a variety of systems, improving the precision of its solutions and reducing the possibility of unfavorable financial consequences. 

One important development in Fintech applications is RPA, which may help banks provide their clients with more individualized experiences with the services they offer. Financial institutions may create and use intelligent, automated algorithms and bots and communicate with the application interface to make more accurate and enhanced decisions with the correct tools. 

Voice Assistance

Millions of smartphone users choose to utilize virtual assistants like Siri and Alexa to access different banking software features on their phones. 

They facilitate conversational smartphone use and save users from having to exert physical effort. Developing a mobile financial app that can react to orders from virtual assistants enhances the app's user experience even further. 

Integrating your financial application with the technology needed to make it compatible with different virtual assistants is a good addition that will guarantee long-term advantages for your company, even if it comes with higher app development expenses and hours. 

Finance Embedded 

In the Fintech sector, embedded finance is a new trend that involves integrating financial services into non-financial platforms or apps. It entails smoothly integrating financial services and goods into other platforms' user interfaces, such as software programs, e-commerce websites, and mobile applications. 

Businesses outside of the conventional banking industry may use embedded financing to provide a variety of financial services to their clients. E-commerce platforms, for instance, may include payment processing capabilities, enabling users to make purchases straight from the platform without having to go through an external payment gateway. 

Open APIs and collaboration between Fintech firms and non-financial enterprises make this movement possible. By using these APIs, non-financial platforms may access a variety of financial services, such as payments, loans, insurance, savings, and more. The non-financial platform and the Fintech provider benefit from this integration's streamlining of the client journey, increased convenience, and new income sources. 

One example of embedded finance is a ride-hailing service that combines with a financial provider to give its drivers fast access to revenue. Through the app, drivers may access their profits instantly, eliminating the need to wait for weekly or monthly reimbursements. Thanks to the integrated finance solution's integration of a digital wallet and payment processing features, drivers may promptly collect their earnings and even make payments inside the app. 

By streamlining financial transactions, enhancing user interfaces, and increasing accessibility to financial services, embedded finance has the potential to revolutionize a number of sectors. It makes it harder to distinguish between conventional banking and non-financial industries, giving companies new ways to use financial technology to benefit their clients. 

Applications of Neobanking

Neo-banking apps are digital banking platforms that are only available online and that provide banking services via them. They offer a quick platform for lending, big money transfers, payments, and loans. The following are a few instances of neo-banking applications: Dave, Varo, Aspiration, Albert, Moneylion, and Chime. 

In contrast to conventional banks, Neo-banks provide a quicker digital experience in finance and consistent transactions. Neo-banking applications are a rapid method of ensuring the company's development, whether it is an existing financial institution or a startup trying to join the fintech market. This is because these apps attract target consumers more quickly than others.

Conclusion 

To sum up, the aforementioned trends provide an insight into the fascinating advancements in fintech application development. Several developments, including open banking, blockchain integration, biometric verification, AI, and ML, are completely transforming the way we handle our money.

Fintech applications are evolving into more intelligent, safe, and intuitive programs that provide individualized experiences, smooth transactions, and insightful financial data. But it's important to understand that the fintech sector is dynamic and constantly changing.

Future trends and developments in fintech app development will undoubtedly arise as technology progresses and customer demands change. As we continue to see financial services undergo technological transition and improvement, it is an exciting moment for both developers and users.