The coronavirus crisis is literally changing the way we transact, deal with, record, and use money. This emerging so-called ‘Low-Touch, High-Tech’ economy is literally driving enterprises to migrate their businesses online. Fintech development is poised not just to grow but to boom. If previously, both traditional companies and laid-back customers had reservations about innovations like digital banking, for example, the pandemic is quickly getting them off the fence.
A lot of game-changing questions are getting asked these days. How do brick-and-mortar stores ensure their products are bought and paid for if they cannot even open their doors? How do employees get their pay if the automated teller machines (ATMs) around them are limited or, worse, shut down during the quarantine? Are there more secure ways to invest your hard-earned money, especially now that the stock market has been taking a nosedive? The answer to all these challenges is fintech software.
The 5 Trends in Fintech Software to Pay Close Attention To To
To grow your business beyond this crisis, these are the five latest trends in FinTech software development services that you might want to adopt:
- Digital banking
Digital banking simply means doing all your banking transactions online through your bank’s online portal. It removes the need for you to visit an actual bank, communicate with the bank teller, or even withdraw your money from the ATM. You can receive money from your clients, and pay your employees through the internet. You can check all the transactions that have been done within a period of time, and get a complete financial statement.
Digital banking can be accessed through a laptop in your home office, or your smartphone if you are outside doing those necessary groceries. The one attraction of digital banking is that it does reduce the risk of exposure to COVID-19. No need to sanitize your fingers after punching those ATM keys, and no more wondering if you caught the virus after spending hours in an enclosed air-conditioned bank lobby.
Digital banking also makes financial processes seamless for the many companies that are now transitioning to a work-at-home arrangement. Accountants can send salaries straight to the bank accounts of employees working at home. Sales managers and credit collection officers can process account receivables from clients without leaving their houses. (If your company is undergoing this transition right now, here are 11 tips how to make remote working work.)
- Digital reward cards
This trend was gaining traction before the pandemic and is expected to soar even higher during and after it. Digital reward cards contain a considerable amount of digital money that can be spent on certain shops. Although they are similar to credit cards, one advantage they provide companies is that they can be customized. The company issuing them to employees can put a cap on the expenditures, track the expenses, and prevent overspending while continuing to reward them for high performance.
Digital reward cards can also be a way to motivate staff to increase their productivity and remain loyal. Zaggle Propel is an excellent example. Its rewards platform helps you easily manage your employees and channel partner reward programs in a single, integrated system.
Productivity and employee engagement are critical to a company’s success, particularly during lean times. Every time a new campaign is launched, more rewards can be added as shopping options to the cards. The high-performing employee can then buy his favorite items from his preferred store after he delivers on the job.
That’s another advantage of digital reward cards. The employee can go straight to the grocery or the supermarket after work, without having to check the money in his wallet or pass through the ATM. It is very convenient shopping at a time when panicking buyers are emptying store shelves.
- Mobile apps
Mobile apps are related and similar to digital payment but are even more user-friendly. More and more users have realized their value now that they can only enter a grocery store or a hospital at high risk to themselves. But through a brand’s mobile app, they can simply order food delivery from a restaurant, or book an internet consultation with a doctor. Ride-sharing services like Uber were among the first to make this FinTech popular to the public.
Expect the products and services to become more varied as we adjust to the new normal. Just click on your phone and you can hire a repairman to fix your damaged air conditioning unit, or enroll your son in a virtual university instead of sending him to the college campus. The number of users is also expected to rise. Statista estimates that at least 69.4 million Americans will be using mobile payment apps just for the year 2020 alone.
- Personalization by using data
While not known to many, FinTech can also keep your business running by encouraging your customers to do repeat business with you. Its analytics capabilities merge with your marketing campaigns to make the shopping experience fun and rewarding. The data on those apps can track credit card and digital reward card usage, compiling critical information such as your customer’s spending capabilities, the things he buys, and how often he buys it. The insights and the information they yield can make your next marketing strategy more targeted, focused, and precise.
The best fintech companies use data analytics to understand their customers’ social behaviors, likes, and dislikes. Once you know the kind of approach that your customer wants, you can tailor your message to reach them at a very powerful persuasive level. They will see your product not as an option but as a must. Pretty soon, they will be clicking on the shopping cart.
- Blockchain and cryptocurrency
Mention cryptocurrency and the average user thinks of Bitcoin, Ether, or other digital currencies that can supposedly replace the cash economy. Still, they only make up a surface of the real revolutionary tech known as Blockchain. Blockchain is a digital system that allows the creation and sharing of transactions, but not their deletions. Smart contracts and payments can be made and seen by everyone, but they cannot be replaced, altered, tampered with, or hacked.
To its champions, Blockchain takes the financial issues of trust and transparency to whole new levels. Security measures are heightened and risks like fraud are greatly reduced. The speed of transactions is also doubled, as payments are made and received without the costly use of a middle organization like a bank.
FinTech experts also say that the Blockchain tech is just in its beginning stages and still has to be mined. Many investors are also looking at cryptocurrency as a fail-safe platform in case the coronavirus continues to make the economy tank. One study forecasts Blockchain’s global value to reach $14.3 billion by the year 2025, with a compounded annual growth rate of 47.3%.
The 5 Most Important Trends in Fintech Software in 2020 and Beyond
The pandemic unleashed a huge wake-up call to all players in the business industry. The old financial safety nets that were thought to be reliable could not withstand the onslaught of economic damage. Companies are pivoting to FinTech software because they offer solutions to unprecedented challenges, as well as a sanctuary against further devastation.
Take a look at the five latest trends in FinTech software that we discussed above. Study what you can adapt and use in the quickest yet most seamless way possible. Early adoption can mean survival now, and perhaps future growth despite the crisis later on.