Fintech Startups Can Teach You 7 Valuable Lessons
It’s been over 10 years since the Fintech Startups revolution was born and fueled by the huge financial crisis. Yet every time the banks are in New York or London and are informed that a brand emerging Fintech start-up (financial Software Development Company) is coming up to take the lunch they have, their response is the same one of smirking “will see”.
Let’s be real. The smugness that they display is prompted by the idea that it’s difficult it will be for Fintech to drive its way out of the market and isn’t an unattainable castle. After a decade in existence, the adequacy of Fintech’s ability to rise to levels in the global financial domain is still in doubt. There are no Fintech businesses on any of the Fortune 500 or S&P 500 lists. The industry has been some distance back in the bank vs. growing Fintech startup comparison. But it is possible to reverse this trend when you understand how to set up your Fintech startups to avoid falling.
There is one thing that can be guaranteed this year, banks are unalterable. However, what the Fintech sector should be praised for is the ever-growing rate of adoption by users and the investments in the lucrative Fintech sectors that it has been attracted by. Because of the digital revolution which is driving the transformation of the Fintech sector.
What Are Fintech Startups?
The combination of technology and finance provides “financial technology,” which refers to any company that utilizes new technologies to improve or improve financial services and processes. The scope of the term is extensive and the field is rapidly expanding, catering to both consumers as well as businesses.
The sheer number of fintech firms expanding across the globe is shocking. For example, as per Statistics in February 2020 within the US 8 775 startups working in fintech were registered. In the same time frame in the same time, there were 7,385 start-ups in Europe and the Middle East, Africa, and 4,765 from the Asia Pacific region.
The concept of establishing an enterprise that is based on a technology called fintech (financial technology) means fintech startups.
Reasons Why Fintech Mobile Apps Are Role Models for Any Industry?
1. Focusing on user-friendliness is the key to success
There are a few people who enjoy dealing with finances. The majority of us find finance complicated, boring, or just a bit complicated. Fintech applications, based on the guidelines established by the top financial software development companies like PayPal and Robinhood and many others, follow Steve Jobs’ definition of the good UX concept to the nth degree.
“Design is more than just what it looks like or is like. Design is how it operates.”
A simple and easy user understanding is at the heart of Fintech applications. The interfaces you notice, are generally clear, and simple and show what users want to see. To convey information more clearly, they use functional animations and the basic application of minimalist design. In the background of this technology, Numbers is a Fintech brand called Numbers that has raised over $40 million in funding which makes it the first unicorn.
2. Offering fintech-based solutions to customers’ needs is the quickest way to the loyalty of customers
Whichever Fintech app you select, they are all serving a single purpose. It could be anything from helping users create budgets using an app similar to Cleo similar application and sending money to their friends through PayPal to making investing easy with the Robinhood application.
What has helped the top Fintech firms is understanding their customers ‘ needs – the occasions that they will prefer to use a third-party application and those where they would prefer to restrict their interactions with the banking application.
Another thing that every business model of fintech companies adheres to is recognizing the issues that traditional banks face such as delayed transfers and high transaction fees as well as other mobile banking restrictions. A method that provides them with insights could be that of the process of designing the product. The sprint, which takes place generally over five days aids businesses in the validation of an idea for an app in terms of the app’s feasibility and user preferences by including actual users who might be interested in the mix.
3. Utilization of Interactive Elements is what your users want. Heck! what you need for your business.
A significant portion of the Fintech user base is comprised of millennials as well as Gen Z. In contrast to a lot of other sectors of the digital economy they can keep users engaged.
To extend users’ stay in the app, Fintech app developers do not shy at introducing new features in the form of contests, games, and so on. The goal they try to achieve is to make their users aware of new features or launches of their products that are added. In exchange, users typically get rewards that could be intangible, such as the lowest interest rate subscriptions, and discounts, or tangible items such as event tickets or gadgets.
4. The correct use of voice Assistants and Chatbots is the way you present your business to the never-ending Generation Z
Chatbots have been known to alter the story of growth for a company. This is something almost every industry knows, but few use it in their business processes. Fintech isn’t a component of this.
The chatbot’s solution to how Fintech work is in the use of bots to perform a variety of tasks, without refusing to make their brands a part of the top virtual assistants such as Google Home and Siri, Amazon Alexa.
Here are a few examples that show how this domain makes use of chatbots and voice assistants to increase its reach in the field —
From checking the balance on your account to paying utility bills, and even reviewing transactions, the 24/7 nature of chatbots and voice assistants are being used by Fintech users to a more extensive extent than other domains. There are sophisticated chatbots, such as the Bank of America‘s Erica which provides users with notices about their bill due date, informs them of low balances, and gives extensive, proactive financial guidelines.
5. Complete Inclusion, which allows Fintech solutions accessible to everyone on a massive scale
There are two components that both play an important role in making Fintech accessible to everyone:
More coverage of the audience Even in the wake of several banks becoming operational around the globe The number of people who are not banked is estimated to be in the millions. Like people many small and medium-sized businesses are unbanked and underbanked, that is, they don’t have enough access to banks’ online services. The introduction of Fintech solutions makes it simpler for unbanked SMEs to run their financial transactions.
Omni-channel benefits aside from mass inclusion in the omnichannel benefits, Fintech solutions also think much about reaching. By making the solution available via email, messages as well as social media as well as home personal assistants Fintech solution take the capabilities of omnichannel to a new level and by doing so, expands the use of Fintech.
As entrepreneurs, one of the key lessons learned from a financial tech startup could be to provide an option that can satisfy many individuals and is available via various channels. These two occasions provide the best solutions for taking your business’s growth to the next level.
6. Fintech Solutions are examples of Agile techniques of development done correctly
The domain is always a beneficiary of the integration of technology in finance, as well as new functional expectations, and user demand. In this situation, it is the only method to become an innovator in the field is that the domain is fluid.
Because of its agility by being agile, the Fintech startups industry can improve its offerings in the shortest amount of time, which keeps it above banks.
In reality, these concepts of Agile methods of development have shown the industry how crucial it is to address customer issues in real-time. The result of this knowledge has resulted in the development of a variety of support options, like Slack, Telegram, and 24/7 online chats that are geared toward customer needs.
7. Greater Transparency brought about to put an end to closed banks
Banks and other banks are known to conceal details and are not able to disclose information on financials that the clients require to be aware of.
Each Fintech technology firm recognizes the need to bridge this gap. This is the reason why most of the applications are built using open APIs as well as third-party connections as well as modular frameworks. Additionally, the majority of Fintech applications are transparent and open regarding their offerings – the way they collect data and how they use the information, what they do with it, their transaction charges, etc.
So far we’ve examined the many lessons entrepreneurs in any sector can learn from the Fintech model of business.
However, we are aware that everything you have read up to now is just a sham to you.
We‘re sure of it. We’ve been working with over 85 clients. The only most common language they speak is the use of examples. And even better – Live Examples.
The growth of Fintech applications is a classic of usage examples. There are numerous things that Fintech is doing well. Things that are proving the question of why Fintech for business is gaining traction. There are other things that they have yet to master. A lot of the challenges faced by financial startups aren’t yet fully developed However, what is keeping their businesses afloat and growing is their ability to be flexible and forward-looking. Doesn’t that what every business and every entrepreneur requires?
The outcome of this growth of Fintech apps, as well as the lessons that financial startups from other industries have learned, is that it has led to that sector’s adoption by a few of the countries with high economies.