Fintech is one of the fastest growing sectors nowadays. However, even though the fintech user base is increasing and more people have started to prefer it over traditional banking, there are challenges that fintech companies face while developing fintech applications and other solutions.
Today, we are going to talk about the 6 major challenges that fintech companies face when it comes to fintech applications development , and we will also discuss some reliable solutions to the problems. Let’s get right into it.
6 Challenges of Fintech Application In Modern Era
Read down below to find out more about fintech applications challenges 2021 that companies have to face when it comes to fintech app development.
Cybersecurity is one of the most major concerns when it comes to fintech app development. Even if businesses and companies offer complete customer data security, there’s always a chance of the systems being targeted, which is why security is a top priority of businesses – be it Fintech, mobile banking or payment apps in general.
Traditional banks are usually protected with CCTV cameras, security guards, volts, etc. However, that’s not the case when it comes to virtual security. There’s a lot that goes into protecting online systems from cybersecurity threats.
Even the smallest loop in the systems can allow hackers a backdoor to get access to the sensitive data stored on the servers. Loss of customer data can result in huge fines for companies, it can also make them go bankrupt. Moreover, it also breaks customer trust, which is why companies should invest in reliable cybersecurity measures to keep their systems protected.
Hire a reliable fintech app development services company today, that would help you to integrate high level security. The security measures can consist of:
- Real time notification and alerts
- Biometric authentication
- Two factor authentication
- Behavior analysis
Lack of Mobile and Tech Expertise
There are alot of banks and finance institutions in the fintech industry that don’t have convenient or proper mobile banking service. Though a lot of fintech companies successfully replicate websites, it’s not something that would work in the digital world as well, since every company wants their mobile app to be unique and seamless.
However, since fintech is a relatively new technology, there’s a lack of expertise in the field. This usually results in app development that is inefficient and non-user-friendly. For instance, apps might not benefit from fingerprint unlocking, NFT chips and other features. With these technologies and features fintech banks can offer a great experience.
Try to include these fintech applications development services in your app to make it more robust and improve its quality
- Automatic credit card number scanning through lenses
- QR-code for public transport payments
- NFC chip in shops
- Two-factor authentication with a finger-print
Compliance with Government Regulations
Considering how the finance sector is one of the most regulated sectors, there are a lot of rules and regulations that need to be followed for the development of fintech solutions even if you leverage the traditional fintech software which doesn’t make use of advanced technologies such as Artificial intelligence and machine learning.
Prior to mobile app development or fintech software development, ensure that you have checked it for legal compliance. Other than this, to be on the safer side, it’s recommended that you hire a legal consultant to make sure that you are abiding by the rules and regulations and that all the policies and basic details are understood. Also, you might want to teach your development team the basics of legal security and government policies.
Big Data and AI Integration
Stats from Accenture show that in the US, 82% of bankers, and world-side; 70% of bankers think that artificial intelligence has the potential to change the whole landscape of data fetching methods of banks, and also how they interact with customers.
The impact that technologies such as AI, ML, Big Data, and block chain have had on all sectors of economy are immense. With the help of Big data, it is possible for big businesses, organizations, companies, and even governments to collect personal customer data of users. Apps also make it possible to collect information regarding the user’s likes and preferences, social status, customer thinking, in app activity, and more.
Customer data is essentially important for banks, mostly because of credit ratings and offering high-risk banking services. Technologies such as cloud storage, block chain and AI make it possible to manage transactions, perform risk analysis, detect frauds and scams, and more.
However, implementing these technologies in your system comes with its own set of challenges. Why? Because their implementation not only means costly maintenance but also excellent expertise. If your existing system does not already use these technologies, then implementing them might require a lot of time, money, and effort.
In order to use
big data and AI simultaneously, you will need to get a hang of machine learning. Also, to train your system, you would require huge amounts of data. Majority of finance related apps are not capable of collecting and processing such large amounts of data sets. To overcome this issue, you would need to use a one-shot learning model, with the help of which you would be able to train your ML system through a smaller amount of data.
User Retention and User Experience
User experience and user retention are two of the biggest concerns to deal with. One of the reasons so many finance companies have started getting their mobile apps built is to improve customer experience and increase user retention rates. However, it is also important that the app strikes a good balance between security and user experience, in order to improve customer retention.
In order to ensure that you app users have a pleasant experience using your app, you need to hire reliable Ui/Ux developers who know how to develop a suitable user interface and user experience according to fintech apps. Also, include security features such as passwords and two factor authentication. However, also keep in mind that asking to enter their login information each time they log in might also become frustrating for them, so also allow them to access their account through fingerprint logins.
Effective Marketing Strategies to Get Customers
A lot of times, fintech businesses are not able to properly understand their audience, niche, and customer. Since fintech is a relatively newer trend in the market, the majority of fintech companies are still not fully aware of effective marketing strategies to acquire more customers.
Try to invest in research and hire reliable experts that are able to help you leverage the best features for your app. To stay ahead in competition, you need to perform better than your competitors. Hence, you should always be ready to put in more money, time, and effort to make your app successful. Perform regular competitor analysis to stay updated with what the customers are looking for and what strategies are working the best in the market.
A reliable fintech app development company can help you build a fintech mobile app that is not only robust, but also very cost-effective. So, you might want to seek professional assistance if you don’t hold expertise in developing these kinds of apps. Not sure where to start? Get in touch with professional company today.