Digital currencies, robo-advisors, and contactless payments are now commonplace. This is due to innovations within the FinTech software development industry. Thus, companies and banks that strive to keep their customers today are forced to accept digitization and follow FinTech’s lead.
In this article, we’ll show the multiple ways that it’s impacting our lives. With FinTech software, it’s becoming more evident that we’re leaning towards a more automated society.
FinTech software development tools change the way people send/receive money and perform banking transactions. Successful remittance companies use NFC, blockchain, voice and face biometrics and additional innovative technologies.
Some of the most renowned remittance companies are WorldRemit, TransferGo, and Transferwise. For instance, WorldRemit users can transfer money up to 110 countries. Recipients can receive their money via mobile money, bank deposits, and deliveries in multiple cash pickup locations.
In addition, Transferwise makes remittance less-consuming and cheaper due to their smart strategy: for someone to obtain their money abroad, you don’t have to send it abroad directly. It’s a peer-to-peer system so that the money will be sent almost instantly.
P2P Lending Platforms
Digital lending is one of the main directions of FinTech software development. These are the major channels it targets.
- Employing intelligent algorithms
- Creating a new algorithm for buyers
- Omnichannel to get new points of touch
- Ensuring faster approvals and an uninterrupted customer journey
- Using AI for the underwriting process
P2P lending platforms work to enable FinTech businesses to use digital technologies. Digital technologies are used to accelerate and automate the loan approval process. Also, this results in more user-friendly solutions and in reducing costs.
Also, machine learning is used for better credit scoring and targeting underserving borrowers. Intelligent algorithms and machine learning enable a business to predict your creditworthiness and trustworthiness.
Here are a few challenges when opening a lending platform:
- Scalability challenge when the businesses and customers are growing
- Processing a large number of transactions
- Ability to withstand the load
Rate Setter, a lending service in the UK, has over 250,000 users and received more than £1.6 billion in peer-to-peer loans. This company is consistently modernizing the IT system and implementing innovations.
Rate Setter engineers and the Ni-X developers have added the microservice into the platform. This helps the customer face the challenge of increasing growth and making continuous system improvements.
N-iX engineers have created the Decision Engine. This is good for data predictions and insights. To enhance its functionality, it uses nonlinear data analysis to make new decisions based on algorithms.
Online banks use banking as a service to help users perform daily banking operations. They use the most innovative technologies such as voice, face biometrics, and AI to improve customer experiences.
Also, based on their digital model, they’re cost-effective and can offer more competitive rates. For instance, Atom bank is a digital-only bank, and they’re known for their affordable rates and low-cost digital model.
FinTech software is needed for better payment systems, financial management, and digital currencies. If developed correctly, it will solve some of our current problems (i.e., slow transaction times, additional fees. etc.). Ultimately, we can’t wait to see how FinTech software development will impact future generations as it develops.