Technology is ruling over the world, and finance & banking is one of the biggest worldwide industry segments that is leveraging technology for their use and catering to the demands of their customers. It is okay that technology has revolutionized the banking & finance industry, where brands are utilizing fintech software development services. Still, some challenges of the fintech industry need to be addressed. Such as –
- Data Security
- Fraud Prevention
- Compliance with Authority
- Lack of expertise
- Lack of services & solutions
On the other side, based on surveys, it has been revealed that-
A banking customer needs simple, fast, secure, robust, and compliant fintech software for use, so they can transact with ease and confidence.
Here, an investment can help you to move forward to create the best user experience.
This blog is dedicated to the best fintech software development sectors and will help readers find and choose the suitable ones for investment.
What Are the Best Fintech Sectors to Invest In?
The brighter part is investment is available that can help a fintech brand overcome all the challenges and take their services to the next level with the help of software. But when it comes to the investing money, then a question always arises-
What are the best fintech software development sectors to invest in?
There is a solid reason behind its answer: the number of fintech companies trying to dominate in the market where some have direct competition. So, a perfect step towards investment in fintech software can change the existing scenario of a banking & finance firm. If you are also a fintech firm looking to make a valuable investment, these are the following sectors in which you can invest for software.
- Payment/billing software
- Money transfer/remittance
- Digital banks
- P2P lending
- Personal finance management
- Blockchain-based solutions
- Risk & Compliance management technology
Before we proceed to read this blog further, let’s read some interesting stats about the fintech industry that will give you an insight into what is going on and the possibilities.
Fintech Key Stats & Facts
This section is about the stats and facts related to the fintech industry. These inspirational stats and facts provide a better understanding of the market and trends.
- Out of the total customers, 65% customers use digital banking.
- 65.3% of Americans will be using digital banking in 2022.
- The worldwide fintech adoption rate for money transfers and payments is 75%.
- 19.2% of American consumers are using voice assistants.
- By 2025, the fintech market will be $305 billion.
- Fintech projects are projected to offer 20% ROI to financial companies.
So, the picture is clear that the industry is going in the forward direction, and there is much need for solutions that an experienced fintech software development company can provide you. Most of the fintech brands are looking forward to launching innovative solutions that can help their customers to have a better service experience which fintech software is helping them. So, it is the right time to invest in fintech software development.
Now, let’s proceed to the upcoming section about top fintech software development sectors to invest in.
List of Top-10 Fintech Software Development Sectors to Invest
First of all, this is not an investment; it adds value to your business by having fintech software developed with the help of proficient fintech software developers. The sectors mentioned here are worth your investment.
The fintech sector is rapidly emerging, and companies are coming up with new-gen solutions for growth as per market stats and existing conditions; launching a fintech software with a new idea and concept is a win-win situation that can help you to onboard new customers and have extra-edge among your competitors. So, let’s kick start the list of potential fintech software development sectors to invest in.
#1. Payment/Billing software
Payment and billing work as foundation stones of the finance industry. The other interesting thing is most businesses are using payment/billing software that includes billing systems, payment integration, accounts automation, audit, and more. If you also need payment or billing software, it would be best to hire fintech software developers. The overall cost will be a valuable investment to your business.
#2. Money transfer/remittance
Corporate houses or businesses and end customers prefer online money transfers. By 2023, there will be 13 million users who will use online money transfers. Due to the increasing demand, solutions are expected, so launch a unique one via investing in it. The money transfer sector is one of the potential or top sectors to invest in fintech software development.
#3. Digital Banks
Digital banking requires three key components: security, reliability, speed, and scalability. From the stats point of view, 94% of mobile banking users use a banking app at least once a month. It indicates that investing in it will add value to your banking business. On the other hand, it will help you to create customer satisfaction at a higher level.
#4. P2P lending
P2P lending and microloans have replaced traditional financing. It works like one lender, borrower, and a platform or app where lending takes place. Several platforms exist in the market where a borrower meets an investor or lender. Developing a P2P lending platform is less expensive and the best for earning via commission that you can create with the help of an experienced & trusted mobile application development company.
It works on the concept of fundraising for a project from multiple investors at a time, irrespective of their size. By 2025, the crowdfunding volume will reach $28.8 billion, and the growth rate is expected to hit 16% yearly. So, it is one of the best fintech software development sectors to invest in 2022 for business.
#6. Personal Finance Management
There is a huge craze for personal finance management platforms or apps where users can manage their finance like budgeting, saving, expenses, investment, and other types of money management. Via investing in these apps, you can facilitate your customers for easy finance management, effective financial decisions, suggestions for investment, and more. The best idea to launch these app types is to hire dedicated developers. They will assist you to the best for its development and deployment.
Insurtech is an abbreviation for insurance technology. It is being used to improve the customer experience in the insurance sector. It empowers insurance brands for key tasks such as service distribution, administration, and creation of insurance processes to cater to customers’ demands. Last few years, venture capital funding in insurance has been $2.30 billion, and there will be more in the upcoming years. So, developing an app for the insurance business is worthwhile from an investment point of view.
#8. Investment Solutions
The investment solutions help users to manage their existing and ongoing investments in an improved way. Every user needs an easy way to manage investment and trading. Here you can draw their attention by offering them a unique solution to help them overcome existing challenges. On the other side, it will generate trust in your fintech brand. You can provide solutions by investing in a web portal with the help of a website development company.
#9. Blockchain-based Solutions
Blockchain is completely reshaping the fintech industry by offering improved identification processes, operational efficiency, less cost, and high-grade security. It allows people to make transactions without fear of financial fraud or cyber threats. Very soon, blockchain solutions for the finance and banking industry will be on the verge. You can consider it the top priority while considering investing in fintech software development.
#10. Risk & Compliance Management Technology
Risk & compliance management technology is a must for all types of businesses to avoid any kind of financial fraud or cyber threat or stealing of any intellectual property. Moreover, data breaching is one of the biggest threats among all threats. It is the reason behind becoming a risk, and compliance technology is one of the businesses’ top agendas globally. It is worth investing in it. For better experience you can take help of a software development company developing having experience in implementation of it via developing the software.
Why Invest in Fintech Software Development?
There are several benefits of investing in fintech software development. One of the biggest advantages is improvement in your services. Another is generating trust among the customers via offering a secure, robust, and seamless platform or app for their needs.
Here are some reasons that make an investment in fintech worth it.
- Involvement of Digital Currency: Most people are transacting via digital currency, and fintech solutions are helping them to do it in an improved way.
- Data Collection: for any finance company (small, medium, or large size), data is much important that you can collect quickly with the help of fintech solutions for a strategic purpose.
- Mobile Payment Is on Verge: There is no need for paper currency; you can spend money with a single click on the mobile. It is generating the need for unique fintech solutions.
- Security: Although people use digital currencies or mobile wallets for payment, safety is always required. If you are a finance brand or a company, investing in security mechanism establishment with the help of fintech software developers for hire will add value to your business.
These top-10 fintech software development sectors mentioned here have multiple possibilities and have a great future ahead. As a business owner, you only need to find out which sector will be compatible with your business for investment. User satisfaction, security, and speed are the most required components to serve customers in a better way. So, there is no doubt that an investment will add great value to your fintech business, as it will help you meet all your business objectives.
Rohan Singh is a Chief Executive Officer at SemiDot Infotech, Top rated multi award winning Mobile Application development company providing a full suite of services and solutions to small, medium, big enterprises, product companies & new-age start-ups.
He has extensive experience working for multinational companies and knows what it takes to take a company to the next level. He has a master’s degree in computer science. Rohan finds covering the tech world to be an exciting and engaging experience as each day brings new and groundbreaking technologies to explore and write about.