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What Are the Next Big Challenges in FinTech?

April 27, 2021
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The Future of Fintech is Closer Than You Think

FinTech has been around since the 19th century. That’s when morse code and telegrams were the way to get money from point “A” to “B”! Since then, new players have appeared and started revolutionizing the sector. This by making financial solutions more accessible to all, or custom built for specific groups.

The blue ocean days of this industry are long gone. Competition is fiercer, the bar is getting higher and the technologies used are getting more disruptive. This is why every financial institution should ask themselves: what should I look out for? This regardless if they’re traditional,  newcomers or established fintech companies. Well, based on our client’s needs and the movements of the industry, these are our 6 main challenges that fintech companies should start looking at!

Security

You know what people like? Privacy. Do you know what they don’t like? Having their privacy violated. This is especially true when the violation affects your livelihood. With all the massive security breaches happening over the years, from banks to even social media platforms, it’s understandable if consumers feel like their privacy is not safe in the hands of companies. This makes it all the more necessary for companies to invest in the latest security technologies to keep their customers’ information completely confidential and safe, from E2EE to other methods of authentication.

Regulatory Compliance

Every day, governments are increasing the amount of regulations that FinTech companies need to follow. From the GDPR in the EU to the complex landscape in the United States, they all have a massive impact in the development cycle of your product. As such, it’s important to understand this when scaling and scoping out your project to better prioritize tasks and maintain the momentum.

Customer Retention

Remember when the digital tools offered by traditional financial institutions were extremely frustrating to use? How about when the overall service and assistance provided felt more like a chore? Standards have changed, and this is why the functionality over quality mindset of the past cannot survive the current landscape. The user experience offered by your products matters more than ever. In fact it can easily make or break them. So remember, the last thing you should ever do is get too comfortable. Always adapt and improve your services to ensure your favor in the eyes of your customer. Keep them coming back for more!

Outdated Mobile Experience

This ties into the previously mentioned challenge. Many companies took to mobile products as a method of embracing digitalization from a very one dimensional viewpoint. This lead to frustrating experiences and unhappy customers. With an easy-to-use user interface for a better overall user experience, you are already leaps and bounds ahead in giving your customers a great experience. In fact, here are some tips so you can understand the basics of user experience and user interface development.

Increase in Competition

Do we need to say anything else? The more competition there is, the higher the need to stand out and add value becomes. On top of that, Goldman Sachs estimated that FinTech startups would divert upwards of $4.7 trillion in annual revenue from traditional financial services companies. So with FinTech peers to look out for and the looming eyes of traditional financial institutions ready to defend their territory, you’ll need to be on top of the latest trends and plan for the near and mid future to ensure your customers find you.

Big Data, Machine Learning & AI 

Since 2017, 87% of US bankers and 79% of global bankers believe that Big Data and AI will revolutionize how banks gather data and communicate with their customers. This type of technology is crucial for financial institutions of any kind to organize their data for risk and transaction management, fraud detection and other services. No financial institution, new or traditional, can survive the modern landscape without properly implementing these technologies.

How Can Teravision Help Your Fintech Company?

With multiple financial projects under our belt from different sectors of the finance industry, we have the expertise to meet these challenges and help your business achieve its goals. From insurance to investment companies, we can give you an agile software development experience perfectly customized for your specific needs. This could include user interface and user experience development, software quality assurance, web development, business analysis and product ownership, among others. Let’s work and face these challenges together!


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