Technology overall is developing by leaps and bounds. Naturally, it is leading to shifts in industries and fintech is amongst those experiencing a paradigm shift. Nowadays, a fintech application development company is capable of leveraging technology to make payments and financial services efficient, fast, secure, and accessible for consumers. With that, for one, businesses can benefit by having faster cash flow, reducing the cash flow gap that traditionally delayed payroll, limited investment opportunities, and held up supplier payment.
However, it is not only about traditional transactions. Fintech app development offers innovative solutions to help businesses improve their financial management and decision-making.
Moreover, implementing latest fintech technological novelties has both financial and social impacts. Newer technologies help to identify underserved populations and devise new financial products.
This blog post will show how fintech app development services help both financial and non-financial businesses to benefit from the new and evolving technological environment.
Benefits of fintech app development for businesses
The benefits of fintech app development vary from business to business depending on whether it is a main or supporting activity and its scale. While many financial aspects can be improved technologically, a fintech application development company often focuses on those that will benefit business the most. Cases where fintech software development services prove the most efficient are shown in the table below.
| Benefit | Business | Description |
| Operational efficiency | Financial institutions, banks, neo-banks, and any organizations where financial services represent a significant portion of the business (e.g., lending apps, financial workflow management) | Optimized workforce: automation of routine tasks such as verification or transaction approval, AI chatbots for handling common inquiries, data-driven decision-making for financial advisors, remote work, etc.efficient infrastructure: blockchain and cloud-based solutions remove the need for costly on-premise data centers and servers; Kubernetes and other automation can help use tech infrastructure efficiently.Powerful technology: technological performance can also be improved by AI& ML optimizations, automation, and APIs. |
| Risk reduction & fraud prevention | Banks, investment firms, insurers as well as e-commerce platforms and BNPL providers, digital wallets | Trained AI models on past data can flag anomalies such as repetitive high-value purchases, inconsistencies of billing and shipping addresses, and unusual IPs or geolocations.In addition, ML and behavioral analytics can assess borrower risk without having to rely on traditional risk scores.In 2024, the U.S. Department of the Treasury used AI and ML to prevent 4 billion fraudulent transactions. The most important though, is that in 2023, this number was only $652.7 million. It shows how incredibly fast the technology improving for financial security. |
| Cut transaction costs and processing time | Embedded finance for marketplaces, ride-sharing apps, gig platforms, subscription management, currency exchange, etc. | Rather than partnering with banks and redirecting users to their payment system for every transaction, non-financial businesses can embed financial services so that they reduce payment fees and process transactions faster. In addition, it speeds up the process for the user and also allows for easier reporting for the business. |
| Interoperability & global access | DeFi projects (decentralized finance), Blockchain-based startups, supply chain platforms | Verification in seconds, tokenization, and smart contracts are just a few tools that allow users to use financial services in a fully transparent and reliable way globally without banks. |
How businesses use fintech apps
A fintech app can be defined as a mobile or web-based application that enables users to use financial services such as payments, investments, or other monetary operations. Businesses use fintech apps to automate the provision of financial services or particular tasks, reduce costs, risks, and processing times as well as improve supporting activities such as reporting, compliance, and verification/authentication. A fintech application development company builds fintech apps by utilizing APIs, AI/ML, blockchain, or cloud services and often focuses on global accessibility, security, and reliable performance.
FinTech app development trends
Some fintech app development trends are already mainstream while others are in their early stages and some are only in the R&D phase.
For instance, according to a Forbes article: โJPMorgan Chase uses AI-driven COiN to automate contract reviews. Mastercard’s Decision Intelligence analyzes billions of transactions to prevent fraud.โ This illustrates that using AI is mainstream and a staple of any leading fintech application development company. ML accompanies AI technologies to reduce transaction times and associated risks. In addition, cloud computing is utilized across most fintech apps and is expected from any professional fintech mobile application development company or web. AI plays a significant part in it as it enables more precise risk analysis of secondary data and monitoring of large data sets for anomalies, leading to improved security. AI and ML often lead to Big Data Analytics. Data accumulates quickly and companies learn to analyze it to support their decision-making and identify new growth opportunities.
In terms of more evolutionary development trends, there are Blockchain, Distributed Ledger (or Smart Contracts), RegTech innovative technologies (Regulatory technology), and Open Banking. Cashless payments are not new, but fintech app development pushes for touchless payments and biometric authentication.
The trend to look out for is quantum computing. It is mainly in the R&D phase now, but it will have long-term implications for fintech apps in 5 to 10 years. It also targets optimization like ML, security like AI, and simulation of complex scenarios, but in a radically more powerful way than current technology can.