Opinions expressed by Contractor the contributors are theirs.
You are reading Entrepreneur India, an international Entrepreneur Media franchise.
The way we manage our finances has changed dramatically over the past decade. In the last month, 73% of smartphone users have used an app to manage their finances. What’s more, 60 percent of mobile users prefer to access and manage their finances with an app rather than the mobile web. As developers have continually found new ways to innovate in mobile finance, this vertical has only grown stronger, changing the landscape of personal banking and the way businesses interact with their customers. This article explores the development of mobile finance around the world and popular trends commonly seen in fintech applications this year.
Machine learning capabilities
Big data is used by developers of mobile finance applications for operations such as user segmentation and personalization: according to market research firm Forrester, 89% of digital companies invest in personalization. SmarterHQ also found that 51 percent of traders make personalization their top priority.
Machine learning is also important for technology developers because it can be used to create a better user experience. For example, chatbots can be implemented to provide fast and efficient customer service to users. A study by Gartner predicts that chatbots would interact with 85% of bank and enterprise customers in 2020. Machine learning allows chatbots to grow and become more useful, saving the developer team from manual tasks. This is a 24 hour service that can also save users time by eliminating waiting times before speaking with a customer service employee.
Innovative payment methods
As mobile finance app developers continue to innovate new ways for their customers to transact, users are no longer limited to traditional payment methods that are not ideal for today’s user habits. For example, QR codes and mobile wallets have become an efficient way for users to easily complete a transaction while eliminating the need for a physical wallet.
Flexible payment distribution
Some mobile finance apps give users more options as to when to access payroll inbound. Instead of payday loans which can take advantage of a user’s situation, this allows the user to access funds in advance without relatively high interest rates. This feature gives users more freedom to distribute their money for emergencies and unforeseen costs that are due before payday.
Exclusive digital and mobile banks
The success of mobile banking first proves that a physical branch is not always necessary. This can present a win-win scenario where the user does not need to find a local branch to sign the documents while the banks save the cost of maintaining a physical store.
Automation has had a huge impact on the development of mobile finance. The purpose of automation tools is to perform all activities that can be performed without manual labor. Fintech companies can use automation to speed up processes and reduce employee workloads so they have more time to use their expertise. Automation can also provide a better user experience. Examples of automated processes when developing a fintech app include app status updates, balance information, and confirmation emails.
Real time reports
Fintech application developers are always on the lookout for innovative ways to keep their users informed about their finances and investments. Real-time reporting means users have immediate access to financial data when they need it. This is extremely valuable for users who want to act proactively when it comes to financial management and investments rather than reactively. Real-time reporting is quickly becoming the industry standard and an expectation for mobile users.