2. Contents
• Meaning of Fintech
• Recent developments
• Major areas in FinTech
• Future prospects
• Potential issues with FinTech.
3. What is Fin Tech?
The term FinTech stands for Financial Technology. FinTech is
technologically enabled financial innovation that could result in new
business models, applications, processes, or products with an associated
material effect on financial markets and institutions.
In simple words, Fintech describes any
company using the internet, mobile
devices, software technology to
perform or connect with financial
services.
For instance, BharatPe, Paytm, Policybazarr.com, Razorpay, etc.
4.
5. Benefits of Fintech
It enables all individuals and
businesses to get access to
appropriate and affordable
financial products and services
in a timely manner.
The services are provided through
apps and other such digital modes.
With each innovation comes a
potential reduction in cost as
there are no physical branches,
which means no overheads to pay.
The automated process not
only saves cost but also helps
get access to services in a
timely and quick manner.
The FinTech, because of their
speed and economical ways of
rendering services played a key
role in making the financial
sector more efficient
FINANCIAL INCLUSION ECONOMICAL
SPEED EFFICIENCY ENHANCEMENT
FLEXIBILITY
PERSONALIZED
CUSTOMER SERVICE
FinTech companies allow you to
carry out all kinds of operations
from whenever and wherever
you want in a very simple way.
If there is one thing that Fintech
products have been able to
enhance, it is their ability to
meet the particular needs of the
user and the company in a
personalized way
6. Challenges in Fintech
Automation of processes
and digitization of data
makes fintech system
vulnerable to attacks from
hackers.
The most important questions for consumers
pertain to the responsibility of cyber attacks as
well as misuse of personal information and
important financial data
Regulation is also a problem in the emerging world of FinTech, especially
cryptocurrencies. In most countries, they are unregulated and have become fertile
ground for scams and frauds. Due to diversity of offerings in FinTech, it is difficult to
formulate a single and comprehensive approach to these problems.
CYBER-ATTACKS DATA PRIVACY ISSUE
DIFFICULTY IN REGULATION
11. CHALLENGES AND SOLUTIONS
Data Security
In 2022, there were 1,862 data breaches with an average cost of $4.24 million. This is a new all-time high,
raising new issues about data security and privacy. Companies must understand that they risk not just their
reputation, but also their money.
Solution
To avoid a potential breach, create a FinTech app that incorporates the following features:
• Two-factor authentication;
• Biometric authentication;
• Notifications about all actions.
Regular penetration testing is an effective method to guarantee that hackers do not affect your solution. You
must take at least one test each year. Furthermore, tests must be run after each new update and integration.
12. CHALLENGES AND SOLUTIONS
Regulatory and Compliance Laws
This is due to the massive increase in regulatory costs related to earnings and credit losses during the 2022
financial crisis. As a result, while designing an app, you must ensure that the program complies with all key
elements recognized by the government. As a result, your product's resources may be taxed, and its ability to
correlate data from diverse sources may suffer.
Solution
There are different methods to comply with all of the laws. What you can do is as follows:
• Hire a legal expert for advice;
• Hire a dedicated person or department to monitor regulatory changes.
Both options are viable. The cooperation and price mechanisms are the only ones that differ. Hiring a lawyer is
significantly less expensive than paying a punishment, with the GDPR's potential penalty reaching €20 million.
13. CHALLENGES AND SOLUTIONS
Lack of Mobile and Tech Expertise
The creation of high-quality and secure FinTech solutions, such as banking applications with smooth performance,
necessitates extensive experience and a strong basis. Not everyone can put together an in-house team of professional
engineers who are up to date on the latest tech advertising to ensure the app has a high level of security without
sacrificing quality.
Solution
The following features are must-haves for any mobile financial app:
A top-notch UI and UX;
Comprehensive data visualization;
QR-code payments;
NFC support.
As a result, more businesses are choosing to outsource FinTech app development in order to get a well-thought-out
application. You may engage an outsourcing company that specializes in FinTech app development with real-world
examples to ensure that your app is completed by specialists alone. Furthermore, outsourcing helps to minimize
development expenses in the long term and allows you to focus on more important things like marketing.
14. CHALLENGES AND SOLUTIONS
User Retention and User Experience
A financial app, on the other hand, must strike a balance between user experience and security.
For example, you should provide a mobile app banking solution that is neither complicated to use nor
easy to breach.
Solution
When creating a financial app, you must ensure that the UI/UX is secure and user-friendly.
Furthermore, people are prepared to employ two-factor authentication to access an app. However,
repeatedly asking for the data for login may annoy them. You may also look at what your competitors
are doing to provide a consistent user experience.
15. CHALLENGES AND SOLUTIONS
Service Personalization
For a long time, personalized services have been the key and core aspect of banking. Personalization, in today's
context, implies communicating with a user at the correct moment, on their chosen channel, with a perfect
answer to their particular demands.
Furthermore, clients are willing to embrace FinTech as their financial wellness advisor. Some users may feel
overwhelmed by a vast range of options, and successful customization provides them with only the narrowed
opportunities they need.
Solution
FinTech companies must have detailed client insights to solve this challenge. Furthermore, financial institutions
must study user behavior and get knowledge about the user's health, social relationships, and events. You may
achieve this goal by building trust with your consumers. You must keep the user's information secure and
protected.
16. Effective Marketing Tactics to Acquire Customers
In general, FinTech companies do not understand their specialty, target audience, or strategies. In recent times, since
the majority of people still utilize traditional banking services, FinTech businesses have struggled to overcome this
challenge.
Solution
To improve your business and strategy, you must be much better than your competitors. And for that, you must
either invest a lot of money, time, and human resources to provide seamless services to your consumers, or you must
work with traditional banks.
Offering the best product is not what your customers expect in this competitive market. You must endorse yourself
by telling them about your creation. Furthermore, you must design a powerful and successful marketing plan that
includes advertising, collaboration, and so on. This will not only help you acquire popularity, but it will also help you
increase brand recognition.
CHALLENGES AND SOLUTIONS
