What is financial technology software? 

Financial technology, commonly known as fintech, is described as the use of technology to deliver financial services. It incorporates many financial activities, such as banking, investing, insurance, payments, etc. 

This software utilizes advanced technologies like artificial intelligence, machine learning, blockchain, and data analytics to provide users with more innovative and convenient financial benefits.

FinTech has disrupted traditional financial institutions by offering customers faster, cheaper, and more personalized monetary offers and has opened up new opportunities for the whole market. It has also enabled the development of new business models and new markets.

Importance of fintech software in the industry: 

Fintech custom software development has become increasingly important in modern monetary services due to several key factors. 

Customer Experience: Financial institutions are now empowered to offer a more seamless and customizable user experience. With the help of mobile apps and other digital platforms, customers can now perform diverse financial activities anywhere, anytime. They also guarantee transparency and real-time transaction tracking, which lets customers trust you. 

Increased Efficiency: When we talk about efficiency, it’s the most important factor in any institution’s productivity. Different automated tools make many monetary processes easy, reducing the need for manual intervention. Tasks that used to take days or weeks to complete can now be done in real-time, leading to faster processing times and reduced costs. 

Access to Financial Services: People still think traditional transactions are more effective and convenient for transferring money. Well, this is not the case. The advancements in payment transfer options in the market have made it easier for people to access financial services, especially those who are underserved by traditional institutions. 

For example, people in rural areas or those with limited mobility can now access banking and payment modes through mobile apps. This has the potential to boost financial inclusion and improve the economic well-being of individuals and communities.

Disruption of Traditional Financial Institutions: The conventional banking method has completely changed. Now, the only concept that has risen is digital banking which is free to use from any part of the world. The whole world is embracing the change and want more features.

Is fintech e-banking?

Fintech and e-banking are related concepts, but they are different.

Fintech custom software development is concerned with using technology to deliver financial services, including e-banking. However, it encompasses a broader range of monetary activities beyond banking, such as investing, insurance, and payments.

On the contrary, E-banking refers specifically to banking resources delivered through electronic channels, like online banking platforms, mobile apps, and ATMs. E-banking system has been around for decades and is a type of fintech, but fintech goes beyond e-banking to include other commercial services implemented through technology.

Even though both concepts are pertinent, they are not interchangeable terms.

Is PayPal a fintech company?

This is yet another famously asked question from investors and business owners. So, yes! PayPal is a fintech company. It was founded in 1998 as an online payment system and, ever since, has become a leader in digital payments. 

There are different payment solutions, including online, mobile, and peer-to-peer payments, that you can process within seconds. Paypal is also one of the widely used services in each sector due to its security and trust among its users. 

Is cryptocurrency a part of fintech?

This is none other than cryptocurrency. So, to put it in a nutshell. Cryptocurrency is a part of the fintech industry because it utilizes advanced systems such as blockchain and cryptography to create a decentralized digital currency system. 

Cryptocurrencies such as Bitcoin, Ethereum, and Litecoin are designed to be a more efficient and secure alternative to traditional currency and payment systems. These coins are intangible assets; you just have to sell and buy them within the market. There is no hassle of carrying the coins when you want to sell or buy them. 

Examples of fintech custom software development in the market:

● Mobile payment apps: PayPal, Venmo, Square Cash, Google Pay, Apple Pay.

● Digital banking: Chime, Revolut, N26, Monzo, Ally Bank.

● Investment platforms: Robinhood, Betterment, Wealthfront, Acorns, eToro.

● Digital wallets: Google Wallet, Apple Wallet, Samsung Pay.

● Peer-to-peer lending: Lending Club, Prosper, Zopa, Funding Circle.

● Crowdfunding: Kickstarter, Indiegogo, GoFundMe.

● Cryptocurrency: Bitcoin, Ethereum, Litecoin, Ripple.

● Robo-advisors: Wealthsimple, FutureAdvisor, Personal Capital, Stash Invest.

● Insurance technology (Insurtech): Lemonade, Metromile, Policygenius, Root Insurance.

● Small business loans: Kabbage, OnDeck, BlueVine, Fundbox.

● Blockchain solutions: Chain, Ripple, Digital Asset Holdings, BitPesa, Everledger. 

These are just a few examples of today’s many fintech companies and solutions. The fintech industry is rapidly evolving and expanding, with new players and solutions emerging all the time.