The FinTech Development Industry in 2023 and Beyond
Innovations, globalization and constantly changing consumer expectations have significantly changed the development of the finance industry. Tech advancements such as cashless transactions, AI and ML, blockchain innovations and many others are continually improving thousands of institutions all over the world.
In the finance and banking area, such fresh-baked solutions are known as financial technologies, or FinTech.
Similar to studying the risks and challenges in fintech, analyzing the current state of the FinTech market can significantly help with the planning of your project. It contributes at the Proof-of-Concept stage, enhancing the product’s ROI and its value and competitiveness within the target market.
Instead of spending hours on research, it’s better to get the key points on the FinTech market from industry professionals. Explore the most important highlights from the experts at IdeaSoft below!
What Are the Key Trends in FinTech Development?
Different products, innovations and solutions in the financial technology area play an exceptional role in this industry’s development and growth. By demonstrating a new vision compared to traditional models and problems, they enable steady and constant evolution, today and in the future.
Let’s discuss it in numbers. As of 2021, the global fintech market was valued at over $135 billion and is expected to increase to over $266.9 billion by 2027 at a CAGR of 11.9% over the forecasted period. In particular, its development and growth will be mainly driven by the trends and tech advancements which are incorporated.
Overall, we can segment the key factors that shape the fintech development further as follows:
- Deployment mode
- Application type
- Dominating technology
- User’s preferences and needs
- Target location
Now, let’s explore the transformations of each of the categories and how they will change the fintech development products over the upcoming years.
#1 Extensive Usage of Cloud Solutions
The expertised analysts from Allied Market Research expect notable improvements in both cloud and on-premise software segments. However, by 2030, cloud solutions are expected to maintain a leading position over the others. This is mainly explained through the advancements they provide: better accessibility, real-time updates and more secure system operations.
In particular, the last one is exceptionally critical to meet security guidelines such as GDPR, CCPA, DPA and many others
#2 A Solid Domination of Payment & Transfer Apps
During the 2021–2030 forecast period, analytics predict that payment and fund transfer app development will still be a high-priority area in the fintech market. This is mainly explained by an increasing number of app users looking for functional and convenient account management solutions.
Based on the projections made by Allied Market Research, payment and transfer applications will leave behind the loan area, insurance and personal finance, wealth management and other app segments.
Source: https://www.alliedmarketresearch.com
#3 A Whopping Trend for Data Analytics
Data analytics will remain the most essential segment in the upcoming decade based on the prevalent technology analysis. However, fintech market software will also leverage the power of artificial intelligence, application programming interface development and blockchain solutions. All these technologies can significantly empower the usability and security of fintech software, as well as bring some innovations to the overall financial and banking areas.
Source: https://www.alliedmarketresearch.com
#4 Increased Focus on Banking
When analysing the client segments of fintech software, the dominant position by 2030 will be kept by banking. However, analytics also confirm a notable increase of investments from clients related to the insurance and security segments.
By leveraging fintech software, the banking sector can benefit in service quality and efficiency, improve user experience and launch new software solutions that help business development and growth.
Wrapping Up
Similar to picking the right software provider, keeping yourself in the loop about the latest trends in fintech development is super critical. It allows you to significantly enhance the quality of your software solution, ensuring it works perfectly for your business’s needs and objectives.
With years of development experience, IdeaSoft has successfully delivered over 250 projects with innovative systems, modern approaches and emerging technologies on board.
Do you already have a fintech project for us? Contact our team to explore development strategies for an efficient fintech solution and how your business can benefit from them today!
