The Fintech Transformation is Determined by Enthusiasts

There are around 4,000 registered fintech-related companies globally and their number keeps growing.

The fintech transformation stimulates the appearance of new payment providers, peer-to-peer lenders, innovative crowdfunding and trading platforms. According to Fortune magazine, $19 billion were invested into finance startups in 2015, which is a significant increase from $2 billion in 2010. These companies are changing the future of finance.

Fintech vs. Traditional Banking

Banks did not face any competition for centuries, which removed their stimulus to innovate and be transparent. Traditional banks have usually out-of-date, yet well-established IT infrastructures. This is an additional deterrent for incumbents to implementing new technologies, adapting to new customer demands and providing clients with the apps they expect to have.

Banks do not change quickly. Their established reputations force them to consider and reconsider lots of issues before moving one inch forward. If clients’ funds, or worse, their personal data (!) gets lost due to a new system, serious consequences will follow.

Even though the fintech transformation is happening quickly, banks are trying to adjust as well. Some of them are running accelerators such as the Barclays TechStars, others are opening separate divisions, for example Citigroup established its own Fintech unit. Thanks to this department that is focused on rapid prototyping, Citi plans to release a mobile-banking app with a cool facial recognition feature by the fourth quarter of 2016.

Fintechs are making it really easy and cheap to:

1. Transfer money;
2. Keep one informed about all account updates across devices;
3. Make better financial decisions through analytics, accounting, budgeting, prediction, and decision-making software.

Forbes gathered a list of the most successful fintech startups of 2015. It contains companies that deal with trading and investing, lending, payments, personal finance, currency exchange, you name it! They all stand out thanks to their brand new idea or approach that brings value to their clients. Here are some of the fintech areas in which you can open a startup:

1. B2B payments;
2. Mobile apps development for the unbanked and underbanked population;
3. Creation of social media platforms with integrated financial options;
4. Sales platforms for fintech products, etc.

It is today’s digital customers and their high expectations who push the fintech transformation on, while the trends toward the Internet of Things and Augmented Reality will only spur innovation in finance. One must only identify the areas which have been neglected and find a niche where more value can be brought. Can you think of some other areas which you feel could use a healthy dose of disruption?

Is a Voice Recognition Banking System the Future of Online Banking?

With a voice recognition banking system you will finally be able to forget passwords, card verification numbers and PINs. Latest biometric technologies now allow you to use your voice to log in to your bank account.

Today customers are using web or mobile banking applications to check their bank accounts. The financial brand has conducted a research during the last 5 years and examined the analytics data from over 100 banks, financial institutions and credit unions. They found that over 85% of customers log in to online banking, check their accounts, spend 2-3 minutes on the platform, and log out.

Recent innovations in voice recognition banking systems provide secure access to both information centers and accounts within seconds. In such a system the customer’s voice is verified against prerecorded and stored voiceprints, solving the problem of forgotten passwords once and for all. Also a voice recognition banking system brings more accessibility to blind or partially sighted people, which is a significant benefit in itself.

Barclays introduced a voice recognition banking system in 2013 for some of its customers. The solution reduced the authentication process by an average 20 seconds. At the same time, it minimized identification and authentication issues on the customer support side. As a result, customer satisfaction levels increased.

Banks will soon be able to give their customers the possibility to check accounts and make transfers by talking into a device. This has its advantages and disadvantages. For example, customers will be more focused with a voice recognition banking system in place. It  may be more difficult to attract customers with ads as customers likely won’t check their bank’s online banking system as often as they do these days.

A voice recognition banking system will provide a lot of data for analysis that hasn’t been available previously. For example, data on the customer’s voice tone, location, or average speech tempo will now be available. Based on this knowledge, banks and financial institutions will be able to sell more high-end products such as financial planning tools, loans or consultancy services. When the customer is in a good mood they might be more willing to discuss an offer.

Dan Miller, a senior analyst at Opus Research, notes that in the long run, other industries such as insurance companies and telecom companies (but also government agencies or even retailers) will take advantage of a voice-based authentication system to serve customers in the most personal and efficient way. This is probably the best time to make a decision and offer your customers an innovative tool to log in to your system.

What do you think about voice-based authentication systems? Can you think of other benefits of such a platform? Share in the comments!

Financial IT Services Give You a Competitive Advantage

At DAS Solutions we understand that financial companies need solid IT services to stay competitive. That is why we provide you with custom financial IT services that help you get closer to your business goals and align with your budget.

We develop fintech solutions in the following areas of the financial industry:
• Banking
• Financial Services
• Capital Markets
• Investment Management
• Investment Banking

Here are some financial IT services and solutions we can potentially provide for you:

1. A platform that can give your customers the possibility to respond to your SMS-receipts. With this option you will have the possibility to listen to what your customers have to say and adjust your services accordingly.

2. Secure online payment systems that will eliminate long queues and improve the customer experience.

3. A web-based application which makes the connection between a bank and an insurance company that generates documents, calculates the sum of the insured objects, keeps track of all sales and generates reports regarding agents’ activity.

4. A solution that will let your customers take loans online based on their credit history. You can decrease the interest rate for those who use the online system to make it more appealing in the promotion phase. The procedure does not require a lot of resources and does not involve tedious bureaucracy.

5. A crowdfunding platform that will help both new and well-established companies to identify new business opportunities and diversify.

6. An application for mobile phones and tablets that will allow one to pay for services using mobile devices.

7. An application that will give wholesale and retail merchants the ability to sell their products in credit without long discussions with banks. Such an option will significantly increase sale rates.

8. A budgeting tool that will help you track expenses and income for your business.

9. An online stock trading platform and application that will allow its users to trade in an easy and enjoyable way.

10. A peer-to-peer lending platform where rates are low, the application process is simple, and lending decisions are made quickly.

These are only examples of what can we develop and implement, we can create any solution based on your needs. Contact us directly to find out how our financial IT services and solutions can help you save time, resources and most importantly, bring you additional revenue.

Moving Forward,
DAS Solutions Team. 

Did You Know about These Five Fintech Trends?

Keeping up with fintech trends may be uneasy for companies, however this can be crucial for business development and clients’ loyalty. Here are five trendy fintech trends you should know about.

  1. UX (User Experience)

Of all the fintech trends out there, User Experience has become a competitive necessity. Customers should enjoy both personalized financial offerings and attractive user interface. Therefore, financial firms tend to fulfill business needs by combining user-centered design with that meaningful experience for customers.

  1. Omnichannel experience

Customers can use services through different channels (ATM, mobile apps, desktop apps, web services, call centers, etc.) which empowers them to use the right tools in the right circumstances. This fintech trend helps understand customers’ activities on different platforms, analyze them, and improve the overall UX.

  1. Mobile payments

Mobile payment processing systems are a fintech trend that will become more popular in the coming years. Many big companies have introduced applications into the market that allow one to transfer money and even pay without reaching out for your wallet. These apps came in as a response to the need for fast transactions. The reality is, if banks cannot provide their clients a certain service, then software development companies will.

  1. Cryptocurrency

Cryptocurrencies such as bitcoin offer many benefits such as lower costs, increased privacy, and extremely fast transactions. The idea of sending money almost anywhere at a low price is compelling, however there are big and established competitors in this area that are hard to pass over. Bitcoins are facing adoption problems because people don’t tend to break their habits easily so no one pays for their dinner in cryptocurrencies – at least not yet. But the benefits provided by bitcoin should be evaluated, and fintech companies are quickly working to find ways in which these can be brought into the mainstream.

  1. Crowdfunding

Crowdfunding platforms became a popular fintech trend a long time ago. They help people bring their ideas to life. Traditionally, these platforms have been used by start-ups, but recently Sony organized a successful crowdfunding campaign, and it is currently raising funds from the public for a second time to launch a product. Of course there are other platforms that enable large transactions, offer payment processing, escrow accounts, etc. The big difference is that companies are now targeting crowd funded equity and debt issuance. The crowd funded platform allows to accelerate a company’s growth by leveraging its easy to use tools.

If financial institutions do not keep up with the newest technology, they risk becoming uncompetitive. A deep knowledge of fintech trends and the adoption of innovative technology will provide new opportunities to drive revenue and expand product portfolios, especially in the medium and long term.