Digital Transformation in FinTech: How is FinTech Transformation Helping Financial Services?

Changing times call for change in the way things are done. The financial services industry also stands true to this theory. Fintech app development companies have been driving financial innovation in the last decade.

Consumer needs and wants have also evolved over the years. They strive for greater personalization in the services they receive. In addition, the cutthroat competition, increasing regulatory complexity, the compulsion to streamline operations, and other factors are driving the push for reinventing the industry and, thus, the increased demand for FinTech application development.

This new digital transformation era in financial services is characterized by the quick and seamless integration of new platforms and applications. Physical branches and cumbersome documentation are getting rapidly replaced by robust networked digital ecosystems. Essentially, the FinTech transformation is the way the future course of the industry is set.

FinTech and digital transformation offer a significant opportunity beyond their impact on financial services firms. But, at the same time, the journey is equally challenging. Amidst this, the market size for the FinTech digital transformation is expected to cross $29.97 billion by 2025, at a CAGR of 59.8%.

The blog covers different aspects of transformation in the Financial sector globally. It will highlight the benefits of FinTech digital transformation and the trends in the FinTech revolution.

> Read More:- 7 Top FinTech App Ideas for Startups in 2022

Brief Overview of FinTech Digital Transformation

When we talk about digital transformation in FInTech, it essentially describes revamping a financial institution's technology infrastructure and procedures to enable them to compete better with its competitors.

This involves implementing new technologies with the help of a software development company expert in big data analytics tools, mobile application development, cloud-based platforms, and enhancements in business processes and organizational structures.

The final objective of Fintech's digital transformation is to make financial institutions more agile, efficient, and customer-centric.

Top Benefits of Digital Transformation in the FinTech Industry

• Greater Flexibility
  -Organizations can look into digitizing their processes with the help of an enterprise software development company. Digitization of tasks leads to automation of regular activities, giving companies more time to realize any change that occurs in the market.
  -The agility gained can be used by the companies to get an edge over traditional financial institutions and competitors that may be using digital technologies in any spirit.

• Efficiency
  -Almost 55% of startups claim to have adopted digital transformation strategies. Many financial startups begin with the use of digital technologies. The objective is to ensure they achieve good operational efficiency immediately.
  -Digital transformation helps companies enhance their operational efficiency to save time and money and provide better services. This helps to reduce the cost for the customers.
  -An expert FinTech app development company can help you identify areas where you can introduce technologies to optimize productivity.

• Risk Assessment
  -Adopting digital technologies can help organizations better assess risk in time and develop more effective risk management strategies that keep them ahead of the competition.
  -Automating regular manual processes and including extensive data analysis capabilities can help the organization foresee risk in advance based on better data analysis, leading to informed decision-making.
  -FinTech app developers can help enterprises design and deploy IT capabilities that allow decision-makers to allocate resources and respond to potential threats.

• Better Decision Making
  -One of the significant benefits of seeking the help of FinTech app development services is that it could lead to better decision-making. As we know, digital transformation involves using big data analysis tools.
  -By analyzing data quickly and easily, companies can identify trends and opportunities they may have missed. With the help of big data tools, critically examined information can help you make more informed decisions about allocating and investing resources.

• Better Collaboration
  -This is a time of distributed workplaces. The challenge of achieving optimum collaboration on projects is becoming challenging. With digital transformation, you can better your team collaboration. Since one individual can not handle every task, the support of all team members is essential.
  -Collaboration has become a necessity in today's scenario. It helps the teams to work together on multiple projects faster and more efficiently. It ensures that all team members are well informed of the expectations and timelines for each phase of the project. Finally, it ensures that all are aware of the achievements and changes in the project.

• Improving Customer Experience
  -In the end, everything comes down to whether or not you can keep your customers happy. Digital transformation is a fundamental mechanism that can improve the customer experience.
  -Fintech app developers can provide features and AI-enabled capabilities that exceed consumers' expectations. Software technologies can give customers more personalized service and support.
  -New technologies such as Artificial Intelligence (AI) and Fintech companies can provide customers with a more personalized feel and support. Additionally, Fintech applications can make it easier for customers to do business with the companies by automating manual processes.

• Opening New Revenue Streams
  -Development companies specializing in financial services' digital transformation can help them unlock new revenue channels for their business. For instance, Tntra digital transformation experts can enable the financial sector business to offer new services in the form of pay-per-use or subscription-based models by adopting a cloud-based infrastructure.
  -This flexibility offered by digital transformation in FinTech can enable a firm to widen its customer base and grow its business.

• Enhanced Agility
  -As technology is modifying quickly, so are the technology-dependent industries. The changing technology also means a change in the expectations of consumers. The choice of technology also makes it difficult for companies to select the best model that fits their business.
  -Digital transformation and FinTech app development solutions can help you make the right choices and stay ahead of the competition. A good transformation experience will keep you ahead of the technological curve and empower your employees to work faster and wiser every day.

Top Financial Services Digital Transformation Trends

• Digital Transformation is a Top Priority
  -Digital transformation has become an imperative across major financial sector enterprises. This has led to an immense growth in the FinTech application development market. Close to 90% of financial services companies agree that they are stepping into digital transformation in some ways.

• Digital Transformation Leads to Better ROI
  -Since digital transformation has many significant benefits, such as improved customer experience and operational efficiency, and more, such advantages financial services companies anticipate a better return on investments and profitability from digital transformation.

• Rise in IoT, Blockchain and AI/ML Investments
  -Financial services companies are anticipating business opportunities and risk and therefore opting for digital technologies to compete in the market. The digital technologies include the internet of things (IoT), artificial intelligence (AI), and blockchain; in addition to the advanced technologies they're already deploying.

> Read More: Top 7 Global FinTech Trends in 2022

Conclusion

There has been a definite rise in the digital transformation of financial services. The surge in FinTech can be attributed to many factors such as -

• Rise in strict compliance and regulatory pressure such as GDPR across the globe.
• Changes in the geo-political circumstances across countries
• The rise of the internet and the want to leave the competition behind
• Surge in cybersecurity and data protection measures

As digital transformation in FinTech occurs rapidly, the digitalization of operations and services will become essential for organizations and their stakeholders. Moreover, the transformation is necessary for the organization to remain competitive and serve the customers better than the competition.

Developers at reputable FinTech app development solutions can help you realize Fintech transformation vision. In addition, companies in the financial sector should consider outsourcing their FinTech transformation needs to a dedicated, experienced partner.