How well is you credit union meeting the needs and expectations of bankers in the digital world?
Today, credit unions need software that will allow them to compete with the convenience and digital financial products that fintechs offer. Customers now prefer to do everything from cloud banking to applying for loans online - and fintech software can get you there. Here’s what you need to know.
Fintech software is an umbrella term referring to all the financial technology — software, mobile applications, etc. — designed to automate and enhance traditional financing. Customers and businesses alike have come to prefer these digital technologies and products because they make banking easier and more accessible. In fact, 90% of Americans report that they currently use fintech, up from just 88% in 2021 and 58% in 2020.
It's important to note that financial technology software is not limited to online banking. Its cloud-computing abilities also cover the following:
As the popularity of the fintech industry continues to rise, it's up to others in the financial industry to look for ways to compete. And what better way to compete than by using fintech software development services? All it would take is the right fintech software development company to help you bring your traditional banking services to the digital world so your customers can access your products and services anytime.
Not every credit union is the same, so not every fintech software will help you achieve the same goals. As a result, the fintech software development company you work with must have the variety of solutions you need to ensure you're getting the most out of going digital. Here are the types of software traditional banks can use to compete with a fintech company.
The payment gateway market has been rapidly growing since 2020. Valued at $17.2 billion in 2020, the market will reach as much as 42.9 billion by 2026. That's a CAGR of 16.43% between 2021 and 2026.
What does this mean for you and your customers? Transferring sensitive information from the customer to the acquiring bank can be done easily without compromising sensitive information. For a financial institution, this is vital because it’s up to you to protect your customers while making their funds more accessible.
One of the most popular developments in online banking is mobile banking software. Mobile banking apps give bankers quick and easy access to all financial banking functions now that most people own mobile phones. What’s more, mobile app development goes beyond the traditional benefits, benefiting businesses and users alike.
Financial institutions experience higher user engagement, easier A/B testing, save on costs, and gain a better understanding of banker behavior. Customers also prefer mobile apps over traditional banking systems because they offer 24/7 services, fast transfers, user-friendly design, and notification setups.
In fact, the popularity has risen so much that the global mobile payment market has reached a value of $1.97 trillion, with forecasts of continued growth in the future.
Blockchain is another software at the height of its popularity in fintech software development services, with a projected value of $36.04 billion or more by 2028.
The most significant benefits of blockchain are:
Digital banking solutions are among the most popular services in fintech software development companies now that 78% (and counting) of Americans say they prefer to do their banking digitally. These solutions include any traditional banking products that have been digitized, so it means banking from home, paperless solutions, 24/7 availability, online payments (facilitating more online shopping), and so much more.
Wealthtech is famous for its investment platforms and tax management in the finance industry. It covers digital solutions designed to help streamline wealth management, including investment tools like portfolio monitoring, managing investment planning, and investing backed by automation. It’s major benefits include modernizing infrastructures, reaching more people, building better portfolios, and scaling services.
These are the most popular types in the market.
Lending apps allow customers to borrow money from any U.S. bank over the internet. Its popularity has grown since it broadens the financial banking options of bankers who don't want to be limited to their area, and it makes the process hassle-free and easy. Some great examples of lending apps include MoneyLion, Brigit, Earnin, Credit Karma, and dozens more.
Accounting systems make managing invoices, supplier bills, business costs, expenditures, etc., signifcantly easier. This includes a secure and safe place to keep track of business records while organizing important financial information.
Regtech: Regulation and Compliance Technology
Regtech (regulatory technology) manages regulatory compliance — i.e., regulatory reporting, compliance, and monitoring — and is best known in the industry for making the process more efficient and cost-effective.
Insurtech: Insurance Software
Insurtech (insurance and technology) helps the insurance industry be more effective and efficient. These tools help with everything from underwriting and innovation to customer engagement and product pricing. The most significant benefits of this type of software are that it can be customized to individual customers and it has the power to process large amounts of data.
The companies mentioned above are integral to today's financial industry, driving how individuals and businesses manage their insurance, taxes, money, and more. We need fintech software companies because they bring all these traditional financial services to the online world, using advanced technology to speed up processes and provide new ways to manage money and invest.
Through fintech software development services, credit unions can leverage the same power. Fintech software in your credit union means you can move all of these software solutions — business analysis, online payments, risk management, wealth management, etc. — to your digital space, filling in the gap between you and your competitors.
In return, your credit union will be able to service those who want/need to manage their finances often but don't have the time or ability to make in-person visits to your brick-and-mortar credit union. Your fintech solutions will allow the 48% of Americans that manage their finances daily to do it with ease and comfort, no matter where they are. What's more, you don't have to be a fintech company to take advantage of their payment solutions and other incredible digital benefits.
You just need to meet with fintech software development companies to find the best one for your financial institution so you can leverage the same digital advantage that most Americans have come to rely on. Through solutions like BaaS (banking as a service), your credit union can make this happen through a third party.
This will give you a competitive advantage because you can service those who prefer the online space for all their banking and financial needs while also appealing to those who would like an in-person visit to your credit union for support.
How much fintech software development companies charge for their services varies from company to company and is heavily impacted by the services you're interested in leveraging in your credit union. As a result, an exact price cannot be shared.
However, there are some great ways you can go about comparing pricing to ensure you're getting the best deal possible from your fintech software:
Which fintech software development company you partner with matters. To maximize your potential with fintech software, you need the best features for you and your customers. This will require you first to consider what your credit union needs to compete with big fintech companies and acquire the right tools from your software development partner to achieve it.
We recommend considering these three areas in particular.
Customization abilities are crucial in the financial industry because Americans prefer solutions tailored to their needs and wants. When you have a software development company that helps your credit union appeal to every customer's unique needs, you differentiate your financial institute from others in the industry.
Mobile apps are no longer 'just nice to have.' They have become an integral part of the world, particularly in the financial world, because people are always on the go. Bankers need solutions that allow them to quickly and easily access their banking information anytime, and mobile apps make that possible.
Your fintech software should also be equipped with the best ways to enhance your website and make digital banking as seamless and helpful as possible for bankers. While mobile apps are great for customers on the go (as they often are), enhanced websites allow you to make sure you can reach bankers across multiple devices, such as laptops and tablets. This way, you're not limiting your digital solution to just mobile but rather adding to your digital banking solution.
With the future of fintech propelling banks forward, you can’t go wrong with implementing strategies relating to it. You will gain more customers and be here to stay as technology evolves in various industries.
To learn more about the power of going digital with FinTech software, reach out to Cotribute to schedule a demo.