How to Choose a FinTech Software Development Company
                     Financial Software Development 
Company
Financial Software Development 
Trends for 2021
 The COVID-19 pandemic presented the FinTech 
industry with a unique opportunity by fast-
tracking from traditional banking to widespread 
digitalization of financial services. FinTech 
innovation is experiencing acceleration to enable 
financial services companies and their 
customers to mitigate risks and seamlessly 
manage their finances.
 Let’s look at some of the hottest financial 
software development trends for 2021, 
including biometric security, phygital banking, 
and open banking.
Financial Software Development Services
 According to Statista, the global growth in FinTech app usage during the COVID-19 
pandemic touched 55% in Japan, 35% in South Korea, 20% in the United States and 
China, followed by Germany and Italy at 15%. Even before the pandemic’s outbreak, 
global investments in financial technologies had been on a constant rise. 
1.Open Banking:-
• Open banking is a revolutionary technology that 
merges together FinTech and conventional banks 
by enabling data sharing across networks 
through APIs. Open banking helps banks realize 
their data in a secure and standardized form on 
a shared basis between authorized services 
providers over the internet. .
• Prominent industry players predict that open 
banking technology will play a critical role in 
reshaping the banking industry as we know it.  
Reportedly, in 2018, open banking generated 
$7.29 billion in revenue, which is expected to 
reach $43.15 billion by 2026. 
2.Biometric Security:-
 With a sharp rise in the COVID-19 pandemic, 
organizations operating in the FinTech space 
face significant data security issues due to 
increased cybercrime instances. Biometric 
security takes data security to the next level, 
instilling confidence in the users that their 
data is protected. 
 However, the biometrics market is undergoing 
significant changes driven by the present 
circumstances. Since biometric systems 
require physical touch, they have become 
redundant during the COVID-19 pandemic 
times. The day is not far when contactless 
solutions will take over, replacing touch-based 
fingerprint readers for identity verification. 
 Since nowadays, it is highly recommended to 
go cashless due to COVID-19, the biometric 
payment cards market continues to witness 
substantial growth. Public health concerns 
have pressed the need for the rapid adoption 
of contactless biometric identification 
solutions.
3.Digital-Only Banks
 Amongst the most prominent and recent 
technology trends in the financial services 
industry is the rise of FinTech or digital-only 
banks. Digital-only banks provide their 
services online without the need for a physical 
branch, doing away with excruciating 
paperwork or the need to stand in long lines. 
 The customers can seamlessly manage their 
finances on their smartphone or desktop. 
Virtually every modern bank now has a mobile 
app, all thanks to FinTech revolutions in the 
financial services industry. Traditional banks 
have no option but to innovate to match the 
competition FinTech continue to give.
 Revolut, Ally, Monese, and Monzo are 
prominent digital banking platforms creating 
ripples in the financial services ecosystem. 
Digital-only banks provide flexibility by 
offering innovative services at affordable costs 
in comparison to legacy players. 
                    4.RegTech in Financial 
Services  
 RegTech or regulatory technology is predicted 
to change the regulatory landscape by offering 
technological innovation in a highly regulated 
financial services industry. RegTech helps 
simplify the compliance processes by 
leveraging advanced software technology 
following the prevailing laws and regulations.
 Basic types of RegTech solutions include risk 
management, compliance management, 
regulatory reporting, identity management, and 
transaction monitoring. Financial institutions 
can drastically cut down administrative 
expenses and protect their customers by 
leveraging RegTech. 
 RegTech can help handle large volumes of 
regulatory data with automation driven by AI 
and machine learning technologies. RegTech 
software solutions discover and self-learn 
patterns found in vast pools of historical data, 
enabling easy detection of fraud.
                5.Conversational AI in Banking 
 Conversational AI is a disruptive force that reshapes how banks engage with their 
customers in a frictionless way. Modern-day customers access banking services through 
multiple channels and expect the same from their banking partner. 
 More and more banks deploy chatbots to transform the customer experience, increase 
customer acquisition and retention, and lower costs. AI-based solutions have become 
affordable than ever and prove fundamental in delivering solutions for self-service and 
personalization. Conversational interfaces and natural language processing (NLP) 
technology allows banks to collaborate with customers through natural chat. 
                         6.Autonomous Banking 
 Fintech apps are the building blocks for 
autonomous finance, reshaping the way the 
users interact with money. As a concept, 
autonomous finance is stitched around the idea 
of self-driving funds. 
 The technology helps improve decision-making 
in terms of investment opportunities, loan 
approval at a nominal interest rate, or seeking 
help in overdrawn accounts. Having started 
with robo-advisors for assisting in financial 
planning and mutual fund management, 
autonomous banking has eventually evolved 
into automatic-saving applications and credit 
card debt management solutions. 
 Financial software development has accelerated in the new reality in response to the 
evolving demands of the customers. New-age FinTech solutions help provide enhanced 
access to financial information, improve transparency, achieve operational efficiency, 
and better customer life cycle support. Choose a reliable financial software 
development company or banking software development company to build 
futuristic software solutions to help you deliver financial services to customers in a 
frictionless manner. 
Thank you