The long-held idea that the future is digital has become obsolete; the future is now, and digital innovation is very much the present. The digitalization of banking is in full-throttle, as the future of the industry develops parallel with the future of Fintech, and every new fintech app development brings fresh ideas and an increased need for innovation from competitors. Competition is necessary, particularly when talking about financial software development.
What exactly do we mean by banking software? Like most terms in the industry, it is an umbrella expression, covering software utilized by the banking industry to optimize its offers and to manage the various products provided. In essence, banking software covers all of those fintech trends that bridge gaps in the industry, filling in the spaces between the digitalization of banking and the future of fintech. It is banking software development that streamlines an industry defined by efficiency and ease of access.
Whether that manifests in new forms of wealth management, impactful use of data monitoring, or frequent innovations in payment systems, financial software development is at the heart of it all. With both eyes fixed firmly on bringing the future into today, it is no surprise that many HTEC partners are in the engine room of the digitalization of banking. These are the fintech trends and banking software that are changing the future of fintech in real-time.
Zest’s AI-driven lending is leaving the old-fashioned behind
The financial industry is driven by the process of lending. Without access to capital and credit, fledgling companies struggle to make developments that lead directly to economic growth and success for the wider industry, something that rings true whether you are selling cars, furniture, holidays or simply the dream of a better life. For the longest time, the process of lending money was a laborious one, punctuated by seemingly endless forms to fill out and an interminably long wait that saw time wasted and money frittered away.
Not anymore. Some lenders remain stubbornly stuck in the past, but companies like California-based Zest are utilizing artificial information (AI) to make streamlined lending on both ends of the ledger. The company offers support and assistance from A to Z, from software development to operation, helping those at the top of the table to make better decisions and maximize their potential in the process. Anything that can increase approvals by 15% while decreasing losses by 30% is worth attention.
Zest offers efficient risk assessments and a much clearer picture of those looking to borrow money, putting AI to the task and dragging lending into the modern world. Those in the know have long crowed that investing in machine-learning is an absolute must for the financial industry and Zest is the unchallenged gold standard. As the digitalization of banking continues at speed, Zest’s commitment and ability to make lenders make better decisions will surely see the industry grow as a result.
Financial software development is going to make lending more inclusive and transparent than ever before. As an industry leader in this particular fintech trend, expect Zest to continue making waves as more lenders look for increased accuracy and efficiency, results that can only be achieved through the systematic utilization of the power of AI.
It is often said that data is the new oil, and its use in financial software development is no exception. By efficiently and effectively managing data the huge banks of data available, financial institutions can and will streamline their services, leading to a tighter relationship between bank and customer and better performances all around.
Changing the way we pay with Ingenico
You simply can’t talk about developments in payment systems without mentioning Ingenico. The global leader in seamless payment, the Ingenico Group has been at the head of the financial software development table for over 40 years. The France-based company has grown from the brainchild of two intrepid men to a reliable name in the payment industry, a confidence-heavy moniker found in more than 170 countries around the world, a number that seems to grow with every passing year.
When Jean-Jacques Poutrel and Michel Malhoutre set their stall out in 1980, even the most optimistic of Ingenico backers would have struggled to see just how ubiquitous that name would become in the world of payment systems. The company produced its first EMV payment terminal in 1984 (when much of the world was still fiddling through notes and coins) and it has been on the cutting edge of payment technology ever since, modernizing the way we pay with every innovation.
The range of financial technology offered by Ingenico is as vast as it is vital, fuelling business in everything from massive corporations to independent eCommerce companies. The group made its name in payment terminals and card readers but has since branched out into omnichannel and online payment solutions, designing flawless solutions that help companies big and small grow their businesses. Ingenico’s expertise and credibility also help reduce the risk of fraud while increasing sales and improving user experience, ensuring that the company stays ahead of fintech trends as they develop.
The Ingenico Group isn’t the only payment software company making serious waves in the digitalization of banking. Netcetera has been a market leader in the world of 3-D secure payments for well over two decades at this point with many to come, but there is more to the company’s metaphorical bow than simple innovation and efficiency in payment software. Netcetera’s wings have well and truly spread alongside fintech trends, and the company now offers services covering everything from digital user authentication to mobile banking and fraud detection systems, not to mention the continued cutting edge position in payment hubs and customized banking software. It is no great surprise that the majority of Swiss banking institutions now offer Netcetera’s mobile banking systems to their customers.
With its headquarters in Zurich and with extra locations in Europe, Asia, and the Middle East, Netcetera is a wide-ranging company with one explicitly stated goal; to accompany customers on the best way to their digital goals. 25+ years and a cabinet full of awards suggest they know what they are doing. Netcetera’s commitment to unique solutions and tailor-made software will see them continue to thrive on the cutting edge of financial software development, all the way from strategizing meetings to fully operational fintech. Read more about Netcetera, here.
You don’t need to go to the bank to go to the bank
The digitalization of banking is exactly that; banking going digital. In some cases, it does mean traditional banks increasingly utilizing banking software and fintech trends, but more appropriately it means a new generation of banks that take the brick and mortar out of the equation, offering their services entirely online. The rise of neobanks goes back way further than the coining of the term in 2017, with a wide range of digital banks attracting new customers in every corner of the globe, from Argentina to Australia, from the United States to Ukraine.
Berlin-based N26 (Number26, a name taken from the iconic Rubik’s Cube) claims to offer ‘banking, the way it should be today’ and it is difficult to disagree. Initially, an interface startup that acted as a go-between, N26 received its banking license in 2016 and has developed into a real player in the banking world by fully embracing everything the digital world has to offer. Available throughout the Single Euro Payments Area (SEPA) as well as the United States, N26 is all about fast, easy and secure banking that also happens to be free. N26 users can make quick and easy mobile transfers to each other, while personal control over banking security is practically unparalleled, with N26 customers able to lock and unlock their card through the app without having to make sit through hours of hold-muzak on customer service. That alone is enough to drive some customers towards the world of exclusively digital banking.
There are countless neobanks making waves across the world. London-based Revolut (13 million accounts and counting) is arguably the biggest but names like Monza and Starling aren’t far behind, while South Korea’s Kakao Bank has attracted more than $2.5bn in investment in its short history.
It isn’t all rosy for the digitalization of banking and the rise of the neobanks. The global pandemic of 2020 was seen by many as an opportunity for names like Revolut and N26 to stand up and prove that the future of banking was digital, but the uncertainty caused by the pandemic had a knock-on effect for the neobanks of today, with dwindling profits and the first real lull in the history of the concept. Nobody seems to argue that digital banking is central to the future of fintech, but these obstacles will need to be overcome first. Old-fashioned customer trust and relationship-building will need to improve but that is a case of ‘when’ and not ‘if’; neobanks remain the cornerstone of the digitalization of banking.
If the future is now, what becomes of the future?
Put bluntly, the digitalization of banking isn’t going to stop until something is invented that takes humanity beyond the digital, into spheres that are currently beyond the boundaries of innovation. Banking survives and thrives in a world of change and growth, and the continued success of financial software development is utterly essential to how money is used and viewed. The 21st century has seen countless waves in its first two decades, a harbinger of the tumult to come over the next eight. Without the innovation of fintech trends and banking software that future could be more perilous than desired, but the spread of companies like Ingenico Group and Netcetera, along with the modernization offered by Zest and the neobanks suggests that the future is in exciting hands.