Financial technology (FinTech) is a medium for delivering new Fintech products and service models in making payments, transmitting funds, budgeting, investment, borrowing, trade, and operational aspects of finance management. The technology has applications for both consumers and financial institutions, so it should come as no surprise that FinTech software covers a broad spectrum. Its major categories include the following:
Banking
Online banking software eliminates the need for consumers to visit a physical branch in order to manage their money, operate their accounts, view transaction histories, pay bills, and other tasks.
Notifications and reporting are key features of FinTech Software/banking software. Notification systems keep customers up to date on their account activities such as transfers, card payments, and ATM withdrawals. Reporting systems break down a customer’s transactions by category and enable consumers to track their spending and earnings.
Other features of banking software include remittances (which allow for cross-currency domestic and international money transfers), anti-fraud or anti-money laundering checks, and chat or messaging systems for secure document management and private interactions with bank officials.
Real-time payments, fund transfers between accounts, account monitoring, bill payment, and the geo-location of ATMs are key features of mobile banking software.
FinTech Software Category: Insurance
Insurance technology or InsurTech provides quicker and cheaper options to consumers for home insurance, car insurance, and data security. It’s usually delivered via an online platform, which incorporates software that facilitates that delivery process.
Insurance CRM (Customer Relationship Management) software provides insurance agents with a database of their clients and allows them to generate documents, manage assignments, and track progress. It typically includes task management, document management, and commission tracking tools, with a workflow engine for automation.
Insurance agency software helps to streamline an agency’s workflow. It provides storage for a wide range of document formats, payment and commission management tools, reporting, and a chat system for communication between agents.
Investment
Investment management software provides a single venue for all the information required for users to manage and optimize their investment performance.
For investment managers, the software typically provides tools for order placement, execution, allocation, and trade processing. A portfolio accounting feature may calculate costs, performance, and other financial metrics. Reporting tools monitor account activity and the performance of investment strategies. Supplementary feeds of market data may also be available for pricing, corporate actions, and dividend accruals.
FinTech Software Category: Lending
Loan origination software is designed to handle loan requests via multiple channels and for various market segments, facilitating interactions between borrowers, partners, and lenders.
There’s usually a management system for user account setup, system authentication, and user authorization. User input is often in the form of questions and answers, so the software includes form management tools. A document management system enables loan processors to attach and store electronic documents pertaining to each client, and a collateral module registers collateral such as assets used in securing debt, legal forms, and valuation.
Commercial loan software (a form of FinTech Software) comes with risk management features that enable lenders to deeply analyze user account information and various ratings. Collections and provisioning tools allow for constant follow-ups and history logs, while application management tools can capture data from customers and specific products.
Payments
Payment processing software provides customers with personal accounts for logging into the system. Instant payment features store all customer data, so users don’t have to keep re-entering their details. Multi-currency and international payment features are generally available in multiple languages.
Dispute resolution features handle any issues that may arise, while fraud protection tools may include filters for billing mismatch, high-risk countries, and other criteria. Analytics tools may be on board to assist payment processing companies in tracking errors and issues.
Personal Finance
Personal finance software generally allows users to manage their income and expenses through web and mobile services. The applications may include online banking tools to enable customers to load their transactions and transmit them to other accounts automatically. Currency support features use real-time exchange data and enable users to make transfers in different currencies.
Reporting tools and charts provide detailed information on how users spend their money, and notification systems let users set reminders and payment schedules for recurring transactions. Balance forecasting allows users to predict their future account balances.
FinTech Software Category: RegTech
For enterprises and financial institutions, regulation and compliance management technology (RegTech) uses technologies like big data analytics and machine learning to observe rules and manage the way that businesses comply with the regulations and standards that apply to their industry.
Financial risk management software provides a real-time database of risk exposure and account positions. Data security features identify issues and help to optimize compliance processes, while analytics tools provide metrics and charts for tracking and analyzing compliance progress. Compliance task management features allow for the automation of scheduled compliance tasks.
Financial fraud detection software includes risk assessment features which flag suspicious transactions and send alerts to administrators. Real-time monitoring is standard, and ID analytics are usually available for storing data concerning assessments of user risk.
FinTech Tools for Business
For businesses, FinTech tools can help organizations manage their books, get paid faster, and enhance interactions with customers and their own employees. Solutions cover a wide range of areas, such as Customer Relationship Management (CRM), payroll, accounting, financial modeling, and analysis. Here are some examples.
For payroll management, Zenefits automates payroll and benefits processes, in addition to managing compliance. It’s free cloud-based software that makes money from commissions on health insurance.
Expensify helps organizations keep track of employee expenses and allows workers to submit their expenses for reimbursement. There’s a categorization system for expenses, with a facility to upload receipts. Employees can use the Expensify app to snap pictures of receipts and keep track of their cases. Employers can update when expenses have been cleared for reimbursement and when they’ll be deposited in a worker’s account.
Emburse is a tool that can create virtual credit cards for teams, enabling organizations to assign each business unit a card that everyone can use. Emburse provides a credit card number, expiration date, and security code so that the card can be used to make online purchases. In addition, the tool may be used to distribute and manage physical cards to business unit members.
Due is an invoice and payments manager which accepts a variety of payment types and provides a digital wallet to help you manage your payment forms. You can configure the tool to deposit payments into your bank account automatically, and you can also set up recurring invoices.
Xero is an accounting platform that provides bookkeeping services for businesses. It offers a Software as a Service (SaaS) suite of accounting applications and is compatible with many mainstream applications, including QuickBooks.
Kabbage is a funding platform that lets businesses establish a working capital credit line of up to $100,000. You can use this money to buy equipment, expand your payroll, or perform other business tasks.
A veteran on the FinTech tools scene, Square is a payment facilitator that uses terminals compatible with tablets and smartphones, enabling businesses to accept credit card payments from any location. Square is now compatible with NFC (Near-Field Communications, a form of radio transmission) payments, so consumers who store payment information on their phones can make purchases as well. In addition, Square accepts online payments and can provide customer feedback after purchases are made.
Some FinTech Software and Apps to Look Out For
At the consumer and small business level, there’s a wide range of Financial Technology (FinTech) apps for paying bills, sending money, buying online, and managing expenditure. Many ship as mobile applications, reflecting the growing preference for one-touch access to financial services that FinTech products make possible.
MoneyLion is an American company that gives users safe access to loans by acting as a mediator between lending, saving, and management processes. It currently has a valuation of close to $1 billion and is due to become another FinTech “unicorn.”
Brazilian app Nubank is useful for keeping track of invoices and payments, and for classifying your spending by categories. The system gives real-time updates, and the company runs a loyalty scheme for users that issues Nubank Reward points, which may be used to cover some categories of expenses.
Coinbase is a cryptocurrency app and platform that provides an intuitive user interface and simple menu system, which enables users to keep track of their transactions in virtually every type of cryptocurrency, including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
For international transactions, Revolut offers basic transactions and balance checks, and more sophisticated features such as instant notifications, monthly reports, and the possibility to set limits to your budget. The app has a “no financial borders” policy, enabling users to send and receive money from most countries in over 150 currencies. There are no extra fees for international transactions, and the platform also supports transactions using Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and XRP.
The American app Robinhood provides an easy avenue for users to trade on the stock market. It charges no commission fees, and there are no hidden expenses for investing in the stocks of the many US companies available on the platform.
Acorns cater for minimum risk investments, with a promise to help users boost the amount of their savings by turning those savings into investments. Gains can be considerable, depending on the options you choose and the portfolio you provide.
Combining the functions of an investment app and a social media platform, Matador enables you to stay connected with friends while analyzing both your own and their investments. The app provides a comprehensive database of information about companies, their stock price history, and everything you need to know before trading.
Lemonade is an AI-powered insurance app with a registration process that takes less than a minute to complete the required fields, send the information, and receive active insurance for your home.
With a target demographic of Millennials, Honeydue is a FinTech app for new families and couples who struggle to synchronize their finances. Users can keep their individual accounts in the same place and analyze the balances. Configuration options include setting reminders for recurring payments and pinning comments to special expenses that you need to remember.
Penfold is an app developed for the UK market, which extends pension plans to freelancers. The app currently has a user base of almost 4 million freelancers and adapts its retirement fund settings to their flexible incomes.
Summary:
FinTech Software
At the consumer and small business level, there’s a wide range of Financial Technology (FinTech) apps for paying bills, sending money, buying online, and managing expenditure. Many ship as mobile applications, reflecting the growing preference for one-touch access to financial services that FinTech products make possible. MoneyLion is an American company that gives users safe access to loans by acting as a mediator between lending, saving, and management processes. It currently has a valuation of close to $1 billion and is due to become another FinTech “unicorn. Brazilian app Nubank is useful for keeping track of invoices and payments, and for classifying your spending by categories. The system gives real-time updates, and the company runs a loyalty scheme for users that issues Nubank Reward points, which may be used to cover some categories of expenses. Coinbase is a cryptocurrency app and platform that provides an intuitive user interface and simple menu system, which enables users to keep track of their transactions in virtually every type of cryptocurrency, including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. For international transactions, Revolut offers basic transactions and balance checks, and more sophisticated features such as instant notifications, monthly reports, and the possibility to set limits to your budget. The app has a “no financial borders” policy, enabling users to send and receive money from most countries in over 150 currencies. There are no extra fees for international transactions, and the platform also supports transactions using Bitcoin, Litecoin, Ethereum, Bitcoin Cash, and XRP. The American app Robinhood provides an easy avenue for users to trade on the stock market. It charges no commission fees, and there are no hidden expenses for investing in the stocks of the many US companies available on the platform. fintech software and apps Acorns cater for minimum risk investments, with a promise to help users boost the amount of their savings by turning those savings into investments. Gains can be considerable, depending on the options you choose and the portfolio you provide. Combining the functions of an investment app and a social media platform, Matador enables you to stay connected with friends while analyzing both your own and their investments. The app provides a comprehensive database of information about companies, their stock price history, and everything you need to know before trading. Lemonade is an AI-powered insurance app with a registration process that takes less than a minute to complete the required fields, send the information, and receive active insurance for your home. With a target demographic of Millennials, Honeydue is a FinTech app for new families and couples who struggle to synchronize their finances. Users can keep their individual accounts in the same place and analyze the balances. Configuration options include setting reminders for recurring payments and pinning comments to special expenses that you need to remember. Penfold is an app developed for the UK market, which extends pension plans to freelancers. The app currently has a user base of almost 4 million freelancers and adapts its retirement fund settings to their flexible incomes.
