FinTech is challenging traditional financial services structures and Covid-19 has only accelerated this momentum. With innovations, technology is evolving the type of products that are developed in the finance industry. Product development in FinTech enables the industry to meet its consumer needs and expectations, creating space for the sector’s own growth.
How FinTech is transforming consumer expectations
As a result of the coronavirus pandemic, the world is facing an unprecedented shift in consumer behavior. The global economy has very quickly pivoted from an in-person economy with little digital commerce to a primarily digital economy where in-person interaction is limited. This transition has opened the door to new forms of innovation and new opportunities for entrepreneurs in the financial services sector.
In order to be a market leader within financial services, companies must deliver on the most important customer expectations. These include:
Seamless digital account creation processes
Secure protective real-time transactions across channels
A cohesive omnichannel experience
An attractive and competitive product design
Product development in the financial services industry is a necessary tool to move beyond the constraints of the past and to deliver a coherent customer experience that spans all financial products. For financial institutions to remain competitive they must have an ongoing commitment to innovation and improvement of the digital experience in a way that addresses consumers’ rising expectations around digital experiences.
Staying innovative in a world of constant change
The advancement of technologies opens the door to an ever-increasing world of possibilities. Our universal concept of what is possible is constantly expanding with technological innovations and new features and functionalities that come from innovative products. These advancements will take place within a competitive landscape and how companies respond to the possibilities of technology will have a major impact on their growth and their market position.
The FinTech sector’s growth and expansion will be directly linked to its relationship to innovations in technology. Banks and financial institutions must decide if they will adopt innovations and new technologies and apply them to enhance the quality of their client’s experience. If they do not embrace new technologies quickly enough, other industries may take market leadership and with it, clients of the FinTech industry.
One of the largest hurdles to the FinTech industry is the ongoing regulatory restrictions. Regulatory restrictions have historically been synonymous with the financial industry. New processes must be approved by regulatory bodies before they can be implemented, which can slow the progress of implementing new technologies and rapid response abilities. Another reason that financial institutions have been reluctant to embrace new technologies is because of the high costs involved in developing products.
In order to be industry leaders and make use of emerging technologies, financial institutions have to decide when and how they will overcome barriers that would otherwise cause them to defer technological advancements to a competitor or go outside the industry. Choosing to develop and work with innovative technologies despite the expenses involved will offer a greater chance of successful client retention for the FinTech industry. If it chooses to allow outside industries to provide the technology it depends on, it also risks losing customers as pieces of the customer experience move out of their control.
Done right, product development can be one of the most sustainable sources of competitive advantage. Encora can help you accelerate the time to market of your products and services by seamlessly integrating our experienced teams into yours. If you want to learn more about products in the financial services industry, download our free PDF ‘Encora’s Key Factors to FinTech Success’ here.
Key Takeaways
Although the financial services industry is traditionally slow-moving, financial technologies are continuously evolving. Product development can help companies stay on the leading edge, as long as goals are clearly defined and time is dedicated to achieving them.
Financial institutions will need to embrace and develop their own technological advancements in order to maintain and grow their clients.
Experience is key. FinTech product development requires a team of experienced developers who can build systems that are optimized for scalability, security, and stability, plus professionals with industry experience to help you prepare for possible challenges, disruptions and regulations.
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The pressure to innovate won’t stop. Do you want to accelerate your product development and tackle disruption? Encora provides expert guidance in the creation of a product lifecycle management strategy, ensuring that your products establish an unshakeable foundation for long-term customer relationships.
About Encora
At Encora, we create competitive advantages for client partners through accelerated technology innovation. We would be delighted to take you further along your journey.
Why Encora
We’re global: With 20+ offices and innovation labs in 12 countries, Encora is globally dispersed. Since we operate in different time zones, there is always someone ready to assist you.
We’re full-service: Technology innovation encompasses a huge array of topics, skills, and strategies. We offer a full-service concept, each component custom tailored as per your needs, to present a complete solution.
We’re dedicated: Our ever-growing team of over 4,600 skilled and dedicated programmers, developers, engineers and strategic thinkers is the reason Encora has become an award-winning tech company with an enviable reputation.
We’re experienced: We partner primarily with fast-growing tech companies who are driving innovation and growth within their industries. Our unique delivery model, agile methodology, and consistent unmatched quality have contributed to our steady growth.
