Mobile Applications and Fintech: Revolutionizing the Financial Sector

As we mentioned in a previous entry of our blog, the electronic banking applications of traditional banking entities have undergone an unprecedented evolution in recent times.

This evolution has been due to a conjunction of numerous factors such as, among others, technological evolution, changes in the habits of its users (digital life), structural changes, or the adoption of European regulations.

But if there is a key factor that has driven, or rather forced, this evolution, it is undoubtedly the emergence of Fintech and the revolution they have brought about, both in the financial sector and in the consumption of financial services through mobile apps.

It is true that Fintech companies have an advantage over traditional banking in their adaptation to the digital world:

• They are usually recently created companies with agile and dynamic structures.
• With little (or no) physical presence, which means low structural costs.
• They lack legacy systems, which allows them to implement new technologies and adapt to market trends without the constraints of existing infrastructure.

All of this provides them with the ability to take a “Digital First” approach. This approach involves designing products, services, and processes with a digital mindset from the start, rather than adapting traditional solutions to a digital environment, which is usually more costly.

The main features of this "Digital First" approach are as follows:

• User-centered design, taking into account their needs and preferences, thus achieving a smooth and satisfying digital experience.
• Continuous Innovation, great ability to adopt new technologies and trends to continuously improve products and services.
• Agility and flexibility through the use of agile development methodologies that allow them to quickly adapt to market changes and the evolving needs of customers.
• Omnichannel approach, seamless integration between different channels (mobile, web, and physical branches) to provide a consistent and continuous experience.

This approach grants Fintech a series of IT benefits, such as, for example, improved customer experience, operational efficiency, competitiveness, innovation, and scalability.

And what does this ultimately translate to? Well, it translates to the greatest competitive advantage of Fintech and Neobanks, which is their ability to launch new financial services and products to the market drastically reducing their "Time to Market".

A clear example can be the field of investments, where they facilitate the trading of stocks, cryptocurrencies, and other financial assets with low or no commissions, and allow access to digital assets not available in traditional banks.