Banking & Fintech: How Mobile Apps Changed the Game
Table of Contents

Banking & Fintech: How Mobile Apps Changed the Game

Introduction

The rivalry between high street banks and fintechs has been a major force in the financial industry for over a decade. High street banks, also known as traditional banks, are established financial institutions with a long history and a large network of physical branches. Fintechs, on the other hand, are newer companies that use technology to offer innovative financial products and services.

In recent years, fintechs have gained increasing popularity among consumers. This is due to a number of factors, including:

  • Lower fees: Fintechs often have lower fees than high street banks. This is because they have lower operating costs and because they are more willing to disrupt the traditional banking model.
  • More innovative products and services: Fintechs are constantly innovating and launching new products and services. For example, fintechs were the first to offer mobile payments, P2P payments, and robo-advising.
  • Focusing on customer experience: Fintechs are known for their focus on customer experience. They often offer more user-friendly apps and websites than high street banks.

The rivalry between high street banks and fintechs has benefited consumers. It has led to lower fees, more innovative products and services, and a better customer experience.

It is important to note that the rivalry between high street banks and fintechs is not always clear-cut. Many fintechs partner with high street banks to offer their products and services. Additionally, some high street banks are investing in their own digital capabilities and launching their own fintech products and services.

Overall, the rivalry between high street banks and fintechs is a positive development for consumers. It is forcing banks to become more innovative and to improve their customer service. It is also leading to new and innovative financial products and services.

The Result of the Competition of Fintechs With Banks

The competition between fintechs and banks has benefited clients in a number of ways.

  • Lower fees: Fintechs often have lower fees than high street banks. This is because they have lower operating costs and because they are more willing to disrupt the traditional banking model. For example, many fintechs offer mobile banking accounts with no monthly fees or minimum balance requirements.
  • More innovative products and services: Fintechs are constantly innovating and launching new products and services. For example, fintechs were the first to offer mobile payments, P2P payments, and robo-advising. These products and services have made it easier and more convenient for people to manage their finances.
  • Better customer experience: Fintechs are known for their focus on customer experience. They often offer more user-friendly apps and websites than high street banks. Additionally, fintechs are often more responsive to customer feedback and are more willing to make changes to their products and services based on customer input.

The competition between the two forces has also forced banks to become more innovative and to improve their customer service. Banks are realizing that they need to offer more competitive fees and more innovative products and services in order to compete with fintechs. Additionally, banks are investing more in their digital capabilities and are working to improve the customer experience.

Overall, the competition between fintechs and banks is a positive development for consumers. It is leading to lower fees, more innovative products and services, and a better customer experience.

Here are some specific examples of how the competition between fintechs and banks has benefited consumers:

  • Mobile banking fees: In the past, many banks charged high fees for mobile banking services. However, the rise of fintechs has forced banks to reduce or eliminate mobile banking fees.
  • International money transfers: In the past, international money transfers were expensive and time-consuming. However, fintechs have made it possible to send and receive money internationally quickly and cheaply.
  • Investing: In the past, investing was only accessible to people with a high net worth. However, fintechs have made it possible for anyone to invest, regardless of their net worth.

The competition between fintechs and banks is still in its early stages. However, it is already having a positive impact on consumers. As the competition continues to intensify, we can expect to see even more innovative products and services, and even lower fees.

Fintech Mobile Apps

Fintech mobile apps are software applications designed to provide financial services to users on their smartphones and tablets. Fintech mobile apps offer a wide range of services, including:

  • Mobile banking apps: Mobile banking apps allow users to access their bank accounts, transfer money, pay bills, and check their balance.
  • P2P payment apps: P2P payment apps allow users to send and receive money from friends and family.
  • Investment apps: Investment apps allow users to buy and sell stocks, ETFs, and other investment products.
  • Lending apps: Lending apps allow users to apply for and receive loans.
  • Credit reporting apps: Credit reporting apps allow users to check their credit scores and reports.
  • ** Budgeting apps:** Budgeting apps help users to track their spending and create budgets.

Fintech mobile apps offer a number of benefits over traditional banking services, including:

  • Convenience: Fintech mobile apps can be used from anywhere, at any time. This makes them ideal for people who are busy or who live in rural areas.
  • Accessibility: Fintech mobile apps are often more accessible than traditional banking services. This is because they do not require users to have a bank account or a credit history.
  • Affordability: Fintech mobile apps often have lower fees than traditional banking services. This is because they have lower operating costs.

Case studies

Revolut

Revolut is a fintech company that offers a mobile banking app with a variety of features, including:

  • No-fee foreign exchange: Revolut allows users to exchange currencies at the interbank exchange rate. This means that users can save money on foreign exchange fees when traveling or shopping online.
  • Cryptocurrency trading: Revolut allows users to buy and sell cryptocurrencies, such as Bitcoin and Ethereum.
  • Investment tools: Revolut offers a variety of investment tools, such as stocks, ETFs, and fractional shares.

Chime

Chime is a fintech company that offers a mobile banking app for all, with special features that are  with low credit scores or no credit history. Chime's mobile banking app includes the following features:

  • No-fee checking account: Chime's checking account has no monthly fees, no minimum balance requirements, and no overdraft fees.
  • Early direct deposit: Chime customers can receive their direct deposit paychecks up to two days early.
  • Credit Builder Secured Visa Credit Card: Chime offers a secured credit card that can help customers build their credit scores.

Revolut and Chime are just two examples of the many fintech companies that are offering innovative mobile banking apps. Fintech mobile apps are making banking more convenient, accessible, and affordable for millions of people around the world.

How Mobile Apps Made Banking More Accessible, Convenient, and Competitive

Mobile banking apps have revolutionized the way people manage their finances. They have made banking more accessible, convenient, and competitive.

Accessibility

Mobile banking apps have made banking more accessible to people who live in rural areas or who have difficulty getting to a bank branch. In the past, these people had to travel long distances to access banking services. Today, they can use their smartphones or tablets to access their bank accounts, transfer money, and pay bills from anywhere.

Mobile banking apps have also made banking more accessible to people with disabilities. For example, many mobile banking apps offer features such as voice commands and screen magnification, which make them easier to use for people who are visually impaired.

Convenience

Mobile banking apps have made banking more convenient for everyone. People can now check their account balances, transfer money, and pay bills from anywhere, at any time. This is especially convenient for people who are busy or who travel frequently.

Mobile banking apps also offer a number of features that make it easier to manage finances. For example, many mobile banking apps have budgeting tools and transaction tracking features. These features can help people to stay on track with their spending and to save money.

Competition

Mobile banking apps have led to a more competitive banking market. This is because fintech companies are offering innovative mobile banking apps with competitive fees and interest rates. This has forced traditional banks to lower their fees and offer better interest rates to consumers.

Overall, mobile banking apps have had a positive impact on the banking industry. They have made banking more accessible, convenient, and competitive.

Here are some specific examples of how mobile banking apps have made banking more accessible, convenient, and competitive:

  • Accessibility: A person who lives in a rural area can now use their mobile banking app to deposit a check, transfer money to a friend, and pay their bills, without having to travel to a bank branch.
  • Convenience: A person who is busy can use their mobile banking app to check their account balance and pay bills while they are on the go.
  • Competition: A fintech company can offer a mobile banking app with no monthly fees and high interest rates on savings accounts, which forces traditional banks to offer more competitive products and services.

Overall, mobile banking apps have made banking a more positive experience for consumers.

Case Studies of Companies Building Their Services With the Help of Fintech Companies

Case study 1: BizAway

BizAway is a corporate travel booking platform that helps businesses to save money on travel expenses. BizAway uses Revolut's Business API to offer its customers a number of benefits, including:

  • Virtual cards: BizAway customers can create virtual cards for their employees to use on business trips. This helps to reduce fraud and makes it easier for businesses to track travel expenses.
  • Expense management tools: BizAway offers a number of expense management tools, such as real-time expense reporting and budget alerts. These tools help businesses to manage their travel expenses more effectively.
  • Foreign exchange: BizAway customers can exchange currencies at the interbank exchange rate through Revolut. This helps businesses to save money on foreign exchange fees.

Case study 2: Tropicfeel

Tropicfeel is a travel and lifestyle brand that sells shoes, clothes, and accessories for travelers. Tropicfeel uses Revolut's Business API to offer its customers a number of benefits, including:

  • International payments: Tropicfeel customers can use their Revolut cards to make payments in over 150 currencies. This makes it easy for Tropicfeel customers to buy Tropicfeel products and services from anywhere in the world.
  • Foreign exchange: Tropicfeel customers can exchange currencies at the interbank exchange rate through Revolut. This helps Tropicfeel customers to save money on foreign exchange fees.
  • Multi-currency accounts: Tropicfeel holds its multi-currency accounts with Revolut. This allows Tropicfeel to receive payments from customers in different currencies and to make payments to suppliers and employees in different currencies.

These are just two examples of companies that are building their services with the help of fintech companies and their services. Fintech companies are offering a wide range of innovative products and services that can help businesses to improve their operations, reduce costs, and reach new customers.

How ITMAGINATION can help fintech companies

We are a software development company that offer a wide range of services, including:

  • Custom software development: ITmagination can help fintech companies to develop custom software solutions that meet their specific needs.
  • Integration services: ITmagination can help fintech companies to integrate their software with other systems, such as payment processing systems and core banking systems.
  • Maintenance and support services: ITmagination can help fintech companies to maintain and support their software after it has been developed.

If you are a fintech company that is looking for a software development partner, ITmagination can help. ITmagination has a team of experienced software engineers who can help you to develop innovative and reliable fintech solutions.

Furthermore, we already have successful partnerships with organizations from the fintech world. Here are only two examples of our successful projects.

Luma Technologies

Luma Financial Technology sought a reliable software development partner to create a responsive and scalable platform for their Minimum Viable Product (MVP). We were tasked with rewriting Luma's application and supporting their internal development team.  

The team, consisting of nine people, includes Software Architects, Full-stack Developers, Java Developers, Angular Developers, React Developers, and a Project Manager. The project is managed jointly between Luma and our organization, ensuring alignment and transparency.  

The team's quick integration with our clients internal teams resulted in faster feature development and a more stable platform.

Moneytrans

Our team improved Moneytrans's onboarding procedure, dashboard, and user flow by redesigning the UI and UX of the platform. The mobile app was also revamped to be more in line with the online interface. The project's goals were to hasten product development, lessen the number of bugs, and enhance users' overall satisfaction.

Conclusion

Mobile banking apps have revolutionized the banking industry. They have made banking more accessible, convenient, and competitive. They have also made banking more accessible to people who live in rural areas or who have difficulty getting to a bank branch. They have also made banking more accessible to people with disabilities.

Mobile banking apps have made banking more convenient for everyone. People can now check their account balances, transfer money, and pay bills from anywhere, at any time. They also offer a number of features that make it easier to manage finances, such as budgeting tools and transaction tracking features.

Mobile banking apps have also led to a more competitive banking market. This is because fintech companies are offering innovative mobile banking apps with competitive fees and interest rates. This has forced traditional banks to lower their fees and offer better interest rates to consumers.

The future of banking

The future of banking is mobile. As virtually all people adopted smartphones, and many tablets, mobile banking will become the primary way that people manage their finances.

Fintech companies will continue to play a leading role in the future of banking. Fintech companies are constantly innovating and launching new products and services that are changing the way people bank.

Traditional banks will need to adapt to the changing landscape in order to remain competitive. They will need to invest in their digital capabilities and offer innovative products and services in order to meet the needs of their customers. If you want to explore how we can help you, get in touch with us today.

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