Combining the long-standing power of the financial industry with the rapidly growing technology sector, fintech is set to take the world by storm. In fact, it has already changed the way many people handle their finances and complete transactions. That disruptive energy has led to some exciting technological developments, including mobile payments, crowdfunding, and cryptocurrency. But what is the next big thing in finance that’s destined to crossover to the fintech market? Now that you’ve gotten the fintech industry overview, it’s time learn more about the following fintech categories that are expected to take off next.
Insurtech is a newer sector of fintech that focuses on all types of insurance. Whether it’s customized insurance policies or finding the lowest prices, an insurtech products designed to offer the best possible insurance services for consumers. Some of the top insurtech companies include Relay, Halos, and Spot. However, the market has still been untapped in many ways due to regulations that app developers are hesitant to deal with. If you’re able to come up with an innovative approach that takes these insurance regulations into account, it’s possible to make a big splash in the insurtech market.
When was the last time you visited a physical location for a bank? Digital banking offers the opportunity to get a bank account without having to visit a bank branch location. Don’t be fooled by the availability of today’s apps associated with major banking institutions. There are still2 billion adults worldwide who don’t have a bank account, creating an opportunity to tap into a huge market in need of this important financial service. If you’re hoping to create a game-changing fintech product, digital banking could be the perfect category to focus on.
Money lending is another trending category in the fintech industry. With fewer people willing to visit brick-and-mortar locations and go through the traditional lending process, fintech lenders have found innovative ways to provide this service through convenient tech devices and software. The most successful companies in this category, including SALT, Avant, Prosper, and Fundbox, focus on a particular niche, such as small businesses or cryptocurrency holders.Entrepreneurs who are interested in pursuing this area of fintech should make sure that their product offers something that these successful companies are lacking.
One of the most exciting areas that’s just beginning to develop a fintech presence is the auto financing sector. The process of getting a car loan is still very traditional, and it’s something that consumers dread having to deal with. Furthermore, many drivers don’t want to get locked into a long-term loan just to buy a car. It’s also a lucrative industry; in just the first quarter of 2018, auto loans totaled $1.1 trillion in the U.S. If a fintech software development company can come up with a tech-forward solution to car loans, there is a huge potential for profit.
Independent Contract Workers
Independent contract workers, often known as freelancers, make up a growing portion of the workforce. In the U.S., 1 in 5 jobs is held by a contract worker, and that number is expected to increase exponentially in the coming years. Financial matters, including budgeting and paying taxes, are generally more complicated for freelancers. Many also don’t have the benefits that full-time employees generally get through their jobs. Fintech apps that address these concerns have the potential to reach a massive audience that will only continue to grow over the next decade.
The fintech industry continues to be highly successful, but it’s also very competitive. In order to make sure your startup stands outs, hire a fintech app development company to help you target one of these up-and-coming niches.