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November 12, 2020, 10:58 am 1

3 great Ideas to start a fintech business in 2020 and beyond!

The fintech revolution is taking the world by storm and disrupting existing banking and other insurance services by offering the same convenience and much more on a simple app. Today we will look at simple fintechapp ideas that can be launched quickly by taking advantage of easier Government regulations and readily available white labeled solutions. The 3 fintech startup ideas that we are going to explore today are comparison apps, fintech app that aggregates different bank accounts and enables simple transactions and insurance tech apps. Let us start with comparison apps:

·         Comparison apps – Comparison apps help to compare different financial products from multiple providers. Comparisons apps are very common for insurance products, pension, loans, investments etc. but also provide comparison for other financial products like bank fixed deposits, mutual funds etc. It helps users to see the products that suit them best and choose accordingly. The companies make their money from the commission that they earn from product sales and also from advertisements. Apps such as quotezone in UK, Finanzen in Germany and multiple others make the cut.

 

·         Aggregation Apps- The aggregation apps help to send and receive money, Instant money transfer between account holders of the same app, Notifications on accepting the request for money, loans, advisory and saving. Something of this is very similar what we see in apps like Paytm and PhonePe in India. We have global peers such as bnext in Spain, N26 in germany, bunq in Netherlands, Revolut in UK and Monzo also in UK. Together these companies have raised more than US$ 2 billion in funding and have around 20 million users. They are posing a big challenge to traditional banks. With opening up of banking applications under the PSD2 regulations in Europe, more banks have to open its platform and core services through the Open APIs. This gives more opportunities for such applications to come up in different countries globally.

 

·         Insurance tech – Insurance Tech apps are primarily comparison apps that helps compare between different types of life, health and commercial insurance products. In this segment we have companies like Root Insurance in the US and Next Insurance again in the US. While Root is an app that is dedicated for car drivers Next Insurance provides coverage for businesses. A great feature that Root offers is that the insurance amount is determined by the quality of driving. When a driver drives with the Root app on, it gathers and analyzes data from the smartphone’s sensors and after a few weeks, gives a car insurance quote based primarily on how you drive.

 

While Next Insurance has raised $ 631 million in funding and is available in all US states, Root is already listed in the NASDAQ with a total funding of $ 527.5 million. These companies have changed the way that people buy insurance and is a Win-Win for the apps themselves and large insurers as it provides them a new sales channel with millions of users.

FinTech is gaining momentum because the services offered appeal to the majority of consumers today. Most FinTech companies offer the following benefits:

·         Speed

·         Simplicity

·         Customer autonomy

·         Distinct capabilities that are not part of a bundled service

It should come as no surprise that these are all extremely appealing characteristics for 21st-century consumers, especially millennials and the digital savvy. The majority of FinTechs all share a common strategy — transferring control to the customer. This means giving consumers the reins when it comes to making the best financial decisions for them, through transparency and easy access to information.

If you are planning to launch a fintech app some of the key considerations are:

·         On which platform you want to launch your app

·         Features and complexity of the app

·         Technology stack of the app

·         Geographic location and experience of the mobile app development company

The cost of development of an app can vary between US $10,000 to as high as $1,00,000 depending upon the complexity of the application. With the advent of technologies like artificial intelligence, machine learning, blockchain, and more, the finance industry is flourishing at an unprecedented rate. People are now relying on mobile applications for transferring funds, investing, and other finance purposes. That’s one of the biggest reasons why the demand for finance app development is rising.

If you are interested in other areas such as alternative credit scoring, peer to peer lending which is another great area that is picking steam, small loans app such as Lendingkart, faircent and others in India, asset management etc.  you can choose based upon the market size and other factors. Developing and maturing a fintech idea such as those mentioned above can be a challenge. Connect with us at info@intelligentq.co.in so that we can help you getting things off the ground!


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