8 Key Challenges Fintech Industry Faces and their Solutions

Digital innovations and trends in financial technology or the Fintech industry are revolutionizing how people, financial organizations, and banks manage their money. In the last five years, modern advances have drastically changed how people engage with their finances.

Fintech companies are on a path of enhancing their growth and building a reputation in the industry. Financial technology is improving and automating the process and services within organizations. However, these challenges push our imagination in new ways and encourage unparalleled growth, but there’s room for improvement.

The sudden rise of numerous fintech start-ups in the finance sector has contributed to the growth of many other sectors through their efficient financial strategies. With this scope, the industry can grow better and generate more revenue.

Challenges that Fintech Industry Faces

Many prominent Fintech companies face various issues like long-fund raising cycles, missed out targets, and increasing losses. Well, these are very common issues as well. And these take place due to mismanagement of the leading lifecycle.

However, there are many other key challenges that the fintech industry faces every day. Let’s discuss this now.1. Data SecurityData security has become one of the major concerns in the Internet world – be it mobile banking, payment apps, or Fintech in general. As we know, traditional banking systems are confident with security guards, CCTVs, vaults, and heavy bulletproof doors to keep their data safe and secure.

But when we talk about virtual security, things are not as easy as we think. Vulnerabilities are much more discreet and have potentially more impact on users, as not only their money is at stake but their personal data too.

1. Compliance with Government RegulationsFinance is one of the most regulated sectors. There will always be interference from the government even if you leverage the traditional Fintech software that doesn’t use blockchain and other crucial technologies.
2. Lack of Mobile and Tech ExpertiseIn the fintech industry, some of the finance companies or banks don’t have proper or convenient mobile banking services. However, some banks try to replicate websites, but in this digital world, nobody would prefer a mobile application. Every user wants a seamless and convenient option to use.

Therefore, a lack of expertise in fintech mobile app development services results in non-user-friendly applications that don’t use mobile devices to their fullest potential. For example, apps may not benefit from NFC chips, geolocation features, fingerprint unlocking, and other features. A fintech bank can offer amazing experiences using these features and technologies.

1. Big Data and AI Integration
2. Blockchain Integration
3. User Retention and User Experience
4. Effective Marketing Tactics to Acquire Customers
5. Personalized Services

Want to know more about all fintech industry challenges and solutions then visit https://www.techtic.com/blog/fintech-industry-challenges/

Enterprise Sales Director at Techtic Solutions.