How Blockchain Technology Is Transforming Fintech App Development

By Author: Jaxon Bidden
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The finance domain is continuously evolving to operate as a centralized model. Many fintech and banking startups have already adopted this brand-new environment to achieve goals faster. Besides offering an advantage to financial technology services, blockchain provides value to diverse industries, including healthcare, legal services, transportation, etc.

The technology has added a new dimension to the Fintech landscape by bringing significant changes to business models and operating processes. From cost reductions to unconditional bureaucracies, blockchain integration in fintech applications has intended to provide an efficient banking experience. According to a report by PWC, the funding rose at 41% and crossed over $40 billion.

How Blockchain is revamping the Fintech Industry?

Blockchain enables you to analyze and understand the effect on the key areas of the economy.

Banking and P2P Payments

There are imprudent bureaucracy and indeterminate incompetencies in most banking setups and traditional banking services. These gaps can be avoided with a decentralized system like blockchain ...
... that follows consensus algorithms for faster transactions. When a blockchain mobile app development company focuses on the implementation of technology in fintech and banking, the issue of cross-checking every data across different organizations that are involved in international funds transfers not only gets streamlined but also authenticated over several levels of checks.

Crypto Lending

Crypto lending is a new and efficient lending process in the financial domain. In this, the borrowers can keep crypto assets for obtaining stable coin or fiat-based loans, while the lenders can give assets against the loan at a pre-agreed-upon interest rate. The process also works in a reverse manner.

Digital Identity

We all agree that the number of fraudulent accounts is on a constant rise. Although, banks follow the standard and strict AML checks, however, it is not foolproof. To make the system hack-proof, we welcome blockchain.

Blockchain helps with a digital identity system. Using this, clients go through proper validation before they can make any transactions across the globe. It lets its users manage identity data, share data with minimum safety risks, and sign important documents like claims or transactions digitally.

Auditing

Auditing is a mandate that allows you to verify the account and highlight inconsistencies. It is a complex and slow process. Blockchain not only makes the process easier but also faster than before. Your partnered blockchain app development company adds the records directly to the ledger that becomes an efficient way to audit, store, and upgrade data.

Future of Blockchain in the Fintech Industry

According to the latest study by PWC, it is found that 77% of financial organizations are planning for blockchain adoption in financial apps by the end of 2021. In case you are a fintech start-up or well-established financial firm, it is advisable to hire experts to make a successful future. You should do research, check portfolios, and read client’s testimonials before making the final investment.

There are different types of blockchain platforms like Ethereum, Hyperledger, Fabric, Corda, and Ripple that can be chosen while revamping financial services. A reliable app development company can suggest and selects the best that boosts your business growth.

Fintech App Development Cost Including Advanced Features like Blockchain

There is no question that the future of fintech apps becomes brighter with advanced technologies. When it comes to digital money, blockchain becomes the mainstream. Why? It offers complete transparency to the users while performing transactions. Users can administer, track, record, and even validate every transaction detail with extreme authenticity. It makes your platform secure for all transaction types. Blockchain technology in your fintech app can reduce the transaction fee for international and increase P2P payments. It helps in saving a lot of time for every user that is involved in transactions.

Now the question arises, how much does a fintech app development cost? The cost is dependent on various parameters, including platforms, features, integrations, the hourly rate of developers, and the engagement model. The fintech app development cost with the basic functionality is around $35000 to $55000. While fintech app with advanced features like blockchain can cost you up to $100000.

Some app development companies also offer an app cost calculator tool that enables you to find the cost of your business app idea within minutes. All you need to answer a few questions, based on which you can get quick estimates from the development company without a hassle.
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