If you’ve got a great idea for a FinTech mobile app, you’ve got a lot to consider. The market is red hot, yet also super competitive. There are lots of sectors within the financial world to choose from, and some are more crowded than others. There’s always new technology emerging, and what you think is cutting edge now might be obscure by the time your app launches. Cybercrime is at an all-time high, and if you want your app to be viable, it better have the best security measures available. Now, if you want to address all those issues with one type of technology, look no further. The age of blockchain technology is here.
Understanding Block Chain
Blockchain technology is a lot to wrap your head around, and it’s just complicated enough that many folks don’t exactly understand it, so we’ll try to explain quickly. Blockchain is basically a peer-to-peer network where the participants each follow certain protocol and maintain an unalterable “block” of information. It takes the entire chain to decipher the information in a usable way, making the whole process transparent, permanent, and secure. There are many applications for this sort of technology, but it was initially designed to manage the exchange of cryptocurrency online.
Because of its unique structure, blockchain technology can be used in lots of other sectors. Healthcare, for example, has lots of privacy restrictions and laws governing storage and transmission of personal health information, like HIPAA. Blockchain can help with secure transactions, and therefore makes it ideal for MedTech apps.
Which FinTech Apps Need Blockchain?
The major benefits of blockchain technology are secure and transparent transactions. This clearly has multiple applications in the financial world, where assuring deals and agreements go through without alteration or manipulation are of the utmost importance. This is especially true with international banking and finance contracts, where standard practices can vary wildly from country to country.
Industries with financial components that depend on these sorts of iron-clad contracts are particularly receptive to apps that include blockchain safety. Fraudulent claims and illegitimate recipients cost insurers millions a year. Insurance companies need a free and clear claims system that ensures the entire process has integrity and permanence throughout. Likewise, real estate mobile apps that may include financial checks, contracts, and transactions also have the need for a transparent and accountable chain of events that both sides can trust.
Traditionally, almost every financial deal or contract requires extensive third-party involvement, various certified intermediaries, and other central authorities that approve the deal. Blockchain reduces or eliminates the need for this sort of oversight, as every party’s individual piece is absolutely clear, permanent, and guaranteed. Clearing out these third parties makes good business sense and expediates transactions that can typically take days or weeks.
Is It Right for My FinTech App?
This is a complicated question, and one that requires quite a bit of research. This technology is emerging rapidly, yet also seems to be somewhat limited both in adoption and application. It’s best to evaluate the market, what sorts of users would find the best benefit from this technology, and which way it would fit into today’s FinTech landscape. Issues like payment anomalies with vendors or cash flow administration are certainly prime for blockchain solutions, and digital wallets and other bookkeeping methods will benefit, as well. That said, it should certainly be forward-facing; as the technology advances and becomes more accessible and deployable, both institutions and users will be much more likely to adopt and embrace blockchain as part of everyday apps.
Progressive visionaries and developers who can see the way these trends are moving are certainly eager to capitalize on emerging technologies, and the future for blockchain usage is chock full of opportunity. It’s a worthwhile venture, as many experts predict the industry will accelerate in accessibility and implementation in the next few years. You’d rather be ready and be one of the first apps to feature blockchain, rather than a follower.
The best move at this point is to do some research, read up on current trends and usages, and consult with a business analyst on how to plan for the future of blockchain for your FinTech mobile app.
Do you want to explore adding blockchain to your FinTech app? Check out more information about our work in the FinTech space and don’t hesitate to reach out for a free consultation!