Between law and user: trends in fintech development

by Xozepew Usaz We are always in the lead!

Fintech is included in the age of digital maturity. Between classic banks and startups of neobanking, global ecosystems and highly specialized applications, the struggle for the consumer continues. To conquer and hold the user, it is no longer enough to comply with the requests, it is necessary to look into the future and predict the trends of the industry. If you need fintech application development services, you can contact Itexus

The main thing is to be User Friendly

For financial services, the mobile interface becomes the main way to communicate with its users. Convenience when working with the application is one of the main competitive advantages in this market. The developers try to lick UX as much as possible - reduce the number of steps that the user must take in order to perform the target action

At the same time, neo -Banks are required to comply with the same legislation as classic banks. However, users are far from always clear why for primary registration in the application it is necessary to enter a lot of data, provide documents or even remove a selfie. The explanation is simple - when we came to the usual branch of the bank, the operator performed all the necessary actions. Now the user himself is responsible for this process.

One of the options for improving UX is to prepare simple, understandable and convenient templates for entering and use the data composure.

For example, in order to simplify the user registration mechanics, when entering the address, you can use the geopolit of the mobile device and the automatic substitution of the received data into the input line. It is enough for the client to confirm the choice or adjust the answer, if necessary. The user will only have to edit them (if necessary) and confirm the input.

Another cool feature is the recognition of the text from the photo, for example, when you need to enter passport data.

Another example: for entering a login, it is much easier to use a phone number with SMS-autorization. This feature will help save at least 4 clicks, if at this stage to make standard automatic dispatch of the code to check for the server and auto -filling the field from messages.

It is especially important to pay attention to two -factor authentication and access to access.

Imagine what stress the user experiences when he cannot access his funds for a long time. The task of the developer is to help go this path for the minimum number of actions, but with the confidence that it is the bank’s client, and not a third party, will enter the application.

Map on the phone-Visa In-App Provisioning

The modern user is used to doing everything in one click. Including, pay a virtual card in the online store. And if the user has an electronic wallet (Apple Pay or Google Pay) and a smartphone with NFC, then such a card will work offline.

Moreover, the path from the design of the card to its appearance in the electronic wallet can also be reduced to one button - this will save the user from copying data from the application to the application. In-App Provisioning technology is responsible for such functionality. Its implementation is the main request to the developers over the past six months.

So far, the opportunity is not available to everyone. In order for the “Add Card to the Wallet” button to appear in the application, the bank needs to be checked directly by Apple or Google, and then receive approval from the payment system that serves on cards (Visa or MasterCard). Only after that will it be necessary to implement the technical part of the task.

Security questions

The basis of the foundations of any fintech application is security.

The developer needs to comply with all the requirements of international standards for working with VISA and MasterCard PCI/DSS payment products, OWASP and OWASP-MOBILE standards. During this, the application itself should remain understandable and convenient for the user. The most difficult task is to combine safety and ease of use.

Modern banking services do not seek to look too serious and minimalistic. Animations and other blocks are added to the interface, games, tests, chat bots and a change in visual design appear in the applications. All this in itself requires increased attention to possible errors and vulnerabilities.

The task of the development team is to think over the user interface and user behavior scenarios in such a way as not only to improve UX, but also to ensure security and fulfill all the requirements of the law.

In addition, from prying views, “under the hood”, a whole set of tools and scenarios is hidden, which you also need to take care of the developer: encrypt traffic, check the absence of interceptors (man in the midle), detect fraud operations, repel attacks on infrastructure (and They begin immediately, as soon as the business becomes more or less noticeable), and also observe a whole range of requirements for control regulators.

Data collection and restrictions

An important trend of the last year is a special attention to the issues of security and protection of user data.

Recently, businesses have been able to learn literally everything about users - after all, we have a device in our hands that monitors our position, actions and interests in real time. During this time, Internet giants (such as Apple or Facebook) have learned to collect and analyze data and draw conclusions about ours, predict behavior. In the most innocuous case, the user becomes the target of targeted advertising.

In response to such actions, restrictions appeared on the collection, processing and transfer of personal data to third parties, on the use of cookies and tracking in general. Today, big business can no longer afford to think of users as data sources: it is both a requirement of the law and, more importantly, a requirement of customers.

In such circumstances, companies are looking for other ways to collect data about their audience, their preferences, behavior and interests. For example, there is a / b- testing of functionality or surveys inside the application - such services are already on the market.

Mobile version - yes or not?

No serious service today can afford to have only a web version. All users expect a convenient mobile application with full functionality.

For business, mobile app users on average have 6-7 times better return to service than website users and about 1.5 times better return on average.

On the other hand, data privacy requirements and additional steps that a user needs to take to install applications complicate the marketing job.

Does this mean that you need to invest exclusively in the development of mobile applications and completely abandon the development of the site? So far, there is no definite answer. You need to rely on the desired audience segment and the features of your service.

At the beginning of their journey, neobanks did not need a website, they could only cope with a mobile channel. In the last couple of years, the situation has changed, because large companies launch and develop with the same effort not only applications, but also websites. For some, this is a focus on a new segment of the audience, for others it is a service solution, for others it is a way to diversify risks, protecting against a possible application ban in the stores.

Service personalization

Data on transactions and customer requests within the application allows not only to provide the user with graphs of his expenses and income, but also to prepare personal offers. For analysis, scoring data and information from CRM on the bank's side are taken.

In practice, it works like this: a client makes purchases for an average of 50 thousand rubles for several months, but we see that 70 thousand rubles of wages are received on the card every month. Having received and processed this information, we assume that with a high degree of probability the client will be ready to make a monthly payment of up to 20 thousand rubles. So for its part, you can offer him to take a loan on special conditions. Having additionally analyzed the categories of purchases, the service can offer an increased cashback on popular products from partners.

The role of feedback in development

Feedback in the application is an opportunity to hear opinions and feedback from users. Reviews help to improve the service if you regularly collect and classify them.

There is a technique in which new functionality is implemented and iteratively refined after receiving feedback on it. This is an agile development or product approach. The technique allows taking into account the wishes of users and creating services that ideally meet the needs of users.

conclusions

When developing modern fintech products, issues of customer centricity and cybersecurity come to the fore. Even the older generation is massively moving online, mobile applications are replacing classic plastic payment cards from everyday life, and financial transactions themselves are becoming more seamless and invisible to the consumer.

The winner is the one who first offers the user the freedom and comfort in working with his money: a fast, reliable and convenient banking application.

For the developer, these criteria boil down to a priority task: to keep the user inside the application without breaking the law and observing security measures.