Businesses: Navigating Opportunities and Challenges in the Fintech Era

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Modern FinTech companies provide innovative solutions that simplify our lives. The adoption of FinTech solutions still needs to be on the rise by a few traditional businesses. Most face innovation challenges and need the right talent to train their staff. We have witnessed versatile FinTech opportunities and challenges in today’s world, but with a holistic approach, things can fall into place for businesses. The New Economy and FinTech have created many economic opportunities by providing affordable and effective financial services.

HSBC has witnessed one of the popular benefits of New Economy, where the bank has tokenized the sterling bonds and bank money. The bank has launched a new platform, HSBC Orion, that will act as the central account keeper under Luxembourg law. This platform will be the first-ever sterling bond deal done on the blockchain. The European Investment Bank, HSBC, RBC, and European Investment Bank have settled their sterling bond issue on the blockchain. The latest FinTech solution has made the bank launch their new issue on the blockchain at a rate of £50 million with a 3-year floating rate, and this issue has been priced 12-basis points on the Sterling Overnight Index Average or Sonia. These banks are in the news because of the launch of their latest new issue, which is quite cheap, fast, and efficient. It will help transform tokenized securities’ ‘new issues’ in the primary and secondary capital markets. Using HSBC Orion, the users will get the benefits of tokenization under the New Economy industries setup. It will be provided within a protected and trusted environment. Banks will use this innovative platform to launch digital bonds and assets.

Source: EUROMONEY Analysis of New Economy Solutions in the FinTech Sector

According to Grand View Research, ample FinTech opportunities in the FaaS market will rise at a CAGR of 17.2% from 2022 to 2030. The digital transformation will be witnessed in the market because of the adoption of the latest technologies like mobile payment, AI, and other forms of digital assets. FinTech app development solutions are already on the rise when it comes to usage. The global financial market has already reached $26.5 trillion by 2022. Experts predict the growth of a CAGR of 23.58% from 2021 to 2025. Blockchain technology will be put on track, with the market reaching $20 billion by 2024. The Mobidev shares insight about FinTech startups and the FinTech app development services providers. $32.4 billion has already been attracted as a sum by FinTech startups. 1.31 billion people will be using mobile payments for cashless transactions by 2023. 70% of all financial firms are already using Machine Learning. In India, nearly 87% of consumers have adopted FinTech products, and FinTech market is expected to reach $200 by 2030. Outsourcing of software product engineering solutions is already on the rise.

Source: techtic.com

Challenges and Opportunities Faced by FinTech Businesses Under New Economy

FinTech startups face versatile challenges when they need help finding the right solutions for their problems or need more money to hire FinTech developers. They can automate the processes and improve the business with the right efforts. Let us walk you through a few important challenges businesses face and ways to convert them into opportunities.

Vulnerability in the Systems

Endless security breaches witnessed in the past few years in the financial industry have made 46% of the apps deal with vulnerability problems. The customers’ sensitive data is already compromised in a few banks and financial institutions. The only opportunity lies in adopting secure FinTech solutions by hiring the right FinTech app developer who can design and develop data encryption, biometric identification, AI security analytics, etc.

Raising the Venture Capital

It is one of the key FinTech challenges that has made many startups put their products on hold. Attracting potential investors is still becoming a key challenge. However, you can solve this challenge by showing the investors that your product can solve major challenges, the market opportunity is versatile for a particular product, and the capital will be used to fund the enhancement and marketing of the product. Like other banks’ investments, the HSBC Orion platform is now achieving the tokenization of bonds and assets.

Regulatory Compliances Set by Government

Regulations by the government sector in the FinTech sector are quite more because you have the end user’s data, aka citizens. You need to check out the legal compliance of every product before launching it in the market. The only solution to regulatory compliances is to hire a legal consultant to help you understand legal hassles, and you can amend your products immediately.

Keeping Updated with Modern Technologies

Technologies are ever-changing and ever-evolving. If your company already has AI specialists, they would still need the Big Data Analytics expert. The outdated management trends need to be changed. You must possess the right approach and system to train and manage the modern requirements of your company. Businesses can take software product engineering services by outsourcing their business requirements. It will help them to get technical expertise and training sessions to use modern technologies.

Collaborate with the Right Digital Transformation Service Provider!

The FinTech industry is already booming with the help of New Economy solutions, providing versatile financial solutions to businesses. However, businesses can sort out a few challenges through the right and holistic approach. In addition, you can hire a reputed software product engineering company, Tntra. They have dedicated experts to transform your dreams into reality. Call Tntra experts for the best FinTech services under the new economic industrial revolution!

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