Blockchain In FinTech: Is It A Future For FinTech Apps Development?
Blockchain technology has already brought a revolution in the FinTech industry and is expecting to transform the way of operations of the banking sector. Due to its strong focus on cryptography, high security, and privacy, Blockchain is a part of the technology stack of mobile banking applications development.
Most banks across the world are now using Blockchain technology to create more secure and efficient ways to record the financial data of customers. Blockchain ensures cost-effective real-time data update to record every transaction without any one intervention. Such advantages were increased the market share of Blockchain technology in banking apps development to approximately 29.7% in 2020.
In this article, we would like to give brief information on:
- What is Blockchain technology, and how it works?
- Uses Cases of Blockchain Technology in Fintech
- Potential Applications of Blockchain by Industry
- How much does it cost to build a Blockchain application?
What Is Blockchain Technology & How It Works?
Blockchain is a decentralized and immutable ledger technology that records and stores broadcasted information across a peer-to-peer network consisting of a group of computers or nodes. Upon verification and validation of the requested transaction by the authorized nodes, a new block of data for the ledger will be created and added to the existing Blockchain.
Blockchain-enabled applications in banking assist in tracking and validating transactions, creating data blocks, and storing them in such a way that they cannot be either modified or truncated.
In simple words, using encrypted distributed ledgers, Blockchain-enabled systems or apps accurately verify transactions in real-time without human intervention.
Blockchain applications are used for simplifying money remittances, trading, reducing inefficiencies in the supply chain, managing digital records, auditing and reducing credit risks, etc.
Top 5 Use Cases of Blockchain In FinTech
- For Digital Identity
The banking systems or data is highly disposed to cyberattacks. Integration of Blockchain in applications and systems ensures high-level security to every transactional data made from the customer end. However, Blockchain development helps bankers digitally validate the user identity through multiple security authorizations.
Not only while transactions, by executing security algorithms, Blockchain is also playing a key role in authorizing and protecting the confidential account information while the users check their account balance, transaction history, and other banking services through mobile banking apps.
Hence, Blockchain development is one of the best approaches for ensuring and accelerating digital identification and validation in real-time.
- Secure Payments and Fund Transfers
A significant aspect of online banking is high security for payments and transactions. Since Blockchain is a decentralized ledger of all types of transactions and supports the transfer of cryptocurrency, bitcoin, and many more, ensures the most encrypted transactions.
So, Blockchain-enabled mobile FinTech apps are useful for money remittance or money exchange services from one account to another with fewer processing charges.
Moreover, another attractive benefit of Blockchain applications is the transaction records created using algorithms cannot be modified or hacked. This feature of Blockchain technology is also driving the growth of the technology in the fintech app development industry.
Hence, Blockchain-based transfers will gain popularity in the coming future instead of digital transfers to save currency processing fees and time while ensuring security to payments and transfers.
- Trading and Investment Applications
The cutting-edge distributed ledger technology can process millions of investments in seconds. Yes, Blockchain in trading allows investors to benefit from transparent share pricing, faster payment processing, continuous transaction recording, and many more.
Be it any kind of money transfer platform like a crypto-trading platform or smart contracts, Blockchain applications make trading more secure and hassle-free.
On the other hand, the adoption of Blockchain technology in building enterprise-centric apps is also gaining popularity. In particular, banks that are lending money to investors for a trading purposes need to check the credit history of people. Blockchain technology will make account validation, credit check, and also maintain investment ledger securely.
- In Auditing Apps Development
Blockchain technology helps auditors in the audit verification process. Blockchain-enabled finance auditing apps record and add every transaction to the ledger directly in a sure way for quick validation and improving audit quality.
Further, the transparency and immovability of records make it difficult to manipulate the data. So, bankers do not often need to re-check transactions or conduct frequent audit trials.
Hence, Blockchain-based audit systems allow bankers or finance companies to maintain clean data. This automated process also enables enterprises to have clean data records compliant with the financial rules and regulations.
- Supply Chain Financing & Management
Blockchain-powered enterprise solutions for supply chain management, finance management, or smart contracts will optimize performance and increase scalability.
Blockchain-enabled finance solutions ensure high security and automation across end-to-end supply chain management operations in an organization. From inventory tracking, order details, to invoice creation and delivery, everything will be recorded and stored in an encrypted way.
FuGenX, with hands-on years of experience in using Blockchain in combination with the Internet-of-Things (IoT), designs and develops Blockchain apps for invoicing, tracking deliveries, identifying issues in the supply chain if any. The Blockchain solutions for companies reduce the operational costs, maintain accuracy in creating e-invoices, and stores every digital invoice on-chain.
These are a few significant applications of Blockchain technology for the FinTech industry. Blockchain apps or systems help companies ensure quick, transparent, and secure FinTech services.
Are you looking for integrating Blockchain capabilities and upgrading your rustic infrastructure?
Get in Touch with FuGenX, Let us know your business requirements, and get a free Blockchain app quote right away.
Applications Of Blockchain Technology By Industry
Mobile apps development or B2B apps development using this highly tending technology offers incredible opportunities for businesses.
Secure data management, jet speed cross-border transactions, immutable ledger of data records, digital payment settlements, accurate identity verification, reduced risk-level, tamper-proof documents sharing, and accessing as a few advantages, Blockchain is increasingly adopting by 85% of businesses across diversified verticals.
Blockchain In Healthcare
Blockchain solutions in healthcare are used for storing and sharing patients’ medical records in a secured manner. The other benefits of Blockchain in healthcare include:
- Supply chain transparency
- Validation and verification of health data
- Secure information management across the network
Blockchain Solutions For Retail
Here are the key benefits of integrating Blockchain technology in your retail systems or applications-
- Easy inventory tracking
- Automate business-to-business or customer-to-business payments through smart contracts
- Supply chain monitoring and tracking by amalgamating IoT and Blockchain
- End-to-end visibility of the supply chain process
Blockchain in Transportation
Besides banking, finance, insurance, and healthcare sectors, Blockchain technology also addresses a decentralized solution for many benefits for transportation and logistics companies.
- Supply chain transparency and visibility
- Maintain proper ledger and customs clearance using smart contracts
- Well-created distributed ledger of logistics information reduces processing time
How much does it cost to build a Blockchain Application?
What is the cost of Blockchain app development?
This question might be drilling you like a termite if you have plans of creating a Blockchain application?
The Blockchain app development cost is dependent on the application complexity, features and functionalities, app design, and company size, etc.
Along with these factors, Blockchain application development platforms, frameworks, and third-party tools will also impact the overall costs of the app. One must integrate the below third-party tools in their Blockchain apps.
- AWS (Amazon Web Services) for cloud storage and data accessibility
- App Monitoring Services for monitoring end-to-end process to prevent fraudulent acts
- Push notification services to send notifications in real-time regarding services and if any delay in the process
- Analytics tools for conducting data analysis and reporting and creating data insights
Integration of these third-party tools for Blockchain app development might increase the overall estimated app budget.
Moreover, without hiring the best mobile app development company with the right mobile app developers, it’s impossible to create a bespoke mobile app. But, the hourly rate of mobile apps development services providers depends on their industry experience, team size, skill level, brand popularity. This parameter will also impact the overall development cost of the applications.
- The development of a Blockchain application with a minimum complexity level will cost between $20,000 to $ 45,000
- The cost to build decentralized and distributed Blockchain apps with average complexity level will cost around $35,000 to $95,000
- The development cost of complex enterprise-level Blockchain solutions will cost $120,000 to $150,000
The adoption of Blockchain-enabled enterprise-centric solutions will ensure ample business growth opportunities for banks and FinTech companies. The tech-based mobile apps help companies provide a better customer experience and enhance brand loyalty by promising safe and secure financial services.
Talk to our Blockchain app development experts today and alter the way you do business.