The financial software market is growing with each passing day and since COVID-19, this market has evolved at a much faster rate. By the year 2025, this market is expected to be worth $191.8 billion. Fintech offers plenty of room for growth and new opportunities to every industry. Companies can build any type of fintech solution with the help of finance software development companies for example TatvaSoft for their business and remain at the top of the competition with it. The key to having successful financial software is creating it securely and functionally for the end-users. Besides, using technologies like AI, ML, biometrics, and Blockchain accounting can add a lot of value to it. To know more about it, let’s go through this blog and understand what the types of financial software are.
Also read this review: Maximizing Your Tax Savings with TurboTax: A Step-by-Step Guide.
Top 8 Types of Financial Software For FinTech Startups
1. Payment Gateways
Payment gateways or payment processing services are the ones that enable users to make online payments using credit and debit cards. They act as a secure intermediary between clients’ bank accounts and merchants. Gateways are responsible for checking the card details and verifying the availability of the funds, sending the data to banks, and then enabling the transfer as per the card holder’s request. Besides this, payment gateways can be integrated with any type of software that handles online payments. And because of this, the global payment gateway market profited by around $17.2 billion in the year 2020 and has expanded a CAGR of 16.43% says a survey.
There are companies like Stripe that are leading the payment processing market. By offering the best services to businesses who want to move online. And here one of the main drivers to make the payment gateways so popular and powerful is FinTech.
2. Accounting Systems
Accounting systems are mainly used by businesses. They use financial software to track the revenue and expenditures of the firm. And because of the increasing use of the accounting systems, the accounting fintech market is expected to grow and reach up to $20 billion by the year 2026. Some of the main shares of the accounting systems are – Enterprise Resource Planning (ERP) systems, Core accounting software, Payroll Software, and Billing and invoicing software.
3. Investment Applications
In the last few years, investment applications have gained a lot of spotlight in the market. For instance, the app called Robinhood gained a lot of publicity during the COVID lockdowns. It is an application that combines simple features, extensive gamification, and innovative technology to enable investment for clients easily accessible. Besides this, investment apps are those that come with personal finance advisors, rapid stock trading apps, and real estate crowdfunding platforms. Basically, investment apps offer an easy-to-use platform to users who want to invest their money in the long and short term.
4. Blockchain & Cryptocurrency
Blockchain is one such technology that stands at the forefront of FinTech innovations. And with time, the use and acceptance of this technology are increasing in the financial sector. Because of this, the total market is projected to reach $36.04 billion in the year 2028. And this will grow the annual rate of the usage of blockchain and cryptocurrency by 59.9%. Some of the top blockchain and cryptocurrency trading platforms are Tokocrypto and Binance. These platforms enable users to trade coins anonymously.
5. Crowdfunding’s
Crowdfunding is a very popular financial concept in the market. The websites of crowdfunding represent FinTechs that work outside the traditional banking ecosystem. Basically, crowdfunding is a very simple concept. It means creating an online platform that enables the users to pitch their ideas to a larger amount of audience. And in this way, the users can get funding from thousands of individuals. The crowdfunding industry has seen a more than 15% growth level since the debut of Kickstarter in 2009. And by each passing day more and more companies have started embracing the new business model and this has replaced the traditional loan system with crowdfunding.
6. Tax Management
Generally, test filling is something that is a very complex and lengthy process for any business organization. And this is why the startups use automated systems to make the tax filing process easy. This shows that the use of tax management systems is increasing every day with every business coming into the market. As per a survey, the market for global tax management software is expanding day by day and is projected to reach $11.19 billion by the year 2026.
One of the most popular and the first applications in this industry is TurboTax. It is a tax management software that was developed by Michael A. Chipman in 1984. Since then it has constantly grown to be the best software in the market and has reached a worth of $69.5 billion.
7. Personal Finance Applications
Another type of financial software that can make the fintech startup successful is personal finance software. It is a promising and rapidly growing type of application in the fintech markets. There are many different types of personal finance software like Investment apps, Stock trading apps, and Wealth managers. Each of these types is created to help the users manage their finances. For instance, wealth managers help the users to track savings, spending, and credit scores. Investment applications enable users to put their money to work and offer the right instruments for easy investments.
8. Insurance & Pension
The last one on this list is InsureTech. It is one of the fastest-growing types of financial systems with around 34.4% of the CAGR. The market of InsureTech is expected to value at $1.19 billion by the year 2027. The new generation has widely accepted it and everyone has started using it. It offers ultra-personalized services to the users with dynamic recommendations and plans. With time, smaller companies have also started to explore opportunities of this type of financial system that have been avoided by their large peers.
Conclusion
As seen in this blog, there are many different types of financial software that help startups grow in the fintech world. With the acceptance of this type of application, the majority of the FinTech sectors are demonstrating rapid growth. And this is because of the latest technologies and techniques like Blockchain, digital mobile payments, and insurance technology. And regardless of the field, financial applications help in addressing all types of customer needs. This is why it is known as the one best and growing technology in the market.
