Building or expanding a financial app takes a lot of work, collaboration, and planning. When done right, your app end-users reap the benefits of the added features and APIs and come back for more.
The addition of process automation for financial services for many fintech apps is quickly becoming a desirable feature. Now with the addition of blockchain technology, like smart contracts, more fintechs can add automation to their financial product faster than the competition and with greater ease and connectivity.
Read on to learn about financial feature automation for fintechs:
Adding Financial Automation in Your Fintech App
It’s commonplace now to add automation into almost every aspect of our digital life. So why not in finance? Finance is filled with sensitive banking and personal information, so naturally the use of automation in financial technology is slow moving.
Moving financial information to digital technology was already a challenge, and one of the main reasons why Sila was created. Now, as part of the digital transformation, with the use of Ethereum blockchain technology, fintech companies can connect financial automation code to their apps to automate financial services and other fintech solutions.
The use of automation in the fintech industry is not necessarily obvious. However, just like workflow automation, like when we want to automatically filter an email, it makes sense that we would want to put labels on financial movements to automate their processes. And more fintech companies are looking to add this feature and other automation software for improved customer experience and customer satisfaction.
When financial technology moved into the realm of APIs, or application programming interfaces (APIs), more technology became available for open banking. Open banking connects these financial APIs technology in a, surprisingly, more secure way than other methods. It might not seem like adding API endpoints to a fintech app is safe; however, this allows other companies to develop powerful code with API security.
Financial automation is just one of those additional APIs.
Use Cases for Financial Automation in Fintech Apps
We’ve come a long way to now offer online banking at a traditional bank. The shift to financial automation makes sense. Here are some ways that fintechs can add automation to their product or services:
- Automatically save towards a goal with every purchase (a feature common in many financial institutions online services now)
- Automate savings, credit card payments, debt repayment, or donations based on other financial transactions, like merchant payments, donations, or peer transfers
- The completion of real estate transactions once payment has been verified received
- The sending of sensitive documents once payment has been verified received
- Sending automated electronic payments on certain triggers like dates, senders, or amounts
- Intelligent automation features with a connected bank account
- Artificial intelligence and smart contract technology in use for customer service
- Automation in ACH return codes, including prompts or payment halts
- Payment suggestions, like the use of a multiple payment digital wallet
- Recommendations based on geolocation
- The releasing of funds based on the signing of an agreement or contract
While some use cases like automatically saving towards a goal may seem like an obvious use case (and one that is already possible at many financial institutions even without smart contract technology) financial automation technology can drastically expand what we know about financial services.
The ability to automate a trigger once a contract is signed or received or a deal made is a huge automation solution that was not possible before. This alleviates a lot of the manual labor that was once involved, improving customer pathways and product offerings and allowing more fintech startups a chance at success.
How to Add Fintech Automation Features With Sila
Financial automation can be easily added on when you have a Sila product. If you don’t have a Sila product, then you can still tap into Sila’s financial automation features through partner integrations or migration.
Sila’s financial automation operates through smart contracts, which are programs stored on the blockchain to complete a verified, secure, and anonymous action once the program has been triggered. The automating of the execution is completely secured because it is done on the blockchain, thus making it feasible in the financial world.
Smart contracts at Sila can be used in almost any industry, including gaming, healthcare, investing, lending, borrowing, remittance, trading, real estate, and much more. As long as the transactions can be tokenized, it can be done.
Fintech automation does not have to be complicated either. The record of the transaction is securely stored on the blockchain, but users can access the data through clear and readable user interfaces, therefore making it more approachable for people to work with.