Introduction
Do you remember the times when there were places featuring some kind of hidden chest or the time when people used to handle money in terms of gold coins? Slowly we started evolving those gold coins into paper money and now investment portfolios, cryptocurrencies, and whatnot! Thanks to the ever-evolving technology, the financial space seems to have evolved to a great extent like never before. Even among their wildest dreams, one couldn’t imagine having a remote app to deal with their insurance and loans, investments in the stock market, tax management, and currency exchange. The following post focuses on how to build a fintech app but before that let’s try and understand the concept thoroughly in detail.
What is Fintech?
Fintech is widely known for financial technology which means end users are bound to receive enhanced financial services like never before. Though there was a time when it was considered as a glamorous new-age term but not anymore. From money transferring to budgeting apps, fintech has been rooted deep into our daily lives. From buying all kinds of stuff simply by using your smartphone devices to sharing payments via mobile phones, etc no wonder the concept seems to have become so ubiquitous across the globe. Down below I would like to highlight certain areas where the concept of fintech has penetrated and made some difference worldwide:
● Wealth Management
● Payments
● Lending
● Insurance
● Personal Finance
● Regtec software
● Cryptocurrency-based solutions
● Money transferring
● Mortgage Solutions
● Trading solutions
A Quick Overview
Before we delve in further let us take a look at the overview of the fintech industry. Now many of you have this misconception that fintech was born with a golden spoon, of course not! Just like several industries have faced ups and downs, fintech seems no different, in fact, this year itself it reached $51.9 billion which is pretty great stating despite all the downs, the industry keeps on growing and evolving. In the year 2019, it was around $91.5 billion and by 2028, the market is expected to be 2.5 times larger than it is now. Not to mention high-profile funding rounds tend to elevate the industry securing appropriate substantial investments. As a result, this leads to the rise of numerous opportunities such as attracting relevant capital and thriving, ensuring one of the most exciting as well as new ventures in the context of contactless payments and branchless banking in the fintech space. Some basic yet amazing stats of the fintech market to consider:
● In the year 2023, around 26300 fintech startups were seen
● The market will reach 37 billion dollars by 2026 or maybe sooner
● By the end of 2024, 90% of users will make mobile payments with their smartphone devices
● Payments remain the frontrunner, drawing the largest share of fintech funding globally, with $21.4 billion in the first half of 2024.
● Mobile banking users will exceed 4 billion by 2026
Here I would like you to get acquainted with some of the most game-changing fintech trends right away.
● Embedded Finance – What if one day your financial app begins offering sleek financial services? This is what embedded finance is all about. No wonder businesses all across the globe have already begun offering seamless financial experiences via their apps, on the contrary, most people believe this trend to be a Swiss army knife.
● Open Banking – The evolution of open banking APIs and ecosystems keeps on evolving now and then. It’s more about securing the scope of data sharing between the financial institution and third-party services leading to more inter-connected and user-friendly solutions.
● Artificial Intelligence and Machine Learning – There was a time when AI and ML were just buzzwords but not anymore. Today, they have become the backbone of the modern fintech landscape. So what exactly do these disruptive technologies assist in? Right from detecting fraud to offering personalized services, they can be your accurate financial advisor, detective, and personal shopper all in one app.
● Blockchain and Cryptocurrency – Blockchain and digital currencies are no longer limited to tech enthusiasts. So in other words, mainstream adoption is possible at any point in time. The rosy future is knocking at your door, open it right away.
● Regtech – Regtech or regulatory technology is more like GPS compliance leading banks and fintech to stay right on the path without much worries.
● Buy Now Pay Later (BNPL) – No wonder flexible payment options are gaining more and more popularity like never before. In simple words, it is much like having a financial fairy godmother offering you help secretly and to a great extent.
● Enhanced Cybersecurity – With the severe evolvement of cyber threats, fintech apps no wonder have to up their security game. The digital fortress is right at your service, be it quantum-resistant encryption to multi-factor authentication, these are some of the sure-shot ways to keep your financial data safe. Time to guard your assets.
● Robo-advisory Services – Last but certainly not least, having these digital advisory services means making the most of your financial wizard at your fingertips. These services offer everything from personalized investment advice to optimizing the portfolio, allowing you to make smart investments and all this at a significantly low rate. And now here comes the big one – how to develop a fintech app. A step-by- step guide that needs to be considered.
How to build a fintech app?
Step 1 – Determine the type first
Fintech apps are many so you cannot just come up with a random choice or go with the flow here. You need to be sure which type to choose as this decision of yours will impact every single aspect of the project. As I mentioned above some of the main categories to explore, you can delve in deeper as I am sure you will find lots and lots of information regarding the same. Now here I will guide you regarding the three main categories:
● The first one is personal banking and insurance apps, this turns out to be one of the most expensive categories because developing insurance apps and banking apps is a complicated project and is time-consuming when it comes to development. Now these types of apps mainly comprise two interfaces that serve numerous features and functionalities such as enabling administrators to gain adequate visibility into accounts and allowing customers to easily access and make relevant changes in their private accounts.
● Lending apps is altogether another category which is less expensive when it comes to development. Unlike consumer-facing apps, this one requires immense interaction which can be quite an issue in regards to security.
● Lastly, we can think of investment apps just to display accurate information regarding consumer investments and enable them to take numerous actions such as buying and trading stocks.
● To successfully develop any of these app types, you might want to hire Android developers and iOS developers who have experience in fintech projects. Their expertise will help ensure that your app meets the necessary standards and user expectations across different platforms.
Step 2 – Conducting Adequate Market Research
The very next step to take is to conduct proper market research. There is no denying the fact that fintech is one of the most talked about industries when it comes to buying apps and developing existing ones. But have you ever wondered what you will do in case of an economic downturn? Mitigating the potential risks is extremely important especially when the landscape is uncertain. However, you can opt for secured financing which can certainly lead to long-term success. The stepping stone here is to keep core tabs on the industry, by doing so you will have a better understanding of what type of app needs to be developed, what can be a good market fit, and above all, what ultimately consumers want.
It is advisable to develop products that can easily bridge the gap between the marketplace and customer needs. This is one industry where the marketplace and customer needs are in constant flux. So, understanding the market thoroughly is the ultimate option to consider.
The question is how? Well, you can think of going through all the recent articles from industry publications just to keep a hawk's eye on the ever- changing trends. In addition, do not forget to audit your competitors. That’s important if you want to deliver a more competitive product.
Step 3 – What about Your Customer’s Persona?
The next step is to create an amazing customer persona. Now this cannot be skipped at any rate. It is very important to understand who the real-world users will be, what their preferences are, and how they will make the most of the app. Unfortunately, fintech companies miss this step more often than expected. So take an adequate amount of time in conducting proper research and build proper personas just so you can empathize more and more with your end users.
Step 4 – Budgeting
The next step is to budget accurately. Usually, the cost of app development projects tends to range from $50,000-$300,000. So in other words, creating a fintech API, or any other app for that matter isn’t cheap, it takes a hell lot of time, money, and energy. Also, the price can differ in regards to the app’s complexity and complications or how many core features you are willing to incorporate. Also, budgeting in advance won’t make you any miser. In fact, in many cases, it is extremely important as you can cut irrelevant corners sooner or later.
Step 5 – Think hard on app features
The next interesting step to take into account is to look deep and find out what features and functionalities you are willing to incorporate into the app. If you are confused, then you can consider these below-mentioned features and capabilities such as:
● Data encryption
● User authentication
● Credit score checking
● Payment integration
● AI learning
● Intuitive dashboard and reports
● Push notifications
Also, it is advisable to develop a version that works wonders on both iOS and Android.
Conclusion
So this is it for now! This is what the fintech app industry is all about. I hope you did find the following post worth your read and more worthy of sharing. If so, it would be great if you could share seamlessly among your peers and help us reach out to more people at once. Every business is attracted to the concept of fintech so to deliver a more competitive product, it is advisable to hire a reputable fintech development company that carries immense knowledge and expertise and offers the best possible solutions from their doorstep. Also, keep watching the space to know more about what’s yay and what’s nay in the fintech industry! Good luck!
