How to Develop a Fintech App a Step-by-Step Guide for You

Fintech is booming unprecedentedly, with new platforms and apps being launched daily. The American region saw the most fintech startups (11,651), followed by the EMEA and Asia Pacific regions (9,681 and 5,061). According to Allied Market Research, the global fintech technology market is projected to reach $698.48 billion by 2030 at a CAGR of 20.3%.

Gaining a competitive advantage is essential in this highly crowded market. You can make your app unique by leveraging fintech trends.

Downloads of fintech apps for mobile devices are increasing each quarter as fintech applications continue to generate interest. The cumulative downloads for financial apps reached a record-breaking 1.74 billion in 2022. Therefore, it is the perfect time to enter the fintech industry and collaborate with Fintech app development company. We'll learn how to create a fintech application today so that you can take advantage of this trend.

FinTech Trends for the Future

We have analyzed the Fintech Market and identified five key trends.

FinTech Strives to Improve Banking Mobility

The banking industry is moving away from the physical locations of service delivery and closer to consumers or, instead, to their smartphones. Digital banking has grown more rapidly since the pandemic. Many traditional banks began using FinTech to offer their services online to customers to ensure customer safety. This eliminated the need for any physical interaction.

Use of Artificial Intelligence

Data analytics and artificial intelligence enable FinTech to adapt to users' needs. FinTech mobile applications use AI interfaces with chatbots to provide customer service and offer personalized dashboards.

Blockchain and Crypto Development

Market participants explore crypto and blockchain ecosystems to ensure efficient management and regulation. Analysts believe blockchain technology is the most promising - it's developing quickly and has indisputable benefits.

Demonization of the Market

Market transparency is increasing, opening new opportunities for businesses, retail investors, and users. All users have access to various marketplaces, money management tools, and business models for financing, including digital assets.

Self-Employed

FinTech is driven by the self-employed, freelancers, and remote workers who need an app to track taxes, create invoices and receipts, and account for finances. FinTech also offers tools for financial stability and risk management.

What is Fintech?

Fintech is the integration of financial services with technology. Fintech is a technology-based approach to financial services that makes them more accessible.

The use of new technologies, such as AI and Blockchain, is critical to automate and improve the delivery of financial products.

Fintech has gained popularity among customers due to its convenience, security, and scalability. This is because mobile devices allow for banking, lending, trading services, and other financial services.

Fintech has become more innovative as new companies enter the digital payment space.

Fintech and the Future of Payments

Fintech has transformed financial services. The businesses in this sector are looking for innovative ways to impact the future of finance and banking.

Here's how innovation is transforming the financial industry.

• Fintech services and products are becoming more popular across all industries and sectors. The products and services have a high rate of adoption, which means they are not restricted to the financial industry.

• Contactless payment is no longer an alternative. Contactless payments have now become the preferred method of payment.

• Businesses are finding new ways to support customers as fintech companies rediscover client satisfaction. Everything revolves around the customer, from secure payments to 24/7 access.

• Mobile phones are ubiquitous, and technology is readily available, so banking has evolved into a virtual experience.

• Cryptocurrency, as a digital asset, is becoming more accepted around the globe, and Fintech is transforming to support it.

What are your options if you want to create a futuristic Fintech app? And how do you get started? Check it out.

Fintech applications types

Financial technology is a trendy field. Fintech apps can be classified into several main types. Let's take a look at the main types.

Wealth and Investing Apps

You can buy stocks and ETFs using these mobile apps from your home. These apps can also recommend investment options after studying your preferences.

Mobile Payments

Payment apps like Venmo or PayPal were designed to accept and make payments. Features like currency conversion and history of transactions are essential. As cross-border transfers grow, so do mobile payment apps.

Lending Apps

Lending apps are no different from other fintech apps in that they allow for a significant reduction of manual labor. AI capabilities are often integrated into lending apps to ensure the app provides optimal loan options.

Insurance Apps

Apps for insurance collect a lot of data from their customers. A streamlined process, with steps visible and a polished user interface, is a must. In addition, exciting apps allow users to insure one another.

Personal Finance Applications

Budgeting apps dominated the app store just a few short years ago. Every personal finance app has one main goal: to help users get a better picture of their finances.

Cryptocurrency Applications

Fintech apps can be classified into a separate class that is independent but resembles other fintech applications: wallets, insurance, investing, and payments. These apps are similar to other fintech apps, except they work with cryptocurrency.

NeoBanks

These are quick little apps that offer banking features from non-traditional digital banks. These apps are aimed at the unbanked, and they target specific niches like e-commerce or immigrants.

Also Read: How to Calculate the Salesforce Implementation Costs

Top 6 features to include in your Fintech app development

Your fintech application is crucial to your finance business. You must have the following features and functions to improve user experience:

Advanced Sign-In/Login

This first page of the app is where users can create an account or log in to their user profile.

It is crucial to make it advanced by implementing the two essential security app login features to avoid the risks of account theft. These features are not only beneficial for security but also for managing financial regulations and compliances.

Account Management

Users must add their personal information after signing up or creating an account to make the app more accessible.

Users can add additional account information such as name and contact details, manage privacy settings, check balances, automate payments, set budgets, and more.

Payment Gateway

Payment gateway integration allows users to connect their bank accounts or payment cards with your FinTech application, making the payment transaction process a breeze.

Push Notifications

Pop-up messages appear as a box in the notification bar/header of your users' phones when they don't use your app.

You can use push notifications to remind users to download your app.

Transaction History

Users want to know where their money has been spent and who they received it from when they check their account balance. Transaction history allows users to review past deposits, withdrawals, and purchases. It also includes dates, times, and other account information.

Chatbots

Chatbots are a great way to get quick assistance at any time. Chatbots powered by AI are a new trend in Fintech that allows customers to communicate with AI-powered bots. These bots continuously assess their problems and adapt accordingly.

You can improve the user experience for your fintech app by implementing AI chatbots.

Steps to build a Fintech application

The fintech roadmap is very similar to other app development domains. The app lifecycle includes both traditional and niche-specific goals. Here are the key steps.

Market Research

You must find your app's niche and solve the problem before developing an app. This will make your app the star of the market right from the start if built correctly. You can answer the following questions:

• What kind of fintech application do you wish to develop?

• What problems will Fintech solve? Personal finance, investment, reg tech, digital banking apps, or other apps?

You can use this to find your fintech app niche. After discovering your fintech niche, the next step is conducting extensive market and user research for mobile apps.

You can do this by asking the simple questions below.

• What financial sector will your app be targeting?

• What will your app's users be like? Who are they, and what is their profession or requirement?

• Are your users a certain age, region, or interest group?

• Your app will initially be restricted to the regional market. Do you then plan to expand it globally?

• Is your target market using similar apps as yours?

• What features would they like to see in a fintech app?

You can also ask and answer other questions related to fintech apps during the ideation phase.

Select a Fintech Niche

The first thing that any developer must do when he starts the fintech app creation process is to determine the niche of the financial institution. Before a programmer begins the fintech app development process, he has to choose the type of application the client wants and the area of Fintech on which the client would like to focus. This is because every business owner wants an app that is unique and doesn't want the same app as what is currently available.

Deal with Compliance

The next step after understanding the niche is to ensure compliance. The development team must consider all Fintech legal issues when building mobile applications for a financial institution. They must be able to implement the best protection systems, such as KYC (Know Your Customer) and AML (Anti Money Laundering), in fintech applications. These systems assist them in tracking their compliance. Fintech applications for businesses must comply with privacy laws such as PIA and CCPA. It helps to protect the financial data of app users.

The privacy settings for paid apps also depend entirely on the location in which the app will be used. This is because some countries do not have specific regulatory agencies, while others do. The USA, for example, does not have a fintech regulator that can comply with federal laws.

Define Feature Set

Next, you will need to define your business and development objectives. Your final product will be more satisfying if your functional requirements are more precise and clear. The detailed project description lays the foundation for essential and optional features. Your development team should perform a thorough business analysis to determine the relevance of each component based on user feedback and competition.

Design Compelling UI/UX

It's now time to bring your external app to life. App interfaces are a vital part of any solution. They interact with users and attract new ones. This aspect of development takes a lot of time and money.

In this step, the design team will create a cohesive design strategy based on research into content requirements, competitor analysis, user personas and stories, and customer journeys.

This stage will result in a final layout, which includes a detailed design description that describes each app screen's state. Your fintech app developers will have a complete picture of the application's look and feel.

Build the right team.

Fintech is a combination of finance and technology. The right mix will allow you to develop the solution that you desire.

Closed Loop is a team of fintech experts with extensive experience. Hire a team of experts or work with a app development company with relevant expertise.

You can hire an offshore company to develop your financial app. They'll work together with your team on-site. Having the right talent on your team to create a professional app is essential.

Select a Tech Stack

The tech stack combines programming languages, frameworks, and tools you will use to create your app. Consider what you will use for each component in advance to ensure your tech stack can do all you require.

• Language of Programming: Python is the most popular language. Python is more complex and allows for more development. It is the better choice for fintech apps.

• Frameworks: You'll need front- and rear-end frameworks for web and mobile development. You'll also need to select frameworks compatible with the programming language you choose, and that match your skill level.

• Database: The most common database types for fintech applications are ledger and relational databases.

• Fintech APIs: APIs are a great way to streamline your development process. They can be more efficient than relying on internal knowledge. APIs, for example, can enhance features like payment processing, stock trading, and chat support.

Your skill level and the type of app you are building will determine what tech stack is best for your app. You can get ideas from other fintech companies or competitors about what tools to include in your tech stack.

Develop an MVP

MVP development is a great way to test the feasibility of your cloud application development idea. You don't have to spend time on the UI/UX part of the MVP. Instead, focus on the core features and functionality.

It saves time and money. Once your fintech MVP is successful, you can add more features and turn it into a fintech app that offers a superior user experience.

Build, Upgrade, and Improve

This is a continuous process, unlike the steps mentioned earlier.

After the app has been launched, your fintech app development should continue. As you receive valuable feedback, continue to improve and upgrade the app.

New technologies and trends should be adopted periodically to improve and upgrade the products and processes.

Support after the sale is also necessary. It is a win/win situation when you have things like rapid response and improved problem-solving for customers.

Costs of Developing a Fintech Application

The costs of developing an app are primarily determined by the number of features you want to include, whether a mobile web app or a mobile app, and whether blockchain development will be involved. The longer it takes to develop and the more expensive it is, the more integration you will need.

It is only possible to give an estimate for some applications. Cost drivers will determine the development costs:

• The complexity and functionality of your application.

• Native app development for iOS and Android or cross-platform?

• The number and type of integrations.

• Dashboards and Animation

• Cutting-edge features (AI, blockchain, etc.) and more.

Fintech apps cost up to $300K, while simple, medium-sized solutions cost around $80K.

We recommend creating an MVP before you start building a fintech application. You can plan future development budgets and gain a deeper understanding of the core features by launching an MVP.

Top Mistakes to Avoid While Building a Fintech App

Knowing the best way to create your FinTech application is a great start, but to avoid the most common mistakes, you need to be aware of them. Here are the most common mistakes people make:

Unappealing User Onboarding

App onboarding screens are crucial in teaching users how to use your app. This is especially true when developing a fintech application containing many complex processes.

Many fintech companies must recognize the importance of designing creative onboarding screens for app users. This can significantly impact the user's interest and, ultimately, the app's churn rates.

Your fintech app's onboarding of users is the key to its success. Define your app's onboarding agenda and make it a process that users will enjoy.

Overloaded Functions

It's good to have a fintech app that is full-featured and that every user will love. But if the app becomes cluttered with unnecessary features, it can be not good. Users may find it irritating, or they will rarely use the app. It will cost more because of the additional functionality requirements.

Not Focusing on UX

User experience is crucial for fintech apps, whether it's a mobile or web app. Your users determine your app's success. You must take a user-centric design approach for your fintech app UI, including market research, app navigation planning, UX strategy, and much more planning.

Create a user-centric design for fintech apps that is easy to navigate.

Overlooking App Security

Fintech apps contain a large amount of personal data, including name, address, contact details, and bank account information. Custom finance software solutions are not without security.

Data Cleansing Not up to the Mark

Data from other sources accessed through your mobile app can be considered "dirty," as it may come in different formats. Some of these formats need to be fixed. You may receive outdated or inaccurate information when you use your mobile app.

A data import error can cause an inaccuracy, such as when your bank balance is $5000, but the screen shows $50. Developers often ignore the need for regular data cleaning.

By retrieving data using APIs such as open banking, data cleansing can help to fix data errors and inconsistencies. This prepares your app for analysis.

Do Not Test the App

As a user, you want to avoid using an app that crashes frequently or causes exceptions. It is essential to perform quality assurance at every stage of app development to avoid leaving any bugs.

Fintech apps are only sometimes thoroughly tested by certified QA engineers. Fintech apps need to be tested for financial compliance and app quality.

Tips to Monetize Your Fintech Application

The monetization models of a financial solution can vary depending on the beneficiary. You can profit from user offers, third-party services, or in-app transactions. Once your app is out in the world, you can find other revenue sources, but a consistent approach to business is required.

Subscriptions

Subscription-based models are the most common for all types of apps. Users pay a monthly fee for access to the app. It is best to offer a trial first so users can test the solution. A subscription fee is then charged to remove any restrictions on content or features.

Transactional fees

In this model, an application charges a fee for each transaction. The transaction fees can be applied to specific transactions or all types of payments. This revenue stream can be combined with subscription fees.

Ads and Referrals

Referral programs have been identified as one of the most lucrative ways to collaborate between a company and its partners. Fintech integration is a way to offer third-party services that are valuable to app users. This could be accounting or other fin-tools. The app owner earns more money if they get more users through a referral or ad.

Paid Access API

You can provide your API if you're a payment gateway. Subscriptions or pay-as-you-go are two options for reusability. Other popular choices for monetization include transaction fees and earning points. PayPal, Stripe, and Amazon Pay provide textbook examples of paid APIs.

Data Monetization

Streamed or available data can be used to generate revenue. Fintech can provide valuable insights into users. This can include customer spending habits, purchase histories, and average spending. This vast amount of information can provide valuable insights to your partners. The app policies should clearly state that data is shared and sold to avoid misunderstandings.

The Key Takeaway

Fintech is growing at a rapid pace. Consumers increasingly choose inherently digital NeoBanks and other online services such as online insurance, budgeting apps, and electronic wallets.

We all have to accept that online payment is the future. Fintech mobile applications can be an excellent solution for your online financial needs. They are easy to use and cost-effective. Fintech apps offer a user-friendly interface, are low-maintenance, and have the latest cybersecurity. Fintech apps require technical expertise. You're best off hiring a professional team to guide you.

It's the right time to join the growing number of companies building mobile apps in fintech. You can help shape the future of an all-digital world. Fintech apps are now more possible than ever before with the right idea.