Fintech App Development Process: A Complete Guide 2024
The fintech industry is evolving and is expected to reach over $37 billion by 2026. Thus, if you are planning to develop a fintech app and looking for a complete guide, this post is for you.
Here we have included all the necessary information ranging from the cost of development to its process. Let’s dive in and check the content of this post:
What Is Fintech?
In simple words, fintech is a digital technology that helps to manage financial services and products. Moreover, fintech is a short-term for the financial sector it includes a huge variety of innovations and streamlines different aspects of finance.
Fintech provides a facility for payment transfers, money management programs, financing, insurance and financial planning, and much more. The fintech industries challenge traditional financial institutions by using modern technologies to compete. It uses technologies for data processing with advanced additional layers of protection for securities from fraud.
Fintech Market Caps
Worldwide the fintech market is growing 18.5% compound annual growth rate (CAGR) from 2022 to 2032. The COVID era plays an important role in the growth of the fintech market as people adopt contactless payments and digitalized financial services.
In India, the fintech market was valued at over $584 billion in 2022. Fintech companies have a market share in loans of over 52%.
What Are The Latest Fintech Trends?
We have gone through the market and identified five major key Fintech trends that will help you know which market to tap. Let’s dive in and check these trends:
Improves Banking Mobility
Traditional banking is a very hazardous process of transactions while digital banking takes a boost of growth because it is a more effective and time-saving process. People always go with the easiest and most affordable ways so what more easier than managing all the transactions with just a mobile application? Now, most banks have started using fintech solutions to avoid physical interactions and provide online facilities to their customers.
Application Of AI In Fintech
AI’s application in fintech drastically affects financial sectors as it assists growth, provides better customer interaction, and streamlines operations to navigate companies in this dynamic environment. AI in Fintech app development helps in increasing cybersecurity and performing cross-selling/upselling which helps you increase revenue.
AI is not limited to just startups, there are companies like Venmo and more that are using Fintech enterprise AI app development services to upscale user-experience in their store.
Market Democratization
Democratization means giving more opportunities to banks and other financial institutions to engage with more customers at the most affordable price without facing barriers. Fintech provides its customers with facilities to open a bank account with just a mobile application who are unbanked or stay away from the digitalized world. Additionally, it provides various modern assets, tools, and digital assets available for all.
Self-Employed Products
Self-employed people like freelancers are the main role models for fintech companies. Fintech provides facilities such as collecting payments, printing receipts, monitoring taxes, and risk management tools for financial stability. Fintech is the best area providing a bunch of tools and services to remote job seekers.
Development Of Crypto
The market share in crypto had a drastic increase over the past few years. Fintech offers a blockchain technology that offers undeniable benefits and develops at a fast pace. Financial institutions can use blockchain technology which can enhance international payments, reduce costs, and improve financial security.
Types Of Fintech Applications
If you still looking for an idea to build a fintech application then just have a look at the types of fintech applications first.
Online Banking Apps
Through mobile banking app development services a person will be able to manage their bank accounts and perform a transaction without going to a physical branch with the help of online banking. We are talking about both mobile and net banking.
Online banking can provide all the services that can be given by a physical bank like opening a bank account, checking and managing the balance, performing a transaction, getting a loan, investing in assets, etc. Its main plus point is it gives higher transparency and 24/7 access to funds.
P2P Fintech Apps
Fintech provides backend infrastructure to support logistics transactions for their customers by providing them with higher transparency and security features. They play a role as intermediaries that connect payment service providers to their customers to facilitate web and mobile payments.
It fits best with the typical ecommerce ecosystem and provides better convenience to customers. This facility gives more opportunities to small businesses to stand up in the market competition by providing them with credit and debit cards and various online methods.
Insurance Technology Apps
Insurtech provides their customer with higher effectiveness in dealing with the application of insurance coverage and processing claims. It makes more easier for financial institutions to manage risks.
Insurtech not only helps in managing claims but also helps agents to better analyze onsite risk and make better deals. Insurtech is a new niche that is developing constantly in the modern market. It’s not just a simple application as it uses internet devices and AI to better identify a persons risk profile and lifestyle.
Trading & Investment Apps
Stock trading app development services are not just beneficial for the wealthy but also provide support to small traders by eliminating intermediaries like brokers and other barriers which lowers commission costs, and makes better bidding trades and purchases.
It also provides bots as an agent who analyzes the market and manages the customer portfolio to make trades. They use modern AI technology and machine learning to identify a client’s financial situation and to manage risks.
International Finance Exchange Services
There are online international exchange services that come under the Fintech industry where their users can easily exchange desirable currencies. Financial institutions dealing with electronic money need a platform to perform international transactions and thus they depend on companies like Fly Finance, Paypal, and more.
Moreover, you can even develop a cryptocurrency app that enables a user to trade in cryptocurrency. The app uses modern blockchain technologies and works similarly to a broker a person can deposit fiat currency and take back crypto. Some platforms also provide interest to their customers for maintaining a crypto account.
5-Step Fintech App Development Guide
Market Research And Niche Analysis
First of all, we have to select a niche on which topic our application is based. It’s the most important process because all business or work depends on a good and relevant niche. A customer must know the purpose of building an application for which aspect of fintech it relocates and who are its target audience.
One has to select whether it is a finance app, money transfer app, trading app, funding app, internet banking app, or something else.
UI/UX Designing
The most important thing to keep in mind before building an app is that the application must be user-friendly, fulfill modern-day needs, have a better user interface, and be developed as per our niche’s requirements. One should collaborate with the UI/UX team to discuss better things about the design.
The UI/UX design includes developing the frontend and back-end design of the app and also it must have modern robust security features.
App Development
Outline the product feature and identify what problems your fintech app solves and how the users would interact with it. Address them what your target audience demands. It’s easy and budget-friendly to develop the minimal viable product (MVP) which is the base of the application and contains all the components of the application.
Testing And Analysis
Once the design is set and development is completed it’s time to test the application. One should look at the bugs, security, consumer usability, performance, and usability tests. Security is the main area to test because if the application is lacking in security then it’s very harmful to the organization’s reputation and goodwill.
Deployment & Support
Now when everything is all set it’s time to launch the application to the locatable app stores and advertise it as much as possible. After launching the application collect the feedback from the customers and analyze them. After collecting the feedback monitor all the pros and cons of the application. And after all this process we have to monitor the regular day-to-day working and updates of the application.
How Much Does It Cost To Create A Fintech App?
Fintech app development cost depends on various features of your projects such as app type, design element, or advanced features. Some of the features that can affect the cost of developing a fintech app are:-
App Security
For fintech apps, user data and network security a very crucial factors to look upon which can affect a major cost component. Advanced security algorithms, biometric authentication, and the latest blockchain decentralized database can also increase its cost.
Data Analytics
It is one of the basic features of fintech apps to track a user’s financial activities. With this feature, a user can analyze his past financial records. They can also demand reports or transactional documents, etc.
Artificial Intelligence
By using AI-based algorithms, fintech apps provide data-driven insights for investment decision-making and guide users about financial planning. Finding irregular patterns of transactions is important for preventing security issues. Adding AI technology to the app may increase its cost.
Discuss the budget of the fintech application because the average fintech app development cost between $10,000 to $80,000 and ongoing maintenance can also be counted so it is a very crucial decision to set the budget before building an application.
Top Fintech Apps In The Market
Revolut (Banking)
There are over 53 billion customers who use Revolut globally. This is one of the most popular fintech applications in the banking sector which operates online. Revolut supports transfers in 36 currencies and ATM withdrawals in 120 currencies with the help of an app only.
PayPal (Payment Processing)
PayPal allows its users to send and receive money through an online payment system which is a type of digital wallet. Users can link their bank account, debit, or credit card to a PayPal account and carry out international transactions.
Wrapping Up
We hope that the information given above is useful for you in building a fintech application. There are various fintech app ideas mentioned above.
The app development process for FinTech will only grow as everything is going online. It will become harder for traditional banks to compete with modern digital banks and IT companies for that they need modern Fintech technologies. Even the world’s leading banks are investing in fintech finding a more suitable way to interact with their customers. It uses certain automation tools and streamlines projects.
Moreover, if you are looking for a finance app development company that will help you gain the best out of your idea then we will be the perfect match for you. Connect with us and share your requirements to know how we can help digitalize your idea.
