The dynamic market of finance businesses keeps on changing, making innovation important. Recent innovations have already transformed the way we handle and transact. So, if you are building a fintech app, innovation is a must.
As the fintech industry rapidly expands and smartphone use grows, there’s a pressing question: how to build a fintech app? Because developing a fintech app has become a lucrative business for entrepreneurs.
Experts anticipate that the global fintech market will grow at a compound annual growth rate (CAGR) of around 20%.
And reach a market value of around $305 billion by 2025. The largest fintech companies contribute to the growth by attracting new investors and implementing cutting-edge technology-driven solutions.
Fintech has disrupted the financial industry and has become a billion-dollar sector. Predictions indicate that the fintech market will exceed $37 billion by 2026.The fintech industry will experience exponential growth. By 2025, experts project digital transactions to reach a total value of $10.52 trillion.
But what does it take to embark on this impactful journey?
In this blog, we will understand the types of fintech apps and the technology trends. We’ll explore user-centric design principles and delve into the detailed process of developing a fintech app.
Let’s begin…
What is Fintech App?
Fintech apps are digital platforms that provide financial services. Fintech companies offer their services through apps or software. These apps allow users to access, manage, or gain insights into their financials.
Fintech apps provide online financial services, including banking, payments, fund transfers, portfolio management, loans, insurance, stock purchases, and sales.
A critical aspect of any Fintech app is how secure transactions are. Customers trust apps that offer better data protection. Therefore, these apps adhere to strict international security standards such as PCI DSS, ensuring full protection of users’ personal and financial data.
Specific compliance laws, such as Know Your Customer and Anti-Money Laundering (AML), apply to all Fintech businesses in the US. Unlike traditional financing, Fintech provides 24/7 service to its customers.
However, there are challenges to Fintech app development, which you need to understand before starting your project.
Understanding Different Types Of Fintech Apps
Fintech apps wield the power to control finances at your fingertips and unleash the potential of your money. Mobile banking apps, investment platforms, and peer-to-peer lending platforms foster financial connections. They also safeguard your financial goals and facilitate seamless transactions.
Together, these different types of fintech companies will change how we bank, invest, and manage finances. Let’s explore various types of fintech apps in detail:
Mobile Banking Applications
Mobile banking apps in fintech have transformed how people manage their finances on iOS and Android. You can use banking app development to create platforms that manage functionalities like account access, balance checks, transaction history, bill payments, money transfers, and investments.
With robust security measures in place. Mobile banking trends provide efficient, convenient, and accessible finances to users on the go.
There are apps like
These are great examples of mobile banking applications.
Budgeting Applications
Budgeting apps are a way for individuals to track and manage their finances online. These apps provide features to create budgets, set financial goals, analyze spending, and track expenses. There are various budgeting and investment apps available in the market today which help users to make informed financial decisions.
Apps like Mint, Goodbudget, and Oportun are great examples of budgeting applications.
Insurance Applications
Insurance application in fintech is referred to as Insurtech. It has simplified the process of managing insurance policies and claims. Through these insurance apps, users can buy insurance, calculate premiums, and apply for insurance claims conveniently from their smartphones. With seamless integration of digital documentation and secure communication with the insurance mobile app, it enhances the overall customer experience.
Some of the examples of insurance applications are:
Stock Trading Applications
Stock trading applications have made investing in stocks more accessible and user-friendly.
With Features like
Help users in analyzing market trends. Thus, they can make informed trading decisions and potentially generate returns on capital.
Let’s dive into some great examples of stock trading applications, and they are:
How To Build A Fintech App? 8 Essential Steps For Success
How to develop a fintech app that will have an edge over your competitors and meet the needs of the demanding clients?
Want to build a Fintech App Solution? Hire the Leading Fintech App Development Company for Cutting-Edge Solutions.
It might be challenging to gather your thoughts and build a step-by-step plan for the mobile app development process. Therefore, we have prepared a guide to help you create a fintech app that meets your requirements. Let’s understand how to build a fintech app in detail:
1. Choose A Fintech Niche
The first step in developing a fintech app is identifying a niche within the financial industry. This involves conducting market research to uncover underserved areas or specific customer pain points. By selecting a niche, you can tailor your app’s features and services to address the unique needs of your target audience.
2. Deal With Security And Legal Compliances
Dealing with the complex system of security and legal compliances is the second crucial step in crafting fintech software. You can establish partnerships with legal experts to ensure your app adheres to regulatory requirements.
This will safeguard user data with robust encryption and stringent privacy measures. From data protection to financial regulations, dealing with legal compliances can lay a solid foundation for your fintech application.
3. Create A Comprehensive Concept And Feature Set
The vital third step in shaping the fintech app is to create an all-inclusive concept and feature set. You can unleash your imagination and craft innovative solutions to transform the way we interact with finances. From seamless user experience to cutting-edge technologies, envision a fintech app that blends functionality and simplicity.
4. Hire Or Build Your Own App Development Team
Bring together a team of tech professionals united in purpose and equipped with cutting-edge skills as you embark on building your fintech application. A successful fintech app depends on the app development team structure you build.
It’s essential to analyze the requirements and understand fintech app features to proceed. Afterward, you can focus on hiring an app development team, which involves:
5. Choose The Right Technology Stack
In this step, selecting the right fusion of cutting-edge technologies, languages, and frameworks is important. You can harness the power of the right technology stack. Along with API development, this creates a seamless and secure user experience. Some popular technologies for fintech application development include Python, C#, Ruby, Kotlin, C++, and Java.
The technologies used based on the platform can be bifurcated as:
Read More: How to Choose the Best Mobile App Development Technology in 2024?
6.Design UI/UX
Do you feel concerned about the design of your fintech app ui?
It is time to build real app designs!
UI/UX design services employ tools such as
And others to craft an intuitive and appealing interface
Create an intuitive and visually appealing user interface that is harmonious with the user experience. That elevates their financial journey to new heights.
7. Develop An MVP Or Fully-Functional App
Give life to your design by crafting a Minimum Viable Product (MVP). evelop a functional prototype that showcases your core features, captivating early adopters and investors. It is a pivotal milestone that sets the stage for further refinement and growth of your fintech app.
You can also choose to develop a fully functional fintech app with extensive features, functionalities, and user experience elements. This includes:
NOTE: A proper app development partner will help you choose the right technology stack and explain why the specific technology should be used in your application.
8. Test, Deploy And Maintain Your App
The last step in developing a fintech app is to enter the realm of continuous improvement. After creating an MVP or a fully functional app, testing for functionality and security is essential.
We can deploy your fintech app by
Ensure your app remains reliable and provides a seamless financial experience for your users with ongoing mobile app maintenance.
Feature To Add In Fintech Application
There are some must-have features in all Fintech applications. Here are seven of them for you to consider for Fintech Application development
1. Sign Up And Sign In
A smoother user journey requires an effective onboarding process, which should be evident right from the signup process. Design the signup process to quickly onboard users.
Offering a social media login process can set your app apart. Users should be able to choose among different authentication methods for logins. Using such secure signup and sign-in will help establish trust among users right from the onboarding stage.
2. Dashboard
The dashboard gives users a comprehensive overview of their financial information and activities. Users can leverage the dashboard to manage financial investments, daily transactions, and loans. Designing a personalized dashboard with relevant graphs and charts offers users clearer data displays.
It can display account balances, transactions, and other details of a user’s linked bank accounts in one place. It allows users to set budgets, categorize expenses, and track spending patterns, investment portfolio breakdowns, and performance analysis.
Users can regularly track their economic progress with all these insights into their financial activities in a dashboard.
3. Payment Gateway
Integration of Payment Gateways is necessary for secure transaction processing. These gateways act as mediators between users and merchants, facilitating secure transactions for financial apps.
Multiple payment gateways and payment methods will increase user adoption, improve access, and reduce transaction failures.
Multiple payment gateways ensure widespread use and availability. This is because many regions support specific currencies and payment methods. You can leverage custom payment gateway development to custommize payments for your users based on their regions.
4. QR-Code Payment
QR-code payments in fintech allow users to make mobile payments conveniently from anywhere and anytime. Users can instantly make payments by scanning QR codes displayed by merchants. They can even generate unique QR codes to receive payments from others into their bank account.
Open a bank account and set a PIN code to transfer payments securely. You can also charge merchants monthly for having their own QR code to accept payments.
QR codes are becoming a more common means of payment. By 2025, the number of QR-code users in the USA will reach 99.7 million. This indicates how adding QR codes to your Fintech app can help attract more customers.
5. Security
Data safety is crucial in a Fintech App because users entrust the platform with their personal
financial information. Some of the security features that you can add are,
Fingerprint scanning: It scans the unique pattern of your fingertip. Fingerprint scanning requires a touch to monitor, and it is hard to fabricate the fingerprint.
Facial Recognition: analyzes traits like eye distance and nasal structure to authenticate logins based on user-specific features.
Two-factor Authentication: requires users to verify their identity. Using both a password and a code sent to their registered phone or email.
Voice Authentication: analyzes the user’s voice pitch, accent, and speaking habits to create a voiceprint for authentication. Users need to talk into a microphone to authenticate their access to the app.
With the integration of all these security features, unauthorized access to the platform is virtually impossible.
6. Chatbots
AI-powered chatbots are becoming a common feature in apps across all industries. They reduce the customer service workload by providing instant assistance with queries or grievances, thereby cutting response times.
Customers can quickly ask questions about various topics, including financial management, account tracking, account balance, add-on services, etc. If a complex issue requires more attention, chatbots can forward it to a dedicated customer service executive for handling.
7. Push Notifications
Instant Notifications and alerts features can keep them informed and engaged with the app. This feature notifies users on their devices about transactions, account updates, low balances, upcoming bill payments, and promotional offers.
These real-time notifications keep users informed about their transaction status. Help them manage budgets effectively, track portfolio updates, avoid late fees or penalties, and make informed financial decisions.
4 Challenges To Build A Fintech Mobile App
From skilled developers to maintaining data security, a business can face many challenges while developing a Fintech app.
1. Finding Skilled developers
With the Fintech industry’s growth, the demand for Fintech app developers has been increasing.
Finding developers with experience in building a Fintech app is challenging. Developing a Fintech app requires knowledge and understanding of the different aspects of its development.
For example, a Fintech developer needs to have skills in,
Skills are not the only factor that matters, and cost also matters. You can outsource software developers instead of having an in-house team, reducing overhead costs. Plus, you won’t have to worry about training them.
2. Picking the suitable Tech Stack
Choosing the right tech stack is crucial to building a secure and scalable Fintech application. It forms the basis of creating. For instance, you can select fast and reliable programming languages.
It should also be compatible with major cloud platforms like AWS, Azure, and Google Cloud. So, adapting to the new scale is easier if your business grows. The app will need to manage large volumes of data and user traffic.
Here, Database Management solutions such as MySQL or MongoDB can assist Fintech apps in effortlessly handling millions of transactions. Similarly, there are many other aspects of the Fintech technology stack that you need to consider.
3. Data Security and compliance
The Fintech industry is one of the domains most targeted by cyber attackers. In March 2024, the American Express data breach exposed customers’ personal information, including names, account numbers, and card details. Due to unauthorized access through a third-party merchant processor.
Amex reported OCABR for 16 data breaches between January 19 and March 7, 2024. This shows why Implementing a robust security infrastructure is so crucial.
These hackers can perform several attacks that you must consider when designing security measures. One of them is a DDoS (distributed denial of service) attack. It attempts to bring down an application by overloading it with traffic.
To prevent such attacks, you must consider features like rate restriction, KYC, biometric authentication, and two-factor authentication. You must also follow the FTC Safeguards Rule and the CFPB Fair Credit Reporting Act.
If your app involves investment and trading, you’ll need permission from the Financial Industry Regulatory Authority (FINRA).
4. Designing the right UX
The biggest challenge for Fintech firms is creating an app that simplifies financial terms and processes. Therefore, the focus must be on creating a user-centric interface that offers a frictionless user experience.
Implementing extra steps like a confirmation prompt or alert box can help users avoid making easy mistakes. Further, balancing appealing designs, features, and a smooth workflow is essential.
A Fintech app needs a simplified UI with highly responsive elements. This will allow users to navigate through the app and access features easily.
Tech Stack To Build Fintech App
Here is a list of the tech stack that you need for your Fintech app
Database Management Systems
Relational DBMS: Stores financial data in separate tables with rows and columns, organized efficiently using SQL. Some popular databases are MySQL, PostgreSQL, and Oracle Database.
NoSQL DBMS: Supports flexible data models and distributed processing and manages large volumes of unstructured or semi-structured data. Some tools are MongoDB and Apache CloudDB.
Cloud Storage: This data storage method is ideal for Fintech apps requiring expansion and cost-effectiveness. It uses resources from cloud providers like AWS or GCP, removing the need for in-house infrastructure.
Frontend Technologies
Read More: Most Popular Frontend Technologies To Use in 2024
Backend Technologies
Cloud providers
Security
Technology Trends That Must Be Included In Fintech App Development
Key technology trends should be considered to stay ahead in fintech app development. These include Artificial Intelligence, Fintech, and Machine Learning for personalized service. Blockchain ensures secure transactions; cloud computing ensures scalability; open banking facilitates data access, and mobile-first design enhances user experience.
Integrating these trends ensures a competitive edge and innovation in Fintech solutions. Let’s understand each of these trends in detail:
Artificial Intelligence & Machine Learning
Fintech AI and ML can assist with fraud detection, customer support, and personalization in banking apps. The fintech market uses AI chatbots to help customers round the clock and improve customer experience.
Internet Of Things (IoT)
With IoT integrations, personal finance apps can provide connected devices with real-time data, analysis, and personalized financial services. From smart payment and asset tracking to smart home banking and personalized insurance, IoT enables seamless and secure interactions.
Through IoT app development, this is possible to enhance the finance experience for your users.
Blockchain
Blockchain is a FinTech trend that enables cross-border payments, smart contracts,, and decentralized financial solutions. So, by integrating Blockchain, lending apps are reshaping the economic landscape. Promoting transparency and trust and empowering users with greater control over their financial activities.
Cloud Computing
Cloud Computing offers flexibility, efficiency, and cost-effectiveness. Fintech app features leverages cloud platforms to securely store and process vast amounts of financial data. So, this technology trend enables seamless collaboration, real-time updates, and access from any device. It enhances fintech services’ performance, ease of use, and speed.
Biometric Authentication
This technology transforms security in many fintech apps by providing unique biological characteristics like fingerprints, iris scans, and facial recognition. These features offer robust and convenient user authentication, enhance security, and reduce the risk of identity theft and fraud.
Also, Biometric Authentication ensures that only authorized users can access and transact. They are safeguarding sensitive financial information.
Open Banking
Open Banking, through open APIs, can allow users to view multiple accounts. Additionally, it also allows to initiate transactions, and access personalized financial advice in a user-friendly manner. This financial technology fosters innovation, competitive advantage, and improved user experiences in the fintech ecosystem.
Mobile-First And Cross-Platform Approach
Fintech apps are embracing a mobile-first and cross-platform approach to cater to the evolving needs of users. Therefore, by prioritizing mobile devices, fintech apps ensure convenient and easy access, providing a seamless user experience.
Additionally, adopting cross-platform development ensures consistency across various operating systems. This allows users to access financial services on different devices. This strategy maximizes reach, user engagement, and adoption of fintech solutions.
How Much Does Fintech App Development Cost?
An MVP, a basic fintech app with limited features, may cost anywhere between $12,000 to $15,000 or more. Simultaneously, the Advanced version, with complex functionalities and third-party integrations, might cost around $50,000 to $100,000 or even more.
The cost of building a fintech app can vary depending on several factors.
It is important to consider ongoing maintenance, updates, and security expenses. We are working with a skilled development team. A thorough cost analysis will help you determine an accurate budget for your fintech development app estimate.
A fintech website and app will transform how people manage their finances by embracing the power of fintech.
Read More: How Does Robinhood Work and Make Money?
How Excellent Webworld Can Help You Build Your Fintech App?
Excellent Webworld is crucial in building your fintech app, offering various services and expertise. Firstly, we can assist in the app development process by utilizing our in-house technical skills to create a robust and secure application that meets your specific requirements.
This includes designing the user interface, integrating relevant financial APIs, and implementing necessary FinTech app features like payment gateways and transaction tracking. Secondly, our highly experienced team of mobile app developers, designers, project managers, QA analysts, and other members will create an astonishing fintech mobile application.
Excellent Webworld also offers ongoing support and maintenance to ensure smooth operation and address any technical issues. Contact US to Transform your fintech vision into reality today!
Conclusion
Developing a fintech app can be a rewarding and impactful endeavor. Follow a step-by-step approach to build a fintech app and create a revolutionary financial solution.
Take the first step. Empower yourself with knowledge. Build a remarkable fintech app with extensive features. Transform how we interact with money.
Feel free to contact Us to initiate a business consultation and understand your requirements!
Frequently Asked Questions
Fintech apps generate revenue through various channels. These includes transaction fees, subscription models, commissions from financial services, data monetization, and partnerships with banks or financial institutions.
Also, through P2P lending, Fintech apps allow individuals to receive loans directly from others.
To develop a complete working mobile banking app, the below steps should be followed:
To create a FinTech app, you need to define your app’s purpose and target audience. Next, form or hire a skilled development team to design and develop the app with essential features like secure transactions, data encryption, and integration with financial services.
Programming languages like Swift and Kotlin should be used for iOS and Android Fintech apps. At the same time, Javascript can be used for cross-platform app development using frameworks like React Native and Flutter.
The time required to build a Financial app depends on complexity, features, team size, and development approach. However, to develop a fully functional and robust fintech app, it takes several months to a year or more.
AI in Fintech can greatly enhance the capabilities of a fintech app by enabling intelligent automation, personalized recommendations, fraud detection, and risk management. Also, AI Fintech makes it a valuable addition to improving user experience and efficiency in financial processes.
Article By
Mahil Jasani
Mahil Jasani began his career as a developer and progressed to become the COO of Excellent Webworld. He uses his technical experience to tackle any challenge that arises in any department, be it development, management, operations, or finance.
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