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Global digitalization has been permeating nearly all sectors, including the fintech industry. As per the Business Research Company, the fintech market, valued at $127 billion in 2020, is projected to soar to $309.98 billion by 2022, exhibiting a CAGR of 24.8%. With the growing prominence of fintech in substituting traditional e-commerce, banking, payments, and wealth management, the need for fintech application development is more evident than ever. This surge in interest drives business owners and professional accountants to turn to fintech for easier financial management.
If you’re pondering over fintech application development or even wondering how to create a DeFi app, this article can serve as your guide. It will offer insights into what fintech entails, the various types of fintech applications, their key features, and how to go about fintech application development.
Diverse Types of Fintech Apps
Fintech, a fusion of technology and finance, spans over various sectors including blockchain, banking platforms, and budgeting applications. This expanding domain primarily focuses on enhancing customer-centric services.
For effective fintech application development, clarity about your product’s value to consumers is vital. To assist you in this endeavor, let’s delve into the diverse types of fintech apps and some popular examples.
- Insurance Apps: Catering to the insurance industry, these apps streamline claim processing and policy administration while reducing fraud probability. Key features encompass payment processing, claim filing, policy details, and quotes. Well-known examples include Geico Mobile and Lemonade.
- Investment Apps: Ideal for individuals interested in the stock market, these apps offer financial asset research, investment opportunities, and facilitate effective investment management. Essential features include currency, savings, and credit management, product comparison, real-time alerts, and client support. Robinhood and Wealthbase serve as great models.
- Banking Apps: These apps empower users to manage their bank accounts and carry out financial transactions independently and swiftly. Traditional banks are increasingly integrating banking apps with systems like Google/Apple Pay or PayPal to stay competitive. Starling and Monese are noteworthy examples.
- Regtech Apps: Regulatory Technology (Regtech) apps are designed for finance-handling companies, aiding them in compliance with laws set by regulatory bodies. These solutions enable monitoring of risks, regulatory changes, transactions, and reduction of false non-compliance alerts. Apps like 6 clicks and PassFort exemplify robust regtech applications.
- Lending Apps: These apps enhance efficiency in loan request processing and borrower-lender interactions. Key features include credit score, loan application form, billing, and payment. Earnin and PaySense are popular lending apps.
- Consumer Finance Apps: Primarily aimed at expense planning and management, these apps assist users in saving money and forecasting future account balances. Mint and Money Patrol are such fintech applications.
Key Fintech Application Development Requirements
Security stands paramount in fintech application development. Implementing two-factor authentication, biometric security, registration via phone number, and dynamic CVV2 codes can bolster your app’s security. Regular penetration testing, maintenance, updates, and checks are necessary to ensure security.
Integrations form the foundation for platform building. APIs link various software apps, allowing commands to be issued to third-party service providers. This leads to cost-effectiveness improvement. Payment processing APIs simplify online shopping payment and checkout processes.
Simplicity is key in fintech application development. User-friendly designs with straightforward, accessible services are pivotal. Providing real-time analytics and statistics facilitates easy revenue recovery for users and companies.
Support is critical in the fintech segment. With substantial confidential data involved, it’s crucial to have technically trained consultants operating under stringent safety rules and requirements. If 24/7 support isn’t feasible, chatbots can be an alternative.
Whether you’re thinking about how to create a DeFi app or considering any other form of fintech application development, this guide should serve as a comprehensive starting point, illuminating the different facets of this intricate yet burgeoning industry.
Fintech application development is a complex process that requires deep technical knowledge. The steps we’ve highlighted for you can help to demystify how to create a fintech app.
Select Your Fintech Speciality
The initial step of fintech application development is to determine your niche. The market you aim to serve should guide your choice. Your decision could be to craft a novel fintech solution, such as developing a DeFi lending/borrowing platform, or refining an existing one, for instance, enhancing operational efficiency or incorporating social network integrations.
Considering the abundance of simple fintech applications like budgeting apps, standing out is crucial. An intricate solution could give you an edge. Once your niche is chosen, it’s time to ensure your fintech application development is legally compliant.
Address Regulatory Compliance
A significant aspect of fintech application development is complying with financial protection systems like KYC and AML, as well as privacy laws like CCPA, GDPR, LGPD, and PIA. Such regulations ensure the secure and limited access to user financial data.
The choice of compliance laws hinges on where your app will be used. Understanding the legal framework of the target country is vital for your fintech application development process. For example, in the US, there are numerous state and federal laws to adhere to due to the lack of a dedicated fintech regulator.
Ensuring legal compliance is pivotal to the success of your fintech application development.
Choose Your Features
Fintech application development must cater to your audience’s needs. Therefore, defining features is an integral step. Your app might be an improved version of an existing one, so think about usability.
Here are some key features to include in your fintech application development:
- Secure sign-in (with biometrics, voice or face recognition)
- Personalized notifications
- Budgeting and savings tracking
- Basic financial operations (money transfers, digital payments, balance checking, mobile deposits)
- Card number and QR code scanning
- AI-powered virtual assistant and chatbots
- Unique financial services (ticket purchases, charity donations)
- Cashback options
If fintech application development is new to you, the chosen development team will guide you in defining the features.
Work with a Development Team or Software Service Provider
Fintech application development often involves outsourcing as it is more cost-effective and less time-consuming than building an in-house team. The size and composition of the project team hinge on factors like technology, timing, and project size.
Typically, a fintech application development team includes:
- Back-end developer
- Front-end developer
- Business analyst
- Project manager
- Designer
- Product manager
- QA specialist
When selecting a company for fintech application development, consider their experience, hourly rates, and level of training. A proficient team will guide you in creating a clear project vision.
Design Great UX/UI
Design is as critical as security in fintech application development. Your app needs to be user-friendly, with easy navigation and efficient processes. For example, if you’re into banking app development, avoid complex forms for bill payments. Include the option for users to save payment details to facilitate future transactions.
Ensure your design is striking and puts your core features in the spotlight.
Develop an MVP
Creating an MVP (Minimum Viable Product) is a smart step in fintech application development. It allows you to validate your idea before launching a complete product. An MVP includes just enough features for initial users to provide feedback.
The MVP stage of fintech application development can attract investors, gather valuable user feedback, and minimize risk.
Test, Upgrade, Repeat
Once your full-fledged app is launched, the fintech application development process is not over. You need to perform A/B testing, gather customer reviews, and continually improve your app’s design and functionality.
Keep a keen eye on performance indicators like the number of active users, frequency of app launches, and push notification interactions. This feedback loop will keep your fintech application development on track to outshine your competitors and to ensure a smooth, secure user experience.