Like every other industry, the Fintech industry is also budding with time. Fintech mobile app development is becoming the new hot trend in the market. While looking back in the year 2018, the industry took a jump and succeeded to reach around $112 billion. The entire financial business is escalating with the help of modern technologies at a fast pace. With the relentless growth of the fintech industry, the competition is also higher than in other industries. Not only competition but this industry is also offering enormous opportunities to businesses that are investing in the same.
If you are looking to go for financial service app development, you must focus on the different essential things as developing a fintech app is not like a cakewalk. There is N number of things that you must look upon to create an efficient solution. Whether it is due to not being proficient and experienced in the developed sector, a lot of start-ups end up being a victim of non-dependable app development companies.
Therefore, in the below article, we have compiled all the essential points necessary to consider while having fintech app development services. Let’s get through this complete guide to know about how to create a fintech app, its costs, different types of Fintech Apps, and others.
Get a Quick Overview of Fintech App
Fintech is a term that has been made with the combination of finance & technology. It represents any of the businesses that want to avail the benefits of technological solutions to create, automate or escalate the financial services and processes. In simple words, Fintech applications are financial technology solutions depicting the companies involved in offering financial services to their end customers with the help of developed software solutions. Fintech is known as the result of digital transformation serving consistently to industries in every possible way along with examining the growth chances for businesses and firms.
Apart from it, the beginning of the latest technologies in the financial sector is affecting a lot of ventures to adopt Fintech iOS & Android app development services for flawless transactions. Small and large organizations are offering different types of services by incorporating the flexibility and agility assured by Fintech Solutions. These services include online banking, quick payment, different payment gateways, real-time tracking, stock trading, digital insurance system, currency exchange, and many more. Fintech apps differ a lot from project to project as many of them apply data science technologies, machine learning algorithms, and cutting-edge solutions like Blockchain do several tasks such as running hedge funds or processing credit risks.
Why Should You Invest in a Fintech App?
Many start-ups and established businesses have developed their interest to know how to develop a fintech app, but do you know why firms are curious to invest in the Fintech market? It is one of the profitable markets at present. As per the sources, 64% of consumers have adopted two or more than those fintech solutions for different platforms. Current stats show that COVID-9 has contributed a lot to the industry. We have compiled some information about the fintech market, right from the number of start-ups in this segment to differentiation according to the region and top fintech segments. Have a look-
Some of the important markets stats to know-
- The market of financial services is forecasted to reach $26.5 trillion by the year 2022 globally.
- The global fintech market share is predicted to evolve at 23.58% CAGR between 2021 to 2025.
- Artificial Intelligence is a powerful technology that has a 38.25% market share in the fintech market in 2019.
- Regulatory technology (Regtech) and Blockchain are the fastest-rising sectors of the fintech industry.
- P2P (peer-to-peer) or digital lending, the second-largest segment in the fintech market has valued at $43.16 billion in the year 2018 and it is forecasted to rise to $567.3 billion by 2026 at 26.6% CAGR.
Below we have provided a graph that represents the number of Fintech start-ups differentiated by region, 2019. Check out the graph-
Popular Fintech Apps You Must Check Out
The fintech market is a broad sector, and it has growth opportunities for every new player. Various Fintech apps have got enormous popularity and a large user base in the industry. Which are those applications? Get to know about them below, if you want to acquire knowledge about how to build a fintech app, then you must consider them-
Different Types of Fintech Apps You Must Know!
Before choosing a financial app development company, you must get proper details and know what type of Fintech app will be the most appropriate for your business? The chosen Fintech app will have a direct impact on your product offerings and business model along with how your end customers handle their funds. Get insights into different types of fintech apps that are as follows-
1. Mobile Payment App
It is one of the fields where we can see the huge impact of Fintech in mobile technologies. Mobile payment apps have become an irreplaceable part of our lives as now we don’t need to carry any cash in our wallets. The reason behind this is multiple payment gateways integrated with the mobile wallet used by millions of consumers and ventures. Why they are so popular? These provide an easy-to-use & secure payment process along with a better user experience. These mobile payment apps have surpassed the hurdles aroused by standard payment methods.
2. Consumer Finance App
Consumer finance applications are used to manage the finances of users and help them to make an appropriate plan to spend their funds. Fintech apps like MoneyLion, Mint, and Finch are the best example of consumer finance app. Primarily, this app helps users with budgeting, managing digital payments, credit card storage, and customer data analytics. This type of Fintech app is beneficial to improve the user experience, alleviate the resistance from operations over the standard banking ways and decrease the costs.
3. Investment App
This type of app is a perfect example to consider while opting for Fintech mobile app development solutions. Investment applications allow users to review first and then, invest in multiple financial resources as per their suitability. These solutions are advantageous for customers to enhance their performance to invest by offering them associated data analytics. For instance, you can look at the apps such as Robinhood, Acorns, and CNBC.
4. Insurance App
Insurance solutions help customers to get proper and valid information about insurance. These help users to resolve the current issues that existed in the financial industry. There are multiple sectors where users can have insurance such as claims settlement, sales management, travel, vehicle, medical, etc. the InsurTech niche is highly interconnected with finance, therefore, we can call InsurTech an important part of the Fintech world.
5. Lending App
This peer-to-peer lending apps permit people to connect with other people who are interested to borrow money or giving it to someone needy without a government-regulated creditor. These apps also allow consumers to lend a little amount against their next payment. Fintech mobile apps such as Dave, ZestFinance, and Brigit are popular as lending apps in the market.
6. Regulatory (RegTech) Apps
Financial conduct authority developed the RegTech in 2015 as a subset of Fintech focusing on creating technology to accelerate the regulatory requirement’s delivery. These are innovative solutions that are helpful in better compliance & delivery of affordable, secure, and easy-to-integrate regulations. The primary goal of RegTech is to systematize and augment the regulatory process’s transparency while managing risks, transaction monitoring, and reporting.
Prominent Features to Add in the FinTech Apps
Businesses are required to create apps in such a way that they would meet the unique market demands and would be able to fulfil their end business goals. They need to hire Fintech developers who have the skills and expertise to develop a high-performing and full-fledged app with core and advanced features. Here is a list of features to cater to all types of customer’s needs-
The app needs to work smoothly while satisfying the customer’s expectations. The below features will help to offer an amazing user experience to customers.
It is the most needed feature to have for the users. People need to register the app before using it. To make the registration secure, they can have app registration via using their email ID, name, contact number, etc.
The app will be helpful to users to provide the latest updates & news and suggesting them about investment strategies. Users can take advice to plan their investment weekly, monthly, and yearly.
As per users’ budgets, this feature helps them to manage their monthly budget by providing them all the details regarding the spending along with the alternative methods to decrease the funds.
It is one of the standard features that can increase your Fintech app development cost. Through this, the app can provide the latest updates consistently about the credit balance, transactions, and additional loan data of users.
This advanced feature is adopted by the best Fintech apps 2021 to provide a unique customer experience with the implementation of AI (Artificial Intelligence). Here users can interact with the Fintech app easily via voice authorization or speech and the app will also respond to them via voice direction.
Whether you are having FinTech Android or iOS app development services, it is important to provide this feature to steal all the attention of users. They like using the apps that provide them benefits such as cashback balance, points, scratch cards and view the cashback history.
Push Notifications help users to get instant updates about their app profile even when they are not using the app.
Different Money Transfer Methods
This feature is essential to comprise so that users can go for any method that is appropriate to them. These can be anything such as credit or debit card, VISA card, online banking, etc. with zero commission and fast payment processing.
Users can alter, update, modify or delete any of their information or thing related to their app account or profile with the help of this feature.
Administrators must have some features that can be beneficial to them while managing the tasks of users and handling the activities within the app. Check out these –
Not only users, but admin also must log in to the FinTech app. They have to register once and then; they can log in to the app by entering their email and password.
All the users who are registered with the app will be managed by the admin. It will also include the full list of users, filters and searching a particular user, and organizing them.
Admin has all the rights to activate or deactivate any navigation menu according to their suitability and choice. This feature allows the admin to manage the lists of features and content categories presented with a set of icons or links.
Cashback Categories Management
The app admin must handle the cashback categories comprising adding, modifying, or deleting any offer. All the activities including viewing the cashback statement are the responsibility of the admin.
Admin completes all the payment-relevant activities and can also view the payment reports and transaction history. This feature includes centralized payments and cash management as well.
Apart from the core features, advanced features are significant to make an app competitive and unique in its own way. Let’s see what the required features are to make your app shine out in the market-
Account Verification & Management
This feature is specifically used to manage users’ banking accounts along with accomplishing the processes like verification, money transfers, and regular tally for the users. Users can view their daily transactions, account balance, and history. They can also access the money transferring securely.
Any professional mobile app development company you choose will provide you with this feature for sure. This must-needed customization feature will help make the app stand apart from others by providing users personalized banking services and schemes for money management. It also comprises various latest technologies such as machine learning, IoT, AI-driven bots, and others.
In order to provide proficient financial services, Fintech app development companies are required to have proper business data analytics and insights by following the overall history of financial transactions. Further, the app examines the entire data set and provides reports to users.
When it comes to financial or money transferring apps, security becomes an essential part to integrate. There are many hackers on the way who always try to breach the security structure of finance and banking apps. To prevent these hackers and fraudsters, users are provided with strong passwords and pins along with biometric authentication within the app.
Monetization Models of A Fintech App
There are multiple aspects to consider by Fintech app development companies while providing Fintech app development services, monetization model is one of them. Get to know below how the Fintech app makes money?
1. Referrals & In-App Advertising
Users don’t need to pay money always while using financial services. Some of the businesses earn money through capitalizing on the services and products on which users are paying attention, they get some commission or decided fee from those businesses who are interested to show the advertisement on their Fintech app. Robinhood app follows this strategy.
2. Fee Schedule
This straightforward way to earn money comprises different payment schedules based upon the regularity of charges, it can be subscription or transactional. It has two ways, firstly users only pay for the services they use, in second, they subscribe for the services and pay monthly fixed charges.
3. Business Collaboration
It is the most used monetizing way that is even used by the fastest-growing Fintech organizations. Fintech companies can have a partnership with the standard financial institutions or with their neighbor vendors, this way they can enhance their services and add value to them. Coinbase also applies this monetization strategy.
Step-by-step Guide to Create a Fintech App
There is no such perfect guide to know how to create a fintech app? But to help you, here we have compiled some of the steps to follow while developing a Fintech app. Have a look below-
Step 1: Market Analysis
The discovery or market research phase provides initial information about what to include and what should not in a Fintech mobile app? All this information is a must needed to have an upfront analysis of the involved development procedures. This stage will not only help the client but the development team as well to adopt the understanding of the ongoing project. It will comprise a complete analysis of market trends, competitors, likes and dislikes of your target audiences, start-up goals, idea validation, risk management, etc. According to this research, businesses can also plan their app development budget.
Step 2: App Design Phase
Providing users an amazing experience and giving them a reason to use your app by applying interactive UI/UX is the ultimate goal of the app designing phase. The app designing team will help you in this and the process will include steps such as UX wireframe, designing of different app screens to make the app responsive, distinct designs for Android and iOS design, and attractive prototype. Be attentive while having the app designing phase as your app must have an interactive and responding design to grab the audience’s attention.
Step 3: Fintech App Development
After completing the designing phase, now let’s jump to the development phase. It is all about turning your idea into reality by writing the code and implementing the necessary elements. Nowadays, many businesses are going for MVP as it has a wide scope in the market. Launching an MVP will provide you with an idea about the user’s response to your app. MVP version will only have only required features that will keep the development time and overall cost to develop a fintech app limited. You can make your app shine out by integrating the right technology stack and required third-party APIs.
Step 4: Testing Phase
The testing phase provides you assurance about the smooth working and fast performance of the application. App testing helps find out the errors and resolve them in less time. It will also help you for the betterment of several irregularities. When the app gets bug-free after multiple rounds of testing, it is ready to launch in the market.
Step 5: The App Launching & Maintenance
Product launch is an integral procedure to do after the development phase. before launching, you must study the responses of users about similar apps that existed in the market. It will provide you with an idea about what is the right way to launch your product including the market situation, circumstances, etc. Consider updating your app time-to-time with the latest upgrades to stay high from the competitors.
Required Tech Stack to Apply for Fintech App Development
The right technology stack is one of the essential factors that can affect the overall cost to develop a mobile app. While developing a FinTech app, implementing modern technologies is necessary to make it a competitive advantage. For this, you will need the following technologies:
- Back-end Technologies: Nde.js, Laravel
- Front-end Technologies: Nuxt.js, Vue.js, Ember.js
- Server: Vultr, AWS
- Programming Languages: React Native, Java, Swift
- Third-party Integrations: Trulioo, Yodlee, PayPal, Firebase, Stripe, etc.
- Database: PostgreSQL
A Complete Cost To Develop A Fintech App
Whether you have a large-scale organization or run a start-up, the cost to develop a mobile app is always a major turning point for everyone. Each business has its own goals, mission, and vision but they all don’t want to go out of budget when it comes to the cost.
Here, we will discuss how much does fintech app cost depends on various factors comprising complexity and features of the app, required team structure and tech stack, experience, and location of the chosen fintech app development company, third-party API Integration, etc. These factors are helpful to determine the cost of FinTech app development.
Based on these diverse aspects considered by the fintech software development company, the overall cost to develop a Fintech app would be around $15,000 to $35,000 with all the required features and functionality. To have a cross-platform Fintech app with the best in-class features, this budget will go higher.
At present, FinTech mobile applications are proving as a game-changer in the market as every business is going gaga to invest in this sector. In the above article, we have created a complete guide of Fintech app development, its estimated cost, features, different types, and popular examples. It will help you to get better knowledge about the Fintech apps before getting app development services. As an entrepreneur, if you are planning to enter the market with a full-fledged app, this guide is suitable to go for as it will fulfill the goal of your app- satisfying the app users.
Being a leading financial software development company, SemiDot Infotech provides end-to-end solutions with the main focus on the customer’s security and delight. If you are also in search of an appropriate mobile app development company, let’s have a chat to get an idea of what we can do together!