Fintech App Development – A Complete Guide from a Thought to Product

If we go by books, the word fintech includes finance and technology; in other words, fintech is a portmanteau of those terms. The term refers to any finance business that takes the help of technology to provide flawless financial services of all kinds including online transactions, coupons and deals, banking, loans, and even investments and recovery.

According to Fintech Global, Latin America alone exceeded the fintech market by USD 150 billion in 2021. Even further, Market Screener reports that the global financial sector is likely to touch USD 26.5 trillion by the end of 2022 with a CAGR of 6%. Nearly 50% of banks and 60% of credit unions opine that fintech partnership is mandatory to stay in the market.

The above-mentioned and other latest staggering figures of profits in the finance sector have boosted the trend of venturing into Fintech startups across the world. There is indeed a great scope and big bucks in the field and that is why Fintech app development has embraced newer technologies and solutions.

Finance companies and their clients have adapted to the new wave of financial services through digital modes and as a result, even small and medium-sized fintech businesses have started to outsource fintech app development to offshore companies.

Fintech entrepreneur – a businessperson with a different eye

While the rest of the entrepreneurs think in a general direction, fintech entrepreneurs have a different angle to quench their business thirst. With advanced thinking, these think tanks reinvest customer services through outstanding fintech mobile apps while sticking to the rudiments of the basic finance business model. If you are among those special ones, this guide will take you through the fintech app development lifecycle so that you get the final product that functions flawlessly and is aligned with your business objectives.

Top reasons to develop a Fintech application

Digital finance companies have gotten terrific funds and investments in the past few years. With growing figure of startups all across the world, more and more entrepreneurs are now seeking to venture into businesses with secure financial transactions. On the other hand, mobile literacy has increased among people and so the shopping habits, which as turned from a shop to online. All in all, the mobile penetration into almost every sector has given a markable boost in online services that include financial transactions in one or other ways.

The fintech applications have got a further boost from the unprecedented pandemic that hit the world and made it stand still for a considerable time. The habit of dealing with personal and professional tasks online was forced upon users once has now become a stubborn habit and hobby for almost everyone.

Even further, stringent framework and stricter finance transaction norms have made fintech mobile applications to be more secure, trustworthy and a time-saving alternative. It is worth mentioning that the advent of cryptocurrencies and many countries legalizing it has pushed fintech applications development to unrivaled competition; thus, it is not exaggerated to say that this is the right time to develop fintech mobile apps.

Types of Fintech apps

Finance technology includes several fields and sectors. That said, there are many types of fintech mobile app development possible. Depending on what your business is up to, you can hire fintech mobile app developers to build quality solutions. On that note, if you are looking at a larger scale catering to multiple types of users and across various devices then you can opt to build a fintech software.

Generally, the types of financial software solutions can be bifurcated as

• Banking
• Digital cards
• Stock and commodity trading
• Cashback and reward
• Insurance Apps
• Loan &Money lending
• Saving management
• Investment Apps
• Portfolio management
• Mobile Payment Apps
• Transfer and forex
• Currency exchange and transfer
• Billing and accounts
• Personal Finance Apps
• Cryptocurrency Apps
• NeoBanks

While each of the above-mentioned types could have its own mobile application, a large fintech app development solution can include one or more of the above. You need to discuss this with companies that offer fintech software development services. But, largely, all fintech mobile applications could do excellent business.

The most successful fintech apps are –

• Coinbase
• Revolut
• Robinhood
• Nubank
• N26
• MoneyLion
• Chime
• Mint

Business benefits of Fintech app solutions

Finance services are expected to be quick, accurate, secure, and seamless. Hence, if you are thinking of automatizing your traditional finance business operations, you should carefully choose a partner that is experienced in developing different types of fintech apps.

Choosing best mobile app developers from the most trusted and resourceful list of service providers with expertise in providing digital services for the fintech industry assures you that you get a final product that is up to the mark and gets you the following business benefits –

Client-friendly features

Your clients drive your fintech business. A customized fintech app solution can make things easier for your esteemed clients. They can manage their finance through the software tool easily; in addition, the user interface and client-centric features make it easy to track their spending and achieve their budget goals. With a personal finance management app, they would stick to your financial services.

Great savings, a wise investment

A fintech application customized to the services and features you offer to your clients can bring down banking and investment fees. The transfers between accounts and depositing funds could be made free according to various finance business models. You can integrate several APIs into your custom fintech app development.

Stay ahead in the fintech service competition

An experienced and seasoned outsourcing firm for developing a fintech app can help you get customized finance software solutions because they build finance software solutions after intense research and market study. Personal mobile banking applications and finance solutions developed through several industry surveys can bring your services to the top list. Ultimately, you stay ahead in the competition.

Gain new customers while retaining the old ones

Trending fintech apps help businesses tap new customers through their mesmerizing user interface and easy navigation. On the other hand, the old clients stick to it because the fintech mobile apps offer them hassle-free services of banking, finance, trading, and even stock. Even further, customized finance mobile app development can include several other features. Consumers specifically demand eWallet and other features such as debit/credit card management, online digital payment, transaction of funds, and even comparing investment plans.

Offer robust security measures

Clients of any finance company are chiefly concerned about the security of their accounts. With customized development of the fintech mobile app, you can add multi-layered/tier securities to your software tool using which your clients feel secure and in safe hands. A lot of options are available to keep payment gateways, digital fund transfers, and account management (profile and crucial information) secure. You can hire fintech app developers and ask them to be concerned about security measures of all kinds.

Fintech software solutions – from thought to a customized product

Tipalti, a renowned research company, reports that approximately 96% of online shopping enthusiasts install at least one fintech mobile application on their handheld devices; moreover, consumer spending in an application store is expected to shoot by 92% to a whopping $150+ billion across the world in 2022.

Though it is a lucrative business, you should consider the app development process step by step. There are seven factors you need to go through before you ask your tech partner to develop your fintech app solutions. Here are they –

1. Identify the startup niche, which finances services in specific
2. Analyze competitors – their strengths and weaknesses
3. Identify your strengths and weaknesses
4. Plan priorities – what do you want first and what can be achieved later
5. Find an offshore company for a custom fintech app development
6. Build an efficient team of dedicated fintech app developers
7. Discuss your project, its feasibility, and fintech app development cost

Build a Fintech app – What are the Fintech app development stages?

Building a fintech mobile application is not a straightforward process. It includes many development stages -from merely a thought to a full-fledged finance app. While the general steps have been already mentioned previously, here we shall also focus on the technical aspect of the fintech app development stages.

In all the procedures, it is highly recommended that you hire a fintech expert to assist you in carrying out a foolproof plan. Alternatively, you can also ask top fintech app development companies to provide you with business and technology consultants from the finance sector.

Set the goal for your Fintech app

The very first step toward offering the best user experience to your clients is to set the goal for your fintech application. You should figure out what your application shall do to offer a memorable experience to users. Ask yourself what your clients expect from the automation of your services. You may retrospect and learn from your experience in the finance business.

Right platform for customized fintech app development solution

There are many technologies available for creating a fintech app, and choosing the right one is important to avoid hassles later. While most finance app development services are available for both the platforms Android and iOS, you should choose the platform wisely depending on your customer base. Nevertheless, some fintech service companies opt for cross-platform app development or hybrid fintech app development solutions to cater to the widest range of targeted consumers.

UI/UX and engagement

Fintech app solutions should have a highly engaging yet simplest user interface to render the best user experience. Sketching your user interface will help you decide the overall look and feel of the programming tool and a lot will depend on it. Creating various wireframes by keeping fintech experts by side helps you define your finance software features. For an intelligent fintech entrepreneur, MVP (Minimum Viable Product) is carried out to save budget and still get your product on board. Creating various wireframes by keeping fintech experts by side helps you define your finance software tool.

Fintech compliances

The finance sector is one of those few fields where security and privacy are taken very seriously. Even further, the complexity of rules, regulations, and compliances varies from country to country, and therefore, these factors are kept in mind when you think about contacting a leading mobile app development company from the best ones to develop a customized fintech app. Data encryption and PIC DSS for storage, and other local/regional compliances must be kept in mind. Alternatively, you can ask your tech partner to talk to your finance experts who are experienced in compliance. While you focus on implementing and assuring finance compliances, other stringent standards should be followed for mobile applications adhering to laws.

Create mockups and assure flawless backend

Creating mockups helps you update yourself with every bit of progress and milestone. You can ask your technology partner to create mockups frequently to assure that you are on the right track. Any escalation should be addressed as early as possible before it gets into complexity. A streamlined fintech software development life cycle makes the product align with the organization’s goal and business objectives.

Build a prototype and throw the ball to users

The ultimate way to test the product is to create its prototype and throw the ball to the actual users, and the fintech mobile app is no exception. The real feedback comes from the users and stakeholders of the product as they would give you frank opinions. You need to pay heed to their feedback and work on it with the help of fintech app developers.

For an intelligent fintech entrepreneur, the best way to gauge the fintech market is to develop an MVP (Minimum Viable Product), which is carried out to save time & budget and still get your product online for your consumers. This can be a masterstroke for your fintech business that will help to gauge various features and address the major pain points of your target consumers.

It has been found that most of the top performing apps on the app stores today, have had a history that the required changes were made in those applications to address their customers’ pain points. Such upgradation can results in supercharged engagement from the consumers even in the fintech industry.

Special features of finance management apps

Apart from the general mobile application features, a company that offers you fintech mobile app development services can get you additional features upon your request. Nevertheless, they all come with extra costs and that is why it is important to clarify them beforehand only.

Biometric sign-up/in: Biometric sign-in is a new way to get the personal dashboard. Clients don’t want any hassle in accessing their finance account on your fintech mobile app solution and that is why most users expect biometric signup and login.

Data visualization: Though you include analytics in your application. Skilled fintech software developers can get you special and advanced data visualization options wherein clients can have accurate information on their spending, insurance, and other data visualization to carry out a foolproof strategy for their fiscal trades.

API integration: Today, mobile applications can be enhanced for their functionalities and ease through easy API integration. Finance web application development can have API integrations while the process is going on. You need to study and research the features and facilities your clients need. Checking on whether such APIs are readily available will help your finance software tool become holistic.

Artificial Intelligence: Contemporary digital advances include the use of AI (Artificial Intelligence) in almost every mobile application for all fields and sectors. Powering up your fintech app development with AI is possible when you explain this to your programmers.

Payment gateway integration: A fintech application without an integrating secure payment gateway is like a sword without a sharp edge. You can ask your remote fintech app developers working dedicatedly to integrate third-party APIs and other ways for secure digital transfer or exchange of funds.

Machine Learning: With AI generally comes ML because the application shall learn from the inputs it gets from the users. The combination of AI and ML can make your fintech app development solutions powerful and understanding. As a result, the application shall produce better data and help users take strategic decision that is foolproof.

Voice integration: One of the fastest rising trends in almost all sectors is voice search or command. According to eMarketer, more than 40% of the US population use voice search features. Integrating voice-search shall enhance your fintech app toward a roaring success.

App monetization: Some entrepreneurs solely develop finance apps as they see it as a lucrative business. Fintech mobile apps can have certain special features that help you monetize your application through various ways and business models. However, such an addition would come at an extra cost.

Factors you shouldn’t forget for your fintech mobile application

The success of a mobile application is its features and facilities to users. Even a renowned company’s app may fail if it does not stand on users’ expectations. Hence, before you ask a custom fintech app development company for a personalized product, mind these factors to have in your product as they assure you fairly increased chances of success.

Authenticate and manage users: Fraudulent transactions and dummy accounts have been a big nuisance to fintech applications. Ask for a robust system to authenticate and manage users.

Get secure hosting: Safety and security are the two pillars on which any fintech app grows. Secure hosting assures you that your application is in the safe hands and any breach is less likely to occur.

Credit score checking: Along with general features, credit score checking is one of the most important facilities a fintech app should have. Most banks and finance companies rely on credit score to lend money or raise any company sufficient funds.

Access bank account: A holistic approach to a finance service mobile application would be having secure access to bank account. Almost all banks have APIs that you can ask expert fintech app development company to integrate in your fintech software.

Chat or chatbot: The latest trend that has captured software development market is the chat feature or a chatbot. Addressing clients’ or customers’ concerns as early as possible is a key to any business success, and fintech industry is no exception.

Bonus plugins: Fintech applications could have plugins according to the business requirements or objectives. Adding several plugins or at least keeping an option of having plugins shall help you better your fintech software tool.

Legal obligation: Finance is one of the riskiest businesses as it involves the transaction of money and there are fair chances to fall in legal consequences. Having a legal obligation for your fintech mobile app shall be the safest way to venture into automatizing your finance business.

How much does fintech mobile app development cost?

It is likely that you as an entrepreneur might have hear a lot of suggestions from your friends and peers from the finance industry about the budget required to build a fintech app. But still Iif you are clueless about the pricing and the aspects based on which you are given the ballpark figure, we can help you understand about the budget required to build a fintech app how much mobile app development costs, and the various associated factors.

Nevertheless, the actual figure is best quoted byis available only with a company experienced in fintech app development. Generally, the companies do undertake the following factors before quoting you the price of developing finance software tool –

• Business analysis
• MVP and prototypes
• User interface design (research and development)
• Backend programming
• Frontend platforms and frameworks
• Quality assurance
• Content and more (such as marketing, maintenance and support, and so on)

Other than these factors, which licensed tool you are using, plus the number of dedicated fintech app development team members, the total time required to build the app, and the complexity of finance app affect the total cost.

If you still want a rough figure on the fintech mobile app development cost, here it is.

• Development of Banking application costs around $40,000-70,000
• Cost to develop a Lending app may range between $30,000-50,000
• Insurance app development requires you to shell out $45,000-70,000
• For Investment fintech app you should have budget of nearly $60,000-120,000
• Price to build a Consumer finance app shall fall between $50,000-300,000

The location of the fintech app development company also affects the overall price of the fintech software tool. While a European fintech app development firm shall quote you between $200,000 to $600,000, North American fintech mobile app development agency can go up to $600,000 to $800,000. Remarkably, a renowned Indian fintech app development company shall do the task at almost half of the prices quoted above.

Ultimately, after going through the fintech mobile app development guide thoroughly, you should be able to understand the nuance of finance technology. It is high time that you upgrade your obsolete system and provide your clients with a cutting-edge finance solution to stay ahead of your competitors to lead the fintech market.