A Complete Guide on FinTech App Development

Introduction

 

FinTech is achieving much momentum and thereby influencing both large businesses as well as customers!!!!

 

According to the insights provided by Business Research Company, the global FinTech market is expected to touch $309.98 Bn in 2022, i.e, expanding at a compound annual growth rate (CAGR) of 24.8% which is worth around $127 Bn in 2020.

 

The statistics clearly show that FinTech startups are flourishing as the finances occur at mobiles. Even so, the worth of mobile transactions is expected to rise 212% in 2022 as reported by Inflexion. 

 

Since the conventional banks, which are not adequate to offer convenient and efficient mobile apps, are turning to FinTech, this is high time that many businesses are aiming to develop highly secured and efficient FinTech apps. 

 

This article discusses the necessary steps required for highly secured and efficient FinTech app development along with key features to pay attention to when developing them.

 

 

6 Steps to Develop Efficient FinTech Apps

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Fintech apps development steps

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Step 1: Selecting niche and comply legal compliance 

 

The very first step would be to find which fintech area to be focused on, this can be done either by 

 

• Choosing the niche and identifying what can be improved there;

• Generating ideas/concepts and checking where these ideas can be conceptualized among fintech categories.

 

For example, a good investment would be deciding to build a mobile app for fintech.

 

Once the category has been decided, it is time to ensure that the fintech app supports legal compliance- applying financial safeguards such as applying KYC and anti-money laundering policies. Ensuring legal requirements is a sensitive aspect. 

 

Step 2: Shaping the concept and identifying features of financial apps

 

This step ensures the conceptualization of building a fintech app that will surpass its competitors. The very first step would be conducting market research analysis, identifying competition and understanding what is popular among the target audience. Collaborating with skilled business experts and product managers can uplift this approach. 

 

With their expertise, a business can structure the vision, build a robust business case and launch key features. This collaboration assists in cutting down the cost of building fintech apps and reducing the time to market them. 

 

Some of the key features of a fintech app are following;

 

• Simplified UI/UX: Financial data is always difficult to perceive such as foreign exchanges, investments, funds, insurance etc. A fintech app will be accessible if it has simplified features and makes intuitive navigation.  

• Data Visualization: Among many, fintech apps must render visualized information to their users- detailed charts, visualized key events and processes of the month, pictured financial transactions, etc will help in the retention of users. 

• Gamification: Any type of app- be it education, finance, or sports, must include rewards, cashback, personal discounts as offers. Apps having such features will have more possibilities for success. 

• Biometric Security: Two-factor authentication is top-notch demand for fintech apps/products. The more layers of security, the more protective users feel while using an app. Fingerprint access and facial recognition software could help in securing users’ data from illegitimate access. 

• E-signatures: It has become more hectic and time-consuming to print numerous documents, sign them physically and accumulate them inside folders. Presently, users want the feature to sign documents virtually by pressing one switch on their mobile screen. 

• Automation: A feature, making a good habit of use, gains the retention rate. If fintech apps deliver multiple automation tools, they lower down the occurrence of errors and omission claims from incorrect applications.

• The application’s how to use guide: Users feel convenient when they download an app from the play store and get a short as a comprehensive tour to learn more about the app. The video format is a good mode to explain the key features and capabilities of the app.

 

Step 3: Creating UI/UX

 

• Providing a customized user experience, 

• Making the user account useful and handy,

• Focusing on ease of use and 

• Providing the app is transparent and safe.

 

All such facilities are counted as best practices for fintech app UI/UX designs. It has been reported that users value the appearance of apps more than their functionalities, thereby app designers play a significant character in this regard than developers. 

 

As a result, designers need to work before developers, it will make their work easier to work and execute with codes. 

 

Step 4: Selecting development approach with estimated cost and time

 

• How to compute the total cost of building a fintech app?

• What would be the correct approach to build and use? and

• How to generate a prototype for fintech?

 

All these points should be accounted for in this phase of the development cycle. To address such tasks, a business needs to collaborate with a seasonal project manager. The development team and quality control experts are also involved in this process to identify technical stack and deployment obstacles. 

 

Consequently, a business can have a robust development plan balancing budget, expenditure and time restrictions.

 

Step 5: Creating MVP and obtaining concept to be confirmed in practice

 

Introducing a deep-rooted project demands the testing of ideas first and for which minimum viable product (MVP) serves the purpose. 

 

MVP is simply the virtue of proof involving sufficient features for users to try it out. This ensures that a developed fintech app will bring value to its users and a pro way to market apps and attract investors.  

 

Step 6: Continuous progress on development, releases and support

 

Essential yet improving truth, the development process never ends. The ongoing process will be executed even after the app is launched. 

 

Now, the process can be improved and upgraded in continuation when the business starts getting valuable feedback from customers. 

 

Even more, the technical team is always available to get back and polite communication with clients. Speedy response, problem-solving response and feedback- when working properly, users rate the app higher. 

 

For early age startups, it is crucial to apply stronger and faster support than competitors can offer.

 

(You may also check: Big Data in FinTech)

 

Features Required to Build FinTech Apps

 

Undoubtedly, fintech app creation is a sophisticated method. Though including the following features could improve overall efficiency, quality and make them more manageable for users. 

 

Also, these characteristics are built when considering the latest digital trends and best security practices. 
 

1. QR codes and card scanning: Including QR codes and card scanning into the fintech app reduces time invested in tapping card information and make financial transactions more feasible.

 

2. Customer notifications: Providing immediate notifications about transactions and bonuses is what customers want nowadays from apps. They can turn on notifications to have detailed information, metrics to augment the conversation rate.

 

3. AI-chatbots: Offering 24*7 support to customers, AI-enabled chatbots assist them to resolve common queries. 

 

4. App security: One of the most important features is focusing on app security in introducing fintech apps. 

 

For example, two-step authentication to log in to the app using fingertips, face or voice recognition, also saves from hacks. Make sure that only the last two/three numbers of the user’s card are displayed in the app.

 

5. Attractive offers: Providing multiple beneficiary offers (cashback, reward, gift vouchers, free delivery, unlimited subscription, free workshops, discounts, package deals, and more) attract users to adopt the application and realize if they benefit from it. 

 

In addition, implementing this feature will support generating positive relationships with customers.  

 

6. Educating users: Including this feature in cryptocurrency app creation helps users to understand a sophisticated concept of blockchain technology, cryptocurrency, financial literacy, etc. It also provides instruments to evaluate their knowledge.

 

Ending Notes

 

A thorough discussion presented the significance of FinTech globally in the current demand for end-to-end encrypted financial practices. 

 

Presently, a business tycoon could develop FinTech apps for startups supporting personal finance, or develop and support a utility platform for traditional banks or other financial institutions.

 

We have learned the procedure of developing a FinTech app where in some typical steps, a core part of coding can be introduced to increase benefits. 

 

Data Science and AI-based technologies can impact the financial market and can be employed in building advanced FinTech based software.