How To Build A Fintech App - A Practical Guide
The market for understanding how to build a fintech app is looking good as a result of the COVID-19 pandemic's acceleration of digital transformation. A whopping $305 billion will be sunk into the worldwide fintech industry by the year 2025.
Author:Frazer PughReviewer:Emmanuella SheaJan 12, 2024789 Shares29.2K Views
The market for understandinghow to build a fintech appis looking good as a result of the COVID-19 pandemic's acceleration of digital transformation. A whopping $305 billion will be sunk into the worldwide fintech industry by the year 2025.
To stay ahead of the competition and satisfy their customers, banks must continuously improve their technology. Insurance, loans, stock market investing, tax management, and currency exchange are all examples of fintech that facilitate easier financial management.
Key Features Of Fintech Mobile Apps
Just like any other app, customer reviews are the yardstick by which Fintech apps are judged. Here are the main characteristics that set Fintech applications apart from other apps that offer online payment solutions, according to the data we gathered.
Easy To Use
Fintech apps are designed to be easy to use. The foundational tenet of every Fintech app development firm is the provision of cutting-edge services to clients through the most intuitive interface imaginable. We wouldn't be stretching things if we said this feature is the reason why Fintech applications are so popular.
One of the main goals of fintech is to provide easy-to-use analytical tools for keeping track of financial activities and data. Additionally, it develops financial applications with user-friendly interfaces. Having real-time analytics to capture and trace funds should be a necessary feature for all Fintech apps. More money will be easy to come in for businesses because of this.
The app should also use ID analytics to address user threats. Banks and other customers in the financial industry might be attracted to features like money-borrowing. Applying for a loan through a traditional bank is so last century.
Privacy And Data Security Rules
Developers of financial apps need to exercise additional caution due to the increased vulnerability of financial data to cybercrime and theft. All the potential dangers are carefully considered while developing fintech apps. Ensuring the security of confidential information is their top priority.
The Fintech app development business should prioritize offering the highest level of cybersecurity in this era of cybersecurity threats.
Apps built for the financial technology industry should have the following security measures to mitigate potential threats.
- If the user wishes to change anything about their profile, they should have to enter their password again.
- After three unsuccessful login attempts, the profile will be locked. The limit, however, can be doubled in order to make PCI complaints easier.
- Credit and debit card details should only display the last three numbers when entering the information for obvious security reasons.
- Every single Fintech app has to have face and voice recognition built in.
- There must to be integration of fingerprint/two-factor authentication as well.
Integration Of API
Api, short for "application programming interface," is a concept you should be familiar with. Developing an app without it is next to impossible. Using this technology, fintech integrates many platforms of a huge application, eliminating the need for them to rebuild itself multiple times.
Fintech has the ability to include a new web form or SaaS into the same ecosystem, which you, the end user, may not be aware of. Behind the scenes, API is what you see when you click on Geolocation to find the closest ATM. API is also the engine that drives the AML/KYC procedures.
You may easily incorporate data, services, and functionality from outside sources into your app by making use of application programming interfaces (APIs). These APIs come in many forms, including online, third-party, in-app chat, and internal.
Customer Support
When businesses and people have a need, they often turn to apps for solutions. The availability of a live chat feature or other kind of help should be guaranteed at all times. Not everyone is at ease conversing with others.
Chatbots should be available as an alternative to help individuals who aren't. Alternately, you may integrate these features to create a trustworthy customer support platform that is easy to use when needed.
Liberty To Customize
Each organization has its own unique set of needs. However, success is certain when you reach a level of expertise where you comprehend client taste preferences. Customers should have a fantastic time using your newly developed Fintech mobile app.
As part of their fintech software development services, corporations and enterprises should be assisted in gathering data on client style preferences. It is also a good idea to keep businesses informed about the most recent trends among shoppers.
By connecting with users' social media accounts, fintech applications may access their data, allowing for the development of long-lasting, tailored relationships with clients.
Develop A FinTech App
Step 1: Do Your Research
Developing an app for the financial technology industry requires extensive study on the part of the developer. A road map outlining a strategy is necessary for finalizing the interface's appearance and the functions it will provide. There has to be an explicit description of all aspects and the extent of MVP development services.
Step 2: Form A Team
Whether done in-house or by an outside firm, creating a fintech mobile app is a task best left to a team of experts. All team members should be well-versed in the company's fundamentals and have received explicit communication on the objective and procedure.
We are looking for someone with experience in user interface design, web development, software testing, DevOps engineering, Android, and iOS.
Step 3: Define MVP (Minimum Viable Product) Scope
The scope of your software and its Minimum Viable Product (MVP) must be defined. Following these steps will help you do this:
Thoroughly investigate the market, paying specific attention to the niche your product occupies. Discuss with your development team the features that are absolutely necessary for your project. To draw attention to the chosen attributes, use a tool like a prioritization matrix, etc.
It is important that all the characteristics be properly defined. Verify that your core concept is sound, and find out if the resources you need to bring it to life are easily accessible.
Step 4: Select Your Technology Stack
App developers may choose from a number of languages, such as Swift, Objective C, and Java for iOS, and Kotlin and Android for Android. Having two apps developed at once, meanwhile, might drive up the price.
Alternately, you could use a Progressive Web App (PWA), but this wouldn't work with biometry or other built-in capabilities. Another choice is to build the app with a single codebase that can run on both iOS and Android.
This is called cross-platform app development. Because this method may save costs by as much as 60%, it comes highly recommended. Costs may be drastically cut when app development is done appropriately in terms of language and methodology.
Step 5: APIs For Basic Functionalities
Features that both established companies and new ventures may use, such as bill tracking and budgeting, should be included in fintech apps. If you want your website to load quickly and easily, you need an API, and the best ones are REST (Representational State Transfer).
For API documentation, you may use tools like Swagger; for testing and development, you can use Postman. The creation of APIs is best accomplished using robust database systems such as PostgreSQL and MongoDB.
For API security, it is important to have rules and regulations in place for both API queries and answers, and to enable authentication and data encryption.
Step 6: Design UI/UX
At this point, you should let your creative side shine through! Color your app with beautiful hues. Make features that are easy to utilize available. Keep your interface simple by excluding things that aren't essential.
Make sure that the consumer doesn't have to waste time searching for any of the features they need; they should all be easily accessible on the dashboard. on understand the fundamentals, read a complete guide on user interface and experience design.
Step 7: Test Launch
It is essential to release a beta version of your software before releasing the full version. You have the option to restrict access to just your local customers or employees.
You may fix several inconsistencies with the aid of the comments. After you've addressed all the bugs and issues, your program is ready for official release.
Step 8: Update Your Application
In the realm of information technology, fascinating new developments occur on a regular basis. You need to update the software frequently because there are so many advancements.
FinTech Apps Types
Lots of fresh ideas will be available to you if you choose to build a FinTech app. Take a look at the most prevalent types of current financial apps.
Apps For Mobile Banking
Users are able to manage their bank accounts and access other financial services using digital lending and banking applications, eliminating the need to physically visit a bank branch. This class encompasses internet banking as well as mobile banking.
All the services offered by banking and lending apps are equivalent to those offered by brick-and-mortar banks: account opening, balance monitoring and management, cash transfers, mobile payment processing, loan applications, etc.
Transparency and easy, round-the-clock access to funds are two major advantages of digital banking applications, particularly lending apps.
Apps That Handle Payments
Financial technology app developers rely on payment processing apps to handle all of their customers' financial transactions. They act as a go-between, linking the customer's card details with payment service providers so that online and mobile purchases may be made.
Processing payments is an integral part of any e-commerce platform and greatly improves the shopping experience for customers. With the help of these apps, even the smallest companies may accept online payment methods including debit and credit.
Insurance Technology (InsurTech)
InsurTech applications are transforming the financial sector by providing precise risk assessment methods and quick application options for life, auto, pet, and property insurance. They facilitate on-site risk evaluations, enabling insurance agents to close more favorable transactions.
The industry's reach extends beyond basic uses, utilizing AI, smart wearables, and Internet of Things sensors to assess a person's lifestyle and risk profile. Despite its infancy, the InsurTech market value is estimated at $2.72 billion in 2020. Investment applications have also democratized investment participation, allowing middle-class and poor individuals to participate.
Investment apps streamline trading, reduce commissions, and eliminate middlemen. Robo-advisors offer automated brokers for portfolio management and trading, using AI and ML to evaluate a client's financial status and potential risks.
Apps For Managing Personal Finances
One of the primary goals of financial technology is to assist individuals in managing their money by keeping track of their income and spending. Personal finance applications greatly contribute to this goal.
You can find budgeting applications among them. Every time a user interacts with a personal finance management app, it's always with goal selection, account linking, and money flow monitoring. Keeping track of money and spending is a breeze when all the information is in one place.
Tax Management Apps
When it comes to money, taxes are usually the biggest headache. There is a higher chance of making a mistake since the regulations and tiny print are difficult to grasp. Organizational and individual income tax rates, tax breaks, and legislative changes can all be difficult to keep up with.
Tax management software is crucial for filing and managing taxes due to the complexity of tax systems globally. In order to streamline the document preparation, submission, and control processes, FinTech businesses develop apps. Due to the automation, you won't require any prior knowledge or to employ an accountant.
Trades And Services For Trades
You may use these online programs to convert between different currencies. Companies in the financial sector that deal with electronic money require user-friendly systems that allow them to send and receive funds and purchase currencies of their choosing.
A cryptocurrency exchange is an online marketplace where users may purchase, sell, and trade digital currencies, and it is part of the rapidly growing blockchain technology industry. They function like an online broker in that customers may buy cryptocurrency with fiat money. Users can earn interest on their Bitcoin holdings on several exchanges.
FAQs - How To Build A Fintech App
What Are The Key Technologies Used In Building A Fintech App?
To build a fintech app, developers often leverage technologies like blockchain, AI, cloud computing, and secure APIs to ensure robust functionality and security.
How Can Regulatory Compliance Be Ensured During The Development Of A Fintech App?
Ensuring compliance with financial regulations involves thorough research, understanding legal frameworks, and collaborating with legal experts to navigate the complex landscape of fintech regulations.
What Are The Critical Security Measures To Implement In A Fintech App?
Security is paramount in fintech. Developers should focus on implementing encryption, secure authentication methods, and regular security audits to protect user data and financial transactions.
How Can User Experience (UX) Be Optimized In A Fintech App?
Creating an intuitive interface, incorporating user feedback, and conducting usability testing are key strategies to optimize the user experience in a fintech app, enhancing customer satisfaction.
What Role Does Data Analytics Play In A Fintech App, And How Can It Be Implemented Effectively?
Data analytics is crucial for insights into user behavior and market trends. Developers use analytics tools and techniques to gather actionable data, allowing fintech companies to make informed decisions and improve their services.
Final Thoughts
The importance of learning how to build a fintech app is evident from the fact that the fintech market is rapidly growing, with consumers increasingly choosing digital neobanks, online insurance companies, budgeting apps, electronic wallets, and trading platforms.
Companies can capitalize on this trend by developing mobile apps for fintech that offer user-friendly, low-maintenance, and advanced cybersecurity. However, developing a successful fintech app requires technical expertise and a team of professional experts.
Frazer Pugh
Author
Emmanuella Shea
Reviewer
Latest Articles
Popular Articles