In the constantly shifting financial services sector, the year 2023 has seen a spectacular rise in the prominence of fintech app development, transforming how we handle our finances. The financial technology industry’s unrelenting growth has given rise to a myriad of creative solutions that are transforming the traditional financial sector.
Fintech apps have become the go-to choose for individuals and businesses seeking convenient and efficient financial services. From mobile banking and payment solutions to investment platforms and decentralized finance, these apps have gained traction for their ability to offer user-friendly interfaces, personalized experiences, and seamless transactions.
In 2023, fintech apps are poised to reshape the financial landscape, as the financial technology industry is projected to hit $460 billion by 2025.
However, creating a fintech application requires much effort, particularly if you’re a beginner. This fintech app development guide will help you wrap your head around how to build a successful app.
Things we’ll cover in this article:
- Types of fintech apps
- Features of fintech apps
- Step-by-step guide to building an app
- Best practices for app development
- Cost of fintech apps
Let’s begin with a recap of what a fintech app really is.
What Is a Fintech App?
A fintech app, short for financial technology, leverages technology to provide innovative financial services and solutions. Fintech app development utilizes various technologies, such as artificial intelligence, machine learning, blockchain, and data analytics, to streamline and enhance financial processes.
Fintech apps offer services, including mobile banking, digital payments, investment management, budgeting and expense tracking, lending and borrowing, insurance, and much more.
Major Types of Fintech Mobile Apps
The fintech industry has room for a lot of creativity. To begin with, you can build many types of fintech mobile applications based on your goals and consumer needs.
Here is a list of some popular ones you can start building right away.
Digital Banking App
Banking apps allow users to perform various banking activities on their mobile devices, including checking account balances, making transfers, paying bills, and managing transactions. Starling and Monese are two very popular examples of banking and money management mobile apps.
Investment & Trading App
Such apps enable users to invest in stocks, bonds, cryptocurrencies, and other financial instruments. They provide real-time market data, portfolio management tools, and the ability to execute trades. Examples include Robinhood and Wealthbase.
Digital Wallets App
These apps store payment information securely and allow users to make digital payments conveniently. They often support contactless payments, online purchases, peer-to-peer transfers, and integration with loyalty programs. Examples include PayPal, Google Pay, and Paytm.
RegTech App
RegTech stands for Regulatory Technology. These apps help financial institutions comply with regulatory requirements by automating compliance processes, monitoring transactions for suspicious activities, and ensuring data security and privacy. For example, 6 Click, Passfort, etc.
Insurance Mobile App
These apps offer insurance-related services, such as policy management, claims processing, and access to policy information. They provide convenience and transparency to policyholders and streamline insurance operations. For example, Geico Mobile and Lemonade.
Lending App
Lending apps provide online lending services, including personal, small business, and peer-to-peer lending. They often use data analytics and alternative credit scoring methods to assess borrowers’ creditworthiness—for instance PaySense, Earnin, etc.
Accounting App
Accounting apps help individuals and businesses manage their financial records, track income and expenses, generate financial reports, and facilitate tax preparation. They often provide features like invoicing, receipt scanning, and integration with bank accounts. QuickBooks, Xero, and FreshBooks are common examples.
Budgeting App
Budgeting apps assist users in tracking their expenses, setting budgets, and managing personal finances. They provide insights into spending habits, goal setting, and saving strategies to promote financial wellness. Popular fintech budgeting apps include Personal Capital, You Need a Budget, and many others.
Must-Have Features to Build a Fintech App
Before we jump to the fintech app development process, let’s have a look at the fundamental features a fintech application should have. While the range of features depends on the type of app you build, there are a few basic ones every app must wield.
Feature #1 Sign-In, Sign-up, and Onboarding
One of the first crucial features of a fintech app is sign-in and sign-up for a seamless user registration process. Onboarding should guide users through app features and functionalities, helping them get started quickly.
Feature #2 Data Security Regulations
For optimal fintech app security, fintech apps must incorporate robust security measures for data privacy and compliance with regulations. Encryption, secure connections (HTTPS), and adherence to data protection laws are crucial to safeguard sensitive user information.
Feature #3 Custom Push Notifications
Push notifications are a valuable feature that provides real-time updates, transaction alerts, security alerts, and personalized recommendations. It allows users to choose the types of notifications they wish to receive.
Feature #4 Customer Support and Assistant Chatbot
Offering responsive customer support is crucial for fintech apps. Implementing a chatbot or virtual assistant can handle common queries, provide support 24/7, and guide users through app features.
Feature #5 Personal Spending Analytics
Fintech apps should provide users with comprehensive spending analytics and insights. This feature helps users track expenses, categorize transactions, set budgets, and better understand their financial habits.
Feature #6 Biometric Authentication
Biometric authentication, like fingerprint or facial recognition, enhances app security and provides a convenient login method for users. It adds an additional layer of shield against unauthorized access.
Feature #7 Two-Factor Authentication
Implementing two-factor authentication strengthens security by requiring users to provide an additional verification code or token during login. This feature helps prevent unauthorized access even if login credentials are compromised.
A Step-by-Step Guide to Building a Thriving Fintech App
Building a fintech app requires close attention to security and regulatory requirements. If you wonder what the steps are, let us walk you through the basic steps to build a fintech app for your users.
Step 1: Market Research and Planning
The process starts with careful planning and research regarding the type of app you want to build. Decide what type of fintech app you’ll build, such as a payment app, banking solution, or investment app. Search for your target customers and top competitors according to the application type.
Step 2: Set a Budget
Building a fintech app isn’t cheap. However, the cost of an application will depend on the type of app you build and its complexity. An app with advanced features will be costly compared to an app with fewer features. For instance, if you want to incorporate blockchain, don’t forget to explore your options and discuss your budget with a blockchain development agency.
Step 3: Gather a Devoted Team
Once you’ve decided on an app idea and budget, you’ll need a dedicated team to turn your ideas to life. You can hire freelancers, assemble an in-house team, or simply get in touch with a professional app development company.
Step 4: Design and User Experience
That’s where you start with the fintech app UI and UX design process. Think about the fintech app user experience and user interface. Map out an intuitive layout and create a user-friendly interface that helps you set your app apart from your competitors.
Step 5: Development and Testing
Once the design is ready, you can move to the technical part of the development process. That’s where a developer will develop a minimum viable product that must be tested to fix any errors or bugs. Software testing services by QA specialists ensure your app is fine-tuned to be launched to the market.
Best Practices for Creating Fintech Apps
Developing fintech apps requires adherence to certain best practices to ensure the success and reliability of the application. Here are four essential best practices for developing fintech apps:
Agile Development Methodology
Agile development methodology is an iterative approach focusing on collaboration, flexibility, and delivering user value. It involves breaking the development process into small increments called sprints, where each sprint delivers a working feature or functionality. This methodology enables faster development cycles, early feedback, and the ability to adapt to changing requirements. For fintech apps, agile development allows for quick responses to market trends, regulatory changes, and customer needs.
Continuous Integration and Deployment
Deployment (CD) are practices that automate the process of building, testing, and deploying software updates. CI ensures that code changes made by different developers are integrated smoothly and frequently. It helps identify and resolve conflicts or issues early in the development process. CD automates the deployment of new code to production environments, enabling faster and more frequent releases. CI/CD practices enhance the fintech app’s scalability, stability, and efficiency.
User Testing and Feedback Loops
User testing involves gathering feedback from actual users to evaluate the app’s usability, functionality, and user experience. Feedback loops allow developers to iterate and improve the app based on user insights. By involving users early in the development process and continuously seeking feedback, fintech apps can be tailored to meet user expectations, address pain points, and provide a better overall experience.
Regular Feature Updates and Bug Fixes
Fintech apps should undergo regular updates and bug fixes to address issues, introduce new features, and improve performance. Regular updates keep the app relevant, competitive, and aligned with the evolving needs of users and the industry. Bug fixes ensure that any discovered software issues are promptly resolved, enhancing the app’s stability, security, and user satisfaction. By regularly updating and fixing bugs, fintech apps can deliver a reliable and optimal user experience.
How Much Does It Cost to Develop a Fintech App?
The cost of creating a fintech app can vary depending on numerous factors, including the complexity of the app, the desired features and functionality, the platform (iOS, Android, web) on which it will be developed, the development team’s location and experience, and any regulatory compliance requirements.
Due to the varying costs involved, the fintech app cost can range between $50,000 to $500,000 or even more – the more complex the features, the greater the cost. However, working with an experienced development team and conducting a thorough project scoping and estimation process will help determine a more accurate cost for building a fintech app.
Connect with Codment for Fintech App Development!
Creating a fintech app is a rewarding business. However, bringing a solution that gives value to users necessitates extensive subject knowledge, in-depth study, and analysis. With an app development company specializing in app development, you can create fintech software that meets genuine customer needs.
Contact us to learn more about how our team can assist you in developing a competitive fintech app!
