The financial industry is the fastest-growing and most promising sector, and today, investing in its digitization is one of the best things you can do from a business perspective. In fact, fintech disrupted the financial industry, increasing customer trust and improving engagement and reputation.
Fintech mobile applications are the “tool” you need to enter the industry and grab your share of the fintech space, worth $179 billion in 2022. Some of the most promising areas in the fintech industry include mobile payments, digital banking, digital identity, digital lending, digital wealth management, blockchain, and digital currencies. Building one of these options will scale your business, and the first step is to learn how to start with a fintech application.
Key Features of fintech mobile apps
There are 6 main types of fintech apps, and each has its own tech stack and features, but they all have a set of common features for a better user experience.
User-friendliness is critical to fintech app design, as it can greatly impact user engagement and adoption. A user-friendly app should have intuitive navigation, a simple and clean interface, personalization options, responsive design, accessibility, robust security features, and an easy onboarding process. It will make the experience more pleasant and convenient for the user, encouraging them to use the app more frequently and to recommend it to others.
Fintech apps implement robust data security features such as encryption, two-factor authentication, biometric login, firewalls, intrusion detection or prevention systems, regular security assessments, a security incident response plan, a remote wipe feature, and data backup and recovery to protect user information and comply with relevant regulations. This will help reduce the risk of data breaches and ensure a safe and secure user experience for the customers.
Fintech apps should have robust customer support features such as live chat, email support, phone support, a knowledge base or FAQs, in-app messaging, self-service options, and social media support to ensure users can easily get help when they need it. Most modern apps already use AI-based chatbots to facilitate the customer experience, improve customer satisfaction and retention, and reduce the burden on the customer support team.
How to Build Your Fintech App
If only building a fintech app was as simple and fast as it sounded. The truth is that fintech applications are among the most time- and resource-intensive types that go through numerous stages and regulations, so having a trustworthy service provider is essential.
Conduct market research
The fintech industry is huge, and before you offer a new idea to the market, there is probably someone who has already presented it. In 2022, there were over 30.000 startups in fintech, which will double this year. Starting your business with market research helps you understand the market demand, reveal already existing similar solutions, find their pain points, and decide on your value proposition. It is time-consuming, but every piece of information is priceless for future business development and marketing initiatives.
Analyze target audience
The next step in market research is analyzing and defining the target audience’s needs. The financial industry is quite specific, but one good thing is that there are tons of data points to process and reveal the core needs. Five factors to focus on when analyzing the target audience are
- Financial goals
- Technological savviness
- Risk tolerance
Define your MVP
Already at this stage, you will have an MVP for the future fintech app with must-have features based on your market research. It will help you focus on the most important features and functionality your app needs to have to succeed.
The key point here is to define your value proposition — the feature that will help you stand out among the competitors. This will help you focus on the most important features and functionality your app needs to have to succeed.
Design and develop the app
Once you have a clear idea of what your MVP should look like, work with a team of designers and developers to create the app. Use agile development methodologies and user-centered design principles to ensure that the app is easy to use and meets your customers’ needs.
Test and iterate
Though agile methodology supposes constant collaboration of software engineers and software engineers at final test testing and debugging will ensure the application is free of any bugs or usability issues. Use the feedback from testing to make improvements and iterate on the design and functionality of the app.
Obtain necessary licenses and comply with regulations
Fintech companies are highly regulated, and you’ll need to get the necessary licenses and comply with regulations specific to your app. Make sure you have legal and compliance teams to help you navigate this process. Here are a few steps to take at this stage.
- Understand the regulatory environment
- Register with regulatory authorities
- Comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
- Follow data security regulations.
- Regularly review and update compliance measures: Keep up-to-date with changes in regulations and review your compliance measures regularly to ensure that they are still adequate.
Launch and market the app
Once your app is fully developed, tested, and compliant, you can launch it and promote it to your target audience. Use a variety of marketing channels, such as social media, email, and content marketing, to reach your target audience.
Monitor and improve
The first launch of MVP is only the beginning of a long journey. Once the app is launched, it’s important to monitor its performance, user engagement, and customer feedback to identify areas for improvement. The MVP will then be passed through the MoSCoW prioritization (must have, should have, could have, will not have), bringing out new features to develop and those that had no impact on the user experience.
Keep in mind that building a fintech app is a complex process that takes a lot of time, but with the right approach and a dedicated team, you can create a high-quality product that meets your customers’ needs and stands out in a competitive market. Also, negotiate app development costs from the early stages to deployment and further maintenance. Often, service providers give rates for each stage, and it is up to you to decide where to cut costs.
Why use payment solution apps?
Payment solution apps are becoming increasingly popular as they provide a convenient and secure way for individuals and businesses to make and receive payments. In 2022, 64% of adults will have used at least one fintech app. Most times, the users have two or more bank accounts with their supporting apps. The expansion of technologies — blockchain, AI, and machine learning — only disrupted the already prospering fintech industry, making it more user-centric and profitable for business owners. Here are a few more reasons why payment solution apps are becoming a popular choice:
Convenience: Payment solution apps allow individuals and businesses to make and receive payments anywhere and anytime, as long as they have an internet connection. This eliminates the need to carry cash or visit a physical location to make a payment.
Security: Fintech solutions use advanced security measures to protect sensitive information, such as personal data and financial details. They often use encryption and other security protocols to ensure that transactions are secure and personal information is protected.
Cash flow: Through digital payments, instant access to funds, automated accounting and invoicing, digital lending, and alternative financing, fintech apps give users all the data they need to track and improve cash flow.
Cost-effective: Reduces or eliminates costs for expensive point-of-sale systems and other equipment.
Integration with other apps: Many payment solution apps can be integrated with other apps and platforms, such as online marketplaces, accounting software, and more.
Increased flexibility: Payment solution apps allow for multiple payment methods, such as credit and debit cards, bank transfers, e-wallets, and more, increasing customer flexibility.
Analytics and reporting: Many payment solution apps provide detailed analytics and reporting, allowing businesses to track and monitor transactions, identify patterns, and make data-driven decisions.
Why should businesses invest in fintech applications?
Despite strict regulations, long application development times, and complicated maintenance, investing in fintech applications is exceptionally beneficial, registering over 98% customer satisfaction. A financial industry that still struggles with low customer engagement and financial regulation and terminology literacy managed to bring them to fintech apps, educating and increasing trust. Here are more advantages of the fintech industry for investments:
Increased efficiency: This feature allows for the automation of many financial processes, such as accounting, invoicing, and payments, which can help increase efficiency and reduce the need for manual labor.
Big Data & Analytics: Fintech apps can provide businesses with valuable insights through data analysis, which can help identify trends and make data-driven decisions.
Scalability: Fintech apps can be easily scaled to meet the changing needs of a business, making them flexible and adaptable solutions for companies of all sizes.
Increased revenue: Fintech apps can provide businesses with new revenue streams, such as digital payments and alternative financing options, which can help increase sales and support growth and expansion.
Economic growth: Fintech has the potential to significantly impact global economic growth by increasing access to financial services, improving efficiency in financial systems, promoting innovation, and creating new jobs. Through its ability to increase financial inclusion, especially in developing countries where traditional financial institutions may not have a presence, fintech can help promote economic growth by providing more individuals and businesses with access to the capital they need to invest and grow. Fintech can also improve the efficiency of financial systems by automating processes, reducing costs, and increasing transparency, leading to greater economic growth by freeing up resources that can be directed toward more productive uses. Additionally, fintech can increase competition in the financial industry by providing new and innovative products and services, driving innovation, and encouraging the development of new technologies.
Is it worth creating a fintech app? Conclusion
Investing in a new business is a serious decision that several factors should justify:
- Market demand
- Market prospects
- Technology innovation
- The presence of a reliable service provider
- The value proposition
The transition from traditional payments and capital maintenance to fintech is inevitable. With plenty of development directions and technologies, including big data, blockchain, artificial intelligence, and machine learning, it is now possible to create innovative fintech apps that will revolutionize the industry. And even though there are global players in the market, new solutions will find their customers.