Quick Summary: In today’s world, financial institutions seek ways to connect with customers, and a FinTech app is a quick fix. However, building a FinTech app is a complex process that requires the services of a FinTech software development company. Let’s explore the steps to developing the app.
Mobile apps are the new trend in every industry, and the FinTech industry is no exception. The FinTech industry has witnessed tremendous growth with the high demand for mobile apps.
With the recent development in mobile app development, it is ideal for financial institutions to develop a Fintech app.
A FinTech app eliminates the need for physical presence, granting customers their desire for convenience. There are various FinTech categories, which include online banking, digital wallets, mobile payment, and financial management. According to Expert Market Research, the global FinTech market value in 2023 is $226.76 billion. This number is estimated to rise to $917.17 billion by 2032 at a CAGR of 16.8%.
These statistics are the information businesses need to ascertain the booming FinTech market. Any financial institutions seeking growth should have a FinTech app, and investors can invest in the lucrative FinTech market.
In this article, we will discuss the meaning of FinTech, dive into its types, and provide a FinTech app development guide for 2024.
What is FinTech?
Financial technology is the application of software and hardware to financial systems to improve financial processes.
At first, when the term financial technology emerged in the 21st century, it was generally used for the backend systems of financial institutions. However, this evolved with new iterations of technology. Since 2018, financial institutions have adopted a consumer-centric approach.
Currently, FinTech includes retail banking, cryptocurrencies, mobile banking, investment management, and digital wallets. This gives room for improved user experience.
With the recent technology trends, financial institutions need to upscale their services to serve their customers better. Mobile banking apps are a must-have for these institutions, and hiring a FinTech software development company makes the FinTech app development process seamless.
Types of FinTech Apps
There are different areas of FinTech a company can focus on depending on its objective. You can choose any listed apps, but consider your business objectives and customers’ interests.
Here are a few FinTech apps to check out:
- Banking Apps
Traditionally, customers need to be physically present in the banking hall to make transactions or create a new account. It was a hassle for many people, considering the processes involved and the people in the banking hall.
The banking app is a quick fix to this problem. Banking apps are designed for customers to conduct transactions without a bank officer, create a new account, and pay utility bills without physical presence.
Traditional financial organizations can create banking apps to stay competitive. You can have a FinTech custom software development app made just for your business.
- Investment and Trading Apps
Are you in the stock market? You need an investment and trading app to improve efficiency. With an investment app, users can invest in stocks, crypto, and mutual funds. They can track their performance, manage their investment, and make informed decisions without external assistance.
Investment app features range from investment research tools, stock news, real-time alerts, savings, and client support.
- Insurance Apps
Insurance apps are suited for businesses in the insurance industry. It facilitates communication between an insurance agency and its users. When you have an insurance app, customers can fill out insurance forms and make payments online. It also automates reminders, gives access to insurance services, and enables online consultations anytime.
There are many benefits you can gain from an insurance app. Insurance apps create personalized offerings for customers, enable you to close deals faster, and provide instant feedback, which helps you make informed decisions.
You can have a specific niche, like a life insurance app, health insurance app, property insurance app, vehicle insurance app, or travel insurance app.
- Lending Apps
Lending app is an online app where people can get loans instantly. Lending apps connect borrowers and lenders. It allows borrowers to request loans, and the lenders can respond to the request.
Any FinTech development software company building a lending app always includes features like loan form, billing, payment, and credit score.
- Consumer Finance Apps
Most mobile apps are designed for customers to process payments when needed, but consumer finance apps are different. Consumer finance apps don’t have payment processing services. A consumer finance app aims to help customers save money, manage expenses, and predict their future account balances.
Following the FinTech app development guide, your consumer finance apps will come with primary features, such as expense tracking, financial goal setting, investment analysis, and fraud alerts.
Now that we have covered the basics of Fintech and its types. Let’s dive into the step-by-step guide on building a robust FinTech app for 2024.
Step By Step Guide to Developing a Fintech App
The ultimate goal of developing a FinTech app is to improve services and increase customer satisfaction. You can’t build a FinTech app without basic information about the app development process.
So, let’s have a look at the FinTech app development guide.
- Identify the type of App you want to build:
As stated earlier, the financial technology market is vast, and there are different types of FinTech apps to choose from. First, you must think of your customer’s pain points, your competitors, industry trends, and your budget.
Lending apps are less expensive to develop, unlike personal banking and insurance apps. Insurance apps require two interfaces: one for the administrator and the other for the consumers. They are labor-intensive and time-consuming.
Alternatively, investment apps are mostly information-based. They display investment and trading information to enable users to make investment decisions.
You can opt for an investment app, banking app, neobanks, consumer finance app, and regtech app, depending on your business goal.
- Conduct Research:
There are a lot of risks involved in building a FinTech app. With the volatile market, every business has to conduct proper market research to mitigate risks. You need to conduct market research on current industry trends to make the right decision.
When you hire a FinTech software development service, the software developers conduct extensive market research on your competitors, and they map out an outline of the possible features of the FinTech app.
Some basic features include user authentication, payment integration, dashboards and reports, push notifications, and data encryption.
- Hire an experienced IT team:
You will need the assistance of a pool of skilled IT developers to turn your FinTech app idea into a reality. For your app development, you need a backend and frontend developer, project manager, UI designer, and QA specialist. You can get all these in one team when you hire Hidden Brains experienced developers.
You can either outsource an entire software developers’ team if you lack an in-house software team or upscale your in-house team by opting for a few talents to join your team for the duration of the project.
It is essential to communicate your ideas and plans to the team so they can execute your ideas correctly.
- Design the App Prototype:
It is impossible to get it right the first time in software development. Software developers often make mistakes at the first trial, which increases costs. To prevent this, they developed a prototype as the first draft to test the app idea.
Prototypes are sketches that enable you to see the app’s functionality without decor. There are different types of prototypes, from interactive prototypes and clickable prototypes to high-fidelity prototypes.
A prototype gives the team a clear vision of the app, enabling them to make changes before writing the codes. Also, you can use the prototype to secure funding from investors. It gives the investor and your stakeholders an idea of what the finished product will look like.
- Start your UI/UX design:
Your FinTech app has to be visually appealing to the human eyes. This stage is where your designers work on the interface of your app, ensuring it is user-friendly. The designers should be wary of plastering design all over, thereby making the app confusing.
Ensure that the UI and UX design is well-balanced and does not disrupt the flow of the app. The designer should place all the features needed in the right place to make navigation easier.
- Create a minimum viable product (MVP):
Mobile apps are not cheap to build or maintain. You need to evaluate the risk before launching your product. An MVP is a scaled version of the app designed for testing to gather feedback and work on the final product. Developers use the MVP to test the validity of the app.
Developers use the MVP to test the functionalities of the app, implement the feedback, and come out with a robust app that customers will enjoy.
- Select a Technology Stack:
 The technology stack is the programming languages, tools, and frameworks used to build and design mobile apps. The exact tech stack to use will depend on your business specification, your budget, and the type of FinTech app you want to build. We have the following tech stack:
- Backend technology: Java, Python, Swift, Ruby, C++
- Frontend technology: Angular, React.js, Knockout.js, Node.js
- Database: MySQL, MongoDB
- API Integrations: Plaid API, Twilio API, Apex, ShuftiPro
Launch your App:
After building the FinTech app, the next step is to launch the app on various platforms. You should observe the users’ reception of the app and take note of customers’ feedback for updates.
Update your FinTech App:
To thrive in a competitive landscape, you have to be aware of new software technology trends to make adjustments to your FinTech app. With FinTech software development service, you can get regular updates on new technology to upgrade your FinTech app and improve customer satisfaction.
Empower your fintech business with cutting-edge mobile apps. Hire top mobile app developers today and reduce your app development costs by up to 35%
Conclusion
Thanks to digitalization, online banking and payment processes have been made seamless. Technology has redefined the financial landscape, improving financial services and increasing customer satisfaction.
Financial institutions must build FinTech apps to connect with customers, build loyalty, and make transactions seamless. However, building a FinTech app is a complex process that requires the help of an experienced FinTech software development company.
With our FinTech App development guide, a good software development company can build an intuitive and responsive app. If you want an interactive FinTech app, the Hidden Brains team of certified mobile app developers can create one based on your business specifications.
FAQs
Q: What is a FinTech app?
A: A FinTech app is a software app that automates financial processes, allowing users to make transactions, create a new account, and manage their budget.
Q: Why should I build a FinTech app for my business?
A: In today’s digital world, you can’t afford to rely on traditional financial systems. A FinTech app connects you with customers, makes online payment easier, and improves operations without physical interaction.
Q: How can I develop a FinTech app?
A: You will need the services of a FinTech software development company. However, knowing the steps will help you ensure the team of developers delivers the best.
The stages include identifying the type of FinTech app, conducting market research, hiring a team, prototyping, starting the UI/UX design, building an MVP, choosing a tech stack, launching the app, and constantly upgrading the application.
Q: What are the features to look out for in a FinTech app?
A: The essential features are a dashboard, sign-in/sign-out tab, payment gateways, automated payments, push notifications, QR code scanning, personalization, and security.
Q: What are the different types of FinTech apps?
A: Depending on your business specification, you can opt for an insurance app, investment app, banking app, lending app, digital wallet app, regtech app, or consumer finance app.
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