How to Create a Fintech App: A Detailed Guide For Senior Executives

The fintech industry had a surge during the pandemic, whereas all other industries experienced a major halt in growth. Contactless transactions were pushed due to COVID’s physical mobility constraints.

Fintech apps have grown in popularity due to digitization, a pandemic-induced need for digital services, and mobile phone affordability. Peer-to-peer lending, real-time payments, loan disbursement, insurance counseling, and a range of others formerly handled by human capital have now been transferred to the Fintech environment, which is entirely dependent on the internet.

This seismic shift away from the well-known corporate paradigm led to a number of unique services, service models, and ways to meet customer requirements in a range of industries, including finance. Individuals are remaining at home and performing business from there or on the road in greater numbers than at any other time in recorded history. Customers are becoming more aware of mobile banking, quick digital payments, and money transfer technologies as a result.

The year 2020 changed the course of many, if not all, sectors. Lockdowns, tight travel restrictions, the transition to remote work, and a complete reevaluation of development plans, budgets, and objectives have all had a significant impact on enterprises all over the world. However, this impact was not always bad.

In this post, we will go over some key parameters for developing a successful fintech application. Let’s get started:

Why Fintech Apps is Gaining Popularity

Fintech applications have produced a major upheaval in the financial and banking industries as new technology has arisen and various start-ups have joined this industry. The following causes have contributed to the present introduction of a fintech app:

1. Increased Clientele

Customers are becoming more interested in the benefits of fintech apps. Users are more engaged with these apps because they choose to invest in and complete transactions using AI-enabled applications rather than visiting to physical venues for every little activity or financial transaction. Because of the 24-hour banking alternatives given by these programs, the number of fintech users is constantly expanding every day.

2. Knowledge

People are interested in learning about fintech apps because of their broad use and rising demand. Because of their tech-savvy temperament and interest in money, many people have chosen fintech application development as a job. Finding skilled financial application developers capable of providing scalable solutions is so simplified.

3. Quick Adoption

Fintech apps are now in great demand, and corporations expect to earn handsomely from them. Almost all smartphones now have at least one helpful financial app. These applications are widely used by financial organizations to seek new clients and enhance operational activities. Because customers prefer quick and easy financial transactions to have to wait days for a single banking operation, demand for mobile banking apps and digital wallets is at an all-time high.

4. Corporate Demand

The company industry has discovered a huge requirement for fintech development services, since these fintech apps assist in converting more potential users into committed clients. Companies are further encouraged to develop apps that can provide them with a competitive advantage after learning about the advantages that their competitors have gained by employing fintech applications.

5. Advanced Technologies

The market for developing mobile applications is dominated by technology that is constantly improving. Finance application use has expanded globally as a result of technologies such as robots, AI, ML, big data, blockchain, and IoT, among others. Learning about these technologies should be your first step if you want to design a scalable and responsive financial app based on any of them.

Also Read- Top Use Cases of Artificial Intelligence in the Finance Industry

Why Are Fintech Apps Popular?

The COVID-19 outbreak had a tremendous influence on the banking and finance sectors, as well as radically changing how financial organizations worked. As a result, there is currently a significant global need for fintech apps.

Types of Fintech Apps

It is critical for the senior executives of corporations to understand the various sorts of fintech apps before delving into how to design one. This can help you decide what form of fintech app to create in order to expand your business. Examine the many fintech application categories:

• Mobile Payment
• Regulatory
• Investment
• Consumer Finance
• Insurance
• Lending
• Crowdfunding
• International Payments

Top Features of a Fintech App

The development process and features are always the most important items to focus on while reading a guidebook on designing fintech applications. In this part, we’ve highlighted some of the most important components for attracting users and improving the functionality and responsiveness of a fintech app. Let’s have a look at the features:

1. Security

People can execute a variety of private banking and financial transactions using a fintech application. As a result, every fintech application’s key job is to ensure the privacy and security of the user’s data. To prevent data from unwanted access, fintech app developers incorporate features such as two-factor authentication, blockchain, biometrics, encryption, and many more security measures.

2. App Usage Guide

There must be a function that allows users to navigate the whole program. This feature should emphasize the essential features and capabilities of the fintech app, ease user interaction with the app, and make all of its functions easily accessible. This must be quick and informative in order for users, even those who are unfamiliar with money, to have a favorable experience.

3. Data Visualization

The majority of fintech applications supplied users with information about their earnings, expenditures, and everyday activities in a simple manner. However, one of the features that may give your fintech application a competitive advantage is data visualization. This will visually depict all factors, including stock charts, payment histories, and spending. When designing a fintech application, it is typically one of the necessities.

Also Read- How to Develop Stock Trading Apps like Robinhood?

4. Voice Integration

The voice assistant is currently a common trend in financial apps. The most crucial and popular financial application capabilities are emerging with the aid of voice assistants. Users may use the software without opening it thanks to voice assistants such as Apple Siri, Google Assistant, and others.

5. Payment Gateway

The majority of fintech applications include payment gateway capabilities, and in order to do so, these programs interface with third-party payment gateway providers such as PayPal. As a result, one of the most important elements of a fintech application is its speedy and secure payment gateway.

You may hire a leading finance app development company like “Quytech” to get your job done easily and with no hassle.

How To Develop Fintech App A Step By Step Guide

Understanding the development process of a fintech application is difficult, but to make things easier, we have produced a short and well-organized list of all the processes that must be completed. Consider the following:

Step 1: Niche Selection

You must first choose a specialist before commencing the process of designing financial software. Finding the right niche may take some time and effort, but it is critical since it will allow you to simplify the process and create a highly scalable fintech application. Choosing a niche requires making judgments about the sort of fintech app, the building strategy, and the target location. You should consider if the app is meant for mobile banking, money management, crowdfunding, or anything else. Locate the target audience and their requirements after determining the aim. All of this study will culminate in a seamless and effective development procedure.

Step 2: Research Your Competition

At the competitor analysis stage of the development process, ensure that the fintech mobile app development business you choose produces a product that can surpass the competition. Before doing a competition study, it is critical to undertake extensive market research on existing applications to discover their benefits and drawbacks. By recognizing the weaknesses in your rivals’ financial app designs, you can create a financial app that corrects all of its design defects and provides consumers with a deeper, more frictionless experience. It will assist one in gaining an advantage over competitors and expanding their consumer base.

Step 3: Taking Care of the Compliances

When it comes to fintech application development, compliance is far more stringent when compared to other types of application development. Maintaining publication rules for the Apple App Store and the Google Play Store is insufficient in this scenario. Based on the target market selected, it is critical to undertake extensive compliance research to uncover any relevant regulatory rules, regulations, and legal impediments. All such legal considerations must be identified, and the development process must be adjusted as needed. It is critical to understand what is authorized under the applicable laws and regulations.

Because regulations change when a corporation relocates to reflect compliance and financial protection measures, the fintech app development company must be well-versed in the law. Know Your Customer (KYC), digital signature certifications, and other critical concepts are only a few instances. To avoid noncompliance, ensure that this step is completely completed.

Step 4: Develop a Team/Partnering with the Vendor

The development of a fintech app is essentially comprised of two components: money and technology. Furthermore, it is vital to acquire dependable and scalable software, and working with a mobile app development business that offers the correct combination of both is the solution. If your firm lacks an internal development team capable of producing a fintech app, you must employ a fintech development company with a team of specialists capable of producing a responsive fintech application. As a result, a development team comprised of the following individuals is required:

• Backend and Frontend developers
• Project Manager
• Designer
• Product Manager
• Business Analyst
• Quality Assurance Specialist

The size of your team will also be determined by your budget, the project’s needs, and the timeline for releasing your fintech application. If both iOS and Android apps are being created, two front-end developers are required. The second alternative is to outsource the development of the fintech app to a competent fintech development business, although this may incur additional fees.

Step 5: Selection of Technology Stack

Get the necessary technology stack in place to build a successful financial application. Depending on the type of application and the functionality offered, a wide collection of tools and technologies are necessary for the front end and the back end. Because each fintech project is distinct and unique, a customized technical stack is necessary to meet the project’s demands and objectives.

If you pick the correct technology stack, you can also utilize it as a strategy to minimize the total cost of building fintech apps as well as the time it takes for them to launch. Fintech apps are built using a variety of technologies, including Java, Swift, Ruby, C#, Python, C++, and Kotlin. For iOS, you may use Swift or Objective C, and for Android, you can use Kotlin or Java.

Step 6: Create a Monetization Model

Before incorporating features into a financial app, it is critical to identify prospective income streams. To accomplish this, a monetization model comprised of the few most valuable income-producing streams must be built, while new prospects for the future must be found.

Also Read- Top Web3 Monetization Trends To Look Out For in 2022 and Beyond

Step 7: Specify MVP Features

Following the completion of the competition study and market research, the next stage is to determine the true goal of your fintech application and the features that must be included in the app. Only features that are required, significant, and capable of boosting the efficacy, usability, and speed of the program should be included. It is not necessary to provide too many features.

To ensure that the financial app meets its goals, features such as two-factor authentication, chatbots, cross-platform compatibility, signing in through an OTP, and many more should be limited. After you have completed the market study for your product sector, you must select which features will be included in the MVP.

There are several tools available to help with this, such as the Prioritization Matrix and the Pain and Gain Map. Following the release of the MVP version, it is vital to collect consumer feedback in order to assess the target market’s behavior and adjust the fintech application based on their ideas.

Step 8: Cost Estimation

Budget constraints toward the end make the application development process drag unnecessarily. The cost of establishing a fintech app is determined by a variety of criteria, including the size of the project, testing, maintenance, design, platform selection, feature integration, and many more. Before beginning the construction of a fintech application, it is a good idea to do an estimation. This will allow you to stay to your budget while also meeting the fintech application development deadlines.

Fintech app development expenses are usually determined using the developers’ hourly development rates. Outsourcing financial app development is one of the finest methods to have access to qualified developers, cutting-edge technology, and scalable solutions.

You can book a free consultation slot with Quytech experts to get the right estimations.

Step 9: Launch & Make Improvements

The development of a fintech application does not imply that no extra effort is necessary. Instead, the development process continues since maintenance and support are always required. As soon as the fintech application reaches the testing phase, user feedback is reviewed, and modifications are made to the functionality and design based on ideas and comments to give potential consumers a better and enhanced experience. The application’s methods and functions must be updated as technology and time develop. The application must fix any faults that users may encounter when using it as soon as possible.

The following are crucial actions in the support and maintenance of the application:

• to ensure that the program is always updated to the newest operating system version
• to update the third-party services and libraries that the application can access
• performing all security audits and confirm the most recent updates
• To make the flaws and defects better
• To reorganize the current code without altering its original functionality

Wrapping Up

Fintech disruptions in recent years have produced a lot of noise in the banking and financial industries by providing clients with better alternatives to traditional banking solutions.
Various sorts of organizations are beginning to grasp the great potential and importance of these new technologies. Financial institutions must provide a service that allows clients to handle their money digitally and conveniently in order to stay viable.

If you’re looking for the best fintech app development company and want to convert your ideas into reality then hire “Quytech”.

Related Article- Fintech App Development: A Fundamental Guide For Startups