A Guide for Fintech App Development Process You Never Heard Before

The finance and technology industries are expected to be very stimulating and talked about in 2021. The financial sector has undergone tremendous change due to the widespread usage of digital payments and the growing desire from financial institutions to incorporate cutting-edge technologies. 

As you may have noticed, Fintech is one of the hottest industries. Not even a global pandemic like the one we are now experiencing could bring the company to its knees. Instead, the Fintech industry only saw growth during these difficult times. Fintech app development is the first step if you want to invest in Fintech or start a Fintech company. 

Innovative solutions to assist users in properly managing their money are increasing in the Finance App Market. As smartphone penetration and personal financial literacy have increased, banking and Finance applications have become essential tools for managing budgets, assets, and costs. According to the analysis by QED Investors and Boston Consulting Group (BCG), the present valuation of the global financial services industry is around $12.5 trillion, with an anticipated growth of $21.9 trillion by 2030. According to the research, by 2030, banking FinTechs are predicted to account for 13% of all banking revenue pools, making them the fintech industry category with the quickest growth rate. (apptunix)

The market for banking apps is expanding as people use digital technologies more and more. The need for more secure and efficient financial transactions, as well as the rising demand for development solutions, provides compelling justifications for taking advantage of this expanding field. 

Based on the comprehensive analysis, this article summarizes the winners in significant categories such as user retention, app store optimization, and essential features. 

What is Fintech?

Banks, financial institutions, and startups have been using Fintech applications more and more in recent years to grow their businesses and raise capital. Due to their popularity and profitability, organizations are turning to outside help to learn how to create Fintech apps. Customers and organizations gain from these Fintech solutions since they enable them to quickly and easily access financial services via technology at any time. 

Blockchain, AI, and machine learning are just a few of the technologies that may be used to create Fintech apps. These technologically advanced digital solutions help to optimize and speed up the supply of financial services. As we read in fintech app development guide, the Fintech industry has provided its customers with scalable, secure, and easy-to-use financial services using mobile devices. Consequently, businesses looking to enter the market or new to it are under pressure to create something unique to draw in clients. 

Things to Consider for Developing Fintech Apps

Target Audience

Determine who your ideal customers are and what requirements and problems they have. Conduct in-depth market research to comprehend their financial habits, desired use cases, and demographics.

Regulatory Compliance

To maintain lawful and moral operations, navigate the complicated world of financial rules and compliance standards. Seek advice from regulatory and legal specialists to prevent heavy penalties and preserve user confidence. 

Monetization Strategy

To keep your app afloat, choose a sustainable revenue plan, such as in-app sales, fees, or subscriptions. Consider user preferences and market trends to select the most effective monetization approach. 

Tech Stack

Choose the appropriate technologies and tools depending on your project's functionality. 

The Fintech App Development Domains That Are Most Suitable

Banking 

Currently, most banks want to provide their customers with more services via mobile banking apps, but not all live up to user expectations. Because banking is so convenient, many clients use these services. Using banking apps, users may handle and move money without going to a bank. 

Startups offering mobile banking services also assist banks in several ways. For example, they increase their competitiveness by providing customers with a greater choice of banking services and adding new services that increase revenue. 

(Source: storyly)

Apps for Personal Finance 

These apps help users plan their monthly or annual budgets and manage their money by tracking or preserving their expenses. However, applications for personal Finance often need to include payment processing services. 

These applications are more straightforward when it comes to entry-level apps on a tight budget. Among the most popular personal finance apps (we developed) are lending and money apps. 

Apps for Cryptocurrency

A Bitcoin application is another app to be aware of while learning to create a Fintech app. These applications let users purchase, store, and exchange cryptocurrencies. Since these financial apps are becoming increasingly popular, you should look into this option more. Two of the most well-known cryptocurrency platforms are Coinbase and Binance. 

Trading and Investing Apps

A fantastic method to get started in the stock market is through investment applications. Investment management systems provide users with relevant data and insights to improve their investments' performance. If you wish to create an app for digital investment, look at us. 

Applications for Insurance

These applications aim to speed up the processing of insurance claims and policy administration. Using an insurance application, people may easily purchase insurance at any place. If you're considering creating mobile applications for Fintech in the insurance sector, have a look at the BIMA app. 

BIMA provides mobile insurance. The software works with banking institutions and mobile carriers to provide millions of low-income clients with underwriting and insurance. BIMA offers health, accident, and life microinsurance options. 

Let's take a closer look at how to create a financial app suitable for the future and help you dominate the areas above.

How can one develop a Fintech application that thousands of users will utilize? Our group has produced an extensive manual wherein we will elucidate every phase involved in the creation of Fintech applications. 

2024's Top FinTech App Development Trends

The Fintech industry is still developing as we market toward 2024, thanks to technological advances and shifting customer demands. The following are the leading Fintech application development trends influencing the market:

Decentralized Finance (DeFi)

DeFi uses blockchain technology to provide inclusive and decentralized financial services, and this trend continues to be popular. The increasing usage of decentralized exchanges, lending protocols, and smart contacts gives consumers more control over their assets. 

Embedded Finance

There's a growing movement to incorporate financial services into non-financial platforms. Embedded Finance enhances accessibility and convenience by enabling people to conveniently access financial services inside pre-existing digital ecosystems, such as social media and e-commerce. 

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Artificial Intelligence (AI) and Machine Learning (ML)

AI and ML transform Fintech by providing individualized financial insights, risk evaluation, and fraud detection. Thanks to intelligent algorithms, Fintech applications may evaluate user activity and provide personalized financial suggestions, enhancing the entire user experience. 

Voice and Conversational Interfaces

Fintech applications are increasingly using voice recognition technologies. Voice-activated functionalities, such as account queries and transactions, provide consumers with a convenient, hands-free method of interacting with their financial apps. 

Open Banking

Open banking is a developing movement that encourages cooperation between financial institutions and outside developers. Through the safe data exchange made possible by APIs, FinTech applications are able to aggregate data from many sources to provide comprehensive financial solutions. 

Green FinTech

This kind of Fintech incorporates environmental, social, and governance (ESG) considerations into financial services with a stronger emphasis on sustainability. Fintech applications are introducing functions enabling users to invest in sustainable portfolios or other environmentally responsible financial choices. 

Quantum Computing

Although it is currently experimental, Fintech might greatly benefit from quantum computing. Its processing capability has the potential to transform risk analysis, cryptography, and complicated financial modeling, opening the door to more advanced FinTech applications. 

Biometric Security

In FinTech applications, enhanced security features like biometric identification (facial recognition, fingerprint authentication) are becoming more common. With the number of cyberattacks on the rise, these sophisticated authentication techniques provide increased protection.

The Process of Developing Fintech Applications

Step 1: Setting the Objectives

You should first create and draft an idea for your intended product. Explain everything. It is essential. This is where your development strategy starts. The project's work must also remain structured and ordered according to the Plan. 

A thorough justification of your idea will also clarify what you want to gain from it to potential coworkers.

Step 2: Conduct Market research and Deep Analytics

From this point on, product development work starts right away. Generally speaking, this phase includes the following:

Agile Approach for Adapting Technology for Market Research

You should learn about the industry and the available Fintech applications. Then, you should thoroughly assess the advantages and disadvantages of current Fintech applications to enhance your offering. 

You may use product discovery to help you decide if it makes sense to develop a new product and whether or not consumers will find use for it. The main phases in the product discovery process are as follows:

• Gain a greater understanding of your customers' requirements and feelings by getting to know their underlying wants and feelings.
• Crowdsource your team's diverse perspectives to get a comprehensive picture of your client.
• Pay attention to what your client says. Examine the root of the customer's issue before offering a remedy.
• Using visual mapping to gain clarity might be beneficial.
• Gather client input by contacting them via various channels (such as email, social media, customer support, user research, customer advisory boards, etc.).
• Retain your impartiality. Are the remedies being presented in line with the problems, or are you biased? Remember that only some suggestions will be carried out.
• Verify your presumptions.

Step 4: Choose Tech Stack

Choose a suitable stack of technologies for your FinTech application. This includes database management systems like MySQL or MongoDB, frameworks like React Native or Flutter, and programming languages like Java, Kotlin (Android), and Swift (iOS). Make sure the stack you've selected satisfies your application's security and scalability needs.

Step 3: Design of the Apps

After that, you might start developing a UX design. A better UX design process can reduce the likelihood of producing a quality UX output. On the other hand, a well-defined and well-implemented UX process can create fantastic user experiences. 

The following five phases comprise the User Experience (UX) process that we will go through if we apply design thinking to product design:

1. Applying Design Thinking to Your Product

• Description of the product
• Stakeholder interviews
• Value Proposition Mapping

2. Creating an idea

• Make an investigation

3. In-depth talks with People

• Examination of rival studies
• Creating Personas for Users
• Creating user narratives

4. Using storyboarding

• Creating blueprints
• Creating models
• Creating a Specification
• Constructing Design Systems

5. Confirmation

• Testing sessions
• Analytics - Surveys

Step 4: Testing 

After the UX design is finished, testing is required. At this stage, you need to be aware of how well you build the product's logic, whether customers can find anything in it, whether it fits them, and so on. 

You'll be able to determine if any adjustments to the UX design are necessary after you get the test results. 

Step 5: Implementation and Integration

When the QA team completes development and regression testing, the team moves on to production development and integration. Beta testers get access to the product's tested version. The group receives input from users, resolves issues, and makes some adjustments. 

Step 6: Upkeep

A product is maintained by a team after it is used in a production setting. The development team will take care of any problems that arise and need to be solved, as well as any enhancements that need to be made.

Step 7: Analyze User Comments

Next, get user input on your Fintech application. Complete the survey to respond to the following questions:

• Is it feasible to use a Fintech application?
• Are there any problems folks need help with the product?
• To what extent does a Fintech app satisfy user needs?
• Which features of the product do consumers like to see enhanced?
• How well does the product meet consumers' needs?

If you get answers to these questions, you will be aware of what has to be done.

Step 8: Develop and flourish

The creation of the product doesn't stop there. After reviewing customer comments, you should keep improving and developing your product. The most crucial thing to remember is that success mainly depends on progress!

Essential Elements for Developing Fintech Applications

Payment Gateway

Verifies that your Fintech application is able to take payments. Whether you are creating an application for cryptocurrencies or standard banking makes no difference. A payment gateway is needed everywhere. 

Financial Management

It gives your users the ability to manage their money. They plan payments, manage finances within a plan, create a spending budget, impose restrictions on online payments, and perform other related tasks. In this approach, users may maximize the program's benefits while managing their finances.  

Adding or Creating Bank Cards

Any Fintech application needs to be able to connect to them. After all, the application is essentially useless without it. If you are developing an application for a mobile device, for instance, you may include the card-generating capability directly into the program. 

Notification

Include a notification system in your application so users are constantly aware of what's happening. Customers will thus always be informed whether they have transferred funds to a card or if the value of Bitcoin has increased twofold.  

Transaction and Interaction History

Include a transaction and interaction history feature in your app to enable users to manage their finances and quickly identify the person they have recently transacted with financially. 

Templates for Interaction

Use interaction templates in your Fintech application for convenience and time savings. For example, they may be monthly mortgage payment templates or utility payment templates.

Onboarding System

This is necessary to ensure that a user who is using your application for the first time quickly picks up the basics. You may use simple onboarding techniques (like providing a few screenshots and instructions on how to use the application) or more intricate ones (like using a highlight to let users know where and when to click). 

Simplified User Interface

As we said at the beginning of the essay, Finance has always been complex. Eliminating any barrier to fintech service use is also one of the primary tasks for a fintech service provider. Even if point-of-sale systems, investments, and foreign exchanges are complicated, you should simplify them for your users as part of the seamless development process for your FinTech application. Introduce your customers to the financial industry with a user-friendly interface, easy navigation, informative content, and more. This will provide the conditions for sustained retention.

Voice Assistance 

One of the fastest-growing technologies in the digital world, voice assistance maximizes ease for users of intelligent virtual assistants placed in their homes. Despite popular belief, many people are experimenting with virtual assistants because of the astonishment and experience they provide. For this reason, your app should support voice-based searches, functionalities, and ways of retrieving information.

Look at These Essential Cutting-Edge Features.

Biometrics that scan

Biometrics, such as fingerprints, face geometry, or iris scanners, may be used to identify the user in an application. This kind of technology is spreading more wisely. 

Dual-Factor Authentication

This functionality will enhance the security of the application and user account logins. Ensure users get a confirmation message on their phone or email address after logging into their accounts. 

Dynamic CVV2 (CVV2)

Suppose a user loses their phone; in that case, dynamic CVV will be sufficient security. A dynamic CVV is one that fluctuates often. 

Cost Observation

This functionality will allow users to access spending data. Fintech app users may usually see their expenditures broken down into categories (e.g., food, home, study, etc.).

Referral System

Bank clients may use the referral system to invite friends, family, coworkers, and others to use the bank. The majority of Fintech apps provide incentives to encourage this. 

Conclusion 

These are the essential features of your fintech app that you must pay attention to. As you can see, fintech software application development services are advanced. The more user-friendly an app seems, the more challenges there are to identify and solve.

Hire a reputable financial app development firm, such as Mtoag Technology, with years of experience in the field to help you create the perfect app that users will trust when it launches on the market. Only seasoned professionals focusing on financial software development can guarantee your application's security, usability, and scalability. Please get in touch with us about your app concept.