Research and Markets report that the global fintech market will be worth $305 billion by 2025. If you are interested in entering the fintech industry, now is the time to do so.
This article will teach you how to create a fintech product that the market will love. We will also discuss the tech stack, key features, and the costs of fintech app development.
Let's first consider the potential benefits of a fintech company. We've collected the most important information about the fintech market trends and markets.
What types of fintech apps are there?
You should first consider the different branches of fintech before you start mobile app development for fintech. Then, decide which type of app your company needs. We've collected the top-performing finance apps on the market to give you insight and help you choose the right one.
- Online banking. Mobile banking apps allow customers to quickly manage their bank accounts and access banking services swiftly and conveniently. A custom online banking app will enable users to perform financial transactions, track spending, pay bills, and transfer funds. Starling Bank is an example of such a finance app.
The digital bank offers many features, including detailed debit card control, insight into spending, goals for saving money, and more.
- Regtech. Regtech apps are designed to address regulatory concerns related to finance. Regtech solutions allow companies to solve legal problems, analyze processes, track risks, verify compliance, generate reports, and monitor compliance. 6clicks is a great example of Regtech solutions.
The Regtech app makes it easy to assess and identify risks, ensure legal compliance and provide valuable insight into the risks that could affect a company. It also allows you to share information with other stakeholders.
- Payments via digital. Payments are the most important fintech sector. Global digital payments are expected to grow to $7,640 billion in 2024. This app allows people to send money and receive it using their phones. Digital payment includes online payment systems, cashless apps, e-wallets, and digital currencies.
PayPal currently has 403 million users. The digital solutions of payment app allows users to create a merchant account, send money quicker, and make online payments.
- Insurance. Insurtech solutions simplify claims processing, automate policy administration, speed up policy renewals and apply for new policies. Trov is an example of an insurance application.
Trov is a very popular app in the insurance technology industry. Users can insure their property digitally from their mobile phones.
- Financial management. This app allows users to effectively manage their finances. Personal finance management software solution enable users to track their income and plan their budgets. Mint is an excellent example.
Mint is a popular budgeting app that allows users to manage their money. It syncs accounts such as checking and bills, cards and checking, transactions, and tracks spending to give a complete picture.
- Investment. If you want to enter the stock market, this type of fintech app will be a great choice. In some ways, an investment app is similar to a financial advisor. It provides relevant analytics and financial information that allows users to manage their investments efficiently. An investment app typically includes currency research, credit management, support, savings, and credit management. Robinhood is one of the most widely used investment apps.
Robinhood is an investment app that does not charge commissions. It allows you to trade stocks and exchange-traded funds and buy and sell cryptocurrency. You can also keep up-to-date with the latest market activity to help you invest more effectively.
We now know what types of applications exist. Let's look at the must-have features for building fintech mobile apps.
What technologies are needed to create a mobile fintech application?
Choosing the right technologies to develop a successful fintech app is essential. The technology stack you choose will impact the app's scalability, maintenance, development time, cost, and overall success of a fintech app. We will discuss three main app development methods and the relevant technologies to build a fintech mobile application.
- Native app design is a good choice for building fintech applications on specific platforms (iOS and Android). This requires using specific design methodologies, technologies and tools to create a fintech application for a particular platform.
- Web application development involves creating apps that run on mobile devices and use remote servers. This is a great way for apps to be accessible on desktop and mobile devices. Web app development is the best way to answer the question about creating a fintech application and which technologies to use.
- Hybrid App Development allows developers to create hybrid apps that can be both web and native. The app core is made using native technologies and wrapped in a native container. Hybrid apps can access fintech app features on a mobile device, but they function like websites. Let's look at the tech stack required to create a hybrid fintech application.
- Backend is an application-side fintech app development that isn't visible to users. Your website and application communicate with the backend via a server. The backend stores and organizes data, run your business logic in one location and hosts content for your fintech app. If you want to make payments, sync data between multiple devices, collect statistical data about users, give them access to their data, ensure that app data is not lost, and send notifications to your users. Process payments and backend development are necessary.
There are many tools and technologies available for developing fintech apps. It is important to consider factors such as app type, scalability, and time to market. Security is also crucial for any fintech app. Let's not forget safety.
What legal requirements must a fintech app comply with?
If you are serious about building a fintech application, the next step is to learn and comply with local laws. Our team is experienced in fintech development and can ensure that your app meets all local laws. We will now look at regulations and agencies in different fintech markets.
General Data Protection Regulation This EU-law fintech regulation ensures client data security and controls data transfers outside the EU and EEA.
- Anti-money laundering (AML) is a US law that regulates fintech and prevents illegally obtaining funds. It also prohibits laundering securities, fraud, terrorist financing, and other criminal activities.
- The Fintech Action plan (FAP) sets out universal guidelines for improving cybersecurity in the financial system and encouraging the integration of new technologies into the financial sector.
- Electronic Fund Transfer Act allows for secure electronic money transfers using ATMs, debit cards, credit cards, and smartphones.
- Federal Trade Commission prevents fraud and deception on the market
- Electronic Identification and Trust Services regulates electronic identification and trust services for individuals and businesses.
- The Securities and Exchange Commission (SEC) is the government agency that protects investors from market manipulations and regulates securities markets.
- The payment Services Directive is the European Union (EU) directive to regulate payment service providers across the EU and EEA.
- To ensure that your fintech app is legally compliant, you should be familiar with the laws in your country.
This is important to consider when deciding how to build a fintech application. Once we have agreed on the technical aspects of the app, we can calculate the cost of building it.
What is the cost of creating a fintech app for your company?
The cost of creating a fintech application is important to consider when answering the question, "How do I create a fintech App?" Many factors influence the cost of developing a mobile app for fintech.
- Types of fintech apps (investing and banking, insurance, etc.
- Many features are required.
- The project's difficulty
- You choose which platform (iOS, Android).
- Mobile app development approach (native, web app, hybrid)
- Mobile app design costs
- Technologies that are needed (languages and libraries, frameworks, Blockchain, AI, VR, etc.
- Size of the team
- Support and deployment costs
- Collaboration model (find an outsourcing company, hire freelancers, and create fintech development teams in your office).
You must also consider how many fintech specialists are required to estimate the cost of building a fintech application. A team should look like this to build a mobile application:
- Project manager
- UI/UX designer
- Backend developer
- Frontend developer
- Engineer for quality assurance
- DevOps
The type of application, project complexity, and number of features will all impact the number of specialists required. If you want to create a cryptocurrency trading app, for example, you will need Blockchain specialists.
The cost of fintech app development depends on where the services are provided and the rate paid by the development company. Compare the hourly rates of IT professionals from different countries to see their average rates.
What are the key features of a mobile fintech app?
Navigation that is user-first
Every mobile app has a navigation bar. It should prioritize the user. Instead of your title being the main focus, why not flip the navigation bar upside-down and place the most used features at the top?
You should have enough space for the user to scroll horizontally or vertically. Vertical scrolling is the most popular option, but it's important to consider horizontal and vertical scrolling design options to provide a balanced customer experience.
Your navigation buttons should be accessible regardless of the device used to access the app.
Footer links should be placed at the bottom of every page rather than being buried in menus and hamburger menu bars. This will ensure that you have the best browsing experience. Footers indicate that Fintech products or services are available on the pages. eg
Navigation tabs are available for first-time users.
Example of Navigation Bar Tabs
- Home - This section contains important features and products available to new users.
- Balances - This tab opens up transacting windows and credits and other core functions, such as the "VISA" tab.
- Discover- Offers bars for other non-financial ventures such as travel, music, and health.
- Chat- Allows users to message other users in your app.
- More. You can access secondary navigation, including settings and "connect with us", by clicking the "More" tab. The "Connect With Us" tab will link users to your website, social media accounts, and the contact centre.
Data Analysis
People who use many fintech apps with data analytics can make decisions based on their financial activity, such as investment, spending, and investments. Individual data can be used to create economic analyses and give users reports that allow them to fully benefit from their information.
App Idea for Data Analysis
Fintech applications can market and make money through in-app purchases. However, they also need analytics algorithms to support these functions. What is the best way for fintech to use big data? You have three options to leverage your analytic software platform and its analytic apps.
- Big data analytics links personal transaction data to any purchase. This creates public usage reports that can be accessed anytime during sales periods.
- These data can be used for marketing campaigns that allow customers to see their transactions and give feedback via their apps. This will allow for a more accurate analysis of promotional trends at any time during the month or day.
- Merchants can analyze customers' spending habits before/after purchase using big data analytics.
Data Analysis Aids App Users in:
- Financial Analysis on the Low: Fintech app users can save time with data analysis that assists them in budgeting, banking transactions, and saving accounts.
- Transaction report: This report is on the transactions and spending of users. It provides information about where and how the users spent their funds and categories for these expenditures.
- Apps for personal finance allow customers to define financial goals and objectives. App users are empowered to manage their finances.
Artificial Intelligence
AI is used in many fintech applications. The Cambridge Centre for Alternative Finance reports that 90% of fintech companies already use AI. Join the fun!
Artificial intelligence is a combination of cutting-edge innovation and customer-centric solutions. Fintech apps for artificial intelligence combine cutting-edge innovations with fundamentally different solutions. These apps provide seamless transactions by providing navigation tools that allow you to search for opportunities and update your consumer accounts. AI's greatest advantage is automating customer support using intelligent chatbots. This frees up human workers for more complex tasks.
Blockchain Technology in Fintech
Many Fintech applications have adopted blockchain technology, a decentralized database technology. Blockchain databases can handle more data than ever before at much faster speeds thanks to advances in blockchain data centre technology. Blockchain technology databases that enforce a write-only protocol can make it impossible for anyone to delete or alter any data. This gives Fintech transactions the ultimate security.
Blockchain-based security can simplify traditional financial models by reducing costs and creating new business models. Online peer-to-peer payments allowed for new business models. Users can bypass proxy services and save money.
Personalized User Experience
FinTech app development is all about personalizing the UX. Apps can be personalized by allowing users to choose from various menu options and modifying the UX design.
Voice-Assisted Banking
FinTech app developers have embraced voice recognition and voice interaction technology as cutting-edge features. Voice commands can be used to perform transactions or consult reports. FinTech app development is now easier thanks to speech recognition capabilities. This allows apps not connected to the internet to have the offline, connectionless ability.
Voice commands can be used as virtual assistants to access information like Apple Siri, Google Assistant and Amazon Alexa. Users can inquire online without calling banks or customer service via the online banking app. Voice recognition, unlike traditional banking, enhances mobile banking services by allowing customers to make banking transactions, check balances, and gather information.
Voice recognition is also a way to integrate additional functions into mobile banking apps, such as automatic calendar entry, approval of bank accounts remotely using voice commands, and transferring financial assets at no cost with smart contract technology.
API Integration with Fintech Apps and Fintech Solutions
Third-party authenticator apps offer a wide range of products and services as part of their program. API integration is possible for mobile apps, crowdfunding facilitators, and asset management solutions. Customers can access their wealth management products, such as trading bots, investment alerts, and automated portfolio advisor tools, from their mobile phones without having to use a computer.
Integration of fintech solutions at the API level significantly increases functionality, power and ease of use. When handling financial transactions, users are no longer faced with the hassle of using multiple interfaces. Integrity also guarantees clean accounting for all fintech verticals that adopt fintech solutions at the API level.
Multi-Tier Functionality
Multi-tier functionality is essential for fast transactions. FinTech apps can be found on our smartphones and PCs. Service providers must manage multi-tier access while maintaining user-pleasing response times.
Two key features that make ServIce software the best choice for businesses are tracking commissions and real-time notifications. Tracking commissions and real-time reports enable smarter results. You can also see the status of your investments at any given moment. Multi-tier features allow you to view the current activity so you don't miss any accidents.
Sign in biometrically
Online innovation offers many opportunities for high-tech innovations but also opens up new avenues for criminals. Using predictive data and biometric sign-ins is important to make a highly secure payment system.
- Biometric authentication is made possible by fingerprint input. Instead of using the password method, use fingerprint authentication. It is reliable enough to ensure the highest level of security.
- Mobile apps with sophisticated facial recognition provide a safer option for tracking biometric data.
- Only you, with biometric security, can access your app using your smartwatch's mobile heart rate sensor.
- The biometric palm-vein sign-in process takes place on the user's palm, reading the scales on their palms or backs.
Simplicity
Segments such as insurance and banking can be difficult to comprehend due to their complexity. Each piece has a complex solution and requires many perspectives and a variety of procedures. This information must be gathered from multiple sources. This is why it's possible to start with a single view but then see that there are many links beyond what one takes for granted.
Friction-Free Forms
Poor form design is a common mistake in user experience design. No one wants to fill out multiple forms to complete tasks. It is impossible to place paper over function in this area, especially if the sign-up form becomes the first thing a user must deal with after installing the app.
You must ensure that the user experience is smooth, whether using premium fintech apps or freemium financial firms.
New fintech apps should be inclusive, simple, and stress-free. This will allow many users to join the app from day one. It also reduces your development time.
These are our recommendations for building a successful fintech app.
To create a successful fintech application that attracts the most users, you'll need to remember some key points. This is a brief overview of what you need to consider before beginning your fintech app development.
Begin with product discovery
It is essential to validate your fintech idea's viability. A product discovery stage is a good place for that purpose. CISIN conducts this phase to help clients develop a viable product idea, determine project complexity, assess the total cost, and evaluate potential risks. This stage will allow you and your team to coordinate product development promptly and keep everyone on the same page.
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Find your niche and satisfy its needs.
When you launch a fintech app, it is best not to rush. Instead, decide which fintech area you want to focus on (digital bank, insuretech loan lending, etc.). Then, research the market to identify the needs of your target audience. You should pay attention to the pain points of your target audience and create a product that addresses them. Demographics such as age, gender, and location can be gathered. This will allow you to create a more effective marketing campaign.
Try on the shoes of the user to focus on the user experience.
Financial applications are generally complex and require a simple solution. These are some tips to help you get results.
- Onboarding. Users can view videos to show the app's benefits and solve their problems. You can also provide useful tips to help users navigate the app and get to grips with its core features. You show care and improve the user's experience.
- All the necessary components are at your fingertips. This will enable users to quickly resolve their problems without searching long for the element they need.
- A modern and engaging UI. Impressions are everything. Your app's first impressions are crucial. You only have a few seconds to grab their attention and get them to use it. To enhance the UX, use vivid colours and gradients to highlight the design elements. Use easily readable fonts. Remember that buttons, typography, and icons should all be consistent with your corporate brand and style.
- Do not display too much information. Avoid long blocks of text that are difficult to read. Video or appealing animations can be used to simplify and visualize data.
- Personalization. Different users have different goals and needs. Personalization is possible by understanding the needs and wants of users. Personalization can make your financial product stand out and offer users relevant experiences. Many fintech apps track data to tailor products to users' preferences. Your fintech app will be more popular if you submit more personalization.
High security
Fintech services uses users' private information, so security is crucial. One security problem can ruin your reputation and cause you to lose customers. Here are some best practices for high-level security.
- Encrypt data. Encryption implies mathematical algorithms that convert data into code. Without a decryption key, hackers or unauthorized users can't decode the data. Twofish, AES and RSA are all popular encryption algorithms.
- Secure authentication and authorization. You should use more than SMS passwords for authentication. To maximize security, integrate multiple technologies. You can use voice, face and fingerprint authentication to create two-factor authentication. You can also require users to change their passwords at least once every three months. To prevent account hacking, information leakage, and money loss, you can ban users from accessing the account if they enter the password incorrectly the third time.
- Secure app logic. It's better to implement security measures at each stage of app use. You should keep an eye on unusual activity to detect hacking and information leakage. A One-Time Password (OTP) is another way to protect your fintech apps. OTP allows you to generate a unique, limited-time password that can only be used once.
- Tokenize data. Tokenization is a great method to securely store and transfer data. This technology allows you to replace private data with a random number of symbols called tokens. It requires token vaults and unique databases that can decrypt essential data.
- Always test the app's security during development. To ensure high-level safety, your QA team must test every part of the fintech application. QA engineers usually run penetration tests to test for security flaws or vulnerabilities.
Final thoughts
Fintech is now a vital part of our daily lives. We can't imagine our lives without it. Although it may seem daunting, developing a fintech app takes time and effort. It is important to clearly define the goals and requirements of your project, choose features and tech stacks, and comply with legal regulations. With the right approach and the help of a skilled fintech internal team, you can make your development process smooth and seamless.
Building a fintech app requires a lot of research and expert knowledge. CISIN has a lot of experience in fintech, and we are happy to share it with you. Our team offers various fintech app development services and has expertise in creating different types of fintech IT solutions, including crypto projects and micro-investing apps.
Our experts can help you create a viable fintech product. We will build MVP first to validate and improve your business idea. We also understand that every application must be unique to make it stand out. By integrating innovative technologies such as AI, VR, blockchain, and machine learning, we can create unique functionality for your product.
