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Fintech Products: Top Features
If you are building a Fintech, the focus should be on data security, compliance with legal requirements, handling large volumes of confidential data, and exceptional custom UX/UI designs. These features will help your app meet user expectations:
- User-Friendly Interface: The majority of users expect the app to be visually appealing and intuitive, with a simple sign-in procedure. A strong interface will also help you to stand out from your competitors
- Payment Gateway: Apps shouldn't make simple financial tasks more complicated, such as money transfers, payments via electronic means, or balance checking. You cannot compromise security in the name of simplicity.
- Security: The Report states that 97% of financial services lack sufficient code security, and 90% of apps leave sensitive information in other applications. The authentication process should not only be simple but also efficient.
- Personalized Experience: Users love apps that are designed with them in mind. The user must have the option to limit their data (e.g., push notifications) to a minimum.
- Online Chat: Fintech companies can increase customer satisfaction by using online chats. They are a practical alternative to phone or email support for the majority of customers. AI-powered bots can also improve customer service by reducing costs. Chatbots are expected to save businesses more than $8 billion per year by 2022, according to a 2017 Juniper Research Report.
- Sign-in with biometrics: It's not enough to make an app entertaining and engaging. Fintech is all about the perception of security. Users won't use your custom fintech software as long as their finances are at risk. App security is made easier with biometric authentication. It is more secure than passwords or other conventional methods of authentication.
Fintech Types
Fintech is the fastest-growing type of technology.
Payment
Online payments are the most popular fintech category. Due to the proliferation of payment channels, digital money, and currency conversion is now a common occurrence for both businesses and consumers worldwide.
Payment Services:
- Paypal
- Payoneer
Mortgage and Lending
The traditional financial services for loans are too complicated and laborious to be used by a modern consumer. The most time-consuming activities are now automated, and credit bureau checks and other tasks can be greatly accelerated by innovative mortgage and loan software.
Mortgage Services and Lending:
- Wells Fargo
- MoneyLion
Online Banking
You can use digital-only banks if you're looking for quick money transfers and easy management of your finances on your phone. It's not necessary to go to a bank to make deposits or open an account.
Online Banking Services:
- Point Card
- Revolut
Cryptocurrency
As blockchain adoption grows, many financial institutions will focus even more attention on cryptocurrency.
Services for Cryptocurrency:
- Coinbase
- Binance
RegTech
RegTech refers to regulatory software which allows fintech companies to check local laws. By automating monitoring processes, these systems reduce human errors. They are very useful for multi-regional applications.
RegTech Services:
- Click 6 times to get the code.
- Alyne
Investment
Investment services and stock trading apps allow users to invest in capital instruments. These applications also offer data analysis and investment advice.
Investment Services:
- Improve Your Life
- E*TRADE
Insurance
Digital insurance is attracting clients with mobile apps, data analysis, and quick fixes. Most people prefer to purchase insurance online to avoid the lengthy and painful commission process.
Insurance Services:
- Credit Karma
- Bitrix24
Personal Finance
Personal financial services can help you plan and manage your budget. This application is very popular among consumers because it helps with cost analysis and investment planning. Take a look at a few popular personal finance applications to see what users expect from a fintech platform.
Personal Finance Services:
- MoneyPatrol
- Mint
- Pallo
Crowdfunding
The method of crowdfunding is becoming more popular. Due to the low risk, crowdfunding platforms are an attractive alternative for entrepreneurs looking for money. They often have an attractive user interface to attract donors.
Services for Crowdfunding:
- Kickstarter
- Patreon
These applications are familiar to consumers, despite covering many different areas.
What is SaaS (Software as a Service)?
Software as a service is the distribution of programs over the Internet. Accessing software over the Internet saves time and money on complicated hardware and software maintenance.
Benefits of SaaS Products
The SaaS model has many benefits, including:
Enhanced Security
SaaS data is safer than other systems because it's stored on the cloud, and the service provider regularly backs up the system. SaaS providers protect most of their data on their servers and databases, regardless of whether a security breach affects a firm's server or an employee's computer.
Easy-to-Use
SaaS can be accessed via the Internet or mobile devices. In the last few years, there has been a marked improvement in both user interface consistency and quality. The adoption curve for SaaS programs is also flat.
SaaS applications are easy to use for new employees at telecom companies. SaaS applications that excel at their job include user guides and tutorials for those just starting.
Savings
The cost to hire personnel and invest in infrastructure and hardware is also significantly reduced. SaaS reduces maintenance costs and lowers the initial cost of setting up the software system.
Pay-as-you-go pricing allows businesses to avoid paying high license fees by only paying for their services.
Scalability
SaaS-based solutions can be quickly integrated into other systems of similar nature and easily applied, as they are cloud-based. Users of telecom services only need to activate the new SaaS products; no additional software or servers are required. SaaS providers also make the server resources of the users available.
SaaS vendors can help you save money and time by ensuring that updates and upgrades are made available as quickly as possible.
Subscription Based Solution
SaaS pricing does not take into account the cost of upgrades and licenses. Software as a Service products (SaaS), for example, are usually premium subscriptions that allow users to purchase them as they need them and then stop using them once the company decides it is no longer needed.
SaaS is often billed per seat, and the cost depends on how many seats you buy. The price structure and billing period can be varied, including fixed monthly, quarterly, half-yearly, and annual cycles. Many SaaS providers offer the option of charging based on usage. SaaS applications must also be able to charge their users.
Automatic Updates
SaaS providers can handle automatic upgrades and patches, saving customers money when purchasing new software. It reduces the internal IT staff's workload.
Customization
SaaS apps are often adaptable to other applications and can be integrated with them.
What is Fintech?
Fintech is the term used to describe "financial technologies." Fintech is a term that refers to any technology used to modernize, disrupt, improve, or digitize conventional financial services.
Fintech Product Features
Want to increase your customer base? These features will help your app meet user expectations:
- User-Friendly Interface: The majority of users expect the app to be visually appealing and intuitive, with a simple sign-in procedure. A strong interface will also help you to stand out from your competitors.
- Payment Gateway: Apps shouldn't make simple financial tasks more complicated, such as money transfers, payments via electronic means, or balance checking. You cannot compromise security in the name of simplicity.
- Security: Aite Group's 2019 Report states that 97% of financial services lack sufficient code security, and 90% of apps leave sensitive information in other applications. In other words, authentication should not only be simple but also efficient.
- Personalized Experience: Users love apps that are designed with them in mind. The user must have the option to limit their data (for example, push notifications) to a minimum.
- Online Chat: Fintech companies can increase customer satisfaction by using online chats. They are a practical alternative to phone or email support for the majority of customers. AI-powered bots can also improve customer service by reducing costs. Chatbots are expected to save businesses more than $8 billion per year by 2022, according to the Juniper Research Report 2017.
- Sign-In With Biometric: It's not enough to make an app entertaining and engaging. Fintech is all about the perception of security. Users won't use your fintech software as long as their finances are at risk. App security is made easier with biometric authentication. It is more secure than password-based authentication.
Top Fintech SaaS Companies
List of top Fintech SaaS companies and startups who have revolutionized this sector.
Mitratech Alyne
The SaaS-based solution covers governance, ESG, cyber, and risk. Alyne helps team members better understand the laws and identify risks in real-time, increasing transparency and compliance efficiency. This results in more effective collaboration within their organization and with third parties. Visit our Portfolio page to learn more about the solution we created and its features.
Shift Technology
Shift Technology is among the leading AI-native SaaS providers in the fintech sector. It focuses on helping businesses combat fraud and automate claims when unanticipated events occur. Artificial intelligence solutions help them produce accurate and reliable insurance judgments.
Built Technologies
Built Technologies, a leading provider of financial technologies for the construction sector, connects many different types of companies, such as those that run construction projects or hold property, manage title agencies, and more. They improve the ability of the ecosystem to move money by accelerating the withdrawal process and monitoring compliance.
Khatabook
Khatabook, a SaaS company with fast-growing global sales, is one of today's most successful SaaS businesses. This software allows small and medium businesses to safely track commercial transactions. Their mobile app offers all online payment options that are available in every shop or outlet. Khatabook's current statistics show that they facilitate daily transactions worth over US$200M, and many businesses register there every day.
Tink
Tink, one of Europe's leading open banking providers, has over 250 million users and more than 3,400 connections with banks and organizations. Tink helps startups, fintech, and banks create data-driven services.
Tink's platform allows you to manage your finances and obtain aggregate financial data. Through their single API, you can access all of Europe's Financial Data.
MANTL
MANTL, an enterprise SaaS company, helps established financial firms grow by updating their payment and financing options. They help consumers open deposit accounts within minutes from anywhere. The technology of companies around the world helps them raise billions in deposits every year.
Build a Fintech Software as a Service
Use our proven methods to incorporate your services' uniqueness and essential features into your product.
Step1. Conduct Research
The more complex the project is, the greater the effort should be put into research. The research phase is the most important part of a complex business such as fintech.
It would help if you studied the following:
- Region of Target: All financial services, including cryptocurrencies, are under the control of government bodies. It is, therefore, important to study the laws and legislation currently in place.
- End-Consumer: Determine your audience's needs and identify their target. Are they using desktops or mobile devices? What would make them need your app? What makes your app different from the competitors? Ascertain that the KYC process is properly documented and meets all regulatory requirements.
- Work Scope: It's important not to delay your launch but also to avoid running out of money mid-production. Your project must start with an accurate budget and timeline.
Without a team, it's impossible to accurately calculate expenses or plan your time.
Step2. Selecting a Tech Stack
The right technology is sometimes the difference between success and failure for your product. You can hire a consultant to help you with the technology stack or a team of experts familiar with the cross-platform tools for financial apps. As a company with years of experience in commercial development, we always advise our clients to use battle-tested technology like React.js and React. Native, or Ruby on Rails.
Step3. Gathering a Team
Search for financial experts that can develop a product with a high-profit margin. Your developers should have experience with financial apps, the right tech stack, and good communication skills. What is the best way to find a group with the necessary skills and knowledge? There are many strategies you can employ.
First, you can create an internal team. You will be in charge of conducting interviews and headhunting. As an alternative, you can hire remote workers. This option allows you to save on operating costs and access a large talent pool. Communication can be a problem if you've never managed remote teams before.
Find The Right Software Developer To Build Your Trading Platform
After you've decided what you want your product to be, it is time to choose a manufacturer. It is not an easy task, especially with the intense competition in the software market.
It is important to find the right balance between quality and price. It would help if you considered companies from countries with skilled programmers whose prices are lower than in the United States and Western Europe. Countries such as Slovakia, Poland, or Hungary are the most popular and best options.
You also want to choose a service provider that is a specialist in your area. FinTech, this is what we are talking about. Cyber Infrastructure Inc. has a dedicated team of highly-skilled developers with a proven track record in FinTech development. Here you can find our FinTech portfolio.
Step4. Determine the Minimum Viable Product
It would help if you first determined whether the target audience is interested in using your fintech app. The MVP is a prototype with only the most basic features. MVP services allow you to test software at an early stage of the development cycle. You'll be able to use the data you collect from this process to focus on your customer's needs and eliminate features that don't fit.
Step5. Consider APIs and Integrations
Fintech apps are expected to have a range of features, such as simple transactions, budgeting and bill tracking, chat support, and connectors. You can still create functionalities for your application from scratch. However, it is important to ensure that the app you develop will be compatible with APIs.
Your clients will expect that your financial application integrates with the SaaS solution they prefer. The user experience is the basis of financial services. It is equally important to make the connection both secure and seamless.
Step6. Focus on Security
Your app will collect data on your customers, including their financial and private information. In turn, data breaches could damage your business's credibility and financial performance. Your team should be familiar with data protection guidelines and laws as well as best practices to ensure safe product development. Here are some of the best solutions:
- Data encryption (RSA, 3DES, Twofish algorithms).
- Change password dynamically.
- Adaptive multi-factor authentication and Multi-factor authentication.
- RBAC (role-based access control) is a system that controls internal threats by limiting the number of users who can perform certain actions.
DevSecOps is a technique that allows you to integrate security into software development from the start. This strategy requires knowledge and equipment. It may make sense to look for a vendor that uses the latest fintech solutions in-app security.
Step7. Create the Interface
User experience and design are the core elements of any fintech application. Each feature or component in the interface should have some value. If you are looking to maximize your income, the service provider and final consumers should be primary targets. You can create a money-lending app with a lender and a borrower. Your consumer base will grow (just like Upwork). It's important to build the app with a B2B option in case you decide not to focus on B2C.
Step8. Launch the Beta Version
It is not enough to ensure a successful product launch. It is possible to enhance your product before release using a proven method. It's easy to start a Beta Test with potential test subjects. Real consumer feedback can help you improve the weak points of your app. It is important to take all necessary precautions to safeguard your information. Your legal department should create legal documents and an NDA for your testers.
Step9. Supporting the application
Launching the product is just the beginning. You should know that the fintech sector is constantly evolving. Therefore, your app will need to be updated and maintained throughout its life. It isn't easy to understand the entire fintech development procedure. You can streamline the process by putting the right person in charge.
Outsourcing Versus In-House SaaS Teams
Understanding the differences between Insourcing and outsourcing requires understanding their definitions and functions.
Team In-House SaaS
Insourcing Instead, a company or individual within it is assigned a specific project. The organization uses its existing resources to accomplish goals or carry out tasks. If a company assists with another product within the organization, it may choose to provide it again when a new one is introduced.
Insourcing also has the benefit that new procedures and operations are brought on-site within the business. Insourcing is more costly for businesses because it often requires the creation of new processes to start a separate division within the company.
Outsourcing SaaS Team
The outsourcing process involves the use of a skilled workforce and resources to provide services or produce goods. Outsourcing work is usually done to save money. Outsourcing is used by many industries, such as healthcare, travel and transportation, energy/utility companies, retail, government, and the transport industry.
Fintech Regulations Across the World
It would help if you first familiarize yourself with local regulations before you start developing a FinTech application.
Regulations for Fintech in the US
US fintech firms follow all federal and state regulations. To learn about the regulatory requirements, you should review these publications:
- Electronic Fund Transfer Act: EFTA protects fund transfers using ATMs, credit cards, and other electronic transactions.
- Fair Credit Reporting Act (FCRA): FCRA governs the way financial institutions collect and use data on consumers.
- Anti-Money Laundering Act: AML includes the Patriot and Bank Secrecy Acts. These documents regulate cross-border transactions and anti-money laundering procedures.
- Gramm-Leach Bliley Act (GLBA): GLBA requires financial services providers to reveal how they plan to store and distribute their users' data.
- Jumpstart our Business Startups Act: JOBS is a set of requirements for crowdfunding systems. The law stipulates restrictions on fundraising, transparency, and registration.
Regulations on Fintech in the EU
Many types of financial services are covered by legislation from the European Union. Most regulations are followed by:
- Directive on Payment Services (PSD): PSD1 and PSD2 establish requirements for consumers and providers of electronic payment services. It covers all transactions, refunds, cancellations of payments, and responsibility for non-licensed payment devices.
- General Data Protection Regulation: GDPR governs how fintech firms process customer data and its transfer outside the European Economic Area.
- Fintech Action Plan: FAP creates standard operating procedures (SOPs) for platforms that handle retail payments, digital finance management software solutions, or crowdfunding.
- MiFIR (Markets in Financial Instruments Regulation): MiFIR sets out requirements for trading platforms and investment firms, emphasizing transparency throughout the trading process.
Regulations for Fintech in the UK
Fintech companies in the United Kingdom do not have a comprehensive regulatory framework. Financial SaaS companies must evaluate their scope and size to see if they fall under the UK legal framework.
It would help if you examined the following:
- FCA Guidebook of Rules and Guidance (FCA): This handbook contains regulations that apply to banks, insurance firms, investment companies, and other financial service providers.
- Rulebook of the Prudential Regulation Authority: The PRA rulebook identifies financial institutions and assesses their risk to market stability.
These policies are constantly changing to keep up with the fintech services. Now let's examine the state of fintech today.
Summary
Fintech is increasing in popularity, along with the demand for online services that are easy to use. What are the requirements for your project's success? Understanding the regulations, user needs, and expectations is essential to building a fintech around your idea:
- Accessibility is the ease of use and accessibility.
- The simplicity of integration.
- Content marketing, such as requires thorough planning and market research.
- Apps for millennials like Roblox
- It is not only about selling expensive insurance (such as Oscar Health) but also about putting its customers first.
- Transparent, easily accessible, and affordable (like Cobase).
Sellers have all the resources and know-how needed to build a custom app tailored to your needs. Contact us for more information on app development.
