Fintech app development: Key things for businesses to consider in 2023
The technological revolution did not bypass the FinTech industry. Statista shows that in the first quarter of 2022, the total value of investment in Fintech companies was $107.8 billion. FinTech app development streamlines financial operations, enhances security, and automates customer service. Read this article to the end to learn more about how to solve fintech industry business problems with app development, and which emerging technologies you should use to bring your company to a new level.
Types of fintech apps
When you decide to run with fintech software development, the first thing to do is to choose the type of application that fits your business goals best. Let’s find out which app types exist and the ways in which they can turn your fintech startup ideas into reality.
Insurance apps
Insurance apps simplify claim processing and speed up the work with insurance policies. In addition to this, they provide customer data analytics and allow for quick access to information. Using this type of application brings you an opportunity to offer more effective and faster communication between insurers and the insured. Among the great examples of such apps, we can highlight Geico Mobile. This car insurance app has a virtual assistant, provides digital ID cards for the drivers, and also helps users to find available parking nearby.
Investment apps
Investment apps allow users to invest and trade directly from their smartphones without involving a third party. There are different types of investments apps:
- Bank investment. Such applications can help you to buy bank bonds and other securities, track spending, and check your account in real-time.
- Stock Trading. These fintech apps give the opportunity to users to buy and sell shares of stocks.
- Others. The functionality of such applications depends on the goal: to manage the transaction, provide cryptocurrency operations, analyze different investment options, and more. Examples are Robinhood, Acorns, and Stash Invest.
Banking apps
Banking apps give users more freedom and the opportunity to conduct operations with payments in just a few minutes. Today, fintech app development for banks is not just a trend, it’s a necessity. Customers can make transactions, view their accounts, and control the flow of funds from home. This approach improves your competitiveness, increases customer loyalty, and cuts payroll. For example, the Bank of America application has implemented features such as a virtual assistant, mobile bill pay, depositing checks, etc.
Regtech apps
Regtech apps help businesses meet the standards of the laws. With regtech application, the regulatory compliance processes can become simpler and more automated. It can protect the business against financial risks by reducing the chances of getting fines, penalties, and legal implications. A great example of a risk management platform is 6 Clicks GRC software. It helps to achieve compliance with all the possible legal standards.
Lending apps
Lending apps offer a convenient connection between the borrower and the lender, leading to a quick closing transaction. These apps allow you to acquire money in a few clicks and charge a commission for the transaction. Traditional financial institutions such as banks and independent lenders may benefit from such fintech app development. The Dave application is a good example of a lending solution. You may receive your money while waiting for your next salary.
Consumer finance apps
Managing money can be a great challenge. With consumer finance apps, users may track and analyze their income and expenses. The features of these fintech apps for personal use are: notifications about bill due dates, distribution of costs by category, financial goal setting, and more. For example, the Mint application helps to track your spending, monitor your credit history, and set a budget.
Key things to consider when building a fintech app
Big data and machine learning
Fintech companies accumulate a large amount of data, which is sometimes difficult to process, analyze and store. Big Data and Machine Learning will help organize all the information, analyze the data, and help make informed decisions. To implement these features in your application, you can hire python developers:
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How can Big Data and Machine Learning improve fintech app development?
- Personalized approach to your customers. With the help of Big Data, it will be easy for you to collect information about users, analyze their actions, and offer individual solutions.
- Preventing system failures. Thanks to Machine Learning, you will get system analysis that will help you to manage the risks and notify you about any issues.
- Fast data processing. You will not have to process all the data manually, the automated system will do everything for you. It can even suggest some actions to take.
Blockchain technology
Blockchain improves the security and transparency of the business, making it more reliable. Statista shows that the use of blockchain technology will almost double in 2023 compared to the previous year. So, which benefits can blockchain technology bring to fintech companies?
- Transaction costs reduction. If you have blockchain technology, there is no need to pay intermediaries for conducting transactions.
- No geographic restrictions. Thanks to asset digitalization, your customers can make payments and transfers from any part of the world with the confidence that they are secure.
- Audit improvement. All information is stored in one place. The system automatically generates the reports of the operations.
Gamification
At first glance, it may seem that the gaming format is not very appropriate when we talk about fintech. In fact, gamification elements will allow you to attract more users and improve their interaction with the application. Why do you need to add gamification features to fintech app development?
- Simplifying the user’s work with finances. The game format of presenting complex material makes it easy to solve certain problems such as saving money, investing, etc.
- Encouraging users to invest more. You can add different rewards for completing specific tasks. For example, get a badge for spending or investing some amount of money abroad.
- The growth of the community. Usually, gaming elements attract and interest people, and they want to share and discuss their experiences.
Biometric authentication
An ordinary password of numbers or letters seems to be an unreliable option to protect your finances. Technology has advanced and now it allows you to log into the system using biological indicators. Users can access finances by identifying themselves with a fingerprint, a look, a voice, etc. What can your business get thanks to biometric authentication?
- Increasing customer satisfaction and loyalty due to the simplified use of technology.
- Reliability of financial materials and protection from fraudsters and hackers.
- Biometric facial authentication guarantees the authenticity of transactions.
Microservices
Microservices in fintech app development improve the legacy processes of digitalization such as monitoring systems, security services, and general architecture. Why does the financial sector have to implement microservices in the applications?
- Quick response to changes. Thanks to independent components, you can easily add or remove any features.
- Fast scaling. Dividing the system into micro-elements allows you to manage and expand it faster.
- Reusability. You can reuse elements, which simplifies the process of updating the application and also reduces development costs.
Data visualization
Data visualization helps you to see the whole picture, analyze weaknesses and strengths, and find the right solution. Complex information is much easier to perceive when it is visualized. What are the benefits of data visualization when it comes to financial app development?
- Increase in productivity. It’s faster to analyze figures, statistics, and other data when they are presented in graphs, charts and highlighted in different colors.
- Effective decisions. Dashboards display the most important metrics, such as KPIs, comparison of data for different time periods, and the analysis of consumer behavior.
- Facilitating work with finances. Thanks to data visualization, everyone can understand difficult financial, banking, and investment indicators.
Conclusion
Fintech is definitely changing the traditional behavior of financial institutions. The implementation of technological solutions helps companies to not only meet customer expectations, but also to exceed them.
When planning fintech app development, make a market analysis, choose the proper application type, find an appropriate developers team, and listen to the customers’ feedback. The fintech app development process consists of several stages: conduct research, create UI/UX design, build an MVP, test functionality, and make improvements. To make your app more attractive, consider adding features such as Big Data, Blockchain, Data visualization, and/or Biometric authentication.
FAQs
How to build a fintech app?
To build a fintech mobile application, you have to research the market, form a team of developers, define the scope of your MVP, conduct a test launch, and adjust your app according to your audience’s feedback.
What are the types of fintech apps?
There are different types of fintech applications: insurance, investment, banking, regtech, lending, and consumer finance.
How do fintech apps make money?
You can make money with a fintech app by adding a subscription, paid services, commission per transaction, and/or placing advertisements.
