- Get Summary
- What is Fintech?
- Current Market Growth & Statistics about FinTech Market 2020-2025
- Diverse Types of Fintech Mobile Applications
- Step-By-Step Process to Follow While Developing a Fintech Application
- What is the Cost Evaluation for Fintech App Development?
- Summing Up
COVID-19 has made us realize the importance of digital technologies and many of the industries have adopted the latest technological trends to be in the race. The increasing demands of customers have made businesses step into the digital world. Industries such as healthcare, entertainment, education, food, & Fintech are taking assistance from leading mobile application development company to acquire the best solutions in order to increase their customer base.
Here, in this write-up, we are going to compile a guide about how to create a Fintech mobile app in 2022 including significant things to consider about the same. As we know, a lot of entrepreneurs are interested in setting up a Fintech services business, but they must enter the industry with a Fintech app to have a good start. To get an understanding of the Fintech app development process and its costs, keep scrolling-
Most of the businesses have already stepped into the Fintech industry with an efficient mobile application and getting various advantages from it. If you are one of those start-ups who want to develop a Fintech app to enter the sector, here you will get what you want. In this below write-up, we have come up with all the details about the Fintech mobile app development process, features, & involved costs. We have also defined some of the popular Fintech app types you can go with!
What is Fintech?
Fintech apps have been popular over the decade among businesses who want to capitalize in the banking & finance sector. These Fintech solutions are advantageous for both ventures and users to avail themselves of the finance services easily and quickly anytime with the help of technology. A Fintech app can be created using various technologies and it can be anything such as machine learning, artificial intelligence, and Blockchain technology. These digital solutions made with modern technologies are helpful to systematize and improve financial service delivery.
With time, the fintech market has been successful in providing secure, convenient, and scalable financial services to their customers using mobile devices. Due to this, ventures that are new in this field or thinking to invest in the sector at present must go through the pressure to come up with something unique to steal the customer’s attention. In this article, we will provide you with a 360-degree view of the growth of the Fintech industry covering the process to develop a Fintech app. Let’s start with the current statistics and situation of the finance marketplace:
Current Market Growth & Statistics about FinTech Market 2020-2025
It is the perfect time for businesses that want to step into the industry as the financial technology market worldwide is predicted to evolve and reach a market worth of about $324 billion by 2026, developing at a CAGR of 23.41% between the forecasting periods 2021-2026. Have a look at the below report-
In the below representation, we can view Fintech startup numbers as per the regions. Top US Fintech startup segments based on the number of US bank investors & their transaction value in millions. The reach of the fintech sector can be inescapable, so having in-depth knowledge about the facts and figures would be helpful for you to make an exact estimate of what the Fintech sector can do to your business? Here you can look at the recent data on the same industry from market growth to consumer adoption-
Following are some general stats about the Fintech industry that you must know:
- The financial services market worldwide is predicted to reach about $26.5 trillion by 2022.
- The global Fintech investment had a total of $26.5 billion and 1,221 deals in the first half of 2020. Most of the deals were derived from 2019 due to the COVID-19.
- Around 28% of the banking & payment services will have the risk of commotion because of new business models introduced for Fintech.
- Up to 22% of firms in the wealth management, insurance, and asset sector will also have the risk of disruption because of the new type of business model for Fintech.
Diverse Types of Fintech Mobile Applications
Before having fintech app development services, it is essential to know about the diverse kinds of Fintech mobile apps so that you can choose among them as per your business requirements. What are they? Have a look below-
Mobile Banking Apps
Nowadays, most banks are preferring mobile banking apps to provide advanced services to their customers, but only some of them are living up to the user’s expectations. A large number of users are also adopting these services as they are getting convenient banking with enthusiasm. Banking apps facilitate users with easy money transfer and manage them without going to the bank.
These mobile banking startups also provide multiple advantages to the banks such as an extensive range of banking services provided to customers to make the banks be more competitive and including extra services to boost the revenue. Some of the fine examples of mobile banking apps are Revolt, Starling, Monese, etc.
Digital Lending Apps
While thinking about setting up a fintech services business, most businesses prefer digital lending apps. You can start with a simple website or app, or you can go for an AI-enabled solution to maintain the relationship between borrowers and lenders. Although the money lending apps work on different models, still all of them share a common goal that is to connect the people who need money to those who can lend money to others while getting some of the additional benefits. We can look over ZestFinance, PaySense, Earnin, etc. as digital lending apps instances.
Nowadays, people have become more aware of their future, hence they have started to invest money at the right place with the help of investment apps. These kinds of apps have proven as the best guides for newbies as well as for experienced people in the field of the stock market. The app facilitates users with analytics data to improve their decision-making and offers a broad range of investment sources. Even there are some popular apps such as Robinhood, Acorns, and more that provide customizable and automated investing.
- Insurtech Apps
Insurtech applications allow users to have improved interactions with insurance firms. Users don’t need to call an agent to know anything; they can take help from the app. Some of these apps are powered with technologies like Artificial Intelligence and Machine Learning for handling the risks and encouraging users for safe behavior and a healthier lifestyle. Apps like Coalition are the perfect example of Insurtech’s mobile application.
Consumer Finance Apps
These types of applications help consumers in money management and planning their monthly or yearly budget, saving or tracking their expenses. Consumer finance apps don’t comprise payment processing services usually; these just coordinate the bank accounts with different payment services such as Google Pay, PayPal, and Apple Pay. If you want to develop a Fintech app, then this is a good option to go with. These apps are less complex when it comes to entry-level apps in terms of the limited budget. The most famous consumer finance apps are Finch, Mint, etc.
Regtech apps are helpful to resolve the problems related to finance. These types of apps are highly dependent on AI, ML, and big data for risk evaluation and compliance with state laws and regulations. Regtech apps are mostly used by enterprises to examine the internal procedures and ensure the law compliances. These are also used for automation and analytics, benefitting ventures alleviating some of the legal issues. There are some Regtech apps like PassFort and 6clicks beneficial for businesses to analyze and evaluate risks.
Step-By-Step Process to Follow While Developing a Fintech Application
While getting an understanding of startup app development, there are some steps you must follow. Initially, it might be challenging to do it by yourself but you can take the assistance of a top-notch Fintech app development company. Their skilled development team will help you right from the app idea and conceptualization to app deployment & maintenance.
Here we have prepared a complete guide about Fintech application development & its costs. Check this out-
Market Research & Exploration
The market study that includes research about competitors, challenges, market scope, current trends, target market needs, and more is the first step when it comes to developing a fintech app. After choosing the niche, you must concentrate on the complex solutions, create some new ideas and bring out some expansions to the existing technologies. Once you have cleared all your doubts in this stage, it will make further stages simpler for you.
Security Laws & Regulations
Before getting into the development process or integrating any feature, make sure you have compliant with all the security laws and state regulations. The fintech solution you are intended to develop must involve a good legal standing. Each country has its own set of legal requirements that must be followed while starting a Fintech business.
Some of the examples of legal policies and regulations are Anti-money laundering, KYC (know your customers), Payment Card Industry Data Security Standard (PCI-DSS), and digital signature certificate. All Fintech businesses must comply with the arduous standard of such legal policies. Despite it, some privacy laws should be followed as well including the ePrivacy regulation, GDPR, CCPA, and others according to the country you want to establish the business in.
Choose the Latest Technology Stack
Selecting the appropriate technology stack must be preferable by Fintech businesses in order to make the application worth using. Don’t get confused with the multitude of options you get to choose as it leads to some serious consequences. Pick modern-edge technologies as per your app type and required features. Consider that every project is unique and one technology stack can’t be fit to all, hence choose accordingly.
If you get successful in selecting the right technology stack, it will help you to alleviate the overall development cost, reduce the software development time, and hence, boost the app’s time to market. Some of the most used programming languages for a Fintech app are C#, C++, Python, Kotlin, Java, and Ruby. You can also take the help of your chosen Fintech app development company as they have enough experience in this field to guide you on the right path.
Selecting the Right Team Structure
After choosing an appropriate set of the tech stack, you need a skilled and dedicated development team to implement it into your fintech app. While setting up a fintech services business,you need a well-built application to make it successful and therefore, having the right team structure becomes more essential including project managers, designers, developers, and quality testers. Pick a rich-experienced team with the expertise of different programming languages to build a unique app.
For this, hire a leading Fintech mobile app development company or go for a team of adroit developers to create a competitive app with advanced features.
An appealing and interactive Fintech services app design is very important to attract the target audiences that can be done by comprising data visualization, simplified UI, attractive components, etc. A striking but simple UI design will help your Fintech business to have a large customer base by providing users with a smooth usability experience. Don’t overload the app interface with non-required features as it will make it complex only. Keep only limited aspects to make the app simpler to use.
Impressive Features to Include
After the app designing phase, it is time to determine the right set of features to develop a Fintech app. Consider that you don’t need to put lots of features into the app, just keep required and limited ones needed by users. Try to include those that can make your Fintech app more cost-effective, innovative, secure, faster, and most importantly, user-friendly. Some of the must-have features are-
- Sign-up & Login
- Transaction History
- QR Code Scanning
- Push Notifications
- Biometric Security
- API Integration
- AI-enabled Chatbots
- Attractive UI
- Data Visualization
- Automation Tools
Shortlist these above-mentioned features to integrate into the Fintech app to give a tough competition to your rivals, and make your app popular.
Developing an MVP Version
Before developing your app at a large level, it would be better to test your app with limited and required functionalities. A minimum viable product (MVP) will help you to serve this purpose. An MVP will bring value to your business and provide you the chance to improve the app as per the users’ feedback. It is a great and most adaptable way to market your app and grab more and more investors. An MVP will also alleviate the risk of not being successful in the market.
If you are done with the app development process, test your app and make the necessary changes to launch it in the market. Choosing the right deployment platform is significant for setting up a fintech services business appropriately. It depends upon the Fintech businesses where they want to deploy their app, be it Android or iOS, or cross-platform app. If you go for a hybrid app, you will end up having a huge customer base. After deploying, upgrade it time-to-time to keep it competitive.
What is the Cost Evaluation for Fintech App Development?
We have already summed up all the essential aspects to know while assessing the cost to develop a Fintech app. Businesses need to have cost estimation before knowing about how to start a fintech services company or Fintech mobile application. So, the overall Fintech app development cost would depend upon a number of factors including set of features, the hourly rate of the development team, application complexity, location of the chosen firm, and many more. Hourly rate of the developer’s team will vary from country to country, these will be-
- APAC– $30-$40 per hour
- Eastern Europe– $40-$55 per hour
- Western Europe– $60-$100 per hour
- USA– $130-$150 per hour
Thus, based on the above-described factors, the final cost to develop a fintech app would be about $50,000 to $100,000, if you hire developers from the USA. You can also outsource Fintech app development services to have an experienced and dedicated team at a low cost. However, it would be best to estimate the Fintech app development cost in the starting, so that you can determine the aspects as per your budget.
In the present time, it would be great if you choose the Fintech industry to start your business. Get a proper understanding of setting up a fintech services business so that you won’t have any problems while developing the application. There will be various challenges you have to come across at the time of app development but with the support of the right Fintech mobile app Development Company, you can easily overcome those issues.
To have an easy-going Fintech app development process, Octal IT Solution is always there to assist you with a professional team of developers that holds the expertise of different technologies. If you want to have a feature-packed Fintech mobile application compatible with iOS and Android, contact us for an unimaginable experience.