How To Develop A FinTech App
Nearly two-thirds (64 percent) of global consumers have used at least one Financial Technology (or FinTech) platform or app.
The FinTech industry combines technology (apps, software, etc.) with financial services (banking, investing, etc.), and it’s seen rapid growth over the last few years. As a result, many businesses are looking for ways to break into this burgeoning sector.
If you’re interested in learning how to create a FinTech mobile app, you’ve come to the right place. This guide teaches you everything you need to know, from developing your app idea to launching the final product.
Types of FinTech Mobile Apps
FinTech apps come in various forms. The following are some of the most well-known types you might want to consider developing:
Mobile Banking Apps
Mobile banking apps allow users to handle various banking-related tasks from their mobile devices. Some common mobile banking tasks include transferring funds, paying bills, sending invoices, and tracking expenses.
Finance apps make tasks like investing more convenient for the average consumer.
With finance apps, users can trade stocks and handle investments from their smartphones or tablets. Many finance apps also help users apply for loans, create new savings accounts, and seek answers to common finance-related questions.
Blockchain apps allow users to conveniently and efficiently buy and sell various cryptocurrencies. These apps offer a great deal of security and help crypto investors manage their funds on the go.
Payment Processing Apps
Payment processing apps make it easier for sellers to accept payments from customers. These payment processors typically accept credit and debit card payments, bank transfers, and sometimes even cryptocurrency payments.
Why Develop a FinTech App?
FinTech apps offer various benefits for consumers and businesses. The following are some of the best reasons to consider creating a FinTech mobile app:
FinTech apps don’t just streamline processes for managing money. They also help businesses and consumers save money.
For businesses, FinTech apps can automate various financial operations, simplifying workflows for employees and reducing processing costs.
FinTech apps also assist with tasks with bookkeeping and accounting. This assistance helps businesses keep more detailed and accurate records and make data-driven decisions to save more money in the future.
Now, let’s look at the consumer end. Because they save businesses money, FinTech apps can also save consumers money. When companies have lower expenses, it’s easier for them to invest in their customers and eliminate extra fees.
As a professional, you know that time is money. You also understand that anything that makes your life more convenient can help you save or make more money.
One reason the FinTech industry is currently thriving is because of the convenience it provides.
These apps make everyday tasks like bank transfers and bill pay more efficient. They also assist with more complex processes like blockchain transfers and withdrawals.
Because FinTech apps save businesses and consumers a lot of time, they free these people up to focus on other things.
Speed Up Approval Times
A specific way that FinTech apps increase convenience is by speeding up approval times.
Many FinTech app users find they can complete tasks like transferring funds, applying for loans, or investing in stocks much faster through an app than traditional routes.
In a time when people have shorter attention spans than ever and demand instant gratification, FinTech apps fill a much-needed gap in the financial services market.
Improve Customer Service
FinTech apps allow businesses to provide better customer service.
The extra convenience they offer allows you to accept various payment types. When you make it easier for customers to pay you, they’ll be more inclined to keep paying you and stay loyal to your business.
FinTech apps can also improve how business owners handle their company’s backend. For example, they can use FinTech apps to send invoices, pay vendors quickly, and keep things running smoothly behind the scenes.
Reach a Larger Audience
Not only can you provide better service to your audience with the help of FinTech apps, but you can also serve more people when you incorporate this technology into your business.
FinTech apps allow you to accept payments from almost anyone. As a result, you never have to worry about turning customers away because you can’t accept a specific type of card or mobile payment.
Keep in mind, too, that if your business is known for accepting various payment methods and making the payment process easy, you’ll likely receive more positive reviews and referrals from existing customers. These reviews and referrals boost your reputation and help you attract more customers in the future.
Increase Audience Engagement
FinTech apps improve customer engagement as well.
The more convenience you offer your audience (along with impressive products and a streamlined purchasing process), the more likely they will continue working with you and giving you consistent business.
Remember, it’s easier to retain customers than attract new ones. Because FinTech apps help increase audience engagement, you’ll be more likely to maintain customer loyalty and keep your business running smoothly.
Improve Data Management
FinTech apps help you collect and manage valuable data.
When you have this data readily available in one convenient app, you’ll have an easier time handling tasks like payroll and tax preparation.
Better data management increases productivity, frees you up to handle other tasks, and helps you make informed decisions about better serving your customers.
How to Create a FinTech App
After learning about FinTech apps’ many benefits, you might be more interested in developing one. You might also be unsure of where to start.
If you want to dive into the world of FinTech development, you’ll need to take the following steps:
Clarify App Vision
Every great app starts with a vision, including FinTech apps. That’s why the first step to creating a successful FinTech app is clarifying your vision.
What will your app do? What kind of problem will your app solve? Does it build on an existing type of FinTech app, or is it something brand new?
Take time to define your vision before you start trying to create your app. Spending some extra time on this aspect of app development will help you bypass many hurdles and construct a better product.
Identify Market Niche
After clarifying your app vision, the next step is identifying your market niche.
The FinTech sector is quickly expanding, but it’s also highly competitive. If you want your app to have a chance of succeeding, you need to know where it fits within the industry.
Will your app be part of the personal finance market? The insurance or investment market?
You also need to know who makes up your target audience.
Is your app geared toward brand new investors? First-time homebuyers looking for the best loans?
Learn Legal Requirements
With any type of app, you’ll need to be aware of (and compliant with) specific legal requirements. With FinTech apps, though, you must be extra-cautious of abiding by laws and guidelines.
This step can be time-consuming and confusing. After all, each country has its own laws and regulations designed t protect businesses and consumers from fraud.
Before getting started, take time researching the laws in your country (and the countries where your target audience lives).
Remember that it’s worth it to be thorough. If you violate a law or regulation, you could get hit with severe fines, damage your brand, or even lose your business.
Choose Your Tech Stack
Next, choose the tech stack for your FinTech app. A tech stack is a set of technologies that work together to help an application function.
Before you can choose your tech stack, make sure you know exactly what you want your app to do. For example, if you want a web and mobile app, you’ll need a different tech stack than a mobile-only app.
Consider Essential Features
You should brainstorm the list of features your FinTech app will provide before getting started. If you know the answer to this question now, you won’t have to worry about adding new features after the app has already been built.
The following are some popular FinTech app features you might want to consider including in your app:
- Security features (two-factor authentication, restricted login attempts, etc.)
- API integration (allows the app to communicate with other relevant apps)
- Push notifications (to boost user engagement and stay connected to customers)
- Customer support (make it easy for users to ask questions and find answers)
- Data visualization (helps people clearly see various aspects of their finances)
- E-signatures (enables secure transactions)
- Transparent transaction history (helps users see where their money is going)
Virtually every FinTech app offers these features. Think beyond this list and consider what additional features you can include to differentiate your app from others.
Choose an App Development Agency
You don’t need an extensive app development background (or any app development background at all) to create an effective and high-performing FinTech mobile app.
Partnering with an app development agency gives you peace of mind and assures you that experienced professionals are building your app.
Every agency has a unique development process, but it typically includes the following steps:
- Research and Prototyping: Developers study your audience in-depth to validate your app idea and ensure they create a product that will appeal to them.
- Backend Development: Developers handle the behind-the-scenes tasks to ensure you get a high-performing app with minimal bugs.
- Frontend Development: Next, developers address the parts of the app that users will see and engage with.
- Quality Assurance: Developers put your app through a series of tests to ensure it works properly.
- Launch: When testing is complete, your app will be ready to launch on the App Store or Google Play Store.
Many app developers also offer ongoing support and updates after launching your app. If a bug shows up or customers have a complaint, the developers will go back to the drawing board and fix it.
Check-in with Your Agency Often
Once you’ve chosen a FinTech app developer, check in with them often. Ask questions about the development process, find out how close they are to completing the app, etc.
Staying in touch helps you ensure you’re on the right track and gives you a more accurate idea of when your app will be ready to launch.
Test and Retest
As the client, you get the final say on whether your app is ready to launch. Make sure everything meets your standards before you agree to move on to the final phase of app development.
Even though your developers put the app through various quality assurance tests, it’s still up to you to approve the finished product.
Launch Your App
Once the app receives your approval, it’ll be ready to launch. Remember, though, that the hard work doesn’t end there.
After you’ve launched your app, you’ll need to collect data on the number of downloads and sign-ups it receives, the number of positive reviews it receives, etc.
Keep an eye on this information to understand how consumers have received your app.
Seek Feedback and Update Accordingly
Don’t shy away from feedback on your FinTech mobile app. Seek it out and use it to improve your product.
Regularly updating your app to correct bugs and provide a better user experience will improve customer engagement, increase customer loyalty, and help you see a more significant return on your investment.
FinTech Development FAQs
You now know the basics of building a FinTech App. However, if you’re still confused about the development process, read through these frequently asked questions to find your answers:
How Much Does It Cost to Create a FinTech Mobile App?
The final cost of your FinTech app depends on several factors, including the app’s complexity and the types of features you want.
On average, complex mobile apps cost at least $60K. Most developers also recommend budgeting an additional 35-57 percent to cover other expenses.
What if I Can’t Pay for My App All at Once?
If the idea of making a $60K-plus payment all at once makes you break out in a cold sweat, don’t worry.
Many app developers offer financing options to offset costs and make app development more affordable.
When meeting with developers, ask about the financing and payment plan options to ensure you can pay for your app before you proceed.
How Do I Choose the Right FinTech Mobile App Developer?
Asking about financing is one of the most critical steps in choosing a good FinTech developer. You should ask some other essential questions, though, including these:
- How long have you been developing FinTech apps?
- What does your app development process include?
- Do you offer ongoing support and maintenance?
- What methods do you have for communicating with clients? Can I reach you by phone, email, or chat?
- Can I get a detailed quote for my app?
- Can I see your portfolio?
- Can you put me in touch with previous clients?
Don’t be afraid of asking questions and interviewing developers. A FinTech app is a big undertaking; you deserve to be 100 percent confident in your decision.
Why Should I Hire an Agency Instead of a Freelancer?
Some people hesitate to hire a FinTech development agency because freelance developers often boast lower prices.
The problem with freelance app developers is that they don’t always have the same standards and quality assurance processes as app development agencies. They might not be as experienced as the developers working for an agency, either.
Agencies also have access to the latest equipment, have more resources to help you measure your app’s success, and can help you make essential updates.
How Long Does It Take to Create a FinTech Mobile App?
Similar to the price of a FinTech app, the amount of time it takes to create one also depends on factors like the complexity of the app and the number of features you want to include.
You should plan on your app taking at least six months to complete. However, remember that it may take longer if you have more in-depth ideas for it.
How Do I Know if My App Idea Is a Good One?
If you’re not totally confident in your FinTech app idea, your developers can help you conduct research and validate it.
You can also find out if your idea is good by going directly to your customers. Use surveys and social media polls to gauge their interest in a new app and find out what features they want.
Start Developing Your FinTech Mobile App Today
Creating a FinTech Mobile App is an excellent way to expand your audience, provide additional services to your customers, and grow your business. Follow the steps discussed in this guide, and you’ll be sure to get a high-performing FinTech app.
Are you looking for a reliable, experienced app development agency to help you turn your FinTech app division into a reality? If so, contact us at Digital Engage. When you reach out to us, you’ll receive a free, no-obligation quote within 24 hours, a free consultation with a project manager, and a free technical analysis. Get in Touch today.