Fintech App Development 2023: Techniques and Best Practices

With the fintech industry continually growing, now is the perfect opportunity to develop a cutting-edge application that addresses the current market needs and leverages the latest technology and resources available

Top Takeaway From Fintech App

The fintech industry is currently experiencing a surge in growth, as evidenced by the significant increase in venture capital investment in the first half of 2021, reaching $52.3 billion compared to $22.5 billion in the second half of 2020. This makes now the ideal time to embark on the development of a cutting-edge fintech app.

To successfully develop a fintech app, it is crucial to focus on integrating with established financial service providers to ensure seamless payment processing, secure banking information handling, and access to powerful cloud services.

A smart development strategy also includes creating an interactive prototype to validate assumptions with real users and only investing in features that truly meet the needs of the target audience.

Fintech Industry Landscape: An Overview

Fintech, or financial technology, encompasses a wide range of technology-driven solutions in the financial services industry. From mobile payments and virtual cards to budgeting apps and wealth management platforms, fintech has become a daily part of our lives.

The fintech market also includes various aspects of personal and business finance, including wealth management, payments, lending, insurance, personal finance, cryptocurrency-based solutions, money transferring, trading solutions, regulatory technology software, and mortgage solutions. As technology continues to advance, the fintech industry is poised for even more growth and innovation in the coming years.

Different Types of Fintech Applications

Fintech apps come in many different forms, each with its own unique set of features and capabilities. Some of the most popular types include:

1. Wealth and Investment apps: These apps allow users to buy stocks and ETFs from their mobile devices, and can also provide personalized investment recommendations based on the user’s preferences.
2. Mobile Payments: Classic payment apps like PayPal and Venmo make it easy to send and receive money, and typically include features like transaction history and currency conversion.
3. Lending apps: These apps automate the lending process and use AI to offer optimal loan options to users.
4. Insurance apps: These apps collect a lot of information from customers and require a streamlined process with a user-friendly interface. Some newer apps also offer peer-to-peer insurance options.
5. Personal Finance apps: Budgeting apps are designed to give users a better understanding of their spending habits, and can include features like expense tracking and goal setting.
6. Cryptocurrency apps: These apps include a variety of features such as investing, payments, insurance, and wallets that are specifically designed to work with cryptocurrencies.
7. NeoBanks: These digital-only banks offer banking features through mobile apps, and are often geared towards specific niches such as e-commerce, immigrants, and freelancers.

Related – Know How to Build an App for a Neobank

Top Apps In Fintech Industry

When it comes to the most successful fintech apps, mobile payments, banking, and investing tend to dominate the charts. Some of the top players in the industry include:

1. Venmo: A popular payment app that allows users to easily split the cost of various expenses with friends and family. It’s particularly popular among millennials and is available on both iPhone and Android devices.
2. Robinhood: This app revolutionized the way people invest by offering commission-free trading. Recently, they also added a savings account feature, making it an even more attractive option for users.
3. Chime: This mobile banking app provides all the traditional features of a typical banking account, and also offers additional benefits such as early paycheck deposit and fee-free overdraft protection.

Essential Features for a Successful Fintech App

When developing a fintech app, it’s essential to consider the features that users will expect and that will set your app apart from the competition. These include:

1. Security: Financial information is sensitive and must be protected at all times. Implementing advanced security measures such as blockchain, encryption, biometric authentication, and two-factor authentication will ensure that users’ information is safe.
2. Payment gateway integration: As many fintech apps deal with payments, it’s crucial to integrate with a reliable payment gateway such as Stripe, PayPal, or Zelle, or work via bank APIs to enable seamless transactions.
3. Machine Learning: Implementing AI and machine learning algorithms can provide valuable insights and advice to users based on their financial data.
4. Dashboards: Users appreciate a visual representation of their financial data, such as spending history, payments, or stock charts. A user-friendly dashboard can improve engagement and user experience.
5. Voice Integration: Integrating with popular voice assistants such as Siri, Google Assistant, or Bixby, allows users to access frequently used features quickly and easily, without having to open the app.

Step-by-Step Guide to Building a Fintech App

Are you curious about the steps involved in creating a custom mobile fintech app? Let’s walk through the process of building a basic rental management app.

The app will enable users to verify the credit scores of prospective tenants, accept security deposits for leasing, manage the escrow process, and handle the release of funds to eligible clients at the end of a leasing contract. Additionally, the app will facilitate an effortless contract renewal process for selected tenants.

The core value proposition of this app is to streamline the application process for renters and improve return on investment for landlords, exemplifying the mutually beneficial solutions that fintech can offer

Creating a fintech app can be a complex process, but breaking it down into manageable steps can help simplify the process. Here are 8 steps to guide you through the development of a fintech app:

STEP 1:

Authenticate and Manage Users – Use Firebase as the foundation of your app. It provides secure user authentication, management, and crash reporting. It also integrates with other Google services for a rich user experience.

STEP 2:

Get Secure Hosting – Use Cloud Firestore, an encrypted cloud-hosted database solution for app development. It is a Firebase product and integrates seamlessly with other Firebase products for streamlined development and user experience.

STEP 3:

Integrate Credit Score Checking – Use a consumer-facing API like Experian, ACS or Universal Credit Services to pull credit scores and credit reports. This data can also be shared online with third parties.

STEP 4:

Access Bank Account – Use Plaid, a major API in the fintech industry that connects your app to bank accounts and consolidates financial data on one platform.

STEP 5:

Setup Payment Gateway – Use Stripe, a global payment processor that simplifies the process of storing credit card details and complying with PCI certification.

STEP 6:

Implement Chat – Use a Chatbot API with natural language processing and machine learning to automate customer service tasks.

STEP 7:

Add Bonus Plugins – Consider additional APIs like Intuit for financial management and D3 for data visualization to enhance the functionality of your app.

STEP 8:

Consider Legal Obligations – Understand legal agreements associated with accessing users’ financial data, create a data privacy and management policy, secure an insurance policy, and have a disaster recovery and business continuity plan in place to ensure the security of your users’ sensitive data.

Building a Fintech App: Our Expertise and Process.

Our experience in building fintech apps includes a wide range of projects, from smart budgeting apps to AI-powered loan platforms and cryptocurrency solutions. We take a full-service approach to each project, from initial prototyping and user testing to final development and launch on the App Store and Google Play. Additionally, we also handle the back-end development for our fintech projects.

The process of creating a successful fintech app with us typically includes the following steps:

1. Designing wireframes – initial visual concepts for the app
2. Creating an interactive prototype using the wireframes
3. Testing the prototype with target users and gathering feedback
4. Incorporating user feedback into the prototype design
5. Designing the final graphic user interface (UI) of the app
6. Developing a high-fidelity prototype using the final UI design
7. Verifying the prototype with target users
8. Developing the final app and backend infrastructure
9. Testing the app for functionality and usability
10. Launching the app for public use.

Bringing Your Fintech Vision to Life: Let’s Build Your App Today

At Ideausher, we specialize in bringing innovative fintech ideas to life through expert app development. From concept to launch, our team of developers in NYC, CA, Australia, and the UK. And we work closely with clients to create cutting-edge products that stand out in the market. If you have a fintech project in mind, let’s connect and see how we can turn your vision into a reality. Contact us today.

FAQ

Q: What is fintech?

Fintech stands for financial technology, and it refers to the use of technology to improve and automate financial services. This can include everything from mobile payments and digital wallets to investment apps and online lending platforms.

Q: What are some examples of fintech apps?

Some popular examples of fintech apps include Venmo for mobile payments, Robinhood for commission-free stock trading, and Chime for mobile banking.

Q: What are the most important features for a fintech app?

Security is of paramount importance for fintech apps, as they handle sensitive financial information. Other important features include payment gateway integration, machine learning capabilities, and user-friendly dashboards.

Q: How can I create a fintech app?

The process of creating a fintech app typically involves several steps, such as authenticating and managing users, securing hosting, integrating credit score checking, accessing bank account information, setting up a payment gateway, implementing chat functionality, and considering legal obligations.

Q: Is fintech app development difficult?

Fintech app development can be complex, as it involves handling sensitive financial data and complying with various regulations. However, by using APIs and working with experienced app development professionals, the process can be streamlined.

Q: How much does it cost to develop a fintech app?

The cost of developing a fintech app can vary depending on the specific features and functionality required. However, it is generally more expensive than developing a simple mobile app due to the complexity and security considerations involved.