The Fintech sector witnessed a surge during the pandemic, whereas all other industries experienced a severe slowdown in their growth. Contactless transactions were promoted as a result of the physical mobility constraints based on COVID. Fintech apps have gained widespread appeal due to a mix of enhanced digitization, a pandemic-induced preference for digital services, and the cost of smartphones. Peer-to-peer lending, real-time payments, loan disbursement, insurance advising, and many other services that were formerly handled by human capital have now moved to the Fintech landscape, which was built entirely on the internet.

This seismic shift away from the well-known corporate paradigm created many innovative offerings, service models, and ways to meet customer requirements in numerous industries, including the financial sector. More than ever before in recorded history, individuals are staying at home and conducting business from there or while on the road. As a result, consumers’ awareness of mobile banking, simple digital payments, and money transfer technologies has increased.

The year 2020 changed the course of many, if not all, sectors. Widespread lockdowns, severe travel restrictions, the transition to working remotely, and a thorough reevaluation of growth goals, budgets, and objectives have all had a significant impact on enterprises throughout the world. However, this impact was not always detrimental.

In this guide, we will discuss some essential guidelines for creating a successful fintech application. Let’s start:

Why Are Fintech Apps Popular In 2022?

Fintech applications have brought about a dramatic transformation in the financial and banking industries as new technology emerges and several start-ups enter this market. The following reasons explain the current release of a fintech app:

1. Expanded Clientele
An expanded consumer base is looking for the advantages of fintech apps. Customers prefer using AI-enabled applications to make investments and complete transactions rather than going to physical locations for every little task or financial transaction, which has improved user engagement with these apps. Because these applications provide 24/7 banking choices, the number of fintech customers is rising steadily every day.

2. Knowledge
Because of their widespread use and rising demand, fintech applications are a topic that people are eager to learn about. Because of their tech-savvy nature and interest in money, many people have chosen fintech application development as their vocation. As a result, finding competent financial application developers that can offer scalable solutions becomes simple.

3. Quick Adoption
Applications in the fintech space are now in high demand, and firms anticipate making significant profits from them. Almost all smartphones today include at least one daily-use financial application. These applications are commonly used by financial organizations to target new customers and streamline business procedures. The need for mobile banking apps and digital wallets is at an all-time high since consumers prefer quick and easy financial transactions over having to wait days for a single banking procedure.

4. Corporate Demand
As these fintech apps assist to turn more prospective users into devoted clients, it has been observed that the business sector has a significant need for fintech development services. Even more, companies are tempted to construct apps that can provide them a competitive edge after researching the advantages their rivals have gotten from using fintech applications.

5. Advanced Technologies
The market for developing mobile applications is being dominated by ever-more sophisticated technology. Robotics, AI, ML, Big Data, Blockchain, and IoT technologies, among others, have led to a growth in the usage of finance applications worldwide. To construct a scalable and responsive fintech app based on any of these technologies, knowing about these technologies should be your first step if you’re also studying how to make fintech apps.

Why Are Fintech Apps Popular?
The COVID-19 epidemic had a significant influence on the banking and finance industries, and it fundamentally altered how financial institutions functioned. And as a result, there is now a significant global need for fintech applications.

Types of Fintech Apps

Understanding the many types of fintech applications is essential before searching into how to develop one. This will help you decide which form of fintech app to build to scale your business. Let’s examine the many fintech application categories:

• Mobile Payment
• Regulatory
• Investment
• Consumer Finance
• Insurance
• Lending

Top Features of a Fintech App

The development process and the features of the fintech application are always the most important sections to study while reading a guide on fintech application development. In this section, we’ve highlighted some of the most important elements that must be included in a fintech app to draw users in and improve the app’s functionality and responsiveness; Now let’s look at the features:

Security
People perform several private banking and financial transactions via a fintech application. Therefore, the first duty of any fintech application is to ensure the confidentiality and safety of the users’ data. To safeguard the data from any unwanted access, the developers of fintech apps add features like two-factor authentication, blockchain, biometrics, encryption, and many more security measures.

App Usage Guide
There must be a feature that enables users to take a tour of the complete application, demonstrating the essential functionality and capabilities of the fintech app, making the usage of a fintech application simpler, and making all the functions simply accessible by users. This has to be succinct and informative so that users, including those who are unfamiliar with money, may have a positive experience.

Data Visualization
The information that users got about their earnings, spending, and daily transactions was often presented to them in a concise style in the majority of fintech apps. However, data visualization is one of the aspects that might provide your fintech application a competitive edge. With this, all aspects—including stock charts, payment histories, and spending—will be represented visually. As a result, it frequently counts as one of the required elements when creating a fintech application.

Voice Integration
The current trend in financial apps is the voice assistant. The most significant and popular financial application functionalities are emerging with the aid of voice assistants. Customers may utilize the program without opening it thanks to voice assistants like Siri, Google Assistant, and others.

Payment Gateway
Most fintech apps include some sort of payment gateway feature, and to make such functionality possible, these programs interact with other payment gateway providers like PayPal. A fintech application’s smooth and secure payment gateway is thus one of its key features.

How To Develop Fintech App

Understanding the development process of a fintech application is difficult, but to make things simpler, we have created a clear and organized list of all the processes that must be taken. Look at what follows:

Step 1: Niche Selection
Finding a specialty is necessary before you start the development process for the financial software. Finding the correct niche may take some time and effort, but it is crucial since it will enable you to keep the process simple and produce a highly scalable fintech application. The type of fintech app, the method of building a fintech app, and the targeted location must all be decided upon throughout the niche selection process. You should consider the application’s intended use, including if it is for mobile banking, money management, crowdfunding, or anything else. Finding the target audience and their needs comes next once you have determined the objective. All of this research will contribute to a seamless and streamlined development process.

Step 2: Research Your Competition
The competitor analysis stage of the development process is when you should make sure the fintech mobile app development business you choose creates a product that can outperform the competition. It is necessary to conduct thorough market research on the current apps to ascertain their benefits and drawbacks before conducting a competition analysis. By identifying the flaws in the financial app designs of your rivals, you can create an app that fixes all of those problems and provides consumers with a richer, more frictionless experience. It will aid in gaining an advantage over rivals and expanding one’s consumer base.

Step 3: Taking Care of the Compliances
Compliance is far more thorough when it comes to fintech application development than it is with other application development. Maintaining the publication standards for the Google Play store and the Apple App Store is insufficient in this situation. It is necessary to carry out thorough compliance research to find any potential governing rules, constraints, and legal barriers based on the target market selection. All such legal considerations should be identified, and the development process should be changed as necessary. Knowing what is permitted to be done under the applicable rules and regulations is crucial.

The fintech app development firm needs to be well-versed in the law since, when a business moves to a new place, the laws also alter to reflect compliance and financial protection measures. Digital signature certifications, Know Your Customer (KYC), and other important concepts are a few of the important examples. To prevent any non-compliances, be sure to thoroughly complete this step.

Step 4: Develop a Team/Partnering with the Vendor
Technology and money are the two main components of the process of creating a fintech app. And to acquire a scalable and dependable app solution, it is necessary to work with a mobile app development firm that possesses the correct combination of both. You must employ a fintech development business that has a team of professionals and can create a responsive fintech application if your company lacks an internal staff of developers that can offer a fintech app. Consequently, a development team composed of the following individuals is required:

• Backend and Frontend developers
• Project Manager
• Designer
• Product Manager
• Business Analyst
• Quality Assurance Specialist

The size of your team will also rely on your budget, the project’s requirements, and how soon you anticipate launching your fintech application. There would be a need for two front-end developers if both iOS and Android apps are being developed. The second option is to outsource the creation of the fintech app to a reputable fintech development firm, however, doing so may result in higher costs.

Step 5: Selection of Technology Stack
Get the right tech stack to construct a successful financial application. A diverse set of tools and technologies are required for the front end and the back end depending on the type of application and the features included. Each fintech project is diverse and unique, hence a customized technological stack is required to satisfy the particular project needs and objectives.

If you select the right technology stack, you can also use it as a tactic to lower the overall cost of developing fintech apps and shorten the time it takes to launch them. For the creation of fintech applications, a few key technologies are employed, including Java, Swift, Ruby, C#, Python, C++, and Kotlin. Out of this, you may utilize Swift or Objective C for iOS and Kotlin and Java for Android.

Step 6: Create a Monetization Model
Before adding functionality to a fintech app, it is important to determine the potential sources of income. For this, a monetization model made up of the few most useful streams that contribute to high income must be created, and at the same time, new chances for the future must be discovered.

Step 7: Specify MVP features
Finding the genuine goal of your fintech application and the features that need to be included in the app comes next once competition analysis and market research are completed. There is no need to include too many features; just those that are essential, significant, and able to increase the application’s efficiency, usability, and speed should be included.

To ensure that the financial app achieves its goals, features like two-factor authentication, chatbots, cross-platform compatibility, log-in through OTP, and many more should be shortlisted. You must decide which features will be included in the MVP after the market research for your product sector is complete. The Pain and Gain Map, Prioritization Matrix, and many more tools may be used for this. After the MVP version is released, it is essential to get feedback from the target market to study their behavior and make adjustments to the fintech application depending on their opinions.

Step 8: Cost Estimation
Late-stage budget problems may cause the application development process to drag out needlessly. Fintech app development costs depend on many variables, including the tech stack, feature integration, platform choice, maintenance, design, project size, testing, and many more. Before starting the construction of a fintech application, it is a good idea to conduct an estimation. This will allow you to stay within your budget and fulfill the deadlines for developing a fintech application.
The hourly development rate of the developers of fintech apps is frequently used to determine the cost of development. One of the greatest methods to gain access to skilled developers, cutting-edge technology, and scalable solutions is to outsource the creation of financial apps.

Step 9: Launch & Make Improvements
The development of a fintech application does not indicate that no more effort is needed. Instead, because there is constantly a need for maintenance and support, the development process continues. As soon as the fintech application enters the testing phase, customer evaluations are examined, and adjustments are made to the fintech application’s functionality and design based on ideas and comments to give potential customers a better and enhanced experience. The procedures and functionalities of the application must be upgraded as technology and time progress. All challenges and difficulties encountered by users while using the program must be quickly resolved.

The important steps in the support and upkeep of the application are as follows:

• To constantly upgrade the program to the most recent operating system version
• To upgrade the libraries and third-party services accessible in the application
• To verify the latest updates and perform all security audits
• To correct the flaws and defects
• To reorganize the current code without altering its original functionality

Wrapping Up

The banking and financial industries have been buzzing about the disruptions brought on by fintech in recent years by providing customers with better alternatives to conventional banking solutions. According to the statistics shown above, businesses of all stripes are beginning to see the enormous potential and necessity of these new technologies. Financial institutions need to provide a service that enables customers to handle their money digitally seamlessly to remain viable.

In each of its initiatives, Day One strikes the ideal balance between quality and cost. The business aspires to offer scalable and trustworthy solutions to its clients from various areas by handling a diversified portfolio of both domestic and international clients. A group of skilled developers is available to provide clients with effective fintech development services so they may create the projects of their dreams.