A Step-by-Step Guide on How to Build a FinTech App in 2025

Financial technology, or “FinTech,” is one of the fastest-growing industries in the world. It’s no surprise that more and more businesses are looking for a FinTech development company to get them into the game. But what does it take to build a successful FinTech app?

Like every other app development project, creating a FinTech app is a multi-step process that requires in-depth market research/requirements gathering, UI/UX design, front-end, and back-end development. That’s in addition to other steps not directly related to development, including seeking required licenses to operate.

This comprehensive guide will walk you through everything you need to know about building your own FinTech app in 2025!

What Is FinTech?

FinTech is a portmanteau of “financial technology.” It refers to the application of technology to financial services and describes the intersection of these terms. In other words, it’s the use of innovative technologies in the banking and financial sectors.

FinTech covers a wide range of topics, from mobile payments and money transfers to digital currencies and investment advice. It’s an important sector because it has the potential to revolutionize how we bank and invest. And because FinTech is so complex, it can be difficult to understand exactly what it is and what it does.

What Is a FinTech App?

A FinTech app is a financial technology app. FinTech apps are applications that use technology to make it easier for people to manage their finances. Some of the most common FinTech applications include mobile payments, peer-to-peer payments, online banking, and crowdfunding.

FinTech companies are often startups, and they typically use innovative technologies to make it easier for people to access financial services. Some of the most popular examples include Venmo, PayPal, and Square. These apps allow people to easily send and receive money, and they also allow people to track their spending and budget their finances.

Different Types of FinTech Apps for Your Business

There are a lot of payment apps and startups within the FinTech industry. Some of the most popular types include:

Budgeting and Personal Finance App

Budgeting apps help you manage your money and budget more effectively. Some of these apps simply offer recommendations and planners, while others have specific features that help you stick to a specific budget, such as savings, bill settlements, and automated payments. Examples of budgeting apps include MyBudget and Mint.

Investment Apps

Investment apps let you manage your investment portfolio simply and more efficiently. Most investment apps have features for buying or selling investments. These apps may also have financial advisor features that highlight and recommend the best investment offers in the market. Notable examples include Robin Hood and Acorns.

Fintech Lenders

These allow you to borrow or lend money without going through a traditional bank. FinTech lending apps provide consumer-friendly loan options while streamlining the application process. A few apps also facilitate peer-to-peer loans between users. Popular examples of FinTech lending apps include Peerform or Payoff.

Payment or Money Transfer Apps

These are apps that let you make online payments or instant transfers electronically, such as PayPal or Venmo. Some of them simply facilitate payment from your traditional bank accounts, while others have a payment wallet that can hold some amount of money that you intend to transfer.

NeoBanks

These are applications that run as digital banks. They have no physical branches but offer conventional banking services such as savings, lending, money transfers, and so on, all from their digital platform. Examples include Chime, Revolut, and Varo Bank.

Mobile Banking Apps

A mobile banking app is a financial app for carrying out traditional banking transactions from your smartphone. These apps connect to a traditional bank account, allowing users to check their account balance, transfer funds, deposit money, request cards, and so on at their convenience.

Steps to Build a FinTech App

App development is a complex venture, and this is true for the FinTech app development process as well. Unfortunately, there is no such thing as one correct instruction to do this. You have to consider many aspects, from technology to the most important features, development timeline, the size and composition of the team, work methodology, and choosing a FinTech mobile app development company. Below is a breakdown of the basic steps to follow for anyone looking to build a FinTech app.

Validate the Idea

Before actual development starts, you have to validate the idea from a business perspective, considering the user’s needs and competition in the market. Thanks to product workshops, market research, and in-depth data analysis, you can decide which functionalities are needed in your product from the very beginning and which of them could be left out or added later.

By getting to know your competitors better, you will learn what functionalities work well in other FinTech solutions, and on this basis, you will further refine your product. This phase will also help you answer questions like What kind of problem am I trying to solve? Who is the target audience for this solution? You can only move on to design and development after you have answered them.

Choose the Right Platform for Your FinTech Mobile App

The next step is choosing which platform to develop your app for. The market is divided mainly into Android and iOS users.

Both operating systems have their pros and cons, but from a bit oversimplified point of view, they can be summarized this way:

• iOS development is more expensive and harder to maintain, but it’s also preferred by many users because of its simplicity.
• Android apps offer greater flexibility at much lower costs.

You can choose either or both of these platforms depending on your needs. If you want to be certain that your product reaches all of your prospective clients, you should either invest in two native versions of the application or consider a cross-platform solution. Thanks to this technology, a single app can function on several operating systems.

The two major cross-platform frameworks include Flutter and React Native. The former is particularly accessible because it is perceived as straightforward and simple to operate, but the latter has its fans as well.

Additionally, you can go for a high-performing and functional Progressive Web Application that works well on mobile devices but is less demanding in terms of development and maintenance.

Whichever option you choose, make sure it is tailored to the needs of your company and its resources.

Sketch Out the UX/UI Design

The first step in actually building your FinTech solution is to hire a professional to sketch out what the User Interface (UI) of your app will look like. Design is essential from the business’s point of view, as it is the first thing that strikes the eye. If it turns out attractive and intuitive to the customer, they will be more prone to stay in the app and spend more time using it, as well as revisit it in the future.

While investing in great design is important, understanding the app design cost early on is equally crucial. It helps align expectations with your budget and ensures you allocate sufficient resources for a design that delivers long-term value.

Creating designs supported by proper business analysis and Product Workshops will allow you to eliminate wrong assumptions right from the start, reduce the number of mistakes during development, and cut costs.

Create Wireframes and Mockups for Each Screen

Following product design good practices, you should now proceed to transform the idea of your app into wireframes. These are basically digital versions of those rough sketches that show how everything fits together with each other. They’re also a great way to visualize how users will navigate through different parts of the FinTech app.

Once these blueprints of your application are prepared and approved, they can be used to design hi-fi mockups that constitute a complete representation of your app and imitate real UI interactions.

Develop Your App’s Backend

The next step of the development process is to develop the backend for your app. This includes all the code that makes the app work behind the scenes, as well as APIs needed for external integration. This is typically handled by a separate team of developers. For example, if you want your app to integrate various bank accounts, you need to work on this feature from the very beginning.

Building the Frontend

It’s important to make sure that the design of your app’s front end is both functional and visually appealing. Furthermore, the layout of your app should be intuitive and easy to navigate for the users, as it can enhance their experience and improve the overall reception of your product.

Test, Test, and Test Again

Before you launch your FinTech app, test it extensively. This will help ensure that there are no glitches or errors that need to be fixed. The last thing you want is for your users to experience problems with your potential blockbuster app.

Once the development process is complete, it’s important to test your app on different devices. This will help you catch any bugs or errors before you release your FinTech app to the public.

The best way to test your app is to create a prototype and test it with users. This will help you get feedback on how the app works and whether or not it meets their needs, as well as give feedback on any further digital banking apps you may want to develop.

Update Your App Based on User Feedback

Once your FinTech app is released, it’s important to keep track of user feedback and update the app accordingly. This will help ensure that your app remains a top-quality product that meets the needs of your users.

What are the Benefits of FinTech Apps?

Fintech app development can benefit both your company and its clients in several ways. Implementing fresh and cutting-edge technologies may increase your business’s revenue and provide your customers with possibly more convenient management of their finances and online payments. Here’s the list of the most prominent advantages of FinTech applications.

Facilitating Easier Financial Management for Your Clients

A FinTech app can make it much easier for your clients to manage their finances. These apps often include features that allow users to track their spending and budgeting goals, automate savings, and settle bills automatically. As a result, your clients will be able to stay on top of their finances with their personal finance management app.

Reducing Banking and Investment Fees for Customers

A FinTech app can also help save money on banking and investment fees that customers have to pay with traditional banks. This is because a FinTech app will typically have low-cost or even no-fee transactions for things like transfers between accounts, deposits of funds into your account from another bank, credit history, digital payments, etc.

Enhancing Competitive Advantage for FinTech Companies

Another major benefit of FinTech solutions is that they can help companies stay ahead of their competitors. A well-designed and user-friendly FinTech app can provide a competitive edge over other companies offering no digital solutions to users. So if you’re looking to stay ahead of the curve in the world of finance, a FinTech app is the way to do it. If you provide your clients with a mobile banking app enabling instant cash transfers, various digital banking solutions, cash advances, or debit card management, you are better positioned to conquer the FinTech market.

Improving User Experience Compared to Traditional Banking Websites

FinTech apps are often designed to be simpler and easier to use compared to traditional banking websites. In many cases, this can be because of the simplicity of the design or layout. For example, instead of having multiple pages where you have options like “deposit funds,” “transfer funds,” etc., your customers might only need to navigate through a few screens in order to complete the desired task.

Increasing Customer Retention and Loyalty

Finally, a financial app can help improve customer retention and loyalty. These apps often deliver better, faster, and cheaper financial services, keeping customers satisfied. And as we all know, happy customers are more likely to stay loyal to your company and may even recommend your services to new, potential app users.

What Are the Challenges Involved in Developing a FinTech App and How Can They Be Overcome?

There are a few key challenges that you’ll face when developing a FinTech app. The first one is regulatory compliance. Finance is a sensitive subject often treated with all seriousness in most jurisdictions. As a result, FinTech companies are regulated by a variety of government agencies. Navigating this complex web of regulations can be difficult, especially when you do not have insider knowledge of the industry.

Another challenge is building an interface that will appeal to users. Implementing payment solutions can be complex, but you must make your FinTech app as easy for users to follow as possible. There’s also the challenge of differentiating your product from the competition. With so many FinTech startups out there, you’ll need to find a way to stand out from the crowd.

Finally, you need to consider how to raise capital to get your startup off the ground. It can be difficult for new companies to secure funding from investors or banks, so you’ll need a solid plan for raising money for mobile technologies or additional features within your digital FinTech solution.

How to Monetize a FinTech app?

As mentioned above, raising capital is one of the biggest challenges faced by businesses seeking to venture into the FinTech space. However, it is also possible to raise funds by strategically implementing a monetization model within your app while providing value to users. Some of the common strategies you can consider include:

Transaction Fees

FinTech apps can make money by charging users a small fee for transactions such as money transfers, bill payments, currency exchanges, etc. How much you can charge with this monetization model depends on the type of app you’re running, your industry, your target audience, and your competition. A successful FinTech app with millions of active users actively transacting will likely earn a lot from transaction fees.

Subscription Models

Some FinTech apps can operate a subscription model where users pay to use the app features on a monthly or annual basis. This strategy is more efficient for FinTech apps offering value-added services such as advanced analytics, financial advisors, budgeting tools, personal finance apps, or investment solutions. Operating a freemium model is also an option. In this case, users will be able to access a basic version of your app for free, while the premium features will be subscription-based.

Commission-Based Revenue

Another monetization strategy that could work in the financial sector is to earn a commission for facilitating financial services. This strategy is more likely to work for certain FinTech solutions, such as P2P lenders, investment platforms, or crowdfunding solutions.

Data Monetization

FinTech solutions can also earn money from aggregating, anonymizing, and selling user data for research and targeted advertising purposes, especially if these ads are related to the financial industry. Note that this should be done with user consent and in strict compliance with the privacy and data protection laws of the regulatory authorities in your jurisdictions. Financial data is extremely sensitive and must be handled carefully.

In-App Advertising

Some Fintech mobile apps make money by displaying advertisements on their products. This is another sensitive monetization strategy that must be implemented carefully since users can get turned off by incessant ads.

APIs and Banking-as-a-Service (BaaS)

Operators in the FinTech market can make money by providing their APIs to other businesses in the financial industry. This will allow others to integrate their financial services into their own products, charging fees for access and usage.

How Much Does It Cost to Build a FinTech App?

The average cost of developing a financial technology app is between $100,000 – $200,000. Note that this estimate can vary widely depending on the type and scope of your project. Some of the factors that will determine the cost of FinTech app development include:

• The size and complexity of the FinTech app idea (for example, complex financial solutions tend to be more expensive).
• The target platform you’re designing for (iOS vs Android, or cross-platform).
• Your team’s experience level with mobile app development and digital banking apps.
• Licensing and regulatory fees.
• Cost of partnerships and collaborations.
• The FinTech app development company you’re hiring for the job.

iOS, Android, or Cross-platform FinTech App? Which One Is the Most Time and Cost-effective?

The choice between cross-platform and native technologies is complex, but also crucial to the success of your application. Each of the solutions has its advantages, but also some limitations.

If you have to build a FinTech app fast, reach for Flutter, a technology that allows you to build a single application that will work seamlessly on many operating systems. Its development process is shorter, so you can go to market as soon as possible. What’s more, you appear in multiple channels right away and get as many users as possible from day one.

On the other hand, industries like FinTech are strongly competitive, and to succeed, you have to fine-tune your product. Native technologies such as iOS and Android bring to your FinTech application outstanding performance, exceptional UX/UI design, and plenty of hardware features that can make your app even more interesting and useful for your users.

It all depends on what you desire the most: a short time to market or the absolutely highest quality of the product in the long term.

What Are the Key Features of FinTech Apps?

FinTech apps are designed to make it easier to manage money. They can help your clients track spending, plan budgets for the future, use digital banking services, and invest their money wisely. Some of the features that you might find in many apps in the FinTech market include:

Account Management

This is a standard feature on pretty much any kind of FinTech application. The account management tab is a central hub for managing your account balance, tracking transactions, credit card usage, and other features linked to the fintech product.

Real-time Alerts and Notifications

FinTech apps should have real-time alerts to notify users of the status of any transactions on their accounts, any log-ins, security updates, and other important information required to keep their accounts safe and functional.

Personal Finance Management

This is an essential feature in budgeting and financial management apps. This feature allows you to track your spending over time so you can see where your money is going.

Biometrics and Authentication

To protect your FinTech apps from unauthorized access, you should incorporate cutting-edge safety features such as biometric authentication (fingerprints, facial recognition, and voice recognition). Traditional safety measures like passwords and PINs can also be used. Some apps also provide two-factor authentication, such as SMS or email tokens, to verify sensitive transactions.

Data Visualization

This feature is particularly important for apps that present a lot of financial data to users, such as budgeting, investment, and financial management apps. Images, graphs, and infographics will provide valuable insights into what’s going on with their account.

Customer Support

A FinTech application should offer multiple support channels integrated directly into the app product, such as live chat, chatbots, FAQs, and sometimes direct access to customer service representatives.

To determine the best features to incorporate into your app, you need to carry out in-depth market research to figure out which features are likely to appeal to your target audience. You can also consider consulting with FinTech app development companies for guidance.

What Are the Best FinTech Apps?

The FinTech industry is buzzing with several innovative products created to solve the unique financial needs of users. From neobanks to payment wallets and budgeting solutions, here are some of the best FinTech apps in the market.

Chime

Chime is a popular neobank based in San Francisco, United States. This FinTech product offers fee-free mobile banking services, including peer-to-peer payments, high-yield savings accounts, credit card services, overdrafts, and early access to paychecks, among other services.

Robinhood

Robinhood is one of the most popular digital investment platforms. The company pioneered commission-free trading, allowing users to trade stocks, ETFs, options, and cryptocurrencies without fees.

Venmo

A popular peer-to-peer payment app for easily sending and receiving money (usually between friends and family). It was originally created for splitting bills, but now offers other services, including payment transfers, a debit card, and even cryptocurrency trading.

PayPal

PayPal is arguably one of the most popular FinTech products in the world. This long-established platform is mainly used as a payment gateway to facilitate money transfers and secure online payments on websites and e-commerce platforms.

MoneyLion

MoneyLion advertises itself as an all-in-one finance app offering banking, lending, and investment services. This product connects millions of people with financial products, services, and content based on their unique needs.

The Future Of the FinTech App Market

The future of the FinTech app market looks bright. With more and more people moving away from traditional banking, there is a lot of room for growth in the FinTech space. In particular, there is a lot of interest in mobile apps that make it easy to manage finances on the go.

Traditional banks are beginning to rethink their entire business, and many of them have started integrating digital products into their core operations and services to meet the needs of their customers. We’re likely to see even more innovation in FinTech software development in the future, as companies compete to provide the best possible user experience.

But while the consumer-facing FinTech companies are thriving, businesses are relatively slow adopters of new technology. The final frontier of the industry that will be captured by FinTech operators is facilitating transactions between businesses, paying other businesses for goods and services.

In terms of technology, there’s a lot to look forward to in the industry. New technologies, particularly cryptocurrencies, Artificial Intelligence, and Machine Learning, are the most popular buzzwords across various industries today, including FinTech. While regulatory limitations seem to be keeping crypto at bay, many traditional institutions are beginning to embrace this technology due to its potential impact on financial transactions. Overall, exciting times ahead for the FinTech industry!

Let’s Develop Your FinTech App

Ready to venture into the exciting world of FinTech app development? Let a reliable software house like CrustLab be your trusted partner on your FinTech app development journey. Our FinTech software development services cover various niches of the industry, from personal finance to investment apps and insurance apps development. Contact us today to discuss your app idea, goals, and vision for your project.

Sources

1. https://www.statista.com/statistics/272698/global-market-share-held-by-mobile-operating-systems-since-2009/