How to Build a Fintech App: A Comprehensive Guide

 min read
7 March 2022
Marcin Śpiewak
Marcin Śpiewak
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Contents

  • Intro

Financial technology, or “FinTech,” is one of the most rapidly growing industries in the world. So, it’s no surprise that more and more businesses are looking for a FinTech development company to get them into the game.

If your goal is to grow your business you can achieve it by polishing your FinTech app with the use of the latest technologies. You can make customers’ lives easier by dint of functional features, including a spending tracker, credit score analyzer, or e-wallet for personal budget management. If you manage to stand out from the competition and users will love your application it might spark an interest in your company and increase your profits.

But what does it take to build a successful FinTech app? This comprehensive guide will walk you through everything you need to know!

What are the benefits of FinTech apps?

FinTech apps can benefit both your company and its clients in a number of 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. 

1. Making it easier for your clients to manage finances

A FinTech app can make it much easier for your clients to manage their finances. This is because a FinTech app will typically have a user-friendly interface that makes it easy to navigate. In addition, a FinTech app will often include features that allow users to track their spending and budgeting goals, as well as browse through FinTech categories. As a result, your clients will be able to stay on top of their finances with their personal finance management app.

2. They can help save money on banking and investment fees

A FinTech app can also help save money on banking and investment fees. 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. And that’s what your customers will love – having it all under one roof in a finance app.

3. FinTech apps help FinTech companies stay ahead of the competitors

Finally, one of the biggest benefits of a FinTech app is that it can help FinTech companies stay ahead of their competitors. This is because a well-designed and user-friendly FinTech app can provide a competitive edge over other financial institutions. 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 money transfers, various digital banking solutions, cash advances, or debit card management, you can conquer the FinTech market.

4. FinTech apps are often more user-friendly than traditional banking websites

Another benefit of a FinTech app is that it’s often simpler and easier to use than 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. Developing such a personal finance management app for digital payments may be like hitting a jackpot for your clients. 

5. A FinTech app can improve customer retention and loyalty

Finally, another benefit of a FinTech app is that it can help improve customer retention and loyalty. This is because a personal finance app can deliver better online banking services. And as we all know, happy customers are more likely to stay loyal to your company, and they can recommend you further to your new, potential app users.

benefits of fintech app

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 challenge is regulatory compliance. Financial technology companies are regulated by a variety of government agencies, and it can be difficult to navigate the complex web of regulations.

Another challenge is building a user-friendly interface. Payment apps can be complex so it’s important to make your FinTech app easy for users to follow.

Third, you’ll need to find ways to differentiate your app from the competition. There are many FinTech startups out there, so you’ll need to find a way to stand out from the crowd.

Finally, you’ll need 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. 

fintech app development challenges

How much does it cost to build a FinTech app?

The average cost of developing a financial technology app is $100,000-$200,000. This number can vary widely depending on the budget and scope of your project.

The cost of developing an app depends on a number of factors, including:

– The size and complexity of the app (for example, if it has many features or screens you plan to add).

– The target platform you’re designing for (desktop, iOS vs Android, or cross-platform)

– Your team’s experience level with mobile app development and digital banking apps

iOS, Android, or cross-platform FinTech app? What 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 FinTech mobile application. Each of the solutions has its advantages, but also some limitations. We have described the factors that you should consider when you want to build a FinTech mobile app in a separate article.

If you have to develop your app fast, reach for Flutter, a technology thanks to which you’ll make a single application that will work on multiple devices. 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 quality of the product in a long term.

How to design a FinTech app

App development is a difficult process and each time is a separate challenge. 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 app development company. 

Anyway, we are here to help you, so below we listed the most crucial points that you should have in mind from the very beginning.

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 and Business Analysis, we’ll help you 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 apps, and on this basis, you will further refine your product.

Moreover, ask yourself questions like: “What kind of problem are you trying to solve?” or “Who is the target audience for this solution?” to ensure that you conducted the proper business analysis. Once you’ve determined these things, it’s time to move on to design and development.

However, if you still hesitate, hire an experienced FinTech application development company to conduct the Product Workshops for you.

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 users (72%) and iOS users (27%).

Both operating systems have their pros and cons but typically fall into two categories:

  • iOS apps are more expensive to develop and maintain, but they’re also easier for users because of their simplicity.
  • Android apps offer greater flexibility at much lower costs. 

Therefore, you should choose the one that best meets your demands. Yet, 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-performant 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

While building mobile apps for FinTech, you should also 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.

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

Since you have total freedom over how your FinTech app looks, take advantage of this opportunity and make it unique.

Create wireframes and mockups for each screen in the app

Following product design good practices, you should now proceed to transform the idea of your app into wireframes. These are basically just 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, hi-fi mockups should be designed on their basis. They constitute a complete representation of your app that imitates real UI interactions.

Develop your app’s backend

The last 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, and it’s 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. 

Decide on the layout for your app

It’s important to make sure that the design 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 with the app 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 with financial transactions or add credit cards before you release your FinTech app to the public.

Create a prototype and test it with users

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 FinTech app based on user feedback and keep improving it over time

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.

designing a fintech app

What are the example 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 FinTech software include:

  • Tracking your spending over time so you can see where your money is going.
  • Setting up budgets and goals to help you stay on top of your finances.
  • Investing advice and tools to help you grow your money safely.
  • Options for paying bills and transferring money between accounts quickly and easily.
  • Features for tracking your credit score and getting alerts when something changes.
  • Functions that allow your clients to access their accounts from anywhere in the world for a better user experience.

What is the best FinTech app?

The first and most crucial quality to look for in a FinTech app is that it’s easy to use. You want an app that has simple navigation, clear instructions on how you can accomplish tasks, and a sleek design so your customers don’t get frustrated using it. Here are some other things to consider when looking for the best FinTech app:

  • Does the app have all the features you need?
  • Is it easy to use?
  • How does customer support work?
  • What are users saying about it online?

The future of 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.

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. Exciting times ahead!

How to choose the right type of FinTech app for your business

There is no one-size-fits-all answer when it comes to building the right type of FinTech app for your business. However, there are a few things to keep in mind when making this decision.

First, you’ll need to consider the needs of your customers. What do they want or need from a financial technology app? What features would be most useful or convenient for them?

Second, you’ll need to assess your own capabilities and resources you are able to invest in FinTech development. Can you build an app that meets the needs of your customers? Are you able to create a user interface that is both functional and appealing? Do you have the bandwidth to support a growing customer base? Are you going to use blockchain development or artificial intelligence?

Third, you’ll need to think about whether there is a market for your app. Will people be willing to pay money in order to use it? Aren’t there enough money-tracking apps? Do you want to develop the second Credit Karma, or reach high to the standards of Bank of America and Credit unions? 

Fourth, you should consider how much time and effort you’re willing to put into building an app that meets these needs. Do you have the skills required or will you need additional help from developers? And finally, what’s going on in your industry right now? Is there a growing demand for apps of this type or are other companies already offering similar products? 

All these questions will help you come up with the best idea possible when the time comes to actually develop your app.

And whether to outsource financial development.

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 popular FinTech apps 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.

FinTech apps are becoming increasingly popular within the FinTech industry because they make it easy for people to manage their money or open bank accounts without having to go through a bank or financial institution. FinTech apps are convenient, easy to use, and often provide more features than traditional banking apps.

There are a lot of different types of payment apps and FinTech startups, but some of the most popular include:

1. Budgeting apps that help you manage your money and budget more effectively, for example: My Budget or Mint.

2. Investment apps that let you manage your money in a more efficient way, for example: Robin Hood or Acorns.

3. Apps that allow you to borrow or lend money without going through a traditional bank, for example: Peerform or Payoff.

4. Apps that let you make online payments or instant transfers electronically, for example: Wise or PayPal.

5. Apps that allow you to track your spending, for example: Goodbudget.

6. Apps that allow you to monitor your credit score with the use of your financial data, for example: Credit Karma.

types of fintech app

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 both 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.

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 often use innovative technologies to make it easier for people to access financial services.

Let’s develop your FinTech app together

Are you looking for an experienced development team to help you build your FinTech app? We’re here for you! Our team has extensive experience in developing financial apps and we’d love to work with you on your next project.

Contact us and get a free project estimation!

Let’s talk

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