Guide To Build A Basic Fintech App

Fintech (financial technology) has become a trend and moreover an important part of our daily lives. From online shopping to managing our finances with mobile banking apps, fintech is all around us.

With the fintech sector meant for explosive growth, a prediction is made that the total digital transaction value will reach $10.52 trillion by 2025. And it’s no wonder that businesses are eager to invest in fintech app development. But creating a top-notch fintech app isn’t a walk in the park, especially if you’re not an expert.

In this blog, we’re here to guide you, step by step, through the intricate process of developing a superb fintech app. Buckle up, and let’s embark on this fintech app development journey together. It’s time to turn your fintech app idea into a reality.

Fintech Market in Numbers

  • As of May 2023, the United States are leading the fintech revolution with 11,651 startups, the largest concentration worldwide.
  • The fintech industry’s value has surged to an impressive $179 billion in 2023, indicating its significant growth.
  • Globally, there are approximately 30,000 fintech startups, showcasing the sector’s expansive reach and potential.
  • 90% of Chinese citizens have adopted fintech banking services, underlining the widespread popularity of this technology.
  • Visa stands out in the fintech industry, boasting a valuation of nearly half a trillion USD, making it the largest player in the industry.

Different Categories of FinTech applications

1. Banking apps

Modern financial services have transitioned to online platforms, offering convenience from account creation to loan applications. The cost of developing a FinTech banking app varies, with complexities ranging from $30,000 to $300,000.

Neobanks, another mobile-based financial service, exclusively operate online, providing a comprehensive suite of banking services to users.

2. Insurance apps

FinTech is revolutionizing insurance services, offering cost-effective policies through user-friendly apps with adjustable rates.

Insurance carriers are developing apps for clients and agents, granting easy access to various policies. This accelerates interactions, speeds up claims processing, and ensures swift deals. Developing an insurance FinTech app typically costs between $45,000 and $200,000.

3. Personal finance apps

Personal finance apps empower users to easily manage their finances, from tracking earnings and expenses to budgeting and maintaining financial discipline. These apps function as digital financial journals, recording and organizing all transactions. Developing a personal finance app through a FinTech application development firm usually ranges from $50,000 to $300,000.

4. Investments apps

Investment apps open doors for users to explore various financial opportunities, from mutual funds to trading and cryptocurrencies. The development cost for a FinTech investment app typically falls between $60,000 and $120,000.

Furthermore, other FinTech app categories, including e-portals and digital wallets, are thriving. Apps offering one-stop shopping experiences, like Amazon Pay, are gaining popularity.

It’s important to note that adding features like real-time credit score tracking, EMI calculators, and data analytics can impact your overall budget.

5. Lending apps

The P2P lending industry is rapidly expanding, with companies forming partnerships to facilitate digital loan applications. While this carries some risk, it streamlines the lending process.

This sector leverages technology to provide customers with faster and more accurate financial solutions. Smart systems use artificial intelligence and machine learning to verify identity credentials, resulting in error-free outcomes.

Utilizing technology in loan processes simplifies income projections, borrower history assessments, collateral valuation, and change anticipation. The cost of developing a FinTech loan app should range from $50,000 to $150,000.

What are the key features of FinTech apps?

1. Log in or sign up

For safety, modern fintech solutions often employ two-factor authentication or biometric methods, such as face or fingerprint scanning.

2. A user dashboard

Ideally, a user-friendly screen layout should include all the necessary actions a user can take.

3. Standard operations and a payment gateway

This functionality enables users to perform actions within the application, such as making online payments and transferring money.

4. Action Confirmation

This functionality allows a user to confirm actions, such as initiating a payment, by entering a PIN, typing a password, drawing a graphical password, or using biometric confirmation.

5. Automated repetitive action features

It allow users to automatically issue routine payments instead of doing so manually every time.

6. Push notifications

This feature sends reminders to alert users about important information, updates, or any changes that have taken place.

7. QR code and card scanning

This feature enables users to scan codes or plastic cards to simplify the process of completing specific actions.

8. Digital assistants

Sometimes applications incorporate chatbot functionality, enabling AI-based assistants or actual customer service personnel to respond to user inquiries.

9. Customization opportunities

Personalization enables users to tailor the layout, theme, or settings according to their preferences.

10. Security features

Data security in the fintech sector is of paramount importance. Various cybersecurity features can be integrated in order to prevent hacking, unauthorized actions, data theft, or leaks.

How to choose a tech stack for your Fintech App Development?

When it comes to the technology stack, your choices will vary depending on the type of fintech solution you aim to create and the intended end product. You’ll likely need to combine various technologies to build a fintech app that aligns with your goals. Here are some commonly selected options:

  • Server: AWS, Google Cloud
  • Programming languages: Python, JavaScript, C++, Java, TypeScript, Golang, Ruby
  • Web development frameworks: React, Angular, Vue
  • Mobile development frameworks: React Native, Ionic, Flutter, Kotlin, Swift, NativeScript
  • Database: MongoDB, MySQL, PostgreSQL
  • API: Twilio APIm Apex
  • Payment gateway: PayPal, Stripe, Braintree

How to Build a Fintech App?

The process of developing a FinTech application involves several stages that businesses must carefully follow to create effective FinTech software.

1. Requirement gathering

The stage involves jotting down all the requirements of your app development project and discussing them with your hired FinTech app development company.

2. App design

In the next stage, the app’s design takes center stage, with a strong focus on creating an engaging UI/UX to capture users’ interest.

3. MVP development

During this stage, the development team codes the features, integrates technologies, and employs robust security methods to create the Minimum Viable Product (MVP). The MVP serves as the prime representation of your app’s unique selling proposition (USP).

4. Testing

In this stage, the developed Minimum Viable Product (MVP) of your project undergoes rigorous testing to identify and eliminate any bugs or issues.

5. Deployment

At this point, the app is deployed on your selected platforms, which could be iOS, Android, or both

6. Maintenance and updation

Using initial user feedback, the app undergoes continuous updates, introducing new features and functionalities to ensure the product keeps evolving and scaling effectively.

How much does it cost to develop a FinTech app?

Indeed, the cost of fintech app development varies significantly, as previously discussed in the context of different app types and their price ranges. Several factors come into play when determining fintech app development costs, including:

  • Type of fintech app and its complexity.
  • Design requirements for the app.
  • Required features and functionalities.
  • Location of the app development company.
  • Technology stack used.
  • The expertise and experience of app developers.
  • The number of designers and developers you hire.
  • Developing an MVP (Minimum Viable Product).
  • Integration of third-party APIs.
  • Testing of the app.
  • Ongoing app support and maintenance.
  • The type of fintech app development engagement model you choose.
  • Each of these factors contributes to the overall cost and can vary depending on your specific project requirements and goals.

Moreover, the approximate cost of hiring dedicated developers varies through the Location, 

  • North America: $25 – $35
  • Latin America: $25 – $35
  • Europe : $35 – $65
  • India: $20 – $25
  • Africa: $25 – $30

Hire an experienced fintech development team

Fintech software development is a complex task, and it’s crucial to choose a partner with a solid track record. When seeking the right app development company, consider reviewing case studies and customer feedback on platforms like Clutch, G2Crowd, and Upwork. Look for a technology partner with relevant certifications and industry accolades, as these validate their domain expertise.

However, there are warning signs to watch out for when selecting a mobile app development company. Be cautious if they:

  • Cannot provide references from satisfied (or unsatisfied) customers.
  • Lack industry recognition or awards.
  • Fail to engage in product research and ideation in a timely manner.
  • Cannot deliver a comprehensive development roadmap.

If any of these red flags appear, it’s advisable to explore other service providers who align better with your project needs.

The Final Decision is yours!

Achieving success in the dynamic fintech industry isn’t a matter of secrets or magic tricks. It requires tenacity and a willingness to tackle challenges head-on. Finding your niche through meticulous business analysis, exploring partnerships with banks, and making the right choice in selecting a fintech app development company are all essential steps. Your fintech journey is an exciting endeavor, but it’s essential to approach it with enthusiasm and a strategic mindset to thrive in this ever-evolving landscape.

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