Fintech Application Development: Trends, Features, & Perspective
FinTech application development solutions & digitalization of transactions have been in progress for quite some time, but the prominence of mobile-based payments & transactions has surged into the mainstream. A recent survey indicates that the global count of smartphone consumers in 2023 has reached 6.92 billion, constituting a great 86.29% of the global population possessing smartphones.
The escalating embrace of smartphones, coupled with a plethora of supportive financial apps, has propelled individuals toward a heightened technological acumen in both communication & financial dealings, a phenomenon often referred to as FinTech apps.
These FinTech apps, which harness technological prowess to empower banking & financial services, have presented financial establishments with an alternative avenue for cultivating meaningful client rapport. They achieve this by streamlining financial services via the integration of digital techs.
If initiating FinTech app development seems like a daunting task, whether due to uncertainty about the initial steps, the essential prerequisites, factors to mull over before plunging into development, or the associated costs, you are in luck. This blog aims to provide complete answers to all these questions, guiding you via the intricacies of the process.
What Does FinTech Application Development Entail?
FinTech application development encompasses the utilization of software development best practices, methodologies, & cutting-edge techs to prepare financial apps tailored for both mobile & web platforms. This process also integrates consumer experience design & financial expertise to yield intuitive, practical, & user-centric apps that align with consumers’ financial requirements.
The journey of financial app development typically involves the following stages:
- Determining the App’s Purpose: Establishing the App’s objectives or determining the exact issues it aims to address.
- Consumer Interface Design: Creating the app’s consumer interface, shaping its components, & imbuing it with focused functionalities.
- Backend Infrastructure Development: Creating the app’s backend infrastructure or formulating & implementing the business logic that distinguishes it from existing FinTech apps.
- Testing & Validation: Thoroughly assessing the app’s technical aspects & subjecting it to real consumer testing to verify functionality, security, & user satisfaction.
The realm of FinTech application development often embraces advanced & innovative techs, including blockchain, machine learning, AI, cloud computing, & more. This amalgamation of tech stacks provides a blend of privacy, security, top-notch performance, & the seamless execution of financial services & transactions.
Fintech Application Development Solutions: Statistical Insights
The global fintech market’s value is projected to reach about $133.84 billion in 2022, with estimations suggesting a great surge to $556.8 billion by 2030, as indicated by Vantage’s insightful market research. Industry professionals anticipate a robust expansion throughout this timeframe, with a compound annual growth rate (CAGR) of 19.5%.
Simultaneously, in line with projections by Allied Market Research, the dimensions of the worldwide fintech techs market are poised to attain a substantial figure of $698.48 billion by 2030. This growth trajectory forecasts a significant CAGR of 20.3% throughout the 2020s. Fintech’s momentum in challenging traditional banking stems from its adept incorporation of pioneering techs and user-centric features, elevating the convenience quotient of these apps.
A comprehensive grasp of the industry’s growth is gleaned from Statista’s comprehensive data, which encapsulates market assessment, key players, & industry analysis:
- Digital Investment stays the dominant category within the market, with a projected full transaction value of about $112.90 billion in the year 2023.
- By 2023, the global count of consumers embracing digital payment solutions is estimated to be an impressive 5.62 billion.
- The momentum continues, as Statista envisions that by the year 2027, an impressive 7 billion consumers will have embraced digital payment strategies.
- Notably, the collective transaction value within the digital payments landscape is set to surge to about $9.5 billion by the year 2023, illustrating the escalating adoption & prominence of this mode of transaction.
These statistics encapsulate the dynamic trajectory of fintech software development, showcasing its incredible growth potential, consumer adoption, & its pivotal role in reshaping the financial landscape via innovative techs & improved convenience.
Types of FinTech Applications
The financial sector is a dynamic & expansive domain that has been revolutionized by the integration of financial techs, catering to different aspects of individuals’ & businesses’ financial requirements in their day-to-day lives. Consequently, FinTech apps span several distinct classes, each serving a unique purpose. Let’s delve into these classes to grasp their value in today’s context.
- Insurance Apps:
In the realm of imperative financial services, insurance holds a vital position. Recent times have witnessed substantial automation within insurance workflows, expediting claims processing, policy administration, & combating fraudulent actions. Insurance apps typically encompass components such as payment processing, policy quotes, claims filing, & policy searches in adherence to a company’s business logic. Notable instances of inspirational insurance apps include Geico Mobile & Lemonade.
- Investment Apps:
Investment apps provide consumers with the convenience of accessing real-time facts concerning their investments digitally. These applications cater to different financial services, including stock trading, mutual funds, & cryptos. A successful investment app empowers consumers to explore assets online & make prompt investments. Core features like savings management, multi-currency capabilities, credit management, asset comparison, real-time notifications, & client support form the foundation of these apps. Robinhood & Wealthbase stand as prime examples in the investment application landscape.
- Banking and Money Management Apps:
Banking apps place the full spectrum of banking services & solutions at consumers’ fingertips. While you might already be acquainted with this concept or even utilizing a banking application, the potential for business possibilities in this field is far from exhausted, as not all banking services are yet presented online due to security or other constraints. Should you possess an application idea that addresses one of these banking challenges, venturing into FinTech application development is worth considering. Prime illustrations of successful banking & money management applications include PayPal & Starling.
- RegTech Apps:
Regulatory tech (RegTech) leverages advanced techs like machine learning & AI to automate data governance, monitor regulatory differences, decrease false non-compliance alerts, manage compliance, & streamline reporting processes. It aims to replace manual & error-prone regulatory management with efficient automation. While developing a RegTech app, considerations should incorporate identity verification, risk management, & financial crime detection processes. Notable RegTech applications like 6 Clicks & Passport exemplify advancements in regulatory processes by automating KYC procedures & other financial services enablement needs.
- Money Lending Apps:
Money lending application development has occurred as a growing sector within the FinTech landscape. FinTech mobile application development streamlines the lending process by circumventing intermediaries like loan brokers or traditional financial institutions. Additionally, these applications often suggest loans at lower interest rates due to the absence of intermediaries, enabling direct benefits to customers. Key features of these applications encompass credit scoring, loan apps, billing, payments, & more. Notable instances in this class include Earnin & PaySense.
- Consumer Finance Apps:
FinTech’s influence is not limited to banking alone. The convenience of tech spreads to different aspects of life, including budgeting & personal finance management. Consumer finance apps empower consumers to effectively manage their finances, aiding them in making sound financial decisions. Leveraging advanced artificial intelligence and machine learning solutions, these applications offer personalized experiences for diverse financial goals, encompassing expense tracking, investment analysis, fraud alerts, expense forecasting, & more. Instances like Mint & Money Patrol exemplify this category.
- Accounting Apps:
Accounting services constitute a key facet of the financial landscape. Through FinTech app development, one can make accounting solutions catering to consumers & businesses, facilitating streamlined account management. These applications can encompass elements such as invoicing, expense tracking, bank reconciliation, receipt management, tax preparation, & more. These apps simplify daily assignments, decrease error risks, & prevent instances where expenses are forgotten & later disrupt balance sheets. Esteemed examples like QuickBooks & Xero underscore the potential of FinTech accounting apps.
In essence, FinTech application development spans a diverse array of classes, each contributing to the evolution of financial services in the modern age.
Essential Features for a Comprehensive FinTech App
To establish a FinTech app as a viable & appealing solution for consumers, it’s imperative to incorporate a range of key elements. These elements collectively improve the app’s security, functionality, & usability, thereby fostering widespread acceptance. The essential features that should be meticulously integrated into your FinTech app encompass:
Core Characteristics of FinTech Apps
- User-Friendly Registration. Streamline the account design process with a user-friendly registration characteristic, providing compliance & upholding security standards.
- Personal Account Management. Empower consumers to effortlessly manage finances, track transactions, & access essential financial services via personalized account management features.
- Efficient Payment Gateway. Integrate a seamless payment gateway solution to facilitate secure fund transfers between accounts, improving consumer convenience.
- Comprehensive Financial Management. Equip consumers with comprehensive financial management instruments that grant them control over their finances & enable them to reach their monetary objectives.
- Bank Card Integration. Allow users to link their credit/debit cards to the application, simplifying access to consolidated account info within a single platform.
- Real-Time Notifications. Suggest real-time notifications for all financial transactions & account activities, providing consumers stay informed & engaged.
- Transaction & Interaction History. Provide consumers with access to their complete financial history, promoting transparency & aiding in informed decision-making.
- Effortless Onboarding. Facilitate seamless onboarding for new consumers, providing an intuitive & hassle-free experience with your application.
- Interactive Chatbots. Integrate chatbots for client support, improving engagement, decreasing costs, & gaining insights into user requirements.
Advanced Attributes of FinTech Apps
- Biometric Scanning. Improve security & user experience with biometric scanning, deterring fraud & contributing valuable data for analysis.
- Versatile Authentication. Suggest consumers multiple authentication choices with versatile two-factor authentication elements, bolstering security.
- Know Your Customer (KYC). Implement KYC features to gain insights into customer preferences, allowing personalized service & product offerings.
- Cashback Incentives. Increase client loyalty & application usage by introducing a cashback feature, rewarding consumers for financial transactions.
- Efficient Card Scanning. Simplify payment card management with a card scanning feature, allowing the swift addition of payment cards.
- Personalized Cost Tracking. Facilitate informed financial decisions with a cost-tracking quality, delivering tailored recommendations based on spending patterns.
- Engaging Referral System. Encourage application adoption & engagement through a referral system, fostering a sense of community & improving client retention.
8 Emerging Trends in Fintech Application Development for 2023
As digital innovations continue to reshape the landscape, a multitude of trends in fintech application development are poised to surface, delivering novel abilities & improved experiences.
Blockchain Integration
Incorporating blockchain tech into application development improves security & efficiency. By leveraging its decentralized structure, transactions become more secure & cost-effective, allowing swift payments & safeguarding against data breaches.
AI-Powered Solutions
AI enriches fintech applications with accurate insights & streamlined processes. AI-driven evaluations allow personalized loan offerings, fraud detection, & predictive analytics, leading to improved user experiences and cost-effective operations.
AI-powered chatbots redefine client support in fintech applications, suggesting round-the-clock assistance, thereby elevating consumer satisfaction. Integrating user-friendly AI chatbots improves productivity & engagement, setting applications apart from the competition.
Biometric Authentication
Biometric authentication emerges as a cornerstone of security, fortifying fintech applications with voice, face, & fingerprint recognition. This tech thwarts unauthorized access, guaranteeing user data stays shielded against potential breaches.
Robotic Process Automation (RPA)
Robotic Process Automation optimizes efficiency by employing historical & existing data. This method accelerates tasks like financial reporting, risk assessment, & auditing, contributing to precise decision-making.
Neobanking Revolution
Neo-banking applications, like Albert, Moneylion, & Aspiration, redefine digital banking experiences. These platforms suggest instant solutions for payments, lending, & money transfers, attracting consumers with their swiftness & convenience.
Microservices Architecture
Microservices architecture improves application development by employing small, agile services interconnected via APIs. This approach increases flexibility, accelerates deployment, & ensures responsiveness to evolving user requirements.
Mobile Banking & P2P Lending
Mobile banking & P2P lending streamline financial operations within fintech applications, catering to customers’ need for efficiency. By streamlining tasks like money transfers, investments, & loans, applications become more appealing to a wide user base.
Voice Command Integration
Enabling voice-controlled interactions via virtual assistants like Siri & Alexa heightens consumer experiences. This feature simplifies navigation & usage, improving consumer satisfaction & loyalty.
In the ever-evolving fintech landscape, integrating these trends into application development suggests the potential to create robust, user-centric apps that stay competitive & innovative in the market.
Our Experience
Crypto Exchanges Software Development
Stfalcon.com was tasked with developing an SDK for iOS & Android mobile platforms utilizing Kotlin Multiplatform for a crypto wallet. A key challenge involved merging business logic & using a unified code base across distinct platforms. To address this, we harnessed the power of Kotlin Multiplatform tech.
Read the full case study
This enabled the implementation of consistent business models, procedures, queries, internal data handling, & encryption across all intended platforms.
Payment integration services & invoice creation form
An important aspect of a corporate account involves generating shipping invoices. Consumers generate a substantial volume of these invoices daily, emphasizing the importance of furnishing them with a user-friendly instrument.
Read the full case study
The primary objectives behind the development of the new invoice creation form were as follows:
- Streamlined Automation: Striving for a maximally automated interface where any potential consumer input info is pre-filled.
- Error Minimization: Minimizing the occurrence of errors during the generation of new recipient info.
- Versatility: Encouraging the inclusion of different Nova Poshta services within the invoice.
Bottom Line
While the market already boasts a multitude of FinTech apps, the landscape continues to welcome fresh contenders that carve out their niche. This ongoing expansion is driven by the presence of numerous untapped possibilities within the realm of banking & financial services.
Creating a FinTech application in 2023 necessitates a comprehensive grasp of contemporary trends, optimal methodologies, and cutting-edge technologies. The fintech app development company — Stfalcon boasts proficiency in effectively harnessing advanced technologies while harmonizing them with astute business insight. Our hands-on involvement in the realm of FinTech mobile app development equips us to guide you in selecting the right dedicated team, and technology stack, and furnish unwavering support for the entire spectrum of application development phases. If you are interested in creating a top-notch product, contact us, free consultation is available.
Originally published at https://stfalcon.com.
