Financial Technology or Fintech has been a popular term for a while. Fintech is not just another buzzword anymore; it is an important part of our daily life. The advancement in fintech technology has transformed and improved the way the financial sector responds to customers’ requirements and processes their financial transactions. You are using fintech while you use your credit card to pay for items you buy or services online using Google Wallet, PayPal, etc. Therefore, you are using fintech in your everyday life.
Fintech Is One Of The Fastest-Growing Technologies
across the world as it provides top-notch security and convenience of traditional practices of finance.
In this article, we’ll talk about what facts you need to consider before developing a fintech app, features, and much more.
Facts about the Finance Industry
The Fintech industry has been growing at a faster pace. The number of fintech startups globally has grown from 12,131 in 2018 to 20,925 in 2020. This amazing growth of about 72% in just two years signifies that app development services in the finance industry will continue to expand in the upcoming years.
- The Fintech market valuation was $127 billion in the year 2020.
- That is estimated that by the year 2022, it will hit $309.98 billion with a CAGR of 24.8% as per the Business Research Company. It is predicted by Statista that approximately 65% of Americans will shift to digital banking by the year 2022.
- It was estimated that the worldwide fintech market will reach $124.3 million by the year 2025 at a CAGR of 23.84% as per the global fintech market size, status, and forecast report of the period 2018-2025. This demonstrates that for fintech startups there are substantial investment opportunities.
Points to Consider Before Developing a Fintech App Solution
Identify Your Startup’s Niche
Firstly, you need to choose a niche for your startup before proceeding with the development procedure. You need to decide if an application is for personal finance, trading, etc. The first step is to decide what your target area is and what their requirements are. After your analysis, you can decide if you want to build a fintech solution from scratch or if you want to improve an existing fintech solution. Try to focus on more complex fintech solutions to sustain yourself in the competitive world of fintech. You need to stand out among others and be unique. Once you choose a niche, you have to legalize your fintech app.
Now that you have selected your niche, you should analyze the competition in the market. You might find faults in the existing solutions after conducting a deep analysis of the best fintech apps in the market. This will help in creating unique fintech software for your users. There are countless new possibilities in the fintech online world. Therefore, being a finance startup you can experience new or unknown technology trends while developing your app.
Build A Winning Team
As the word fintech signifies two parts i.e. technology and financial service. As both parts are essential, it would help if you had an experienced team of technical experts and financial professionals in developing a unique fintech application.
You may plan to work with an application development company and allow them to work in coordination with your on-shore team. An experienced team of developers will make your online presence more effective with their technical skills at a reasonable cost.
Choose Funding Options
There are numerous options for getting money for your fintech startup. These include crowdsourcing, bank loans, venture capital, angel investors, and startup competitions are some of the examples.
However, you will require having a minimum viable product (MVP) that serves as a proof concept. The funds raised from MVP are enough to craft a software or application for your target market. Most of these fintech giants started in this manner.
Plan The Initial Areas Of Operations
It might take months to develop an application after launching a startup. Who are your target audiences, where your services will be available and are they for everyone? Are you planning to launch your startup locally or globally? You can launch your fintech solution in a limited area initially and this approach of building and improving might work perfectly.
Regulatory And Compliance
The banking sector in the fintech industry is highly regulated globally. Ethical requirements like KYC, money laundering policies and consumer data protection are the things that a company needs to stick to. According to your unique finance idea, there are category-specific regulations. To ensure the security encryption of financial applications the person needs to thoroughly go through every regulatory law.
You should know how these laws are impacting your business if your Fintech solutions plan to offer service in multiple countries. Regulations change from one nation to another and we should keep that in mind. Issuing dedicated licenses is also offered by some countries. Therefore, before integrating any compliance go through its advantages and disadvantages while developing an application. Thus, for online businesses, these regulatory laws help to gain trust and attract potential customers.
Must-Have Features For a Successful Fintech App
You need to think about how your fintech app will have the edge over its competitors. You will need experts for the development of successful fintech solutions such as business analysts and product managers who can guide you about the essential steps efficiently. They will help you with short-listing the important features to be integrated into a fintech app. Let’s see some of the must-have features for the development of a successful fintech app:
This is one of the most essential features to be integrated into your fintech app. People want accurate data related to their financial activities, so this is a must-have feature in your app. Data analytics lets you send users a customized report of their financial activities. Fintech apps that have this great feature of data analytics are preferred mostly among users. The best example of such a kind is Mint.
Your app should have reward programs to ensure your users keep coming back. Several applications are already capitalizing on the use of reward programs. Robinhood is an excellent example of such a kind because of its reward program.
This is one of the most needed features to gain users’ trust. You need to follow full regulation and compliance to make your users feel secure while using your app. Fingerprint access and facial recognition software will ensure the security of users’ financial data and enable users to secure data from unauthorized access.
Intuitive UX/UI Design
Fintech apps with a simple UX/UI design offer more flexibility to users that give a smooth and enjoyable mobile app experience to users. This can help the app to perform its services with ease along with enhancement in customer engagement rate also.
Your app can be successful if you consider implementing features that personalize the experience of unique users. The app steers people looking for money investment in the right direction. The app offers potential investment options that suit the customer’s expectations also.
The implementation of Artificial Intelligence into your apps enhances your application’s capabilities. Implementing Artificial Intelligence into your app offers several perks for example increased operational efficiency, fraud detection, better accuracy, automated customer support, etc.
While this is not one of the easiest industries to target, with this guide and strong team with tech skills and solid domain experience, you can build a great company and application that can also grow.
Jay Vora is an international SEO and SEM expert at Echo Innovate IT. In addition to overseeing the strategy and managing global websites, From SMBs to global brands, companies manage website SEO. He also writes articles about businesses also.