Fintech is everywhere these days. Do you know what it is? Financial Technology, or Fintech, includes everything from sending money with your phone to using budgeting apps. It covers paying with your phone, withdrawing cash from ATMs, and splitting bills instantly with friends. That’s fintech in action.
Building a fintech app to rule in 2024-25, includes a clear understanding, cutting-edge tech skills, right tools with a strong strategy. This blog will guide you through the essentials of building a fintech app, from crucial features to the various types of apps. Let’s get started!
Have A Fintech Industry Overview
What is Fintech?
Fintech or financial technology, is defined as innovative solutions that improve or automate financial services. Finance is the profit-making and resource mobilization tool that works hand in hand with technology to enhance the efficiency and effectiveness of the conduct of business transactions, provision of services, and management of resources. On this basis, fintech is a very broad concept. It includes everything starting from mobile paying services to ending with advanced investment platforms.
Thriving FinTech Market: Key Insights and Forecasts
- Investment Surge in FinTech
To be specific, the P2P business financing market has developed to be highly competitive, while the total amount of investment in the fintech industry reached $91 in 2021. 5 billion, they more than double the spending of 2020.
Such a sharp rise clearly shows how the global Fintech market is expanding and the investor attraction towards such markets.
- Projected growth in Financial Portfolios
Fintech companies are predicted capable of undertaking $400 billion in financial assets by 2028. It has been projected that the above figures can go up by 15%, which shows the great prospect for the app development of fintech.
- Online Banking Rise
Approximately 62.5% of Americans have used online banking services in 2022. This is expected to continue as consumers continue to accept digital financial solutions.
Fintech Market
The market for fintechs across the world is rapidly expanding. It is growing with projected values approaching $698bn by 2030, with a compound annual growth rate of 23%, 84% from 2024. Such accelerated growth raises the need for digital financial services and opens up the possibility of new fintech companies’ emergence.
Types of Fintech Apps
- The Payment Apps accept and process digital goods and services, payments, and money transfers (e.g., PayPal, Venmo).
- Investment Apps work towards providing margins for investing and financial portfolio services (e.g., Robinhood, E*TRADE).
- Lending Apps offer lines of credit including, personal and business (LendingClub, SoFi, and many more).
- Personal Finance Apps provide support in the assessment of their budgets and expenses (e.g. Mint, YNAB, etc.
- Insurtech Apps apply to the insurance industry using technological advancement solutions for instance; Lemonade, and Root Insurance.
The Most Successful Fintech Apps
Some of the most popular fintech apps have brought change in their fields with unique features. For instance:
- Robinhood: Popularized commission-free trading.
- Stripe: Defining the meaning, purpose, and benefits of access solutions for business entities.
- Revolut: It offers, non-core and core balance sheet services, treasury and trade, financial products, and services.
Top Emerging Financial Technologies Trends in 2024
Mobile Banking Evolution
During a pandemic, this is a major change that has occurred and advanced. The pandemic made this movement from physical banking to mobile banking. The adoption of smartphone banking applications has proven that customers require remote banking, hence the need for the development of electronic banking services. Customers make their financial transactions online, hence there is no more need for branch visits.
Statista estimates that the number of digital banking users in the U. S will reach 217 million in the year 2025. Owing to the presence of FinTech and its influence, many of the traditional banks are now incorporating these services, which increases its online features for the users.
FinTech & Artificial Intelligence
The AI in FinTech market is projected to grow to $44.08 billion by 2024, with an estimated increase of 2.91%, reaching $50.87 billion by 2029. This paper posits that AI drives FinTech by influencing the elements of data analytics, customer relations, and customized products. AI provides real-time analytics and insights into various business data. It also has options for personalized dashboards and voice-activated customer support chatbots. Such developments enable FinTech organizations to provide efficient services relevant to the customers.
Cryptocurrency and Blockchain Development
Cryptocurrency and Blockchain are still core to FinTech development. Blockchain technology has been valued for increasing the level of security, openness, and speed of transactions.
The Global Blockchain Market was valued at USD 7 billion in 2020. The market, which was $4 billion in the year 2022, should reach $94 billion by 2027 as stated by MarketsandMarkets. Blockchain solutions provide improved compliance with guidelines, commerce, and the development of free financial platforms.
Financial Services for Everyone
FinTech has a social mission to provide equal access to financial services that are as transparent as possible. The emergence of this trend provides businesses and users, retail investors with opportunities through the ever-expanding digital marketplaces and personal finance management, and new financial models in digital assets. This is to make people’s access to financial services better with a focus on going beyond the traditional models.
FinTech for the Self-Employed
As telecommuting continues to become popular, more financial products and services. As it is more appropriate for freelancers and independent contractors. There are mundane services such as tax monitoring, invoicing, accounting, and risk management available on FinTech apps to make this group financially secure.
Intuit has forecasted by the year 2023 there will be approximately 47% freelancers in the United States’ total labor force. FinTech organizations are also coming up with techniques and products that suit their needs so that it will become easier to handle financial issues.
Reasons to Develop a Fintech App
Lack of Financial Literacy
Lack of financial education is the biggest problem among others for people to face in their lives. A fintech app can have features that include informational content and utilities so as to enhance the understanding of the user regarding finance.
Open Banking
Open Banking is defined as the application of screen-scraping technology by third-party applications. It enables service providers, in the end, to gain access to users’ financial information and data. It allows integration with several other financial institutions. In turn that helps in improving the effectiveness of the app as well as the experience of the clients.
Mobile Phone Penetration
The global usage of mobile phones has hit over 5 billion with usage of smartphones on the rise. Targeting this market is a suitable approach to developing a fintech app since it will serve an ever-expanding group of clients who prefer using their mobile devices to access a number of services.
Must-Have Features
Security
Security is paramount in most of the fintech applications. Use measures like data encryption, the use of 2FA, as well as secure storage of user data and information to ensure the user’s data and information are secure and trustworthy.
Payments Integration
Integrate different forms of payment to enhance the ease and convenience of the customers. It accepts credit/ debit cards, digital wallets, and bank transfers which makes the transaction process easy.
Machine Learning
Machine learning is beneficial for recommendation systems, fraud detection systems, and predictive analytics systems. Thus, the app is enriched with the machine learning feature that improves the usability and profitability of the services provided.
Dashboards
Provide your users with all-in-one fully-featured dashboards to track their financial operations. Some examples of what should be presented on the dashboards include real-time data, trends, and insights that would enable the users to make informed decisions.
Voice Integration
Introduce voice commands and also voice-based interactions to improve user experience. Voice integration can make navigation easier, allow one to use voice for transactions, and the like.
Find Out Steps to Create a Fintech App
Authenticate and Manage Users
First, make sure that user authentication methods are strongly established. Implement protective methods when logging in and address user authentication accounts to reduce risks and enhance the convenience of the users’ experience.
Get Secure Hosting
Select a reliable Web host with good experience in the industry. However, you should make certain that the environment for hosting complies with the accepted standards of the data protection and privacy acts.
Integrate Credit Score Checking
It is advisable to incorporate aspects such as a credit report checker and monitor your credit score for the users. Connection to credit bureaus enables the user to track his/her financial standing in order to enhance credit rating.
Access Bank Account
Let the users make their bank accounts accessible in order to facilitate the process of transactions and overall account management. It also highlighted the need for secure APIs and respecting compliance requirements when it comes to financial organizations’ integration.
Set Up Payment Gateway
This one is simple, yet crucial – ensure that you integrate an effective payment system in your online business. See to it that it accepts more types of payment and ensures effective and secure processing to make these features a value-addition feature for users.
Implement Chat
It is possible to use additional chat-related features to offer the customers actual-time support and/or answer their inquiries. Chat features make customers happy and address their complaints as fast as possible.
Add Bonus Plugins
One can include additional modules like financial calculators, investment tools, or budgeting assistance. Extra plugins can make your app unique and help to enrich the user experience.
Consider Legal Obligations
Compliance with the regulation to serve the financial services sector. Make certain your app complies with data protection laws and regulations, and the rules as well as norms of the finance sector.
Cost to Build a Fintech App
In general, it is possible to conclude that the price of a fintech app’s development fully depends on its functionality, the number of functions to be implemented, and the country where it is being developed. As practice shows it takes on average $50000 -$300 000 to develop a fintech application. Factors influencing the cost include: Among the parameters which determine the cost are:
- Design and UX: Good designs demand capital input to ensure they are as quality as the user interface.
- Development: This decision will also take into consideration the costs involved; which are the overarching cost of the app, and the experience of the development team among others.
- Testing: Testing helps in confirming that an application satisfies its intended function besides being secure but it is time-consuming and increases cost.
- Maintenance: Continuous maintenance and updates will be required hence enhancing the functionality of the app.
Kodehash Experience in Building a Fintech App
Kodehash has previously worked on many social impact fintech applications. Our team is well-skilled in implementing client-centric solutions that are secure, scalable, and innovative. Starting from the beginning of the development of your fintech app, Kodehash has the expertise and experience to make sure the app distinguishes itself in the market.
It’s Time to Start a Fintech App
Thus, the fintech industry has numerous opportunities. When done correctly, your fintech app will definitely go a long way in the market. Essentially the first steps you take in any project should be to determine the goals of the project as well as the market within which it will be operating and the team that is going to be working on the development of the project.
Final Thoughts
Creating a fintech app in 2024 offers exciting possibilities. By understanding the industry, addressing user needs, and implementing essential features, you can build a successful fintech solution. Kodehash is here to help you navigate the development process and turn your fintech vision into reality.
Ready to launch your fintech app? Contact Kodehash today to discuss how we can support your project and drive your success in the fintech landscape.