The global fintech industry is booming and with it comes a lot of expectations for innovation and growth. In 2024, we have not only seen growth in the demand for fintech apps but also diversification. Fintech apps now play a versatile role in addressing several problems, from insurance to investment.
In this blog, we will discuss the top strategies for fintech application development, including the types of Fintech apps being developed, the must-have features, and the steps fintech application development companies take in developing a fintech app.
A] What Is Fintech App Development?
Fintech apps are mobile or web applications which help individuals or organisations manage their finances more efficiently. There are several types of fintech apps which address different financial needs. Fintech app development refers to the process of developing such apps using the latest technologies, must-have features, and best development practices and project-handling methods.
Fintech app development focuses on the application solving a certain type of problem for the end-user. Hence, the developers have to pick and choose the features they need to build for the app. In an age where there is competition to provide the best app in a niche, fintech app development in India revolves around providing the best UI and UX.
B] Types of Fintech Applications
1. Insurance Application
Most people often do not purchase insurance due to the complexities of selecting and then purchasing it. Fintech apps offering insurance are tackling this issue by making the process easier. Fintech insurance apps need to have features that allow users to search different policies, compare them, and purchase them without any hassle.
2. Investment Application
Investment applications are more popular than ever in 2024. Investment apps that allow users to buy and sell securities like stock, crypto, and FDs without a middleman. This reduces the cost and complexities of investing, making it more accessible. Some of the core features of investment apps include savings, multi-currency, credit management, comparison of assets, real-time notifications, and 24/7 customer support.
3. Banking & Money Management Application
Banking apps are designed to allow users to conduct their banking activities from their phones, anytime and anywhere. Most banks have started offering their customers banking applications to enhance their experience. Money management apps are apps that help you send and receive money in your bank accounts. Banking and money management applications together can simplify several banking processes like opening an account, overseeing transactions, managing overdrafts, creating FDs, and of course sending and receiving money.
4. Consumer Finance Applications
Consumer finance applications are a bit different from the apps we saw above. These apps do not interact with the market at large, rather they help the user manage personal finance and make better financial decisions. Consumer finance applications help the consumer make a monthly budget, compare opportunity costs, track payments, and much more.
5. Money Lending Application
Money lending applications are some of the most popular apps in the fintech industry today. Money lending applications avoid intermediaries like loan brokers, banks, or other financial institutions, reducing the cost of borrowing money. Developers need to ensure certain features like real-time credit score tracking, automated loan application processing, and easy transaction processing while creating a money lending app.
6. RegTech Application
RegTech stands for regulatory technology which is used by companies that deal in financial services. RegTech applications help organisations meet their regulatory requirements. These apps monitor risks, manage regulatory compliances, and eliminate manual and error-prone regulatory management processes.
C] Must Have Trending Features For Fintech Applications
1. Security
Security is of the utmost importance in the fintech industry and the same also applies to fintech application development. As these fintech apps store customer’s personal and financial information, robust security features are of utmost importance. Modern cyber security measures like biometrics, encryption, and two-factor authentication can vastly improve security. Incorporating Blockchain technology can further fortify the app’s security. A strong security system helps to build trust amongst the user base.
2. Payment Gateway Integration
Most fintech apps revolve around making and receiving payments. This could be paying for the purchase of insurance, monthly SIPs, or investing in FDs and other securities. Having an integrated payment gateway in the app can make these processes easier and more efficient. Having a payment gateway option within the app has become extremely popular, so much so, that users have started to see it as a norm rather than an exception.
3. AI and Machine Learning
Although artificial intelligence and machine learning are relatively new features, they have greatly contributed to the innovation of fintech apps. AI can help personalise customer service with 24/7 chatbots and detect fraud before anyone else. Meanwhile, machine learning can run advanced algorithms to analyse data and offer personalised recommendations.
4. Cloud Computing
Cloud computing refers to a business model where computing features like servers, storage, databases, networking, and software are provided over the internet, instead of physically having them. Cloud computing helps businesses be flexible and scalable, as they can avail more resources whenever they want for a price. It is also cost-effective for businesses as cloud computing does not require them to build computing infrastructure from scratch.
5. Open Banking
Open banking is an integral part of the fintech sector. It allows third-party businesses to view multiple accounts by integrating with APIs. Most non-financial companies can benefit from open banking as they can offer personalised financial services without getting a banking license. Open banking in the fintech industry can drive innovation, improve user experience, and give you an edge over competition.
6. Easy And Accessible UI
The user interface of any modern application needs to be easy to navigate and accessible to everyone in order to improve user experience. Mobile-first UI is becoming the norm in the app development sector, as a large portion of traffic tends to come from mobile.
D] Fintech Applications Development Steps
1. Identify Your Niche
The fintech industry consists of various types of services. Before developing a fintech app, you need to decide what type of services you are going to provide and who will be your target audience. This will help you to niche down. Analyse the type of features you need to have and what additional features you could use to offer a better app than your competitors.
2. Market Research
Market research is an important tool that will help you analyse your competitors as well as your target audience. This could help you find your target customer’s pain points and offer the additional features that your competitors lack. Market research could also help you figure out the cost of development, allocate resources wisely, and stay updated on the latest trends.
3. Make A List Of Core Features
Once you complete market research, you need to decide the functions of your app. Every fintech app needs to have a set of core features that distinguish it from other fintech apps in the same category. Depending on the data you found in the market research you need to see which are the most in-demand features and additional features that your competitors don’t provide.
4. Follow The Legal Compliances
The finance industry is one of the most regulated industries, naturally, fintech applications also need to consider legal compliances to be successful. The fintech application must meet all the legal requirements of the specific financial sector. These compliances include KYC, AML (Anti Money Laundering), PCI DSS (Payment Card Industry Data Security Standard), and digital signature certificates. Failure to comply with these legal requirements could result in you paying hefty fines.
5. Ensure A Strong Revenue Generation Model
This step ensures you have a way to gain ROI from your fintech app. As the app is still in its infancy stage, you need to define a way how the app will generate revenue. For example, if you are developing an insurance app or stock exchange app, commissions and brokerage will be your primary revenue model. Meanwhile, if you are making a personal finance app, subscription fees and ads would most likely be your primary source of revenue.
6. Develop And Test The App
After the planning stage is over, now it’s time to develop your app. It is best to outsource the development process to the top fintech software development company in India to get a professional and experienced development team working on your fintech app. They can help you reduce the cost and time for development. Once developed, they will also take care of testing the application for bugs and fix them.
7. Launch The App And Make Changes According To Feedback
Once the development and testing phase is taken care of, it is time to launch the app. Once the product is launched for beta testing, a few minor adjustments need to be made after the initial audience reaction. After that, your app is good to go. Regular updates and improvements are also a key part of keeping the fintech app up-to-date with the latest trends.
E] Cost Of Fintech Applications Development In India
The cost of developing a fintech app can vary depending on the type of app, its features, platform compatibility, and several other factors. If you outsource your fintech app development to a fintech software development company in India, you could save a significant amount without compromising on code quality.
If you plan to build an app with very basic features, it could cost you around 30,000 USD in India. Of course, this number depends on several factors; hence it is advisable to get a quote from different development companies.
Conclusion
Having a robust and scalable application is one of the most important priorities for fintech businesses in 2024. However, you will need to carefully consider the latest development trends, practices, and technologies, in order to build a successful fintech application for your business.
Outsourcing the development task makes more sense for a business whose core focus is not developing apps, as it can save a lot of time and money and get expertised skills. If you are looking for a fintech software development company in India to outsource your custom fintech application development, contact our team today!
FAQs
A well-established fintech app development company in India will typically offer services such as mobile app development, web development, UI/UX design, backend development, API integration, security implementation, and maintenance.
If you are trying to find the right fintech app development company for your project there are certain factors you need to consider to shortlist them. consider their experience in fintech, past projects, client reviews, technology stack, pricing, and communication skills.
When you partner with a fintech software development agency, you get access to specialised expertise, faster time to market, cost-effective solutions, scalability, and ongoing support.
Yes, fintech app development companies can assist in customising solutions tailored to specific business needs by understanding your requirements, suggesting suitable technologies, and developing a customised solution.
The fintech app development process typically involves discovery and planning, design and prototyping, development, testing, deployment, and ongoing maintenance and support. This process ensures that the app meets your requirements and is successfully launched and maintained.