FinTech Application Development: Everything You Need to Know

Quick Read: With the evolving market demands and dynamic financial needs of clients, traditional banking solutions began to fall short. This led to the rise of FinTech applications, prompting financial institutions to adopt FinTech app development to enhance customer experiences. Before diving in, it's crucial to gather all necessary information on successful FinTech application development, as recommended in this blog.

Ethereum, Cryptocurrencies, Bitcoins - you might have heard some of these familiar words from people who at least have some knowledge about finance. And as the financial industry is consistently moving to digital means and advancing at an unimaginable speed with the help of technology, mobile and web-based payments are now mainstream. According to a report, apps account for 70% of digital media in the US.

Witnessing the growing adoption of digital devices, most of which support financial apps, people are getting more tech-savvy, making FinTech applications more popular. FinTech means the financial sector's evolution propelled by technology to upgrade its daily processes.

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So, whether it be for web or mobile, developing this app is not a cakewalk. For your finance company to break even in the market, you must consistently be on your toes with expertise in finance and technology. If not, you might end up like Equifax, losing a whopping $4 billion due to a data breach. And this is just the security part.

So, if you plan to opt for FinTech application development services, there's perhaps no better time. And we're sure your mind must be full of questions – what are the types of FinTech apps? How to build a FinTech app? What is the development cost? This article will be your A-Z guide on FinTech application development and going to answer all these questions.

Are you curious already? Let's begin!

Understanding the Concept of FinTech

Wondering what is FinTech? FinTech stands for financial technology. It offers financial services via web and mobile apps. These apps address the needs of both clients and businesses and provide them with a more accessible and convenient approach to their finance management. Moreover, you can access these FinTech applications with the help of different tablets, smartphones, desktops, and other mobile devices. FinTech solutions also help you check account balance and transactional history in real-time.

Well, FinTech is the charming modern term for everything related to the combination of finance and technology, from budgeting apps to money-transferring platforms to money management, etc.

In fact, FinTech apps have become so new-fashioned that we are sure you will utilize them more frequently than you can even imagine. For instance, sending payments through mobile apps, withdrawing cash from ATMs, buying a pretty dress using virtual cards linked to our smartphones, and doing finance-related things that make FinTech.

What is FinTech App Development?

Fintech app development involves a strategic approach of designing, developing and deploying software applications aimed at reshaping the landscape of financial services. FinTech app development is building apps for digital devices that provide financial services. While integrating cutting-edge technologies, these apps offer a user-friendly and seamless way to access relevant financial services, manage finances, and conduct financial transactions.

Developing it involves multiple critical stages - ideation, planning, designing, development, testing, deployment, and maintenance. To build a successful app, you must deploy comprehensive FinTech app development services with a team of experienced FinTech developers and professionals.

Types of FinTech Apps

Here's an exclusive opportunity for you - analyzing the types of FinTech apps in the market can help you learn much about this technology. This can also help identify the features of successful apps and incorporate functional components that your competitors might have missed.

This section will present some unique FinTech app ideas and a few examples of the most profitable ones in every category.

1. Digital Banking

Online banking is now the go-to option for anyone who needs to manage their financial transactions and bank accounts quickly and comfortably. So now, your customers don't have to leave their houses and be physically present in traditional banks to open an account or deposit/withdraw funds.

Whether you're opting for bespoke Android or iOS app development services, Revolut and N26 are the two finest examples of how to build FinTech apps for digital banking purposes.

2. Mobile Banking

Online banking and mobile banking - although these two terms sound about the same, there are many differences between them that you should know about. You can make worldwide transactions with online banking, and mobile banking is software that lets you perform all your banking operations.

So, banking applications let customers enjoy myriad services, from expense trackers to locating ATMs and quicker money transfers - everything your customers can do without needing to visit the bank. Imagine how they will love the convenience!

And as an owner, these types of FinTech apps come up with an extensive range of business benefits like enhancing customer experience, promoting services, generating new revenue streams, and so on. Two of the best mobile banking apps are Ally Bank and Capital Banking.

3. Payment

With the improvement of payment gateways, online payment has become the most popular category in FinTech app development. Now, consumers and businesses worldwide seamlessly enjoy services like currency exchange, digital money transfer, cardless transactions, mobile wallets, etc.

In this regard, peer-to-peer or P2P payment apps are particularly relevant. Millennials and people of all generations use these apps to receive and transfer money to each other, crowdfunding, raising collective money, and so on.

So, if you're curious about what a payment FinTech app should be like, PayPal and Payoneer are famous examples.

4. Cryptocurrency

With the rise of blockchain, many financial institutes are willing to invest further in cryptocurrency technologies. Additionally, crypto transactions are exceptionally swift, completely anonymous, and, most notably, not under government rules. Hence, this is fueling cryptocurrency popularity, and most organizations are deploying FinTech app development services.

Also, these types of FinTech apps provide a wide range of benefits, from tracking the crypto market and investment opportunities to accessing your mobile wallet and much more. The two most successful cryptocurrency apps in today's market are Binance and eToro.

5. Mortgage and Lending Services

Mortgage and lending apps are the best examples of how FinTech app development has made the finance business more efficient and transparent. As modern customers, we find the conventional mortgage and money lending process very tedious and complicated without any need.

But thanks to FinTech, the latest mortgage and lending apps can automate time-consuming and laborious tasks. You can also regularly check with the credit bureaus through the apps, facilitating the entire process. So, consider these two apps – Better and Wells Fargo while choosing the finest iOS or Android app development services.

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6. Investment

Stock trading and investment management platforms will enable your customers to analyze different financial assets and invest for the best profitability. The stock market is a complicated domain, and these types of FinTech apps, whether be web or mobile, bring a great opportunity to those who want to set about in this domain.

So now, customers can improve their investment performance by getting investment recommendations and accessing critical data and analytics. If you're interested in FinTech app development with investment solutions, Addepar and E-Trade can give you the best ideas.

7. Regtech

Regtech is the type of FinTech app that deals with advanced, innovative technologies to resolve regulatory policies. Developing custom applications empowers organizations to assess regional policies and analyze the current process to ensure complete compliance with the requirements.

So, regtech apps facilitate the monitoring process by eliminating possible human errors. PassFort and 6clicks are the best regtech apps in the present industry.

8. Insurance

Digital insurance service providers today offer InsurTech solutions integrated with modern technologies. These types of FinTech apps help engage more customers. From speeding up the commission process to reducing fraudulent activities, InsurTech solutions offer many time-effective solutions.

Trov and BIMA apps are famous for their excellent FinTech app design ideas in the insurance sector.

9. Budgeting and Personal Finance

Financial planning and budgeting apps help customers have better control over their finances. By forecasting investments and analyzing expenses, this type of FinTech app has gained much love among general users.

Besides, these apps will enable customers to manage, track, and budget their funds without changing interfaces. The two sophisticated budgeting apps you should consider are Mint and MoneyPatrol.

10. Accounting

FinTech accounting apps are the types of apps that assist small and medium-sized businesses in managing their bookkeeping processes and financial accounts. These FinTech apps also provide many features, like tax preparation, bank reconciliation, receipt management, expense tracking, and invoicing.

FinTech accounting apps help automate several manual processes linked with financial management, such as transaction categorization and data entry. Some popular FinTech accounting apps are QuickBooks and Xero.

Features to Consider When Building a FinTech App

Hear us out - if you want your FinTech app to stand out among competitors successfully, you must be very careful with your app's value proposition to push it at the industry's front line. Work on brainstorming ideas to identify and solve users' problems.

The following are the most crucial features that you must consider for top-notch FinTech application development:

• Simple and Intuitive Interface - What most consumers expect from a FinTech app is a user-friendly and compelling interface because a captivating user interface will help your app outmatch your competitors.

• Smooth Payment Gateway – When opting for custom FinTech app development, you should always consider integrating services like checking account balances, making digital payments, and transferring money. Also, prioritize your app security to provide a convenient payment gateway.

• Multi-User Support – Integrating an effective user management system in your app is essential. This feature helps employees or family members share and monitor a single account.

• Personalization and AI Algorithm Utilization - Banking applications use these features a lot. It is due to their capability to view up-to-date spending analytics, present frequently used services on the front page, transfer money by a regularly used number, and many more. Here, you can also integrate Big Data to foretell the client pattern and provide offers to target them.

• Online Chats – Integrating this feature during FinTech app development will most certainly improve your customer satisfaction rate. For most customers, online assistance is a more suitable alternative to email and phone support. Moreover, AI-powered chatbots help reduce costs and enhance the user experience by assisting clients and answering their questions 24*7.

• Blockchain FinTech Solutions - These solutions will help your FinTech application store data, track it securely, reduce the risk of data breaches, and reliably manage all digital identification details.

• Dashboard and Reporting Feature – With the help of this feature, your user can easily access their data and have better control over finance in a single interface (trading charts, money movement, transaction history, etc.). Accordingly, your developers must maintain the accuracy and speed of this data. You can also allow your users to go through particular aspects if they want to explore and learn.

• Security – Security is tremendously essential for a FinTech app. While user data provides a more personalized and richer experience, you must integrate data security and risk management to protect your users' sensitive information. Simply, the authentication process should be both intuitive and highly secure.

Reasons to Develop a FinTech Application

If there was any perfect time to opt for FinTech app development, the time is now. Multiple compelling reasons exist for building these innovative apps, some of these reasons are:

1. First-Class Customer Experience

A FinTech application saves people time from standing in long lines at banks and other financial institutions. With FinTech application development, they experience the world of finance solutions in their power, contributing to company growth and leading to remarkable client experience.

2. Extensive Market Reach

Users today embrace mobile apps to connect with different financial institutions, banks, and businesses. Hence, developing FinTech solutions offers a similar advantage over smartphones and helps users carry out financial transactions. By this, companies can grow their market reach and tap better opportunities for revenue generation.

3. Superior Security

Website payments come with security loopholes, but the good news is that FinTech mobile apps come with multiple levels of security protocols. Hence, FinTech mobile app development provides businesses and clients with enhanced and advanced security features.

4. User-Friendly Applications

FinTech apps also come with an intuitive and user-friendly experience. Hence, with the assistance of a top FinTech application development company, you can also build a feature-rich, user-friendly interface consisting of simple color schemes, dashboards, and menus.

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Eight Essential Steps for Successful FinTech App Development

Now that you have reached this point of the article, you must be wondering how to start developing a FinTech app and what app development stages you should follow. Let's go into detail.

Suppose you're planning to develop a rental management app. Your users will be able to check potential tenants' credit scores, build and digitally sign a contract, accept security deposits, manage their release when the leasing contract ends, easily renew contacts, and so on.

In such a project, your value proposition is to increase the ROI for property owners and streamline the application process for tenants - a win-win scenario every FinTech app should aim for.

So, you need to develop multiple functionalities for this app, and if you follow the hard way, your developers need to hard-code all these functionalities one by one. The process would take a long time and a good fortune. But thankfully, you have APIs for each of these functionalities that make the FinTech app design process much more manageable.

Step 1: Manage and Authenticate Users

Your weapon to manage and authenticate users is Firebase. Look at this tool as the skeleton of your app to place the organs and muscle-like functionalities. Additionally, Firebase offers crash reporting, user management, and authentication. You can integrate a host of Google services with it to provide a fantastic app experience to your users.

Step 2: Implement Secure Hosting

The engine room of your FinTech app would be Cloud Firestore. It's a Firebase product that works as an encrypted solution of a cloud-hosted database. You can integrate with other Firebase products for rich user experience and efficient app development. Besides, Cloud Firestore simplifies the development, enables optimized performance, and has automated scaling.

Step 3: Incorporate Credit Score Checking

Universal Credit Services offers a Credit Report API that obtains data from 3 credit bureaus (Experian, Equifax, and TransUnion) and generates single-unified credit reports for users. Your app can also support bulk requests with the help of this API.

The UCS API enables customers to access the following data:

• SSA-89
• Decision-only credit reports
• 4506-T IRS TAX transcripts
• Credit records before employment
• Social security number authentication
• Eviction searches
• Criminal searches
• Motor vehicle reports

You can also use a consumer-facing API from Experian to generate credit reports and scores. Your customers can also share their reports with third parties online. Lastly, American Credit Systems (ACS) allows you to create full public records, FICO scores, credit reports, and credit inquiries.

Step 4: Link Bank Accounts

Plaid is a very popular and effective API in the FinTech app development industry, helping link your bank account to the app. This API carries out many tasks that otherwise would be very difficult for you to complete. Plaid speeds up the development process, reduces risks, and aggregates your users' financial data.

Yodlee is another financial data consolidating API that helps to access bank accounts efficiently.

Step 5: Integrate Payment Gateway

To set up a secure and smooth payment gateway, we strongly recommend Stripe. As a global payment processor, it merges several payment service vendors into one solution, so your customers don't need to save their credit card details and abide by the PCI certification. You can also integrate Stripe with Plaid.

Step 6: Establish Chat Support

Chatbot provides an amazing API that can effectively automate your customer support system. As this API is powered by Machine Learning and Natural Language Processing, it can facilitate a wide array of complex operations, such as the pre-approval process for applicants. It uses open-source libraries like scikit-learn.

Step 7: Add Plug-Ins

If you are considering adding financial management to the property owners' dashboard, go for the Intuit API. It consists of a set of tools that reflects the economic health of an enterprise. This API owns Mint and QuickBooks.

If you want to implement a data visualization feature in your FinTech app development, D3.js is the best framework for you. This JavaScript library uses CSS, SVG, and HTML to manipulate data and create visualizations. So, if your app needs to build a visual representation of your user's financial data or just enterprise budgeting and resource planning, D3.js is the perfect API for you.

Step 8: Consider Legal Requirements

While building FinTech apps, remember that you will handle users' sensitive data at your own expense. And hackers would love to get their hands on this data. Hence, let's discuss a few more actions you must implement in your FinTech app:

1. Carefully go through legal obligations related to accessing the financial data of your users with these APIs

2. Implement an insurance policy to cover you if a data breach occurs

3. Develop data management and privacy regulations

4. Create a business continuity and disaster recovery plan in action

Providing the best FinTech services does not sum up your responsibility. You need to go all the way and take extra steps to gain users' trust and reliability, as they will invest their life savings in your initiatives.

Tech Stack We Use for FinTech App Development

Once you have determined the functionalities and design of your FinTech app, it's time to choose the right tech stack for the front-end and back-end development as well as other categories. So, let's explore the different tech our app developers use for robust FinTech application development.

The table above is just a general recommendation; the tech stack used for FinTech application development depends on your project objectives, requirements, expertise, budget, and timeframe.

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Top FinTech App Development Trends

The FinTech industry continuously evolves, pushing more organizations to experiment with innovative solutions. So, it's time to check out some popular FinTech trends that might influence your perspective on FinTech application development. Also, note that these trends are ubiquitous for all FinTech apps.

• Growth Of Neo-Banks - Neo-banks or digital-only banks are gaining traction rapidly, providing clients with more accessible and convenient banking services.
• Personalization And AI-Driven Features - Deploying artificial intelligence services and integrating advanced features like virtual assistants and chatbots provides much more personalized financial advice.
• Focus On Sustainability - We can expect more and more FinTech apps to integrate sustainability into their services and business models.
• Growth Of Decentralized Finance (DeFi) - The number of FinTech applications opting for DeFi is rising rapidly. DeFi focuses on providing financial services without any middlemen.
• Biometrics Utilization - Integrating biometric authentication techniques like fingerprint scanning and facial recognition are becoming common in custom FinTech app development. It provides more convenience and improved security for users.
• Open Banking Expansion - FinTech apps constantly use open banking APIs to offer more value-added and advanced services.
• Integrating Blockchain Technology - We can expect more and more FinTech apps to incorporate blockchain technology, one of the top mobile app development trends. It helps optimize security and transparency.

How Much Does FinTech App Development Cost?

The FinTech app development cost depends on multiple factors, like it's a web or mobile app, it's objectives, complexity, the features and functionality needed, the set budget and timeline, the location of developers, and the development platform.

Hence, the average cost to develop a FinTech app can range from USD 30,000 to USD 500,000 or even more. So, whether be for web or mobile platform, the FinTech apps with basic features are less expensive, while more complex, feature-rich apps can cost significantly more.

However, to get a more accurate estimate of the app development cost for your financial institutions, we suggest you consult an experienced FinTech application development company and get an elaborate proposition that outlines the project cost, timeline, and scope.

Take a Step Ahead with Radixweb!FinTech app development is in demand, and believe us, it will only grow. Conventional banking solutions are obsolete, and to keep up with advanced technologies and digital banks, modern FinTech solutions are required. You can see that even the world's central banks are investing in FinTech app development services, helping optimize internal business operations and seeking new ways to interact with their clients. So, if you are planning for FinTech venture, undoubtedly, you'll face different obstacles on your path.But, you can easily combat all such challenges with the top FinTech application development company on your side. At Radixweb, we have highly experienced professionals who can help you create the finest FinTech solutions in the market. It's time to stop waiting around and start building your dream app together!Contact us to learn more about our FinTech app development services.