How To Build A FinTech App: Cost and Challenge
Technology has gained dominance across all industries and sectors. The finance sector is no exception! Nowadays, financial institutions in most of the regions are dependent upon this Fintech app solution, to make their data and financing more manageable.
The term FinTech is made of Financial Technology which refers to the Technology or Digital solution to all the financial services. Whether you see the banking industry, insurance companies, or any customer finance industry, FinTech has become the most famous trend over the past years.
As per the Statistareports, Revenue from the FinTech industry is estimated to be 182 billion euros in 2024 which is an increase of 100 billion euros in just seven years!!!
• 67% of bank executives believe FinTech is important to money transfer.
• 65% of Americans will use mobile banking by 2022
This is the right time to jump into FinTech App development. This article will give you all the information you need in order to develop a successful FinTech App. This article will cover the following topics
• What are the types of FinTech Apps?
• What are features to add?
• Checklist before you begin the app development process
• How to develop a Fintech App?
• What is the cost of developing a FinTech App?
• What are the challenges of developing a FinTech App?
What are the types of FinTech Apps?
Before starting the development of any FinTech App, you need to know all the types of FinTech applications and then decide on one type of the application that you want to develop. Let us point out some of the main types of FinTech applications:
1. Insurance Apps
2. Digital Banking Apps
3. Investment Apps
4. Regtech Apps
5. Loan & Landing Apps
6. Tax filing Apps
7. Money Management Apps
8. CrowdFunding Apps
9. Blockchain Apps
10. P2P Payment Apps
11. Consumer Finance Apps
Decide on the type and product you want to create and then move ahead.
What are the features to add?
After deciding on the type of your product, plan the features accordingly. Let’s have a look at all the essential features to add to your FinTech app.
• Authorization and Authentication: You will need to authorize all the user data and authenticate that data with OTP generation or Verification Mail/SMS/Call.
• Scanning & QR Implementation: Scanning a QR Code helps in quick payment. Add a feature to scan a QR code for payment and also add a feature that generates a unique QR code for every profile.
• Integration: Integration is the most important feature in order to develop a FinTech app. Thanks to API integration, this process has become easy. To meet various user requirements, you need to add Payment Gateways, Geolocation, etc.
• Financial Operations: Determine what kind of payment process you want to conduct. Based on the type of your FinTech app, you can add features such as Account Management, View Balance, Book Tickets, Money Transferring, Ordering Online, etc.
• Push Notifications: Custom notifications can be the direct line of communication between the FinTech app and its user. These notifications are great as reminders about unpaid bills and bank account activity. Also, this feature makes the application more user-friendly.
• Data Analytics: This feature helps to analyze the user data, their transaction history, or any financial activity. This feature is especially useful for users who analyze their weekly/monthly/yearly data history.
• Billing and Invoicing: With the integration of this module, users can pay their bills online and can get their bills and invoices on their registered mobile numbers or Emails.
Checklist before you begin the app development process
Before starting the development of the FinTech app, there are some things that you should consider first:
1. Take care of Legal Compliance
2. Plan a marketing campaign and marketing budget
3. Think through the clear concept
4. Hire or collaborate with legal professionals
5. Choose the right TechStack
How to build a FinTech App?
It is very important that you thoroughly understand the needs of your application first. Think of a clear concept about your FinTech app and then set a vision about what to accomplish. Include your team in the discussion and make sure that everyone understands the vision. Also, set a Techstack for your FinTech app. The primary programming languages to get started are Java, PHP, Ruby, Go, C++, C#, etc. Know more from our FinTech App Development Team.
Create a basic prototype or wireframe for your application. Set the layout of your FinTech app and set the workflow of how your application will work. Keep it simple and user-engaging. Do not try to make it complex by adding everything on a single page.
There are several development models/Strategies to follow such as Waterfall, Agile, V-shape, Spiral, etc. This stage includes all the developing modules such as the implementation of design, Front end development, Database establishment, Backend development, Cloud service integration, etc,
All modules of your application should be tested very closely as there is no chance for any loophole in such applications. Also, take necessary actions to keep the data secure.
Product Improvement/ Support Phase:
Launch the beta version of your FinTech app, review the feedback from beta testers, Identify the flows and improve them with the same development process.
What is the cost of developing a FinTech App?
The cost of developing a FinTech App generally varies from $50,000 to $300,000. This is just a ballpark figure but the accurate amount depends upon various factors.
The cost of developing a FinTech App can be defined as
1. Cost by type of an app
2. Cost by type of team
3. Cost by location
What are the Challenges of developing a FinTech App?
Security of data is the biggest challenge in this field. One tiny amount of data leak occurs and you are out of the market! No one would ever trust your application again! You need to maintain the highest security of your code and database. Choose the right developers to build a secure application.
• AI Integration and Use of Big Data:
Fintech applications are not possible without AI integration. To conduct a proper AI integration, Big data is used which is very difficult to sort for the developers. This process is challenging for developers to gather and sort the data from numerous sources and then integrate AI gradually.
• User Retention:
User Retention can be a big challenge. With the help of various marketing campaigns, your FinTech app is downloaded on multiple devices but the poor performance of the application can make you lose your customers. To overcome this, you need to review all feedback constantly and upgrade your application on the basis of all these reviews.
• Third-Party Integration:
Often these third-party integrations can compromise the security of your FinTech App. Third-party APIs such as Payment Gateways, and Geolocation can be a loophole!
To overcome all these challenges, choose the right TechStack and the right development team. If you’re looking for a FinTech App development partner, There is no point in further search! Coruscate will help you build a Fintech App using the latest technologies, frameworks, and methodologies to create an efficient and secure app.