July 25, 2023

How to Build a Fintech App from Scratch in 2023

Fintech apps have gained immense popularity, revolutionizing how people manage their money. These apps have surpassed traditional banking solutions with their user-friendly interfaces and extensive features. Today, the realm of financial technology presents a lucrative opportunity for aspiring entrepreneurs. If you've been contemplating investing in fintech app development, the time has come to take action.

In this blog post, we will explore the main types of fintech solutions, delve into their functionality, highlight crucial features, outline the advantages of fintech mobile apps, and provide you with a step-by-step approach to building your digital banking product. This comprehensive guide will equip you with the knowledge and insights necessary to navigate the world of fintech app development successfully

What is a FinTech App

Fintech, a fusion of banking and financial services with cutting-edge technology, brings forth a new era of efficient and automated monetary processes. Leveraging advancements such as blockchain and artificial intelligence (AI), fintech aims to streamline operations and improve financial management. With its transformative capabilities, fintech solutions empower users by simplifying mobile payments, enabling seamless money tracking and budgeting, and facilitating hassle-free bank account creation, all without the need for physical visits to traditional financial institutions. Additionally, these solutions offer unparalleled convenience, user-friendliness, and an array of features surpassing traditional banking apps.

Benefits of Fintech Mobile Apps

In today's digital age, financial technology (fintech) mobile apps have become essential for individuals and businesses alike. They offer a wide range of advantages that enhance financial management and contribute to increased revenue. If you're considering developing a fintech app, here are some compelling reasons why you should start now.

Personalization

Utilizing data analytics solutions, fintech startups can swiftly track and respond to evolving customer needs. This capability empowers businesses to deliver improved online banking services and personalized products. By doing so, customer retention and loyalty can be enhanced significantly.

Security

Fintech app development relies on state-of-the-art mobile technologies, ensuring the highest level of security. Robust algorithms, two-factor authentication, facial recognition, voice recognition, and data encryption are integral to these apps. This level of security is crucial as fintech apps deal with sensitive financial data, providing users with peace of mind.

Convenience

Fintech apps offer a user-friendly interface that simplifies financial management for clients compared to traditional banking websites. This convenience factor plays a significant role in the success of fintech apps. They provide customers with intuitive analytical tools to organize financial data and facilitate seamless money transfers.

Competitive Edge

Developing a well-designed fintech app can give you a competitive advantage over traditional financial institutions. By offering innovative and streamlined financial services, you can stay ahead of competitors in the financial sector.

Embracing fintech apps can revolutionize the way individuals and businesses handle their finances. The benefits of personalization, security, convenience, and gaining a competitive edge make fintech app development a compelling choice for those looking to thrive in the modern financial landscape.

Types of Fintech Apps

The world of fintech app development encompasses a wide range of applications tailored to different target audiences and purposes. These apps cater to B2B, B2C, and P2P markets, revolutionizing the financial industry in various ways. Below are some of the most promising types of fintech apps that are reshaping the landscape.

Investment Apps

Designed with a focus on inexperienced users, investment apps provide valuable insights and expert tips on cryptocurrency and investment strategies. They offer user-friendly interfaces and employ sophisticated fintech solutions that make investing accessible to everyone, even with small amounts of money. Popular apps like Robinhood and Acorns offer portfolio management, rapid stock trading, and innovative features to simplify investment processes.

Personal Finance Apps

Acting as automated financial advisors, personal finance apps assist users with budgeting, accounting, and financial management. They consolidate users' financial information, track spending habits, encourage savings, facilitate budget planning, and enable informed financial decision-making. These apps allow users to set financial goals, connect multiple bank accounts, generate custom reports, schedule payments, and track international expenses. Leading apps in this category include Mint, You Need a Budget, and Spendee.

Lending Apps

Lending apps streamline the borrowing process by connecting borrowers directly with lenders, bypassing traditional banks or credit institutions. These apps manage the entire lending procedure, from loan requests to payments. They provide lenders with access to users' shared information, such as bank and payroll data, to make informed lending decisions. P2P lending apps, with features like auto-investment for lenders, credit scoring, loan calculators, and automatic lender-borrower matching, offer attractive terms and reduced operational costs compared to traditional banks. Popular examples include Plaid, Dave, and Prosper.

Insurance Apps

InsureTech is a rapidly growing sector within fintech, with the market value projected to reach $1.19 billion in the next five years. Insurance apps connect insurers and policyholders, allowing users to access quick assistance and choose suitable insurance plans. These apps cover various insurance types, including life, health, travel, and car insurance. They enhance the insurance experience by simplifying claims management, providing access to policies, automating payments, and offering 24/7 customer support. Notable examples include Oscar, which enables users to search for doctors, book appointments, and view test results.

Regtech Apps

Regtech (regulatory technology) apps assist financial service companies in ensuring regulatory compliance. These apps are particularly essential in banking, insurance, and other sectors of the financial industry. Regtech solutions help track tasks, regulatory changes, transactions, and reporting through analytics dashboards. They incorporate identity and risk management, and fraud detection, and utilize technologies like AI and data science to analyze vast amounts of financial data. IdentityMind Global is an example of a startup using advanced algorithms to identify risks and combat fraud.

It's important to note that the fintech market extends beyond these categories, encompassing other types of apps such as Wealthtech, banking apps, tax management applications, electronic payment apps, and more. These apps continue to shape the industry, attracting significant investments and transforming the financial landscape.

Key Features of Fintech Mobile Apps

Fintech mobile apps incorporate key features that enhance user engagement, security, and convenience. Here are some notable features shaping the fintech app landscape:

Gamification:

Gamification is a trend in fintech app development that promotes user engagement and helps achieve specific goals. By incorporating game-like elements, fintech companies motivate customers to take actions that benefit both the app users and the startup.

Blockchain and Cryptocurrency:

Blockchain and cryptocurrency technologies are revolutionizing the fintech industry by transforming data storage and information sharing. These technologies provide authentication, secure transaction logging, protection against identity theft, and foster trust among business partners while reducing transaction fees.

Biometric Security:

Biometric security features, such as fingerprint or facial recognition, are highly sought after in fintech apps. By incorporating robust security measures, these apps instill confidence and trust in users when managing their financial transactions.

Chatbot:

Chatbot technology, utilizing artificial intelligence, plays a vital role in modern fintech apps. Chatbots can track users' investment and spending history, provide financial insights, offer payment reminders, answer balance inquiries, and assist in making critical monetary decisions.

Fintech Mobile App Development from Scratch: A Step-by-Step Guide

If you have made the decision to establish a thriving fintech startup or enhance your business through the creation of a financial app, you are embarking on a technically challenging journey. To ensure the success of your venture, it is highly recommended to enlist the expertise of a professional fintech app development company, like Stfalcon. Our knowledge and skills will prove invaluable in this process.

Step 1: Discovery Phase

The discovery phase plays a pivotal role as a preparatory stage and forms the foundation for the entire development process. In this phase, we thoroughly analyze the idea and conduct extensive research to ascertain its feasibility, viability, and scalability. Our team at Stfalcon delves into existing solutions, identifies gaps, explores potential market opportunities, and takes into account technical requirements and limitations. Research has demonstrated that a well-executed discovery phase can result in saving nearly 50% of development costs, which can be a game-changer for startups and businesses operating on limited budgets.

Step 2: Define Key Features

When you know the requirements, now you can define the key features of a fintech app based on the target demographic. While there are essential elements mentioned in the article above, it's important not to overcrowd your digital banking solution with unnecessary ideas. Conduct market research to identify areas where you can offer something more innovative, faster, cheaper, and user-friendly in the fintech sector.

Step 3: Ensure Legal Compliance

It is crucial to ensure that your future fintech solution complies with legal requirements. Keep in mind that each country has unique regulations, and your application must adhere to privacy laws specific to the countries it's designed for. Safeguarding users' financial data is paramount, considering the potential risk of data breaches by hackers. Before launching your fintech app, consider the following points related to legal compliance:

• Review and understand the legal agreements for using customers' financial data.
• Develop a comprehensive data privacy and management policy for your fintech application.
• Obtain an insurance policy to cover accidental breaches.
• Implement a robust backup system.

Step 4: Select the Tech Stack

Selecting the right technology stack is a critical aspect of fintech app development. Making the wrong choice can result in wasted time and budget. Native app development is an option where separate solutions are built for Android and iOS. Native apps offer smooth performance and excellent user experience but can be relatively expensive and time-consuming to develop.

Alternatively, consider cross-platform development, where a single codebase can be used for both iOS and Android platforms. Cross-platform apps are cost-effective and time-efficient, requiring a smaller development team to build a fintech app quickly.

Step 5: UI/UX Design

Designs play a crucial role in creating a successful fintech app as users value both functionality and aesthetics. Alongside the user-friendly features mentioned earlier, here are some additional design tips:

• Avoid cluttering the interface with unnecessary features.
• Ensure essential functions are easily accessible on the dashboard.
• Prioritize simplicity, transparency, and an intuitive user experience, keeping in mind that users may have no knowledge of coding.

Step 6: Develop a Minimum Viable Product (MVP)

Building a minimum viable product (MVP) is a critical step in the development process. An MVP is a basic version of your app that includes its fundamental features. Its primary purpose is to test the app before its official launch, gathering feedback from a forgiving group of customers. User reactions will highlight weaknesses and areas for improvement. Implement mobile analytics to collect data and understand user behavior. This approach reduces costs, mitigates risks, helps gain early traction, and attracts potential investors.

Step 7: Test Your App

Thorough testing is necessary before launching your app. This process involves testing the app on various devices and platforms. The beta version can be made available to colleagues or local customers for further testing. Ensure that your app is tested using essential tools and is free from bugs. Once it passes the testing phase, your app is ready for an official launch.

Step 8: Continuous Improvement

Continuous improvement is vital for the success of any fintech app. With new innovative technologies emerging daily, it is crucial to regularly update and adapt your app. User feedback, complaints, and requests should be collected and addressed promptly. Conduct checks and take immediate action to fix any glitches or errors. Embrace progress, as consistently improving your mobile app will contribute to scaling your business.

Our Experience

Interface Design for Credit Agricole payment kiosks

Our team was assigned the responsibility of designing the user interface for Credit Agricole payment kiosks.

SDK for a crypto wallet based on Kotlin Multiplatform

The objective given to Stfalcon.com was to develop an SDK for Android and iOS mobile platforms using Kotlin Multiplatform for a cryptocurrency wallet.

Conclusion

Once you have a clear understanding of how to build and ensure the success of your fintech app, it's essential to consider your project's implementation. Partnering with an experienced fintech app development company is crucial, and we are here to assist you in developing your fintech solution. Stfalcon company provides a complimentary consultation to discuss your idea and provide insights into the development process and ongoing maintenance costs associated with building mobile apps. Our team of experts is well-equipped to be your ideal partner in helping you achieve your business goals. Just contact us.