At the forefront of digitization and pushing the technology further to deliver security, stability, and user satisfaction is the financial sector. In this article, we shall be exploring the 8 essential steps to build fintech app, such as how to build a fintech app that works perfectly, attracts users, and generates income. Keep reading to find out my detailed step-by-step guide to developing this highly competitive software solution.
You will agree with me that the development of fintech apps has always provided more freedom to individuals, businesses, banks and other financial institutions across the globe, offering higher level of security and convenience to the customers, and making banking accessible to people from different countries and backgrounds.
What is Fintech App?
Fintech is a combination of two words “financial” and “technology”. It refers to any app, software, or technology which allows individuals or businesses to access, manage, or gain insights into their finances or make financial transactions digitally.
Therefore, a fintech app is a type of software application designed to automate and digitize financial transactions. Fintech apps are designed to improve access to financial services and compete with traditional financial institutions such as banks.
Additionally, Fintech apps provide easier and more efficient ways to access and manage finances, offering alternative financial systems (such as blockchain and cryptocurrencies).
As consumers increasingly adopted digital tools over the last decade, fintech has risen as a means to help consumers address financial challenges and make progress toward every of their financial goals.
If you are thinking about creating banking or financial app, this article will teach you about the various types of fintech solutions, the essential requirements for the fintech market, as well as the cost of financial app development. Keep reading to discover more!
8 Essential Steps to Build Fintech App:
The process of developing or building a fintech app is lengthy and complicated, and it requires great technical experience, as well as a deep understanding of the market and the target audience. In this section, we will be looking at the 8 essential steps toward building a fully functioning fintech app in details.
1. Conduct market analysis
The first step to build fintech app is to carry out thorough research and learn as much as possible about the market, potential users, and competitors. The fintech industry has become very vast; hence it’s essential to understand the intricacies of the market, its trends, its main players, risks, opportunities, etc.
After you have grasped the idea of how the market functions, reach out to your primary target audience in order to understand their pain points. Based on what you have learned, you can start the development a unique value proposition that will help you stand out from the competition.
2. Choose the application type
The second step to build fintech app is deciding the type of app. Having and understanding market data and the pain points of the target audience at hand, you can now figure out which type of app would be most suitable to tackle the problems. Within this industry, there are different types of fintech apps that can be developed.
For example, an insurance app can help connect insurance companies with clients or facilitate an internal management system for insurance firms. The appropriate model may also depend on your budget as some apps are quite costly even when they are kept basic.
3. Find the right development team
Bear in mind that you and your fintech app development team depend on the tech stack that you choose. If you aren’t sure which technology would be the perfect fit for your project, consult with a fintech application development company.
Browse through various fintech development companies, check out their portfolios and case studies, and get in touch with them to learn more about their experience and rates. Make sure the company can take on your project and has the team composition for a fintech app development project: fintech app developers, business analysts, project managers, UI/UX designers, and QA specialists.
4. Create UI/UX design
UI/UX design is the focal point of any application as it determines how the user will perceive the solution. Cumbersome and complex fintech app design and navigation can ruin even the greatest app idea. In the user-oriented fintech app development strategy, it is vital to create a design that will appeal to the target audience and make the product usable and helpful.
UX design is also about ensuring that the user solves their problem as quickly as possible. This may require shortening the sign-up process by offering face recognition or document scan features, or skipping some other redundant steps.
5. Ensure compliance
The fifth step to build fintech app is ensuring its compliance to the rules and regulations governing the financial industry. Besides complying with industry-standard privacy laws like GDPR and CCPA, fintech app development requires companies to adopt protection systems such as Know Your Customer (KYC) and Anti Money Laundering (AML). However, the full extent of compliance depends on the target country.
Some countries, (like the US), do not require any special compliance besides the aforementioned ones, and state and federal laws. How to make a fintech app that adheres to the laws and regulations of your target country? Research the information relevant to your location to make sure your application is compliant with the local laws.
6. Choose your monetization model
There are four monetization models that most applications use: freemium, commission, subscription and in-app ads. All of the above can be applied to fintech applications.
Consider your fintech app idea, target audience, and market to determine which monetization model is the most suitable for you. You can also combine various models and try out different options to establish which one works the best for your product.
7. Develop an MVP
MVP stands for minimum viable product and serves as a crucial step to validation of your app idea. An MVP is a simplified version of your future app that includes only the essential features that are sufficient to solve the user’s problem. Another benefit of an MVP is attracting investors with a complete functioning product as opposed to a vague idea.
Adding this step to your finance app development process will definitely increase the chances of a successful project. Look into fintech app development companies that can provide MVP development services and stay within your budget.
8. Gather feedback and improve your app
The last but not the least step to build fintech app is gathering of feedbacks. An MVP will help you collect initial feedback from your audience and get an idea of what needs to be improved in further fintech app development iterations. Conduct A/B testing consolidates the comments and brainstorm with your team to make the appropriate adjustments.
Your team may need to repeat this process a few times before they get it down perfectly and create an app that users would want to use. However, the world of tech requires continuous improvement, ongoing support and maintenance, and feature expansion.