Essential Guide to Developing Fintech Apps: From Concept to Launch

The tech world is never going to be the same again thanks to fintech software development. Fintech, short for financial technology, is a major factor when it comes to money management and transactions. It produces a wide range of solutions through innovation.

What is a fintech app and what does it do? How does it get developed? What does the development process look like? You can find the answers to all of these questions in the comprehensive guide below.

What is a fintech app?

The term fintech should be regarded as an umbrella for utilising technological solutions to improve and streamline any financial processes for various businesses. With the industry evolving constantly, you can see this kind of technology being used in regards to cryptocurrency, InsurTech, mobile banking and investment apps. Fintech takes many shapes and forms, being developed not just by established companies with bespoke technology, but also by conventional institutions adopting the services.

This surge in fintech adoption is largely due to the processes of intertwining technology with fintech goals. With the advent of finance apps, online trading and personal financial apps, the advancements are becoming so numerous that it is hard to keep track. Fintech apps span an extensive array and leverage machine learning, data science and many emerging technologies, like artificial intelligence.

Who develops a fintech app?

In today’s world, any company with a development team can come up with a fintech app. It requires knowledge of technologies and programming used in the development process. That is why a new industry has been born - fintech development. Many companies have highly-trained teams of developers ready to work on a custom app project for a client. Both big and small businesses take advantage of these services, to capitalise on all of the benefits offered by custom fintech apps.

VSG Bulgaria is a company with more than 10 years of experience in the custom software development industry. Having developed a financial platform adopted by more than 200 institutions in the US, it is a sure pick for any custom software development need. With a focus on innovation and attention to detail, VSG Bulgaria is a trustworthy partner in the fintech development world.

What are the domains for creating a fintech app?

Fintech is a large industry that contains many business models and verticals that are all evolving and changing with time. Here are some of its most popular domains:

Insurance

Big insurance companies are dependent on big data analysis and artificial intelligence to come up with personalised insurance plans and policies. The clients in that industry have very different interests and preferences, not to mention all of the legal requirements and standards in their countries of origin. That is all possible with fintech solutions aiming to improve insurance services.

Digital banking

Banking apps have been around for quite some time now. They are among the most used apps for users who wish to access and manage their finances across the globe. Digital banking apps provide more and more features to their users, such as paying utility bills, making speedy transactions and generating spending reports.

Seamless payment transactions

In the pre-digital era, if you needed to make a payment, you’d have to rely on a bank operation. Nowadays, you can make a secure and fast online transaction through various methods, such as a QR code or having a dedicated app just for payments. There are already many players on the market, such as Venmo, Klarna and Stripe, which provide businesses and individuals with the option to transfer money worldwide in an instant.

Wealth management and robo-advising

Long gone are the times when stock market dynamics required intuition and knowledge. Now they also need automation and to incorporate AI/ML algorithms, for analytics and detecting trends. That is where rob-advising, also known as intelligent algorithmic platforms, comes into play. They provide investment and wealth management options for a considerably smaller price compared to financial institutions.

Borrow and finance

Fintech apps explore this domain via POS lending and microfinancing technologies. These apps are becoming more and more popular with people who like online shopping. Traditional banks usually don’t provide such options, whereas apps are more flexible and can even offer P2P lending services with or without the broker’s commission on transactions.

Financial planning

Fintech apps allow users to make better financial decisions through the various features they offer. Such apps can keep track of expenses, alert in case of overspending and help keep expenses within the established budget.

What are the steps of developing a fintech app?

Here are a few steps that every fintech app developer needs to go through:

Deciding the niche

Sometimes it’s best to have a business analyst figure out the market and scout for opportunities and vacant niches. That is when having a general idea is enough to start working on a fintech app.

Monetising the app

The monetisation of the app is a crucial step to its success. But you need to keep things minimal for all monetisation models, such as choosing a basic option for the pilot version of the app and then gradually adding more as new revenue generation streams become available.

Compliance is a must

Adhering to all of the guidelines of Apple’s App Store and Google Play is an absolute must, but it goes well beyond that. You need to consider your users and any legal concerns and restrictions of your app about that. The development process must adhere to 100% compliance with these restrictions and stringent quality assurance is a way to ensure that.

Define the features

Before the first roll-out, you need to outline the key features that add value to your users. The scope of the finalised product should not create delays and step in right now. The most important thing is to have an initial boost, which you can further explore and develop in later stages.

Get a service provider partner on board

Now it is time to decide on the development team. You can partner with a reputable company to work on your fintech software idea. Having experts on the case is a sure way to get things going most cost-effectively and expediently.

Conclusion

The fintech market is always expanding and there is always opportunity there. Fintech apps are necessary to businesses and company owners at all times, so it’s always worth it to keep an eye out for opportunities. Whether it be a budgeting tool or a trading app, the digital landscape is ripe with prospects to develop and use fintech apps successfully.