The investments in this sector reached $55.3 billion in 2019. Moreover, the fintech market is expected to mark an astonishing CAGR (Compound Annual Growth Rate) of 25% to 30% during the period between 2019 and 2025.
Financial institutions are widely adopting Fintech applications, while the number of Fintech startups is also growing. This has also put the demand for custom Fintech apps on the rise.
However, developing a Fintech app isn’t easy. Understanding the behavior of your target audience is crucial. But, many enthusiastic entrepreneurs don’t put enough emphasis on the early development phases as they want to see results fast.
Making careful and detailed preparations can save you from a lot of pain points later. Here’s a practical guide to developing a winning Fintech app:
This might sound unnecessary, but there’s a lot about Fintech you should know before starting anything in this industry.
First of all, you have to really understand what Fintech is. According to Investopedia, “Fintech is used to describe new tech that seeks to improve and automate the delivery and use of financial services.” This is the most basic Fintech definition. However, Fintech is a very broad topic that includes many other niches, such as blockchain, cybersecurity, cryptocurrency, personal finance, institutional investments, business tools, retail banking, etc.
So, Fintech should help customers manage the financial services they use more efficiently. They use Fintech apps to have a more convenient user experience when it comes to managing finances. This is very important to understand because the user experience should always be on your mind during the development process.
With a well-designed Fintech app, the user should complete their finance matters easier. An hour of waiting and doing paperwork in the bank should be replaced with only a few clicks. If this aspect guides you through the app development process, you’ll end up creating a user-centric product that will provide real value for your users.
The laws are very important because finances are always regulated by the law. Knowing the standards and regulations of your target country is crucial to developing a successful product.
This is very important because you need to know what you’re allowed and not allowed to do since the very beginning. Discovering new laws and rules while you’re deep into the development process might cause major changes in the app’s features. This sometimes means losing a lot of money and time on something you won’t eventually need.
What is worse is to release your product and face fines or bans because you didn’t respect the law. So, it would also be very useful to consult a lawyer about the alignment of your Fintech app features with the laws of the particular country.
When it comes to terms and regulations, it’s also very important to mention open banking. Open banking is a Fintech term that means using open APIs to let third-party developers create applications for a certain financial institution. This provides users better financial transparency possibilities, changing the attitude toward data ownership.
The UK was one of the first countries to implement open data, requiring nine of its biggest banks to provide access to licensed startups to their data for transaction-account transactions. On the other hand, the US still lacks an open banking law. As the British example showed that his model brings great benefits to both users and financial institutions, the USA should prepare for a change like this in order to remain open to innovations.
Before starting the development process, you should