By 2025, the global IT outsourcing market will be worth $397.6 billion. This is undoubtedly a positive tendency, considering the same market of $92.5 billion in 2019. The rise of this business practice has been further reinforced by the pandemic-induced…
Fintech App Development Overview: Estimates, Must-haves, Challenges and Process
What’s the approximate cost of fintech mobile app development? What does it depend on, and is it the same from project to project?
As the fintech market is skyrocketing and planning to reach around $305 billion by 2025, the demand for developing dedicated apps also grows. Compared to the healthcare, foodtech, and transportation industries, fintech has raised the most VC funding in Q1. That means the market is going strong, and this trend will be there for a while.
Creating a high-quality app automatically increases trustworthiness and boosts your company’s reputation. Additionally, it’s a more comfortable option than using the company’s services via a website, as people don’t always have their laptops at hand. An app contains all the essential features and enables much quicker access.
If you have ever planned on creating your solution but don’t know the approximate fintech development app estimate, we can sort it out for you!
In this post, Devox Software will tell you more about the fintech market, the main kinds of dedicated apps companies create, and how the development cost varies from app to app. Our team will also share the main insights regarding the fintech industry and what should a successful mobile or web app include to be as useful as possible to potential and real customers.
What is a Fintech App?
Fintech apps incorporate technology to help users manage their funds more efficiently. They’re used in various industries and help solve multiple issues: from managing personal funds to processing payments and different types of insurance, managing your crypto wallet, and performing many other actions. Such apps are useful in daily life as they facilitate and accelerate many routine processes that usually require plenty of paperwork.
How do You Use a Fintech Application?
For users, interacting with a fintech app is pretty simple:
- They install the desired app, register an account, and log in there. To make a fintech app work to the max, they usually need to connect their credit card data or bank account credentials. Users can set up an additional password or enable Touch or Face ID for extra safety
- To perform an operation (transfer money, manage insurance, or access a crypto wallet), users need to either push a button on the start screen or choose the necessary action in the list of features. Most of the time, the process lasts a few seconds
- Users can also manage their accounts, keep track of their transactions, request bank statements, and so on. Depending on an application, there are various add-ons and extra features you can access instantly
Perks and Drawbacks of Fintech Apps
While plenty of users enjoy fintech apps, others might still feel dubious about them. Let’s look at some of the biggest pros and cons of using this type of application.
Key Points to Consider in Fintech App Development
Developing a well-groomed fintech app is just part of the task, as the production team might face various challenges while working on it. Let’s look at some of the most popular ones.
Picking the right tech stack
Knowing the pros and cons of every programming language and development tool is essential if you want to create a solution that would cover all of the needs you might have. Before getting to the development stage, analyze every tool you plan to use and check if the programming language you chose would comply with the tech requirements.
To make your fintech app stand out, it needs to be rich in functionality and have an impeccable design with a slick interface. Ensure your solution is intuitive and easy to navigate and has all the buttons and other elements necessary for the proper functioning of the app.
Sensitive data protection
With more cyber threats and kinds of data hacks, it becomes harder to protect user data and sensitive corporate information. An alarming 82% of CIOs surveyed worldwide believe their software supply chains are vulnerable, giving hackers and data thieves more opportunities to conduct crimes.
Regulations for fintech businesses vary from country to country, and you need to study this issue perfectly to ensure you don’t violate any user rights. Some standard regulations a fintech company must comply with include GDPR, Federal Trade Commission, Anti Money Laundering Regulations, and an Electronic Funds Transfer Act.
Implementing Big Data and AI
Using AI and Big Data frameworks in a fintech app opens up wider opportunities for both users and businesses. For example, it enables autonomous finance, allowing users to automatically pick the most suitable lender, investment options, or stock portfolio.
Most Popular Types of Fintech Apps
Fintech apps are pretty diverse, offering all kinds of finance-related services. Let’s look at some of the most used types of financial solutions.
A banking app helps manage bank accounts, track transaction history, and transfer or receive money. Also, banking apps help process international payments, request bank statements, and get greater insights into a spending routine. One of the most popular examples of such apps is Revolut.
Lending apps allow users to find reliable lenders who they can earn money from. Such applications enable various search options based on location, the desired amount people want to borrow, and interest rates every lender has. Lenme is a popular example of a lending and borrowing app.
Investment apps enable investment deals within a few minutes. These apps show the real-time stock market situation, recommend deals you can close immediately, and help you keep track of all your previous investments. An example of an investment app is Robinhood.
Consumer finance app
These apps help manage personal funds and save money on daily spending. Consumer finance solutions provide stats and reflect users’ spending habits by showing what they spend money on the most and provide valuable tips on better money management. One of the most popular choices for a personal finance app is MoneyLion.
This type of app helps you get, manage, and pay for insurance. They save you a bunch of time at the insurance company office and help get rid of unnecessary paperwork. These apps also allow users to pick various kinds of insurance based on their needs (medical, travel, car, etc.). GEICO is among the best examples of insurance apps.
Must-Have Features of Fintech Apps
If you want to create a successful fintech app and gain lots of positive client reviews and loyal customers, consider including the following feature in your solution:
Security and fraud alerts
Preventing personal data, financial information, and funds is a number-one goal every fintech app development company should pursue and ensure for its customers. Data leaks and theft are pretty standard when it comes to online transactions and app usage, so you need to verify multiple safety measures to protect both your company and customers.
To do so, you can implement two-factor authentication and think of encrypting every transaction and sensitive data your app might include. You can also think of extra sign-in options like adding a Touch or Face ID login option, extra password sign-in or using a safeword.
Bank account management system
Think of features you want to have in your banking or insurance app. Countless solutions fit different fintech companies, so there’s no universal cheat code for all of them. To make it right, start with the easiest one: managing your bank account.
One of the best features you must add to your solution is the budgeting system. This lets your clients check their balance and payment history in real-time. Think of adding a spending breakdown feature that will show what your clients spend the most money on and what their cash flow was in the past week, month, or year. As an option, you may also add the following:
- An investment order planner
- A money transfer tool
- Customer support call or text options
- A personal profile page
QR code payment options
With technology advancing so fast, QR code payments have already become a convenient way of processing a transaction or signing into an app. To help your clients manage their financial matters easier and faster, implement a QR code scanner into your app. This will also become an extra security option for your customers.
Once you have everything you need to deal with daily tasks on your phone, going to the bank to pay your bills there doesn’t feel right anymore. With such an option, you’ll help users save a ton of time and effectively manage their budget. Plus, it’s an eco-friendly solution as it significantly helps reduce the amount of paperwork.
Chatbots and effective customer support services
Solving payment-related problems can be painful, especially if the support system is faulty. Ensure a well-groomed chatbot or real-person support feature in your app: this might be an extra expense, but it will surely give a good return shortly.
Online payments are indeed convenient, but cash is something everyone still deals with from time to time. Finding an ATM can become quite challenging, especially while traveling or if you are new to the city. Adding a locator in your app will help users quickly find your company’s ATM where they can withdraw funds interest-free.
A Step-by-Step Guide to Developing a Fintech App
For most steps, fintech app development is no different than making an application for a company from another industry. However, it has some specific development stages that enable the usage of particular features and functionality.
Do your research
Every app starts with research and market analysis. Define the critical tech, functional, and non-functional requirements for your future solution. Think of the USPs your app might have, its primary purpose, and what goals it needs to meet.
Find a relevant team
Your team has to understand your business goals to provide the necessary services. You can agree on deadlines and the approximate fintech development app estimate. In this case, outsourcing web development services will help you save time and money.
Define an MVP scope
To do so, run market research and discuss the must-have features with your development team. Try various planning tools to highlight the most important features based on competitor analysis and your own theories.
Pick a tech stack
Make sure you have chosen the right tools and programming language to implement every must-have and additional feature you’ve planned for your app. Discuss this with your new team — they can recommend the option that would optimize the production.
APIs are an excellent option for implementing the basic functionalities. This will ensure smooth access across your website and help add essential features like budgeting or tracking bills.
Make your app as convenient as possible by adding critical UI/UX elements like icons, buttons, animated transitions, etc.
Do a test launch
Before the actual app release, do a test launch. Make sure to gather as much feedback from colleagues or potential users as possible to have an overarching look at what needs improvement.
Release the final version
Once you’re sure all bugs are fixed and every function works well, you can launch the app. After it’s up and running, check its performance and see if any bugs or crashes occurred afterward.
How Much Does Fintech App Development Cost?
Developing a fintech app will always cost differently depending on the app’s complexity, number of features, programming language, and other factors. To produce a well-groomed fintech solution will cost between $50,000 and $300,000. Below, you’ll see the approximate fintech development app estimate:
|MVP Fintech Application
|Standard Ready-to-Market Fintech Solution
|Custom Fintech Application with Advanced features
|Research Phase, Estimation & UX/UI Design
|Fintech App Development:
|QA Testing & App Launch
The range is quite wide as every client has different requirements and needs a different number of teammates to work on a project. Moreover, you should include maintenance and after-release support in the budget, too, as the app constantly needs updates and renovation. If you want to build a solution with an extensive range of custom features, feel free to contact Devox Software for web development services.
Find a Suitable Price for Fintech App Development with Devox Software
Outsourcing software development, especially when it comes to fintech apps and solutions, can be pretty expensive and problematic. Different service providers offer packages that usually aren’t a perfect fit. They either offer too many services you don’t need or don’t include enough. However, it’s not always the case; companies provide more customizable options to their clients.
If you are looking for a fintech development team but are still unsure if you can find a reliable solution at a reasonable cost, Devox Software can help you out. Our team will help you pick the most convenient option tailored to your business needs and budget expectations. We offer different cooperation and pricing types, so you can choose one that suits you the most. You can look at our portfolio of successful cases to see if we are a good fit for you.
So, if you want to cooperate, contact us to discuss the fintech app development cost breakdown and create an outstanding one together!