The prevalence of FinTech apps has been increasing by
leaps and bounds over the past few years. Especially in 2020, with a vast majority of the world moving
online, FinTech apps on apps stores reached all-time highs. People have begun to gain a greater level of
trust in carrying out transactions online, and are now taking to FinTech app development for multiple
transaction types. As a result of this growing demand, several different types of FinTech apps have also
emerged.

However, in such a competitive environment, creating a FinTech app can be a
difficult task. There are multiple considerations to be taken into account when developing a FinTech app.
However, FinTech app development isn’t just about how great the app looks and the functions that it offers.
One specific feature of a FinTech app that differentiates it from a regular app is the security
infrastructure that it subscribes to. Similarly, how many banks or financial companies it is compatible with
can also be a determining factor for what the size of the user base of the app will be.
Here, we will cover many such points, and explain how you can get started with
FinTech app development.

Types of FinTech Apps

There are many different types of FinTech apps, and
the number of applications that these apps can fulfil is only increasing with time. Here are the main
types of FinTech apps.

1. Digital Payments

Digital payments systems are among the most used
types of FinTech apps. A digital payment system can range from an online wallet to a digital currency,
and is meant to make the task of payment easier for the user. Different digital payment systems are
applicable in different countries, primarily due to the variations in local laws.

A digital payment app must allow people to transfer money from their bank
accounts to the digital payment system and back. The argument for cashless transactions is being led
primarily by digital payment apps, and these apps can even be used for contactless payments through NFC in
retail stores.

2. Digital Banking

Digital banking is one of the oldest applications of
online FinTech systems. Using digital banking apps, you can manage every aspect of your bank account.
You can open or close fixed deposits, carry out transactions, check your account balance, or even speak
with the customer care representatives of your bank through the app itself. You can even apply for or
block credit and debit cards, change your ATM pin, and locate your nearest bank branch. These apps are
generally protected by multiple security layers, which is why the shift from web-based online banking to
mobile banking has been accelerating in the last few years.

3. Digital Lending

In the old days, getting a loan from a bank was as
difficult as a process could get. You had to stand hours in line in front of a banking institution for
the smallest of loans. Then, you would have to spell out your loan requirements and fill out a bunch of
forms by hand. 

Nowadays, using digital lending apps, this process has been shortened to just a
few minutes. Especially when the loan amount you are asking for is low, a minimal amount of documentation is
required from your end. The loan sanction happens within a few hours itself.

4. Digital Investment

Digital investment apps allow you to invest in the
financial instrument of your choice. The digital investment regulations for domestic users also vary by
country, but in general, it is possible to invest in everything, from stocks to mutual funds, using
mobile applications. 

These apps contain all the information you would find on an online reading
platform, such as historical trends and charts. On the basis of your research within the app, you can then
put your money into an asset of your choice; whether it is stocks, futures, options, or mutual funds, these
apps complete your transaction within seconds.

5. Insurance Technology

The administration of policy and the processing of
claims can be made significantly easier when apps are used for insurance purposes. In fact, applying for
insurance using an app is significantly faster than in person. The insurance app will provide you with
all the data you need regarding the insurance policy you are applying for. Thus, Reducing dependency on
insurance agents and allowing you to conduct your own research based on multiple factors.

Features Required in FinTech App Development

When talking about FinTech apps, there are certain
features that set you apart from other apps and get you more customers. There are yet other features
that are essential to have in order to be competitive. Here is a look at some of the best features your
FinTech app can possess.

1. Sign In

The sign-in process of your FinTech app is the first
impression that customers have of the app whenever they open it. It is important that the sign-in
process for the app is as smooth as possible. In order to ensure the customer’s smooth access into their
accounts. However, this can often be more difficult than it sounds. 

While allowing customers smooth access to their accounts is important, it is
also important that security considerations are taken into account. You need to strike a fine balance
between authenticating the identity of your customers and ensuring a smooth login. This can be done by
integrating the biometric capabilities of the user’s device into your app.

2. Operations

The app that you develop must necessarily offer all
the basic financial operations that are relevant to your field. When it comes to trading apps, your
FinTech app development process must allow users to buy and sell stocks, mutual funds, options, and
futures. For personal banking applications, it is essential that your app allows for the opening and
closing of accounts, basic transactions between accounts, fixed deposit opening, locking and unlocking
associated cards, and setting account limits. The same goes for all the different types of FinTech apps
mentioned above.

3. Chatbots

Artificial intelligence has made its way into the
world of banking as well, through chatbots and virtual assistants. A number of different financial
institutions have begun replacing human-based customer care services with artificial intelligence-based
ones. This is primarily due to the fact that the latter cost the companies less, and also have no lead
time. 

When a customer calls into a customer service center, there can often be minutes
of waiting required in order to get to a customer care representative. With artificial intelligence-based
bots and virtual assistants, simple doubts of customers can be resolved in just a few minutes.

4. Custom Notifications

Regardless of the type of FinTech app development you
are involved in, it is important to inculcate some level of customization for the customer into it.
Customization is often an important parameter, on the basis of which a customer will determine the app
to be used. 

In general, both Android and iOS allow customers to turn notifications on or
off. But in a sensitive field such as finance, there are certain notifications that are extremely important
that the customer might want to retain, and yet others such as offers and discounts that the customer might
want to reduce the frequency of.

Steps of FinTech App Development

1. Choose Your Type of App and Ensure Legal Compliance

The first and most important step of your FinTech app
development process is to choose the type of app you want to develop. A previous section layout the
different types of FinTech apps that exist. You must choose your niche and start small at first. When
you do so, also conduct some research into the various laws and regulations you are supposed to comply
with. Financial regulations in all countries are very strict. Thus, you must stay well within the
boundaries of the law for your endeavor to succeed.

2. Define Features

Once you have chosen the niche that you want to
operate in. It is important to define the features that you wish to offer your customers. You can divide
the list of features that you come up with according to priority. When you decide your features, make
sure there are at least one or two features that set you apart from your competition. Whereas, that your
marketing strategy can work with. Communicating this set of features to your FinTech app development
team is essential to ensure that the development process starts with a target at hand.

3. Create a Design

One of the most prominent complaints that FinTech app
users have had with these apps is that they are painfully difficult to use. The design of these apps can
often be cluttered, and even the most obvious features can be hard to locate. When you create a new
FinTech app, it is important to view the development process through the eyes of the customer. You may
even conduct a formal survey of the features that customers use most. In order to position them most
clearly in your app.

4. Development Approach

This is where you decide how you will approach the
FinTech app development process. You must work in tandem with the head of your development team and your
project manager. Thus, to determine the platforms that will be used for development, the number of hours
required, and the resources needed. 

Once this has been done, you can determine the total cost of the process, and
the amount of time that it is likely to take. This is an essential planning step. However, will enable you
to project resource allocation as well as account for any technological and budget constraints you are
facing.

5. Develop an MVP

The first prototype of your app is known as the
Minimum Viable Product, or MVP. This is a barebones version of your final app that contains the least
amount of features for the first users to review it. The MVP version of your app needs to go through a
round of review. Thus, the fundamental issues with your app can be communicated to you. The MVP of an
app generally goes through several rounds of focus groups before an initial report is created. On the
basis of this report, remedial FinTech app development activity is carried out.

6. Release and Update

Once your app released in its full form, it doesn’t
mean that no further development requires to be done. The initial version of your application is likely
to have loads of problems when it is exposed to thousands of customers. Along with that, your FinTech
app development team always needs to be at hand to take care of these issues and update the app with bug
fixes and performance improvements on a regular basis. If you find that your competition has come up
with new features. You will need your development team to implement similar or better features for
you.

The Cost of FinTech App Development

The cost of FinTech app development can vary
depending on the location of your FinTech app development team. The hourly rates of the members of the
team, as well as the tasks you have assigned to it, matter in FinTech app development.

If your team is based in the US, hourly rates can vary from USD 100 to even USD
150. On the other hand, rates are significantly lower for Europe, ranging from 60 to 100 USD. The lowest
rates, however, can be found in the APAC region, where they are consistently under USD 30 an hour.

Similarly, the cost of developing the whole mobile app can be significant,
often more than USD 50,000. Backend development is more costly than frontend development, while QA, and
UI/UX design cost no more than 5000-6000 USD.

Conclusion

With the number of factors and steps, and the costs
involved in FinTech app
development. The decision to outsource the development process is an important one.
Supersourcing connects you with the most experienced professionals in mobile app
development. It allows you to make the choice of the company based on your individual
development needs and requirements.