Fintech is going big.
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:
1. Take some time to research Fintech and Fintech applications
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. <a class=”bu hj” href=”https://www.investopedia.com/terms/f/fintech.asp”>According to Investopedia</a>, <em class=”ho”>“Fintech is used to describe new tech that seeks to improve and automate the delivery and use of financial services.” </em>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.
2. Consider laws and regulations
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.
3. Ask your target users first
Before starting the development process, you should also study the behavior of the users that you want to use your Fintech app. Don’t guess that they like the same things as you do — they probably don’t. Conducting thorough research should save you from a situation like this.
Don’t overcomplicate things. The main product/service should be simple and easy to find, while additional services should only be offered to more educated users.
A great way to find out what your target audience thinks is to test your MVP. An MVP eliminates the need for expensive research, bringing you quick results on whether the users like your Fintech app or not. It can also detect trends to incorporate in the final version of your product, as well as acquire a base of users who might be interested in using it. Real experts can build a good MVP only in a few weeks.
Share your MVP with a group of users who represent your typical target audience. This way, you’ll find out what they think about the design, navigation, and simplicity of your Fintech app. You’ll also be able to identify bugs and get valuable insights that will help you improve your app. Make sure you’re prepared to make major changes as the users will probably focus on things you never even thought about.
4. Pay attention to the UX design
The graphic design of your Fintech app will require a lot of time and effort. You should create a unique identity of your app that will be recognizable to its users.
Choose icons, colors, and typography that align with your brand’s tone of voice. The design of all features should be clear and simple, making them easily discoverable. Furthermore, choose images and other visual elements that suit the design of the app. To bring crucial decisions like these, it’s always good to consult expert graphic and UX designers.
One very important thing to have in mind is the culture of the target country. Check the meaning of colors and signs and use symbols that evoke positive feelings.
Finally, after you’ve created the web interface of your app, take both iOS and Android interfaces into consideration when designing the app.
5. Choose the right technology stack
Your Fintech app must have an ability for fast market introduction. Therefore, the technology you choose should allow you to add new features quickly and make changes when necessary, without disrupting the functioning of the entire app. For example, Python and Rails are best for MVP, but not for scalability. Information like this is very important when building a complex product such as a Fintech app, so the best thing to do is to consult experienced experts.
Choosing the right technology stack is very important, so make sure you consider all factors before deciding. The complexity and scalability of your project, the external tools you’ll be using, and the specific features you’re planning to add are only some of them. If you’re not sure what language to choose, consult someone more experienced in the field. Don’t make quick decisions because this will decide the entire future functioning of your app.
If you decide to build your own development team, you’ll come across many challenges that will slow down your path to success. The best approach for a startup is to focus on business growth. That’s why you should partner up with an expert tech company that has experience in building outstanding tech products, from idea to launch.
6. Provide security for fintch application
Fintech apps can never be secure enough. You’ll be working with a lot of personal and sensitive data of your users, and you mustn’t allow any problems. Any hacker attacks or data leaks can leave serious consequences. That’s why you should set the protection of customer data as your top priority.
Develop strict security policies and make sure you penalize every employee that doesn’t respect them. It’s also very important to respect the country’s standards regarding data protection. This will protect you from lawsuits that can be caused by security faults.
Developing a Fintech app is a serious project that requires a lot of work. During the process, you should always have in mind the standards and regulations, the consistency of your brand, and most importantly, what your customers want. Defining these aspects from the beginning will allow you to fully focus on app development without any major distractions along the way.
Keep things clear and simple. Paying attention to the right details will result in a serious user-centric product that provides a seamless customer experience.
Leave the development part to a team of experts and focus on business growth.
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