The world is still recovering from its lockdown crisis. Some countries are getting better much faster while others are still living under strict lockdown rules. But overall, COVID-19 has changed the way we live and work.
All businesses were forced to change their usual workflows and switch to remote and online. And the fintech industry was the first responder to the global lockdown.
Consumer adoption of fintech companies has grown significantly since 2015 and is still growing according to the latest data from Statista. And when contactless payments have become a necessity because of COVID-19, the adoption rates have skyrocketed. Let’s find out what you need to know before developing fintech apps 🔽
Table of contents
Intro Types of fintech apps Five tips to build a five-star fintech app Summing up
Fintech apps have opened up new possibilities for the finance world. The first fintech app was developed 15 years ago and marked the beginning of economic transformations for the whole world. The following apps have brought a variety of banking operations to a completely new level, including peer-to-peer money transfers, e-banking, insurance services, and lending.
You may also be interested in How to develop a mobile banking app .
Fintech apps have become so popular because they’re making our daily life more comfortable. With custom-built fintech solutions, there is no need for physical services. In the modern world, fintech apps mean less paperwork, fewer operations, and less stress.
Photo by XPS / Unsplash Most banking or insurance operations can be easily carried out online; thus, users get more time and freedom. Users are also provided with unmatched flexibility - they can choose when and how to manage their accounts and carry out financial operations.
Moreover, more and more businesses invest in the fintech sphere. In the last ten years, the investments have risen from $900 million up to $18 billion. They keep on growing. However, you need to know a few things before going in for fintech app development. Let’s start with some basic information 🔽
Types of fintech apps
Before building a fintech app, let’s find out what business spheres can actually benefit from having a custom-built fintech solution for iOS or Android. You need to choose the right direction for your app to succeed. Otherwise, there is no point in developing a mobile app. Here’re seven main categories of fintech apps.
Online payments
Online payments are the largest branch of the fintech industry. The transaction value of online payments is predicted to reach US$4,769,370m in 2020, according to Statista . The number of online payments has skyrocketed since the COVID-19.
Fintech apps provide cashless, fast, and secure money transfers for both businesses and individuals. There are e-wallets, digital currencies, and online payment systems. The following solutions help make payments without leaving your home or office. In fact, you can pay your bills or send money to your friend in a few taps.
Let’s take a look at the two most popular online payment systems🔽
Payoneer
Source: App Store
Payoneer is an online payment platform used by freelancers and businesses all over the world. The following system provides a secure way to transfer money inside and outside your domestic country. Users can order a prepaid Mastercard for financial transactions. But you can easily withdraw money to your bank account.
PayPal
PayPal is an online payment system for secure transactions between customers and vendors. Its USP is that all financial information is hidden. PayPal supports most credit and debit cards. It means that you can register any card with your PayPal account.
Online banking
Online banking is an ideal way to manage bank accounts and carry out transactions quickly and without third-party services. Mobile banking apps have completely changed the way we manage bank accounts and pay our bills.
But having a mobile app solution isn’t enough for the bank to lead the game. That’s the reason why more and more banks are building fintech apps for their customers. Revolut and N26 are vivid examples of fintech apps for the banking sector🔽
Revolut
Source: App Store
Revolut is an international digital bank enabling global spendings for everyone. Users can link their existing cards with the Revolut account to convert funds into various currencies and carry out international money transfers. Moreover, Revolut also gives access to the cryptocurrency exchange.
N26
Source: App Store
N26 is a fully-digital bank. Their users can easily manage their accounts and perform transactions through their mobile app. N26 app takes care of your security and privacy. The app allows for being paired with only one smartphone at a time. To prevent fraudulent charges, users need to confirm online and offline transactions with their PIN.
Online lending
Originating and renewing loans is much easier with online lending. Custom-build lending app solutions ease the process of loan requests and streamline interactions between borrowers and lenders.
You can develop either quite a simple loan app or an automated platform and take advantage of online lending. Financial institutions and independent digital lenders can make use of fintech app solutions for online lending. Check out the following apps before developing your own app for digital lending 🔽
Kabbage
Source: App Store
Kabbage is a mobile app for digital lending. Users can get hassle-free credit and take advanatge of online payment services for their business. There are no hidden fees and extra requirements. Business owners can apply for a loan, find out their fees and rates, and access their funds in a few minutes.
Calyx Point
Source: Calyx Software
Calyx is a web platform for banks, mortgage lenders, credit unions, and brokers. It was built to ease and streamline loan processing for borrowers and lenders. Calyx allows for closing loans faster and in a few clicks.
Online investements
Online investments have become accessible to everyone. Such platforms allow for investigating and easy investing in various financial assets. Mobile apps for investments create an ideal opportunity to start investing.
As a rule, such mobile apps provide all relevant analytics and data to help users make a rational decision. Are you going to build a fintech app for online investments? Don’t forget to check out the existing app solutions 🔽
Robinhood
Source: App Store
Robindhood was launched as an app for commission-free trading. That’s right - users can invest and trade stocks with the Robinhood app without paying any fees. Though the app doesn’t offer as many investment types as any other app on the market but it allows for investing in cryptocurrencies.
You may also be interested in How to build a stock trading app like Robinhood .
Acorns
Source: App Store
Acorns is an ideal investing app for newcomers. It’s built for investors who haven’t invested before and don’t want to become an active investor. The app has everything you may need for your investments. Round-up savings and robo-advisors provide a mobile-friendly option to start investing and growing your funds.
Insurance
Insurtech or digital insurance deals with the insurance industry. The main aim of fintech apps for insurance is to speed up claims processing and policy management. Also, digital insurance brings down the chances of fraudulent activities.
Insurtech can be presented in various solutions, from simple web apps to complex CRM systems. Insurance companies can also benefit from having a custom-built mobile app to bridge the gap between their customers and insurance agents. Here’re the brightest examples of insurance apps 🔽
myCigna
Source: App Store
Cigna is an international health insurance company. myCigna was developed to provide quick access to important information for customers. The app features depend on the insurance plan. myCigna helps customers to keep track of their medical expenses and not to exceed their year’s maximum.
Blue Shield of California
Source: App Store
BSC is a California-based health insurance provider. The company decided to launch a mobile application to ease account management for their clients. With the app, BSC provides a 24/7 service. Users can track their medical claims, find doctors, etc.
Personal finance
Personal finance apps can help users with expense management. While using such fintech apps, users can easily plan their spendings in advance. Then the app can prevent the user from spending more than planned. Check out the apps below before developing your own app for finance management 🔽
Mint
Source: App Store
Mint is a free app for managing personal finances. It allows for keeping track of spendings as well as income. The app can be synced with PayPal, credit cards, and bank accounts.
Spendee
Source: App Store
Spendee is a free budgeting and money tracking app. The app features free and paid plans. But regardless of the plan, users get access to a user-centric interface and powerful budgeting tools. With Spendee, users can take full control of money in multiple currencies and across multiple bank accounts.
The app can sync with any bank account and credit card. Also, users can invite others to manage family or household budgets.
Five tips to build a five-star fintech app
Fintech apps provide a completely new view of routine tasks. Online insurance, digital banking, budgeting and money tracking - these are only a few examples of how fintech apps make our life more comfortable.
Fintech apps refer to a wide range of services and dealing with money. And primarily because fintech apps deal with money and personal information, it’s hard to get customers to trust.
Security is your king
In the modern world, security is your top priority. On the one hand, there are so many possibilities, and on the other, there are so many dangers. People are excited to take advantage of new technologies and apps, but they’re also concerned if it’s secure. No one wants to share their personal data if there is no proof of security and compliance.
Your app should be secure all along the line. It means that your security measures should cover both the internal or external part of your app. Every step of a customer way from a login page to data storage should be protected. Otherwise, any of these data is likely to be jeopardized, and you can lose reputation, money, and customers.
Photo by Jacob Townsend / Unsplash User-friendly interface
Simplicity is a key component of fintech apps. Moreover, your app has to be easy-to-use and visually appealing.
There are dozens of banking apps, but wait - people are installing and using only those apps that are easy to use and look nice. Developing a well-thought design is important because it’ll help you drive more users and make your app even more secure.
Don’t know how app design can secure your application? When your app design is recognizable and unique, there are fewer chances that someone will use your design and scam users pretending to be you.
Usability
A nice-looking app is, for sure, great to have. But it’s much better to launch a usable app. The key point is to provide your users with everything they may need. Although having too many features may overcrowd your app and confuse your users.
It’s a good idea to test your app not only within the development team but also with your family and friends. A second opinion may provide some valuable insights into what features to add and what features to delete.
Personal touch
One thing that can help you win over users is personalization. Your customers will definitely like the opportunity to adjust the app up to their needs. For example, you can allow them to modify favorite features in the dashboard, create templates, or change the visual theme.
Moreover, AI technologies can help automate the following process and make things easier for your customers. An AI-powered app can analyze how customers use the app and how it can be improved to meet the requirements of a particular client.
Photo by William Hook / Unsplash Support
The last thing but not least, you should consider while starting a fintech app is your support. Customers always have questions and when something goes wrong, your superhero customer support can fix negative experiences in a few minutes.
In case your system works 24/7, your support team should also be available 24/7. However, it depends on your business size and sphere. Moreover, your support team needs to be well-trained in terms of app functions as well as its pros and cons. They should have answers to any question related to the service or product.
Summing up
The fintech industry is growing at a blistering pace creating extra opportunities for existing and new businesses. It’s quite hard to be innovative in the fintech industry, especially where so much has already been done.
Before starting a fintech app, you need to analyze the market, test the existing app solutions, and find out what business spheres still need to be improved. Nevertheless, the cost of creating a fintech app can be relatively high, but the benefits provided can fulfill or even exceed all your expectations.
Are you looking for a reliable software partner to build a fintech app? At mova.io , we’ve everyone and everything to deliver top-level fintech app solutions.
Have a question? Just write to us at:
📮 mail@mova.io
