Fintech startups have affected practically every financial business sector in recent years. People had to go to a banking institution decades ago to open an account, get a small business loan, or even transfer money from one account to another. Fintech has created an opportunity to invest, borrow, save, and transfer funds without ever setting foot inside a bank.
Even though traditional financial institutions have been sluggish in embracing fintech innovations, newcomers and established businesses are betting on digitalized financial services.
What is Fintech?
Definition of Fintech
Fintech is a blend of “finance” and “technology.” It applies to any company that employs technology to improve or streamline financial services and operations.
The phrase refers to a fast-expanding industry that assists both consumers and corporations in various ways. Still, the primary goals are to change how people and businesses access their money and to innovate with conventional financial services.
Fintech has existed for much longer than people believe. The origin of financial technology can be dated directly to the late 1950s, during the first widespread use of credit cards. Every new piece of technology improves the economic infrastructure that most people use daily but rarely think about.
Fintech firms, such as banks, flourished in financial technology before the 1990s and the internet era. And according to the Federal Deposit Insurance Corporation, commercial bank branches increased from roughly 13,500 to over 83,000 from 1950 to 2008.
Examples of Fintech
After the birth of the credit card, financial technology advanced and brought ATMs, electronic stock exchanges, bank mainframe computers, and internet stock exchanges to the masses. Online financial institutions, such as PayPal, flooded the market but did not pose a severe threat to traditional systems.
Fintech has transformed various businesses, including banking, insurance, trading, and risk management. Also, financial technology firms, including startups, technology companies, and traditional financial institutions, use cutting-edge technologies. It includes big data, AI, blockchain, and edge processing to make financial services more accessible and efficient.
Types of Fintech Apps
Fintech impacts existing clients and startups, enterprises, small firms, and government agencies. Various types of fintech have indeed changed the way we handle our money, whether you are mindful of it or not. And here they are.
Budgeting software is a tool that helps you improve your monthly spending, saving decisions, and behaviors by centralizing all of your financial obligations and goals.
A budgeting app may provide additional monetary setting objectives and cash flow monitoring across several financial accounts. A budgeting tool with bells and whistles may help you keep track of your spending, make regular bill payments, create savings goals, and manage your monthly cash flow.
Mobile Banking Apps
Mobile banking apps are among the most used fintech applications. Apple Pay, PayPal, Square, Venmo, and Google Pay are examples of services that allow peers to send money to one another or merchants to receive cash from customers.
Since insurance is a latecomer to innovation, several fintech firms are partnering systematically to assist in automating operations and expanding coverage. As a result, fintech solutions provide more customer-centric and flexible insurance services. It is one of the reasons for the birth of the term “insurtech.”
Lending companies make the borrowing process easier by trying to connect the provider and the borrower. The application handles all aspects of the application process for repayment.
Loan apps are unique in that they are not exclusive to financial service providers. This fintech app also supports peer-to-peer or P2P lending, enabling individuals to borrow money and earn interest.
Stock Trading Apps
Stock trading programs have become an innovative and agile example of fintech since they allow investors to buy and sell stocks from anywhere using their mobile device rather than a stockbroker. Robinhood is one of the numerous apps that support digital stock trading, which means that it reduces the conventional broker-client interaction to a simple online contact.
Fintech allows consumers to access digital cryptocurrency marketplaces and send and receive cryptocurrencies. Different financial technology has also made trading more accessible; today, anyone with internet access may try trading. Experts once did only that. Stock international markets will result in an improvement in investment as a result.
Four Pillars for Creating a Successful Fintech App
When developing which kind of fintech app to use, a one-size-fits-all solution is not available. There are, however, a few factors to take into account while making this selection.
What to discover?
You must evaluate your clients’ requirements. What are their expectations for a fintech app? What characteristics would they find the most useful?
To learn how to build an app from the ground up, your startup must concentrate on the aspects that make its software valuable, functional, and strategically unique. The following is a list of the most popular app features among small companies and fintech apps.
- Integration of social media
- Online and offline synchronized access
- App analytics dashboard
- Voice search
- AR and VR
- Security features
- Chatbot support
- Personalized communication
Here are the most significant and trending app features for fintech startups.
- Individual data analytics
- Artificial intelligence
- Blockchain-dependent security
- API integration with other fintech solutions
- Personalized user experience
- Voice-controlled banking
How to discover what to incorporate into your app?
Here are some important ways to identify the things you need to add to a fintech app.
Knowing the ins and outs is critical because the financial technology and banking industries are highly regulated. If you want to build a worldwide startup, you need to understand these rules and how they will affect your firm.
The questions below can assist you in determining the precise niche for your fintech app.
- What subdomain of the fintech business would you like to enter?
- Whom are you going after?
- What is your area of expertise in this field?
Moreover, the following are some of the most popular financial niches available:
- Management of investments
- Banking via mobile
- International money transfers
- Advances and loans
- Blockchain-based technologies
- Financial services
It would be best if you now researched the competitors after determining your specialization and location. Because you are entering a market with already-existing solutions, your offer should be distinct and fill a specific niche in that subdomain.
You must plan your project after you have created a blueprint for your fintech app. To assure the sustainability of anything that follows, you must first observe significant items and integrations at the start of the planning stage.
Creating an outline
You must create a map to establish a strategy for finalizing the interface’s appearance and features.
Visualization is the act of vividly visualizing yourself and obtaining your goal. To put it another way, you envision your triumph in advance. This, in effect, may cause alterations in your thinking.
While the innovation is still developing, flaws are expected. However, as a financial marketer, you can’t ignore client complaints. So, be ready for these and set your expectations.
Market shifts and disruptive technology invariably bring new threats. Because of their novelty, the companies that generate them, other market actors, customers, and even the regulator may have difficulty identifying them. As a result, the company must take primary responsibility for detecting risks as the party liable for the product.
Sprints are a time-saving method for teams to understand without necessarily developing and launching. They condense months of work into 3–5 days. In addition, working in highly targeted sprints allows you to easily adjust your financial app’s features to concentrate on results rather than specific functionality.
Advantages of sprinting
Check out something that you can win by sprinting:
- Simple answers to challenging business problems
- Reduced risks
- Productive collaboration
- Customer-proven services
Sprinting vs. linear approach
In sprinting, you will choose a critical problem or goal to handle throughout each process. It starts with the high-priority opportunities highlighted during the discovery session.
On the other hand, the linear approach is a conventional mode of problem-solving in which designers use logic, historical facts, and known solutions to address problems. They usually use it when employing convergent thinking tools to test the ideas they come up with during advanced cognitive sessions and see which ones will work best.
4. Review and Growth
The development process usually requires several agile procedures. These ensure that your fintech app’s primary strategic goals are constantly straightforward and center.
Go back and assess your strong and weak points
A team retrospective after each sprint can help you analyze work activities and deliverables. You can review what worked well, what needs to be improved, any insights or proposals, and the essential procedures to follow for the upcoming sprint during these retros.
What to do with data and analytics?
It is also critical to use a program like Amplitude for analytics. You may use this to analyze user behavior and create a representation of how users engage with your app.
How to stimulate and encourage app growth?
To enhance your fintech app, you can hire banking & financial service software developer or what you can do is share your findings with your colleagues and use them to create experiments. This method allows you to quickly complete workflow and additions, ensuring that you always provide a service to your clients and ensure analysis approach engagement for the fintech app.
Fintech is a broad term that encompasses a wide range of new financial technologies. Internet services are the foundation of fintech creation in response to current consumers’ demands. It results in rapid, convenient, and virtual financial management.
The types of fintech depend on the services they provide. For example, using our mobile phones to manage our finances has become commonplace, with extensive credit to various types of fintech.