The main reason behind this is that developing a FinTech app requires significant effort and investment. Banking sectors and financial institutions are constantly investing their money in this process to get a promising application for the betterment of the market’s future.
As per a Status and Forecast 2018-2025 report, the global FinTech size is expected to grow by 124.3 billion USD. This proves that in the future, there will be numerous investment opportunities for businesses interested in FinTech. This article will go through in detail how to enable the creation of a FinTech application that helps drive ROI.
What is a FinTech application?
Fintech apps are also commonly known as financial technology applications. These apps are popular today as they have completely changed the way every business functions. With the emergence of FinTech apps, electronic transactions have become much easier. Besides, more and more FinTech startups have started to emerge as the response from people for FinTech applications has been very positive.
Top 3 examples of Fintech
1. Online and mobile payment systems
FinTech has made people pay for their services and products through mobile devices and computers. As per a study by Statista, there were around 950 billion global mobile payment transactions from the users, while this number is predicted to grow to 1.31 billion by the year 2023.
2. Blockchain and cryptocurrency
Blockchain and cryptocurrency are known as the most controversial applications of FinTech, as these technologies were among the first to show how technological advancements can change the entire industry or sector. The majority of tech companies, banks and investment companies have started looking into cryptocurrency. Tech giants like Facebook have already created their own digital currency, Libra.
3. Budgeting applications
There are various budgeting apps like Goodbudget, Mint and Personal Capital that are considered a major part of the sector. These applications enable users to track their incomes, expenditures and incomes, and also allows them to control their finances.
7 steps to build a FinTech app that enables to drive ROI
1. User authentication and data encryption
When an organization wants to create a FinTech app, mobile app developers must offer an app that easily validates the user identity and manages the user base. For this, developers use Google Firebase, one of the most effective and popularly used platforms for crash reporting, two-factor authentication, data management and data encryption. Firebase enables the developers to club the application with other Google services that offer a rich UI.
2. Credit score checking
The FinTech mobile app developers can use various APIs to fetch the user’s credit score data. Experian is one of the most popular FinTech apps that helps businesses by providing APIs that help fetching credit scores. Besides this, American Credit System also helps in generating credit reports and FICO scores.
Here’s a list of data that’s accessible by using these APIs:
- Criminal searches
- SSA89
- Motor vehicle records
- Eviction searches
- 4506T IRS tax transcripts
- Pre-employment credit reports
- Decision-only credit reports
- Social security number verifications
3. Most secure hosting
The FinTech app that any business organization creates must be encrypted to a cloud-based database system. For that, the experts of software development companies use Google’s Cloud Firestore. This platform can seamlessly integrate itself with other products of Firebase. By using this system, businesses can offer an amazing user experience. Besides, Google’s cloud Firestore is a very effective and scalable platform when it comes to simplifying the AI-based FinTech app development process.
4. Set up payment gateway
Developers integrate payment apps using Stripe, the most commonly used development process. Stripe enables developers to make a system that can easily process payments globally. It also allows for the use of various payment service providers without the need to integrate them all. When Stripe is combined with Plaid, it frees the business owners from observing the PCI certification.
5. Banking account access and payment capabilities
When you want to connect your FinTech apps with users’ bank accounts, the best thing to do is have an API that makes this process easy. For this, using plaid in your finance apps is necessary, as it enables customers’ banking data sharing. Plaid is agile and enables storing users’ sensitive data, financial data and financial transactions.
6. Implement chatbots
Implementing a chatbot solution can be the perfect choice for your FinTech solution, especially the chatbots that use Natural Language Processing (NLP) and Machine Learning (ML) to automate customer service. Besides, chatbots can also be used to make customer interaction easier.
7. Don’t avoid compliance
The last point in this list is to avoid companies that make iOS and Android mobile apps challenging to build. One must use FinTech APIs that make the data flow smooth and the application secure. But if companies are creating complex solutions that can be prone to data theft, avoid hiring such companies. Besides, before the FinTech software development company can start the process, you need to ensure that they’re creating software that’s compliant with the latest FinTech security norms and protocols.
Top 10 FinTech apps for 2021
Some of the best and most used FinTech applications in 2021 are:
- MoneyLion
- Chime
- Nubank
- Robinhood
- Mint
- Coinbase
- Revolut
- N26
- Tellus
- Finch
Conclusion
When you hire a FinTech development company, see to it that the firm has prior experience in developing FinTech solutions. Besides, being a business owner you must make sure that the hired FinTech development team builds an MVP before launching a full-fledged application, as it will allow you to test your FinTech system before it goes on-air.
When it comes to building a FinTech app, every mobile app development company must follow the above-listed points in order to offer the best FinTech solution to business organizations.
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Jenison Anderson
Jenison is a researcher in the field of fintech & analytics having 5 years of experience. He has an interest and expertise in FinTech development. He trusts in the process of growth through knowledge and hard work.
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