A Complete Guide to Fintech App Development

Blockchain

This ledger technology is behind Bitcoin and other cryptocurrencies, but its potential benefits are not limited to them.  Things like NFTs (non-fungible tokens) and DeFi ( Decentraised finance) are a few examples of how blockchain can revolutionise finance changes.

AR/ VR

VR in fintech allows people to invest in stocks and trade currencies through virtual reality, offering an immersive way to monitor market movements and make swift investment decisions. Although it’s still evolving, companies are exploring its potential. According to Goldman Sachs Research, virtual and augmented reality is expected to be an $80+ billion industry by 2025.

Sensors and IoT

Sensors play a crucial role in the fintech revolution, allowing companies to gather loads of data. Harvard University research highlights the potential of affordable sensors to monitor various parameters, such as temperature, location, and stress.

In the financial services sector, sensors are utilised in various ways. For instance, ATMs use sensors to gauge the number of people in line. Additionally, sensors facilitate micro-payment transactions without requiring users to input credit card information, particularly in contactless payment scenarios.

Robotic Process Automation

RPA, or Robotic Process Automation, employs digital robots or bots to do repetitive tasks; unlike artificial intelligence, it doesn’t need human-like thinking.

Lots of Fintech businesses use RPA to save time and to automate tasks. RPA is also a great way to reduce operating costs without hampering productivity so that people can focus on more innovative and value-adding things.

Voice-Enable Payments

Voice-enabled technologies allow people to use their handheld voice recognition software and digital assistants to hear the balance and to make payments. People can also use the same technology at retail stores as contactless payments.

Features to Consider

While the specific features may vary based on the software’s purpose and complexity, here are some common admin-side features found in many financial software products:

• Security and Authentication: Implementing the security measures, such as encryption and secure login protocols. Admins may also require monitoring and managing user authentication methods.
• Dashboard and Reporting: Another feature to consider is an overview of system performance and key financial metrics. There must also be features such as access to detailed reports and analytics for decision-making.
• Account Management: This feature includes the creation and management of user accounts and financial accounts and the configuration of account settings and parameters.
• Trails of the Audit: Recording and tracking changes made within the system and generating audit reports for compliance and accountability.
• Compliance and Regulation: Ensuring adherence to financial regulations and compliance standards and implementing features to facilitate regulatory reporting.
• Automation and Workflows: Setting up automated processes for routine tasks and configuring workflow rules for efficiency.
• Role-Based Access Control (RBAC): Identifying the roles and permissions for different user types and controlling access to specific features based on user roles.
• Customer Relationship Management (CRM): Managing customer information and interactions, and tracking customer accounts, communication, and support tickets.

Tech Stack To Choose for Fintech App Development

To get a better understanding of technologies used in the fintech application development, let’s consider trending services that most organisations use:

Venmo

• Cloud services used in Venmo are AWS.
• DevOps solution: Docker, CMake.
• Programming languages used: PHP, Java, JavaScript, Python, TypeScript, C#, Go, Ruby, Swift, C++, Perl, Lua, Objective-C.
• Framework: PowerShell, Backbone.js

Klarna

• DevOps Solution: New Relic, Docker
• Cloud services: AWS
• Frameworks: PowerShell
• Programming Languages: JavaScript, PHP, Java, ActionScript, Erlang, Kotlin, Go, Ruby

N26

• Cloud Services: AWS
• Databases and Stories: PostgreSQL, Kafka, Realm, Redis
• DevOps Solutions: Docker, Visual Studio, Gradle
• Frameworks: Vapor, Node.js
• Programming Languages: Java, Kotlin, Swift, Julia, Python, TypeScript

Revolut

• Cloud Services: Google Cloud
• Databases and Stores: PostgreSQL
• DevOps Solutions: Git, Docker, Visual Studio, Bitbucket
• Framework: Node.js, Gatsby
• Programming Languages: JavaScript, Kotlin, Python, Swift, TypeScript, Java

Identify your Niche

Clearly define your niche to identify the purpose of the fintech app. First, you must analyse the targeted market and then choose whether you want to create your own FinTech app or look for an improved ready-made solution. After you have chosen a niche, you now need to find a software provider.

Choosing an IT partner

After selecting a niche, your next step should be choosing an experienced IT partner. An experienced person will help you build a FinTech app; some of the few specialists you need for your Fintech app project are:

• Front-end developer
• Back-end Developer
• Project Manager
• Designer
• Business analyst
• Product Manager
• QA Specialist

When choosing a financial software development company, make sure you pay attention to the company’s hourly wages, training levels and experience.

Planning Phase

Another important step to consider is the planning phase. This step includes important processes such as:

• Market Analysis: Your experienced IT partner will help you get data and analytics on the current state of the FinTech application market to identify the best opportunities. This way you can fill gaps in the offerings and potential target audience segments.
• Target Audience: You can define and understand the target audience by getting analytics and stats on user behaviour and preference.
• Choosing the monetisation model: Vendors may have different monetisation models based on their experience with the FinTech apps and knowledge of market trends.

Choosing The Tech Stack

The next is the discovery phase of the Fintech application development, which aims to offer all project requirements and help create a clear development plan.  This phase includes:

• Platform selection
• Determining the functionalities and features
• Ensuring the security and compliance
• Tech stack selection

Selecting the MVP

Minimal Viable Product (MVP) is an excellent idea to test your app before launching a complete product. With MVP, you can launch the app without paying extra cost. This includes features that users can beta test and review your app. MVP building will help you attract investors, get feedback and minimise the risk that your idea won’t pay off.

Launch the app and Get User Feedback

Once you have completed the FinTech app development process, your software developer will launch it on the respective platforms. After creating the app, keep in mind to collect the user feedback and improve the solution through regular updates.  Regular updates will help improve the bugs and may help in the extension of the app’s functionality.

Increased Integration of AI and Machine Learning

Fintech apps will likely leverage AI and machine learning more extensively for tasks such as fraud detection, risk assessment, customer support, and personalized financial recommendations.

Blockchain and Cryptocurrency Integration

The adoption of blockchain technology and cryptocurrencies may continue to grow, leading to more fintech apps incorporating features like cryptocurrency wallets, decentralised finance (DeFi) services, and blockchain-based financial transactions.

Open Banking and API Integration

Fintech apps might increasingly integrate with open banking frameworks, allowing them to securely access financial data from multiple sources. This leads to more comprehensive and personalised financial and API integration services.

Enhanced Security Measures

With the rising importance of cybersecurity, fintech apps are likely to invest in advanced security measures such as multi-factor authentication, and blockchain-based security protocols to protect user data and financial transactions.