The winds of change have been blowing over the financial sector. As global banking and investment rules loosen and customers continue to migrate to online channels in droves, the advent of a diverse variety of fintech has propelled finance into the digital era. Fintech (a hybrid of “financial” and “technology”) startups are shifting the paradigm by leveraging technology to tackle the issues of traditional financial institutions while improving consumer experience.
Open Banking, for example, intends to undermine major institutional banks’ market monopolies by sharing their application programming interfaces (APIs) with third parties. This enables authorized suppliers to utilize this data to develop novel solutions for clients, enhancing transparency and competitiveness in the market. Moneybox, an innovative tool that allows you to invest your spare change, is an example of open banking in action. Moneybox connects your bank accounts and looks for possibilities to round up your purchases using open banking. So, if you spend £3.50 on a sandwich, Moneybox would round it up to £4 and put the remaining 50p in an ISA or mutual funds on your behalf.
A Significant Market Opportunity
While open banking is only one way that fintech is disrupting the business, the possibilities for fintech applications are limitless. From online payments to insurance, investments, loans, and savings, and much more, the industry is brimming with possibilities. According to a survey by Innovate Finance, the UK is one of the main markets for fintech, with $4.1 billion in fintech investment in 2020, second only to the US. Another significant trend at the heart of the fintech boom is the move toward mobile consumption. More individuals than ever before are utilizing their phones to access financial services as global mobile device usage continues to rise. The significant growth in fintech use can also be ascribed to the COVID-19 epidemic, which restricted access to traditional banking institutions.
In only a few taps, the app gathers everything you need in one location to choose, buy, and apply Watco products. The software is now available for both iOS and Android mobile devices via the Google Play and Apple App stores.
The expanding trend of mobile banking, as well as increased investment in the field, making this an excellent moment to explore creating a fintech app. While some organizations have carved out a place in the fintech field, there is still a lucrative market opportunity for new entrants. According to EY’s 2019 Worldwide Fintech Acceptance Index, global consumer adoption of fintech is still just 64 percent, indicating that there is still a large market share at risk.
Different Types of Fintech Apps
APPS FOR MOBILE BANKING
The most popular fintech app category is mobile banking, which largely deals with money transfers and savings. Mobile banking applications have transformed the business by removing the need to visit a bank office and instead allowing you to do all of your banking transactions through an app. Revolut, Monzo, and N26 are three successful mobile banks that have consistently increased their user base in recent years.
APPS FOR BUDGETING
Budgeting and financial planning applications have also grown in popularity, allowing customers to take better control over their spending. These applications link to your bank account, allowing you to easily track, manage, and budget without switching between interfaces. Some advanced budgeting applications, such as Yolt, Emma, and Money Dashboard, also provide novel features such as goal setting, saving guidance, and income forecast to enable more complete financial management.
APPS FOR STOCK TRADING
Another prominent fintech sector is stock trading applications, which help the common consumer understand the intricate world of financial investments. Whether you are a novice or a seasoned trader, these applications allow you to buy and sell stocks, study opportunities, and manage your account. Etoro, Plus500, and IG are some of the most popular trading applications.
APPS FOR INSURANCE
Insurtech (insurance tech) has exploded in recent years, with several businesses releasing mobile insurance products and insurance-related apps. Companies such as Zego, Tractable, and Wrisk, among others, have been creating mobile services that allow clients to more simply and openly calculate their insurance premiums, apply for claims, and acquire various forms of insurance.
APPS FOR CRYPTOCURRENCY
Nothing discussing fintech is complete without mentioning cryptocurrencies. Cryptocurrencies are now the trendiest commodity on the market, with thousands of different types to invest in. And cryptocurrency apps like Cointelegraph, Xapo, and Delta provide access to this valuable investment opportunity by allowing you to track cryptocurrency markets, invest in cryptocurrencies, and access your mobile wallet – all while keeping your finger on the pulse of your cryptocurrency investments.
Peer-to-peer (P2P) lending is a rapidly growing idea that avoids the obstacles associated with borrowing from traditional lenders. P2P lending platforms match borrowers with individual lenders (or groups of lenders) who provide funding to qualifying candidates. Successful P2P lending systems include Zopa, RateSetter, and BridgeCrowd, which provide borrowers with immediate access to capital while providing investors with favorable investment rates and a wide range of investment alternatives.
Fintech App Examples
Sonin’s experience includes, among other things, a smart cash flow app, an automotive insurance app, a cryptocurrency platform, and KYC check software. We’re also quite active in the Open Banking community and have created numerous open banking apps that make use of the technology.
Features of Fintech Apps
Apart from a shifting market that has resulted in higher fintech acceptance, the value proposition of these applications has propelled them to the fore front of the sector. So, what do clients like most about financial apps? And what features should you be sure to include to secure your app’s success?
SECURITY AND PRIVACY
The most significant barrier to the adoption of financial applications has been concern about privacy and security. The overall skepticism in the finance business was already profound, and the introduction of technology has further worsened it. While user data may surely add to a richer, more personalized experience, ensuring the greatest degree of security to secure your users’ sensitive information is critical. Some of the important security factors that developers must handle while developing a fintech app include app infrastructure, development and testing procedures, web server and API security, and data encryption. Building client trust and securing their agreement are also critical to the success of your app.
Just as customers anticipate personalization in other parts of their lives, so does the demand for personalized financial services. In the highly competitive finance market, having a personalised user experience is critical to distinguishing your app. To analyze and forecast consumer behavior, techniques like as artificial intelligence, big data, and predictive modeling can be used. This allows you to design more customized products, provide specialized financial advise, and uncover chances for cross-selling that match your consumers’ demands.
REPORTING AND THE DASHBOARD
One of the primary goals of fintech is to offer customers more control over their finances, and the simplest way to do so is to provide them with data. Dashboards and reporting insights provide consumers with an easy and straightforward approach to view their data in a single interface. It is critical for developers to maintain the speed and quality of this data since, in the realm of finance, these are what define the value of the information being exchanged. You may also provide users with additional insights by allowing them to dig down on certain areas that they wish to investigate and comprehend.
NOTIFICATIONS BY PUSH
A big difficulty for conventional financial institutions is the lack of consumer communication — for example, a customer may be unaware when a stock price changes or a limited-time offer is available. Push notifications are an excellent approach to address this by providing consumers with a real-time channel of communication that allows them to keep up to speed on the most recent information about their goods. Push notifications, when combined with personalization, may be one of the most potent marketing tools for banking app developers.
As with any new technology, providing customers with a readily accessible support channel where they can learn about the platform and their goods is critical. When consumers don’t have the time to wait on hold or send an email, phone or email help might be inconvenient. Customer service elements that distinguish finance apps include chatbots and live chat help. These solutions not only provide consumers with immediate assistance, but they are also beneficial to fintech app developers since automation and artificial intelligence may readily aid to address the majority of client inquiries, freeing up key resources.
Read More: How Fintech changed the way SME sector
Statistics on Fintech Apps
-China (81.1 percent), India (37.6 percent), and the United States have the greatest rates of mobile payment use (29 percent ). In comparison, mobile payment adoption in the UK is only 19.1 percent. – Apps in Business
-Monzo has over 4.4 million app downloads in 2020, making it the most popular bank app in the UK (as determined by app downloads). – www.finder.co.uk Statistics on Digital Banking
-In the UK, there are around 1,600 fintech businesses, with this number expected to more than quadruple by 2030. – www.gov.uk The State of Fintech in the United States.
-The proportion of fintech users by generation demonstrates that Gen-Z (66%) and Millenials (56%) use the most fintech, while elder financial decision makers, Gen X (41%), and Baby Boomers (26%), also have accounts. — According to the McKinsey Financial Insights Pulse Survey.
-Customers choose non-traditional players for low-cost offers (70 percent), simplicity of use (68 percent), faster service (64 percent), superior features (34 percent), and personalized items (39 percent ) — Capgemini Financial Services Analysis, 2019; Voice of the Customer Survey, World Retail Banking Report 2019.
-Fintech has been completely integrated into the strategic operational model of 48% of financial services organizations. Furthermore, 37% have incorporated developing technology into the products and services they market. — According to the PWC Global Fintech Report.
-Only 7.7 percent of clients choose in-branch visits for banking in 2020, with the great majority preferring online or mobile methods. – UK Future of Finance Report 2020 attest.
-39 percent of people said the current epidemic has increased their faith in fintech businesses for financial services. 2020 – MX Technologies
How to Create a Fintech App
Iterative and agile development is the ideal strategy to create a financial software. Following a rigorous feature checklist is the quickest way to squander time, resources, and money. But, more crucially, if you’re not adaptable, you risk producing an entirely different product when you’re done. The first step in developing a fintech app has little to do with functionality and everything to do with determining the desired result.
No matter what kind of financial app you’re creating, the discovery phase should always be the initial step. During discovery, you ensure that you’re developing the proper product – both for your company and for your consumers.
Begin by speaking with your customers. We like to blend one-on-one user interviews with focus groups when doing discovery. We utilize the information gleaned from these to create user personas. It is much easier to make judgments for memorable persona profiles than it is to employ data and faceless user groups. Once you’ve determined which user personas to target, you must sketch out their path. And at each stage, think on what they’re doing, thinking, feeling, and saying.
When you do discovery, you end up with the context surrounding each difficulty, not simply the problem itself. This includes consumer expectations for fintech apps based on other financial apps they already use. However, it also involves crucial aspects like as rules and integrations. The discovery process results in a prioritized roadmap for your fintech app that balances the importance of each item against the time and resources required to build it.
You must plan your project once you have created a blueprint for your fintech app. A smart project plan divides the obstacles and possibilities from discovery into key deliverables, dates, and milestones to keep you on track during the design and development of your fintech app. To assure the viability of everything that follows, you must first evaluate the high-risk items and integrations at the outset of the planning stage. This is especially critical when developing finance apps because there will be key connectors and laws to consider.
Working in highly targeted sprints, rather than adopting a linear approach to design and development, allows you to easily adjust the features of your financial app to focus on results rather than specific functionality. You will choose a critical problem or objective to tackle throughout each sprint, beginning with the high priority possibilities highlighted during the discovery session.
Growth & Review
Several agile rituals must be performed throughout development. These are to ensure that the major strategic goals of your fintech app are constantly front and center. A retrospective with the team after each sprint will assist you in evaluating project procedures and delivery. You may review what went well, what needs to be improved, any thoughts or comments, and the essential steps to take away for the upcoming sprint during these retros. It’s also critical to use an analytics tool like Amplitude. You may use this to analyze user behavior and create a picture of how users engage with your application.
You may then share this knowledge with your team and use it to design experiments. This method allows you to A/B test solutions and improvements in fast succession, ensuring that you are always providing value to your customers and guaranteeing long-term loyalty for your fintech app.
What is fintech’s potential?
First, via digitization of service delivery, they are boosting efficiency in the supply of financial services. Second, Fintechs give the flexibility required to deliver low-cost, easily accessible goods and services, which traditional banks lack.
What is the most difficult difficulty in fintech?
Fintech, like any other business, has its hurdles, and fintech startups face some roadblocks. There are certain critical areas organizations must focus on to achieve long-term success, ranging from user retention and overshooting objectives to data security concerns.
What role does fintech play in the financial industry?
Fintech refers to the use of technology into financial services organizations’ offerings in order to enhance their usage and delivery to customers. It essentially works by unbundling such organizations’ offerings and generating new markets for them. In conclusion, fintech innovation reduces costs not just for enterprises, but also for consumers. Because conventional enterprises have no overhead like as staff, rent, or advertising, these costs may be avoided, allowing these firms to invest in their clientele. Fintech businesses have improved transaction efficiency and convenience by making extensive use of mobile connections. This implies that clients have a better experience, there is more openness, and information is more easily accessible to the general public.