Blog: Key Learning to Build Fintech App For Startup – Finextra

The worldwide digital transformation enabled every industry to target a wider customer base on a global scale and helped improve customer service and support to never-before proportions. This is particularly visible in the case of the financial industry.
The penetration of technology for banking, insurance, investment, and other financial segments has been so rigorous that the Fintech app category is now one of the most competitive across app marketplaces.

Because of this stiffening competition among Fintech apps, simply building a fintech app to cater to your customers is no longer enough. You must ensure that the said Fintech app has all the success ingredients. Whether you are building a fintech app for the
benefits of staff augmentation in your small financial firm or want to roll out a payment app for your grocery business, you cannot compromise on these ingredients.

By learning from the leading Fintech app projects here, we will offer some hard-learned tips for developing an excellent startup Fintech app.  

Evaluate the Fintech App Idea

To build a sustainable fintech app that continues to thrive with popular engagement and traction, you must begin by evaluating the app idea and its market feasibility. Ideally should begin by brainstorming with the core stakeholders. For evaluating the app
idea, ask these questions we mention here below.

  • How will the new Fintech app add value to the customers’ financial transactions and user experience?
  • What unique value propositions is the app offer, and how do they stand out from the competitor apps?
  • How will the fintech app monetize and generate revenue, and how sustainable is the business model?
  • What are the development challenges for the project, and whether you are in full command to take on these challenges?
  • What kind of resources does the project need, and how will you make arrangements for them?

Have a Strong Command of Financial Regulations

Since banking, insurance, and all financial niches are extremely regulated by several industry-specific laws and compliance rules, you need to have a strong command over the fintech app to release a successful fintech app product. Some of the critical regulations
apart from the country-specific rules that fintech apps need to keep in mind include anti-money laundering (AML) regulations, The General Data Protection Regulation (GDPR), Payment Card Industry Data Security Standard (PCI DSS), and several others.

You not only need to have a good idea about these regulations, but you also need to figure out in advance how they can make a grave impact on the success of the app and revenue generation. Since many of these industry-specific laws and regulations vary from
one country or state to another, you need to be extremely circumspect of their results for Fintech operations and transactions.

Decide a Suitable Fintech Niche

The fintech industry is vast and multifaceted and naturally, for a new startup to choose a particular app type is difficult. This is why you need to pour a lot of energy and conscious thinking into deciding on the right fintech niche that suits your ambition,
capabilities, and expectations.

Since, as a startup, you are not going to launch a mobile banking app just in the manner of established banks, you can choose from the trending startup niches such as investment consultation and management apps, financial planning apps, money transfers, and
wallet apps, crowdfunding apps, insurance sales, and advisory apps, market watch and stock market app, credit processing apps, etc.

Know your Target Audience

The next important step is to know your target user audience who will use your fintech app. For this, you need to analyze several different demographic factors and user characteristics ranging from age, income, gender, location attributes of lifestyle, and
buying patterns to financial preferences.

Some of the most trusted ways to know the target audience include social media analytics and surveys, market statistics and analytics tools, and conducting market surveys through professional agencies. Once you have a near-perfect idea of the target audience
who will use your app, you can use this information and knowledge to fine-tune the app further.

Pick UP the Right Tech Stack

Now that you have a comprehensive idea about the market, competition, target audience, and app idea, you can pick up the tech stack that perfectly fits your app project. Since fintech apps rely on trending and cutting-edge technologies for improved and intelligent
customer experience, you cannot just stick to traditional and soon-to-be-outdated technologies.

It is always wise to build a fintech app using cross-platform technologies with native capabilities such as Flutter and React Native. As for using trending financial technologies like Blockchain for secure transactions, you can rely on corresponding APIs. Similarly,
you can opt for conversational AI Chatbot for smooth customer onboarding.

Impressive UI/UX

When it comes to fintech app projects, creating an impressive user interface (UI) and user experience (UX) is crucial simply because fintech users do not waste time on functionally frustrating apps. It must be fast-loading and facilitate completing actions
as effortlessly as possible.

For Fintech apps, it is always essential to go through a comprehensive design process comprising wireframing and mock-up design to the final stage of dynamic prototyping.

Robust QA Process

Fintech transactions going faulty can directly impact the financial loss of customers; hence, performance and security are extremely important aspects of any fintech app. This is why for a fintech app, it is crucial to go through a rigorous QA testing process.

While user testing, security testing, and performance testing are must for fintech apps, many leading fintech apps before launch decided to release their beta versions so that, based on the user feedback, they can improve and create a perfect app in every regard.

Parting Words

Fintech is far from an easy industry you can Bank upon for quick success. But once a fintech app is developed and released by following these tried and tested guidelines and principles, even fintech apps from small startups can enjoy global success for a while.
In this respect, one must remember that fintech apps should aim for sustainability and improvisation with the market instead of quick success.

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