A FinTech Startup Guide for 2021-22

Fintech is a well-known term that has been in use for some time. Because it is the technology that consumers use to execute their financial transactions, digital transformation technology has enhanced how the financial sector responds to their requirements. Fintech is when you use your credit card to buy goods or stocks online, or when you use Google Wallet, PayPal, or ApplePay to pay for services, subscriptions, or investments.

“The global fintech market will reach $124.3 million by 2025 at a Compound Annual Growth Rate (CAGR) of 23.84 percent,” according to the Global FinTech Market Size, Status, and Forecast 2018–2025 analysis. For that reason, there are substantial investment opportunities for fintech s

What is a Fintech Startup?

A fintech startup is a company that uses technology to meet the financial management needs of consumers. Fintech firms compete with traditional financial service providers by providing more efficient solutions or a better user experience to current issues.

You can start a fintech company and application because consumers are rapidly adopting fintech. Almost 96 percent of purchasers have at least one finance app on their mobile device. You’ve probably seen that banks, insurers, and lenders have developed applications for their customers to help them speed their processes. As a result, now is the greatest moment to get your financial firm off the ground.

Types of Fintech Apps

It’s critical to become familiar with the many fields of fintech before beginning to develop mobile apps for them. It’s critical to choose the correct development path for a fintech app in order to figure out how to make it successful. We’ve compiled a list of the most common fintech app categories to assist you with these chores. It will provide you with useful information about current fintech market developments.

Digital Payments

The fintech industry’s largest branch is digital payments. According to Statista, the total value of digital payments will be $4,769,370 million in 2020. The requirement for cashless, rapid, and secure money transfers is addressed by digital payments. Online payment systems, digital currencies, and e-wallets are examples of solutions that help meet this need. You may get an idea of how to design a fintech app that deals with digital payments by looking at the following prominent platforms.

Digital Banking

Customers who need to manage their bank accounts and conduct financial transactions swiftly and without the assistance of a third party have turned to digital banking. Online, mobile, and digital-only banks have sprung up to meet these demands. Traditional banks had to develop fintech apps for their customers to keep up with the increased competition in this area. The N26 and Revolut banks are fantastic examples of how to create a digital banking fintech app.

Digital Lendings

The process of originating and renewing loans has been changed by digital lending. Digital lending software facilitates efficient management of loan requests and effective engagement between lenders and borrowers, ranging from simple loan applications and websites to comprehensive automated platforms. Fintech developments are used by both independent digital lenders and traditional financial institutions to strengthen their businesses. The solutions listed below can be used as a model for developing a fintech app for digital lending.

Digital Investments

Retail and institutional investors can use digital investing platforms to research and invest in a variety of financial assets. Investment apps are a great way to get your feet wet in the stock market. By providing users with relevant insights and data, investment management systems enable them to improve their investment performance. If you’re looking for inspiration for a fintech app for digital investments, consider the following options.

Insurtech

The term “digital insurance,” or “insurtech,” refers to the use of technology in the insurance sector. Its main goal is to reduce the time it takes to administer policies and process claims. Insurtech also aids in the reduction of the risk of false insurance claims. Insurtech solutions range from simple websites that provide insurance for a car borrower for an hour to large CRM systems. If you’re thinking about developing mobile apps for FinTech in the insurance industry, have a look at the examples below for ideas.

Consumer finance

The consumer finance department assists consumers in budgeting and managing their costs. This type of fintech app allows users to plan their expenditures. The user’s future account balances can then be predicted, preventing him from spending more than he intended. Examining the following solutions will give you an idea of how to create a fintech app for consumer financial management.

The comprehensive guide will teach you all you need to know about the fintech industry, including how to launch a fintech company and why you should design a fintech app for your company.

6 Steps to Launching a Fintech Business

Digital payments, digital lending, digital banking, digital investment, and consumer finance apps are the finest fintech applications because they enable users to bank, pay, save, spend, invest, borrow, or make money. They’ve detected a potential issue that consumers may be experiencing and are working to resolve it.

Here’s how to launch a fintech company in 2021

Understand the Laws

Because the fintech and banking industries are heavily regulated, it’s critical to understand their ins and outs. Anti-money laundering (AML) policies, the Payment Card Industry Data Security Standard (PCI DSS), Know Your Customer (KYC), and the General Data Protection Regulation (GDPR) are just a few of the laws that govern the industry (GDPR).

Fintech companies are regulated by a variety of government financial organisations depending on their jurisdiction. The Federal Deposit Insurance Corporation (FDIC), the Commodity Futures Trading Commission (CFTC), the Consumer Financial Protection Bureau (CFPB), and the Office of the Comptroller of the Currency are the major regulating bodies (OCC).

If you want to build a worldwide startup, you need to understand these rules and how they will affect your firm. Remember that these laws differ from one country to the next, or, in the case of the United States, from one state to the next. Fintech companies can apply for standard licences in most countries, however, they must apply for fintech licences in the UAE and Mexico.

Determine Your Specialization

• The questions below can assist you in deciding on a specific speciality for your financial firm.
• What subdomain of the fintech business would you like to enter?
• Who are you aiming for? Is it a product for a certain demographic, a single country, or a specific region, or is it a worldwide product?
• Do you want to start a fintech company locally and subsequently expand globally?
• What is your area of expertise in this field?

Become acquainted with your rivals

You should research the competition now that you’ve determined your specialisation and location. Because you’re entering a market with a lot of competition, your product needs to be distinctive and fill a specific niche in that segment.

For instance, financial services is a vast niche market, but can you spot a specific gap? Consider the underbanked and provide them with a remedy.

You might also fail to add something new but increase the quality of what you already have. Take mobile banking, for example. With your new solution, you can make it much faster and easier than previous competitors.

This is because the fintech industry is large and developing, which means there are several business prospects. The majority of its top participants are large corporations and profitable businesses; nevertheless, with a suitable idea, your startup can offer a highly personalised and convenient solution. This will help you stand out from competitors like Microsoft, Apple, PayPal, Pioneer, Stripe, and Coinbase by making you more relevant to your target audience.

Build a Team

Fintech, or Financial Technology, is made up of two components: money and technology. While both are essential, having an experienced team of technical professionals will assist you in developing a distinctive fintech app. This technology partner should be within your price range, neither too high nor too low.

You might deal with a company that is based in a more cost-effective region yet has top technological skills. These offshore financial app developers will collaborate with your on-site team to produce high-quality software or applications at a low cost.

Select Your Financing Options

There are various choices for subsidizing your monetary firm. Crowdsourcing, bank loans, venture money, angel investors, and startup competitions are just a few examples.

You will, in any case, require a negligible feasible item to go about as a proof of idea. The assets raised through the MVP are adequate to foster programming or an application for your objective market. A large portion of the present fintech behemoths started thusly.

Build and Improve

After you’ve completed the first five steps, the final step is to build and improve development. It’s a continuous process that extends into the future, unlike the preceding steps.

It entails launching your business, getting it up and running, enhancing your processes and goods, adopting new technology and trends, and embracing change regularly.

To avoid the risk of rushing into this saturated and extremely competitive fintech sector, it’s best to start modest and improve your product over time.

Fintech App Development’s Major Technology Trends

Business objectives that are properly aligned with the suitable technology stack result in a successful fintech app. It also entails having comprehensive knowledge of significant technological trends at your fingertips.

The following are some of the world’s most inventive trends to keep an eye on while you work on your fintech development project.

Artificial Intelligence

AI recognises and analyses real-time data before making recommendations for the best course of action. As a result, AI has a wide range of applications in the financial industry. It can, for example, be used to detect fraud in Insuretech, Regtech, Digital Banking, and other areas.

AI can assist you in brainstorming ways to create a smart and dependable financial application.

Blockchain

Blockchain is a dependable technology that educates fintech entrepreneurs on how to create transparent and trustworthy fintech apps. The reason for this is that blockchain stores data in time-stamped block series that you can’t change or delete. This information is stored in a decentralised fashion, ensuring its safety.

Big Data

In recent years, there has been a tremendous increase in the use and availability of various electronics. As a result, the amount of data produced and gathered has increased as well. Companies now have a lot of in-depth insights into business development potential because of data analytics.

You can utilise big data as an example to predict customer behaviour and develop purpose-driven marketing campaigns, making your fintech app your users’ only choice.

Cybersecurity

In today’s digital age, data security is becoming increasingly important. As a result, fintech apps should be worried about how they keep and manage sensitive data from clients.

To prevent data theft and security breaches, your team should use a variety of security approaches. They should create a better safe and reliable fintech app

Microservices

An application is structured as a group of interconnected services using this technology. The fintech app becomes a distributed system with data management that is decentralised. You may now effortlessly include any new solution you develop into your system. The cost of developing your fintech software will be reduced if you follow the microservice, AI, and blockchain trends.

Reasons to Launch Your Fintech Startup Right Now

1. A High Adoption Rate

Almost every smartphone has at least one fintech app, and traditional financial players such as lenders, banks, and insurers have embraced fintech on a huge scale.

Fintech is also being used by businesses to help them automate and streamline their procedures.

2. A Diverse Range of Developmental Options

Because of the current market conditions, developing a fintech app now is a wise decision. By 2023, it is expected that mobile apps would produce $935 billion or more in revenue. If similar entrepreneurs construct their finance products by then, this number might be substantially higher.

3. Integration into the company’s infrastructure

Shortly, major industries will be required to develop fintech apps and perhaps profit from them.

As the world shifts toward mobile apps, launching your financial firm today is an incredible opportunity that you don’t want to miss.

4. Access to a diverse range of technology

The Internet of Things, Machine Learning, Artificial Intelligence, and Robotics are all examples of cutting-edge development trends and technologies in the financial technology business.

You may use one of these technologies to construct a financial solution that is both effective and relevant. Financial technology is both exciting and profitable since it is a solution in and of itself.

Fintech Apps Features

What matters most today, regardless of the fintech application we’re discussing, is its security. When paying online, many are afraid of losing their money. According to Juniper Global Statistics, fraudsters have already taken over $20 billion from internet users in 2021. (e-commerce fraud losses).

It means that while designing a fintech application, the first thing to consider is how to ensure that it has enough layers of protection. When discussing the programme with the developer team, you should first and foremost focus on correctly developed algorithms and check as many vulnerabilities as feasible. Testing the app's security system is necessary, and it should be done regularly.

The ability to interact with other services and an API for more complicated integrations were the second must-have feature of the fintech app, as determined by the analysis of user evaluations and requests. You simply open a wider avenue for your finance firm by planning these from the start.

Focus on finding and fixing a big issue for your target users while brainstorming ideas for your fintech app. You can figure out how to create a fintech app that does something better, cheaper, or with fewer steps than similar alternatives. Whatever your ultimate goal is, there are some qualities that every excellent fintech software should have. They are as follows:

• The sign-in process should be straightforward but secure. Integrating voice and facial recognition, as well as fingerprint authentication and good old two-factor authentication, is a win-win approach. Biometrics will soon become a requirement. For example, starting with iOS 13, Apple requires that all apps that use social login services implement the Sign in with Apple feature, which makes use of the biometric capabilities inherent in iOS.
• Basic financial procedures relevant to your fintech branch should be available in your app. Digital payments, money transfers, mobile depositing, and balance checking are all examples of this. Your users should be able to complete as many tasks as feasible without having to go to a web application or a physical location.
• Your users’ lives will be made a lot easier if your software features QR code and card number scanning. Scanning a card for a card number rather than manually typing all the digits gives your users a substantial benefit. Scanning QR codes is the same way. Don’t forget about this feature when thinking about how to create a fintech app that can help users with their pain points.
• Personal finance management is not covered by all fintech apps. Include tracking features for budgeting and savings when considering how to build a fintech app that will make a difference. Furthermore, consumers will appreciate being able to manage many accounts in one location.
• Custom notifications are an important feature for creating a more engaging user experience. Everyone enjoys individuality when it comes to their lifestyle. Allow your users to pick when and how they receive information, whether it’s regular transfers or customised offers.
• Another crucial aspect of user engagement is cashback. If your users can benefit from purchases made through your app, they will love it even more. Consider a loyalty programme feature when deciding how to create a fintech app with strong retention rates. If customers spend more money through your app, you can offer them a bigger proportion of cashback.
• You can integrate unusual financial services into your app, such as ordering meals, purchasing tickets, or donating money to charity. People will be able to handle their finances in one safe location. This ensures a pleasant user experience.
• When it comes to designing fintech solutions, AI-powered chatbots and virtual assistants are crucial to customer engagement. They can answer hundreds of inquiries at the same time. As a result, your users will have access to help at all times. At the same time, these tools can help your customer service centres handle more calls. Because they can swiftly fix small issues, your staff can concentrate on more complex issues. Keep in mind, however, that these advantages will only be realised if these modules are adequately designed, trained, and tested.

Conclusion

As more organisations create their applications, the fintech industry is thriving. As a result, you should be a pioneer rather than a spectator.

Now that you know how to start a fintech company, take advantage of the biggest opportunity in the market and join the revolution. Insuretech, mobile banking, mobile trading and investments, online payments and international fund transfers, personal finance management, crowdfunding, cryptocurrency, and blockchain-based solutions, among other niches, your company could be one of the greatest global fintech startup apps.

Mobile phones are slowly but steadily replacing wallets. Fintech apps are luring customers away from traditional banking and insurance organisations. The fintech market is expected to reach a value of $150–160 billion by 2023.

In the sector of fintech, we have a lot of experience. We know how to create a financial app that your users will love. Look at our portfolio to become familiar with our experience. We believe that one initiative can improve the entire business, therefore let’s not waste any time and start working on it together right now!

This is the greatest moment to develop your concept further. What are the chances? Your app has a good chance of being well-known in the industry. Platforms with useful and enticing features have a bright future ahead of them. For a sturdy and scalable financial application, work with a skilled web and mobile software development business. Observe the profitability of your internet business thanks to a specialised software solution tailored to your exact requirements.