How to create a fintech app in 6 easy steps

Now, let’s explore the complete guides about how to create a Fintech app, along with the considerations and challenges before creating an app in the blog below. 

Fintech market overview

A brief explanation of fintech

Fintech, an abbreviation for “financial technology,” encompasses the utilization of technology to enhance and streamline the provision and utilization of financial services. Its purpose is to assist companies, entrepreneurs, and individuals in effectively managing their financial activities, procedures, and lifestyles.  

Fintech includes a wide range of innovations in business transactions, ranging from the creation of digital currencies to the implementation of double-entry bookkeeping. It encompasses various sectors and industries, including education, retail banking, fundraising for nonprofit organizations, and investment management. In addition, Fintech encompasses the advancement and utilization of cryptocurrencies, such as Bitcoin. 

An overview of the fintech apps market

According to Statista research, the Fintech Apps Market is experiencing significant growth and transformation: 

• The Digital assets market is expected to be the largest, with an estimated assets under management (AUM) of US$80.08 billion by the year 2024. Further more, it is predicted to experience a substantial revenue growth of 17.38% in 2025.
• The Digital payments market is expected to witness a significant surge in its user base, with an estimated 4,805.00 million users by the year 2028.

In general, the Fintech market is expected to maintain its dynamic and innovative nature, continuously introducing novel solutions and services to cater to the ever-changing demands of consumers. 

Things to consider before building a fintech app

Building a fintech app requires various steps involved in the domain types, features, and tech stacks. The followings will cover all of them.

Identify the types of fintech applications you will develop

Choosing the right domain is crucial before building a fintech app as it can be compared to laying the foundation of a house. A weak foundation can cause significant problems in the future. Here are some types of fintech apps that you should take into account.

Recurring Fee-Based financial services

This type of service offers user-friendly, cost-effective financial solutions using technology. These include digital wallets like Google Pay, payment processing products like PayPal, and Neobanks like Ally. They also provide asset and data management services like Acorns, alternative credit scoring services like Nova Credit, and Buy Now, Pay Later (BNPL) services like Klarna. 

DIY products (Do-it-Yourself Products) 

DIY products allow customers to perform tasks that once needed to be completed by a business; these services include managing funds, investing, and making payments. These include robo-advisory tools like Wealth front for investment advice, individual retirement accounts (IRAs) like Robinhood Retirement for tax-beneficial savings, and money management apps like Cash App for budgeting and expense tracking.

Transactional marketplaces

Peer-to-peer marketplaces facilitate transactions by connecting lenders and borrowers. These include peer-to-peer lending platforms like Zopa, crypto exchanges like Coinbase for buying and selling cryptocurrency, and blockchain-based solutions like Ripple for secure and efficient information sharing. These services make transactions easier for customers.

Innovative insurance models 

Innovative insurance models provide insurance using technology and consumer data, offering cheaper premiums. They include business insurance apps like Newfront for businesses not eligible for traditional insurance and cybersecurity insurance like Coalition, a sector not yet covered by traditional insurers. 

Charging users for access to data aggregators 

These businesses aggregate and cluster financial data from various users and sources. They sell access to this information, such as income or transaction summaries to financial institutions. This data enables businesses to create more targeted and personalized campaigns and product offerings. Data aggregators like Plaid and Pinwheel exemplify this service.

What are the features a fintech app must have?

Once you have selected the types of domains, it is important to take into account the essential features that a fintech application should have. For a fintech app to be successful, it needs to have standard features related to notifications, user interface, and security that are user-friendly and reliable. Below are the detailed descriptions of the essential features:

Push notifications

Push notifications play a vital role in facilitating effective communication between bank officials and customers. This feature informs users about new policies, discounts, and other important updates promptly. With the push notifications feature, financial service providers can maintain a strong connection with their clients and ensure that they are always well-informed.

Simplicity

The simplicity and user-friendliness of Fintech apps are of utmost importance due to the sensitive nature of the information they handle. The application should be designed to be as straightforward as possible, allowing users to navigate without any difficulty. This is important because a simple interface ensures that users can quickly understand and utilize the app, saving them time and, hence, using it more.

Personalization

Personalization is a feature that is added when financial apps are combined with AI. Artificial intelligence examines user behavior patterns to deliver pertinent information on changes, policies, and advantages that the financial institution provides. As a result, significant input and suggestions are tailored, aid in customer retention, and draw new markets and revenue.

High-level security

Ensuring high-level security is crucial for every fintech app. Since these apps handle users’ financial information, any data breaches or security vulnerabilities can result in financial losses for the users. To prevent these risks, fintech apps should implement various multi-layered security features, such as biometrics and data encryption. 

Best tech stacks to develop a fintech app

The selection of the technology stack depends on the specific requirements of your application. By making the right choice, you can not only save time and money but also ensure the development of a robust fintech app. To assist you in this process, this section has compiled a list of recommended technology stack options for developing your fintech app.

Native app development

If you intend to  a fintech app that is specific to a particular platform, here is the recommended technology stack for each platform: 

• iOS-based Fintech app 

iOS-based fintech apps are developed using languages like Objective-C and Swift, which offer object-oriented capabilities and dynamic libraries, respectively. Apple XCode, a comprehensive development environment, is used for user interface and debugging tools. The iOS Software Development Kit (SDK), in combination with XCode, facilitates the writing of iOS apps. 

• Android-based Fintech app 

Java and Kotlin are two options for languages for developing Android-based fintech apps. Java is known for its security features and comprehensive tools, while Kotlin addresses some of Java’s flaws and offers cleaner solutions. To build an app, developers can use Android Studio and the Android SDK. These platforms provide flexible systems and extensive development tools, ensuring a smooth and efficient development process.

Cross-Platform app development 

For a cross-platform fintech app, React Native, an open-source JavaScript framework, is preferred. It supports multiple platforms, including Android, iOS, Windows, and macOS. While C# is another significant language for cross-platform development, allowing the use of device-specific APIs.

Hybrid app development

To build a hybrid fintech app, the suitable technology stack includes HTML5, a popular and convenient technology for hybrid applications, and PhoneGap, a widely used framework for hybrid mobile app development that provides an economical solution to users.

Other effective technologies 

There are several other technologies that can greatly contribute to the development of a robust fintech app:  

• Python: This versatile programming language is widely used in fintech app development due to its simplicity and readability. It offers a wide range of libraries and frameworks that can expedite the development process.  
• React Native: This popular framework allows developers to build a Fintech app that is compatible with both iOS and Android platforms. It offers a rich set of pre-built components and allows for efficient code sharing. 

Now that you are aware of the best tech stacks to develop Fintech apps, in the section below, let’s discover more about the process of how to create a Fintech app with six easy steps. 

How to create a fintech app in 6 easy steps

Developing an application is a process that cannot be accomplished overnight; it demands both time and financial resources. Hence, the foremost consideration for Fintech businesses should be to develop a unique idea, identify a specific market segment, and follow the next steps involved in the development of a fintech application. Here are the complete guides about how to create a Fintech app with 6 easy steps:

Step 1. Identify your specialized market and guarantee adherence to legal regulations

Finding a niche and ensuring legal compliance is crucial before you start the app development process. It suggests that you should choose the type of fintech app you want to develop and the area of fintech you want to concentrate on. To determine the features, you may choose your specialization based on the features you want in your app. 

In the above section, we have listed several essential features that a fintech app must have, such as simplicity, high-level security, personalization, and push notifications. In addition, consider incorporating another unique feature that sets you apart from your competitors. 

After selecting your niche, it’s imperative to make sure that your application complies with all local regulations in the regions where it will operate. Keep in mind that ignoring legal compliance might get you in hot water legally and subject to heavy fines. Therefore, it is highly recommended that you take appropriate measures to comply with the laws in each region where your application will be available. This will not only help you avoid potential legal issues but also build trust with your users by demonstrating your commitment to their safety.

Step 2. Define the feature requirements and estimate the budget

Selecting the features for your financial app comes next after you’ve identified your niche. Ensure that you only add features that are required; your fintech app may confuse users if it has too many unnecessary features.

Budget estimate is also necessary before you start the development process. Later in the development phase, budgetary restrictions may cause the process to lag. Knowing what you’re getting into and having a rough budget ready to go may help you avoid problems in the latter phases of development.

Step 3. Create or hire a team for the project

In step 3 about how to create a Fintech app, you need to create or hire a team or individual with technical expertise in various areas, including: 

• UI designers
• Web developers  
• Project managers  
• Quality assurance specialists  
• Android/iOS developers  
• Business analysts  
• Front-end developers  
• Back-end developers, and so on 

To ensure the development of a high-quality app and the optimal utilization of your invested funds, it is essential to assemble a team of highly experienced professionals. Hiring an experienced fintech app development team can prove to be immensely beneficial, as it saves both time and limits mistakes. 

The size of your development team will depend on the scale of your project. Larger projects will require more team members. However, if your project is relatively small, you also have the option to to hire fintech developers individually based on the specific skillsets you require. 

Designing the user interface and user experience is crucial for fintech apps, as it is the primary point of interaction for users. Therefore, it is imperative to ensure that the app is user-friendly. To determine the most suitable UI/UX design for your fintech app, it is beneficial to create multiple prototypes. This process becomes much smoother when you have an experienced team on board. Here are some tips for achieving a good UI/UX design for a fintech app: 

• Prioritize ease of use in terms of functionality 
• Avoid cluttering the application with unnecessary features 
• Ensure that clients can easily locate options without any difficulty 
• Keep the design straightforward and intuitive 
• Choose colors that are neither too dark nor too bright

Step 5. Build an MPV (minimum viable product)

Testing your idea before embarking on the extensive development process is a crucial step. The acronym MVP refers to minimum viable product, which serves as a proof of concept containing sufficient features to undergo a trial phase.  

With this way, you can test your app idea on the market and make any necessary modifications without incurring additional costs. If the app is tested to be successful, you can then scale it up to attract more clients, generate more revenue effortlessly, guarantee the smooth operation of your fintech app, and deliver value to its users. In addition, an MVP allows you to gather early feedback, expanding the opportunities for enhancements while mitigating the risks and costs of fixing bugs.

Step 6. Test and evaluate your fintech app

It is crucial to thoroughly examine and evaluate the fintech application. Conducting a comprehensive test will enable you to assess all facets of the application’s functionality and prevent any potential glitches in its future performance. 

One key aspect to verify is the app’s compatibility with various screen resolutions. If you intend to launch the app for both iOS and Android users, it is imperative that the Fintech application operates seamlessly on all mobile devices. 

In addition, the development and deployment of your application do not mark the completion of its development process. It is crucial to continuously enhance and update your fintech app to ensure its latest functionality can cater to all user needs. Besides, periodic additions to new features while still maintaining and following the Fintech regulations for the app are crucial. 

So, the 6 easy steps about how to create a Fintech app are complete. However, after creating an app, you need to think about the following challenges to limit certain risks. Everything you need to know will be shown in the part below. 

Challenges of building a fintech app and their solutions

Building fintech apps can be a challenging process that may encounter various problems along the way. It is important to remain aware of these potential challenges and be prepared to address them to ensure a successful development process. In the section below, we will provide in detail some of the most significant challenges you are likely to encounter, along with the best solutions to improve:

1. Security and data privacy

Challenge: Financial information is highly delicate, necessitating strong security protocols to avert breaches and uphold user confidence. 

Solution:  

• Data encryption: All sensitive data should be encrypted both in transit and at rest. Encryption converts data into a code to prevent unauthorized access, ensuring that even if data is intercepted, it cannot be read without the encryption key. 
• Secure authentication: Implementing secure authentication methods like two-factor authentication (2FA) or biometric authentication can add an extra layer of security.  
• Regular vulnerability assessments: Regularly conducting vulnerability assessments can help identify potential weaknesses in the system before they can be exploited by attackers. 

2. Regulatory compliance

Challenge: The ever-evolving regulatory landscape in finance can be complex and demanding, making it tricky to stay compliant. 

Solution:  

• Build a team with regulatory expertise: This team can monitor the regulatory landscape, interpret new regulations, and ensure that the app is compliant.  
• Partner with a qualified legal firm: If building an in-house team is not feasible, partnering with a qualified legal firm can be a good alternative.  
• Maintain clear documentation and audit trails: This includes documenting all transactions, user interactions, and changes to the app. Audit trails can help track and verify transactions and can be invaluable during compliance checks or audits.

3. Tech expertise and integration

Challenge: Fintech apps often involve complex integrations with banking systems, payment gateways, and other financial institutions, requiring specialized tech skills. 

Solution: 

• Assemble a team with diverse technical expertise: Building a fintech app requires a team with a diverse set of technical skills. This includes expertise in programming languages, databases, cloud computing, cybersecurity, and more.  
• Outsource development tasks to experienced fintech developers: If building an in-house team is not feasible, copanies can consider outsourcing the development tasks to experienced fintech developers.  
• Employ API integrations and data standardization techniques: APIs (application programming interfaces) are a set of rules that allow different software applications to communicate with each other and simplify the process of connecting their apps with external systems.

4. User experience and adoption

Challenge: One of the next challenges about how to create a Fintech app is building a user-friendly and intuitive interface, which is crucial for attracting and retaining users in the competitive fintech landscape. 

Solution: 

• Conduct thorough user research: Conduct surveys, interviews, and usability tests to gather insights about your users’ needs, preferences, and pain points to inform your design decisions. 
• Incorporate design principles that prioritize clarity, ease of use, and accessibility: Fintech apps should be easy to navigate, with clear labels for all features, and accessible to all users. You can use readable fonts, high-contrast colors, and provide alternative text for images. 
• Offer financial education resources: Many users appreciate having access to educational resources, which include articles, videos, and interactive tools that explain financial concepts in a clear and understandable way.

5. Competition and differentiation

Challenge: Standing out in the crowded fintech market requires a unique value proposition and effective marketing strategies. 

Solution:  

• Identify a specific niche or underserved market need: Instead of trying to cater to everyone, fintech companies can focus on a specific niche or an underserved market need. This could be a particular demographic, a specific type of financial service, or a unique way of delivering financial services.  
• Leverage data analytics: Data analytics can provide valuable insights into user behavior, preferences, and needs. These insights can be used to personalize the user experience, making the app more appealing to users. 

To answer the question “How to develop Fintech app,” you need to adopt a flexible approach, embrace continuous learning, and gain a profound understanding of the fintech field. These steps will help you navigate the challenges and problems that can arise during the development process and ultimately achieve your goals. By staying informed and prepared, you can overcome any obstacles and create a successful fintech app.  

Building fintech apps with Synodus

Synodus is a leading IT consulting and software development services provider that boasts over 4 years of experience. Originally established as a modest tech lab, Synodus has evolved into a premium tech provider, assisting organizations and enterprises worldwide in enhancing their performance and gaining a distinct competitive advantage over their rivals.  

Presently, Synodus boats a team of over 250+ highly skilled IT Specialists, serves a remarkable 88% of recurring customers, and has completed more than 100+ successful Fintech app projects including Digital banking, Digital e-wallet, Cryptocurrency Exchange White Label, P2P Lending, and more. We are known for our exceptional work in the Fintech industry and our commitment to providing top-notch services to our clients. 

Synodus offers a range of exceptional Fintech app development services, and below are some of the key highlights that make us stand out. 

FAQs

Summary

In a nutshell, “How to create a fintech app” is a detailed process with 6 steps that necessitates the creation of numerous features and capabilities to cater to the needs of users. The demand for FinTech application development is continuously increasing and is poised for further growth. To stay competitive with IT companies and digital banks, traditional banks need to adopt modern and sophisticated FinTech apps. It is evident that even the most prominent global banks are investing in FinTech to transform their internal operations and explore customer engagement strategies more professionally. 

We trust that the article has provided full information and is useful, equipping you with comprehensive knowledge about how to develop a Fintech app. If you have any inquiries regarding FinTech app development, please feel free to reach out to us.