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2020 has been an important year for many, if not all, industries. Extensive lockdowns, heavy travel restrictions, switching from home to work, and profound reforms in growth strategies, budgets and priorities have had a profound effect on businesses worldwide. However, this effect was not always adverse.
In many industries, including the financial industry, moving away from this tectonic business introduction leads to various new services, service models and approaches to meet customer needs.
With access to mobile banking, convenient digital payments and money transfer tools coming to users’ attention, more transactions are being done from home or on the go than ever before in its home-and-record industry.
The new generation of dynamic fintech start-ups has proven that there is a lot of money and space in the industry. Fintech app development is a constantly evolving space with technological innovations. Consumers and finance businesses are accustomed to this new wave of online fintech services.
So, as a fintech startup or entrepreneur, we have some important information for you if you are looking for a digital revolution. This blog is a complete guide on successfully developing Fintech App Development. Dive into it and mentally note some essential points.
A Revolution with FinTech apps
Fintech has rediscovered customer service, while traditional banking players still deploy basic-level customer-oriented solutions. A new era of finance start-ups uses non-traditional channels like social media to provide 24/7 customer service. They have also been on chatbots for seamless communication with customers.
People are increasingly adapting to the digital transformation of the finance and banking sectors. Adaptability has increased significantly since the impact of COVID, with physical proximity no longer so important. After the 2020 recession, investors are ready to invest in the fintech market.
Of course, after seeing such statistics, you can be firm in your decision to create finance software. To make it easier for you, we’ve covered the important issues that successful fintech start-ups may encounter during their journey in this blog.
Global online finance statistics
The number of fintech start-ups has increased between 2018 and 2020. The U.S. is home to 10,605 fintech start-ups as of February 2021, followed by the EMEA with 9,311 and the Asia Pacific region with 6,129.
About 96 per cent of online shoppers have at least one banking mobile app development on their device. These wonderful platforms play an important role in modernizing financial operations by setting new standards. The average transaction value per user in the alternative financing segment is estimated to be the US $ 30,337 in 2021, according to Statista.
Identify the unique location of your fintech startup
Which subdomain are you planning to enter from the fintech industry? Do you have experience working with a specific industry?
- Competitive analysis
After determining the specificities and areas of operation, you need to study your potential competitors. With such a thorough analysis of the best fintech applications in the business, you can find flaws in existing solutions. This can help you create unique finance software for your users.
The digital fintech software solution is on the verge of new possibilities every day. So, as a finance startup, you have the freedom to experiment and experience unfamiliar technological trends with your application development.
- Build a winning team
As the term Fintech suggests, your start-up will combine technology and financial services. So, if you have an experienced team of technical experts and financial professionals, it will be helpful.
If you plan to work with an application development company, let them coordinate with your on-shore team. A team of professional developers will enhance your online presence with their technical prowess: timely updates, feature integration, error resolution and more. You will soon remove the drawbacks of such software.
- Select the funding option
There are several options for agency banking solutions to your financial firm. Crowdsourcing, bank loans, venture money, angel investors and startup competitions are just a few examples.
However, you will need a Minimal Valuable Product (MVP) to prove the concept. The funds raised by MVP are sufficient to develop software or apps for your target market. Most of today’s fintech giants started this way.
- Plan the initial areas of operation
Who is your target audience? Will your service be available to a limited region, country, specific demographic group, or all? Are you planning to start your company locally, or are you planning to go global from day one?
Do you want to reduce the risk of rushing to launch your product in a highly competitive market? If so, you should consider starting small and constantly improving the product. Initially, launch your FinTech solution in a limited number of markets—the approach to build and improve works perfectly.
- Regulatory and compliance
The fintech industry, like the banking sector, is highly regulated in most countries of the world. The industry needs to comply with anti-money laundering policies, consumer data protection laws and other ethical requirements such as KYC.
There are category-specific rules tailored to your unique finance application idea. Every regulatory law needs to be read thoroughly to ensure the security encryption of financial applications.
If your FinTech solution plans to provide service in multiple countries, you should learn how these laws affect your business. One should keep in mind that the rules vary from country to country, with some countries even issuing dedicated fintech licenses.
Such regulatory laws also help gain trust and attract potential customers for online business. Thus, study the advantages and disadvantages of each compliance before integrating it for the application.
Now, do you want to know some intuitive features for a fintech app? Here, our finance developers have listed some features for you.
Final thoughts
Slowly but steadily, mobile phones are becoming the new wallet. Consumers are moving away from traditional banking and insurance companies to branchless banking facilitating. By 2023, the fintech market will exceed 150-160 billion in valuation.
Don’t wait. This is the best time to take your idea to the next level. Who knows? Your application can take a leading position in this field. The future is undoubtedly bright for a platform with valuable and attractive features—partner with FinTech app development company for robust and scalable fintech application. Testify online business profitability through custom software solutions tailored to your specific needs.