Many people are using fintech apps, also known as financial technology applications, as they have completely changed how businesses run. The industry has made electronic transactions easier for customers. To address the need for more effective financial systems, fintech businesses were established.
In this post, we'll examine several potential fintech startup app ideas for 2022 and beyond, go over some key elements of fintech apps, and go over the step-by-step procedure for developing a fintech app. However, before we get started, let's take a quick look at the state of the fintech sector.
Fintech Market Overview
Switching to an electronic medium became crucial for the survival of several participants in the banking industry. Fintech applications are being developed by long-established financial institutions that were previously unwilling to adopt innovations to compete with them.
The market for fintech apps will expand at a 20% CAGR to reach $305 billion by 2025, according to research by ResearchAndMarkets. Because of the COVID-19 crisis's enormous economic potential, fintech is one of the sectors with the greatest growth rates worldwide.
According to a new fintech app industry review issued by Finch Capital, loans, lending platforms, mortgages, and life insurance services are the undeniable winners among fintech startups and major financial market participants.
The institutions in the finance sector will be more open to digitalization as we move closer to the post-crisis reconstruction and will be more assured of their ability to compete with fintech companies.
What are the Current Fintech App Development Trends?
In other words, the change in fintech will continue to be driven by AI, IoT, and blockchain. But it's important to pay attention to the technologies employed in creating fintech applications.
AI and big data are intimately related industries. Digital footprints are the many pieces of financial data apps collect and transfer to be evaluated that electronic gadgets leave behind. These data are analyzed by AI algorithms, which then turn them into knowledge about emerging company possibilities, consumer trends, and market dynamics.
AI is thought to be the most significant of all the technologies upending the financial sector. Research and Markets project that by 2025, the market for AI in fintech will be worth $22.6 billion. Fintech apps employ AI to automate repetitive operations, offer individualized financial advice, detect fraud, and analyze many sources to gather insights. In many aspects, artificial intelligence in fintech is still a relatively young technology; thus, its full potential has not yet been realized.
The distributed ledger in the digital age is called the blockchain. The building blocks of the chain are made up of sets of data that, when combined, make up a complete organization. A blockchain's data isn't kept on just one server. It is dispersed throughout the whole blockchain. As there isn't a single point where hackers may launch an attack, this helps to maintain the security and legitimacy of financial transactions.
Developing a network of connected services can build an app using microservice technology. The capability to quickly add services while preserving the app's design is the major advantage of microservices. Adding microservice technology to blockchain and AI can reduce the cost of creating fintech-related software.
The development of a fintech app must take security into account. Traditional approaches don't work when it comes to protecting sensitive financial information. Thus fintech businesses must use cutting-edge technologies like Source Code Analytics, penetration testing, and the DevSecOps methodology.
You must have heard about "gamification" for raising a client's emotional involvement. However, as a fintech trend, you can utilize a game-like design to assist consumers in achieving their financial objectives or establishing sound financial practices.
You can, for example, help your customers keep track of their spending and savings or provide cashback reward schemes.
Spending all your time typing and searching for information while gazing at your smartphone to manage your finances digitally is unnecessary. With the help of significant trends in fintech, you can check your balance and complete transactions without picking up the phone. These developments include natural language recognition, processing, and creation.
Because voice assistants add to consumer convenience, voice-enabled payments will help your finance firm attract more customers.
Once you understand open banking, you can immediately get your fintech organization closer to the industry giants. That is because you can provide your clients with even more choices by utilizing third-party APIs while enhancing their overall experience.
For example, open banking allows us to make payments on several platforms with a single bank account while also receiving tailored advice.
Bank cards have the potential to completely replace cash payments. Additionally, cards will most likely become digital, making transactions as simple as feasible.
Your fintech company may utilize the strength of VISA and Mastercard-based virtual cards to ease ordinary payments and complicated investments, including cryptocurrency transactions, for your clients.
Biometric authentication techniques are vital to the future of finance. Although it's one of the biggest fintech trends, face or voice recognition, and fingerprint scanning will undoubtedly become standard security measures in the future.
Palm vein patterns or iris recognition capabilities might be the next ways to surprise your customers. The beauty of biometric technology is found in the marriage of robust data security with straightforward login.
Fintech App Ideas for Startups
The moment is right if you're considering founding a fintech company. Entrants of fintech app solutions will be stronger than the underperformers as the pace of post-crisis digitalization quickens.
Here are a few fintech startup app ideas for 2022 that you might want to consider if you're a beginner or an established financial organization thinking about making the switch to digital.
By examining client information, behavior patterns, credit histories, and shopping activity to determine if a consumer qualifies for a loan, lending applications powered by AI and big data analytics streamline the loan assignment process. Loan applications may borrow money from banks or other app users (i.e., borrowing money from other individuals).
One excellent example of a fintech app for lending and saving money is MoneyLion. In addition to helping users manage their money, the app enjoys excellent reviews and a continually expanding user base.
An increase in new fintech applications specializing in inexpensive insurance policies has been reported due to the worldwide pandemic. Data science and artificial intelligence (AI) are used by insurance apps to gather, analyze, and assess client data, determine the risks involved, and speed up the insurance underwriting process. Insurance providers can speed up business processes and improve the calibre of their client support by utilizing fintech app solutions.
Different insurance domains are the focus of the applications in this area. For instance, the myCigna app was created by Cigna, a major health insurance provider, to assist clients in obtaining coverage and managing their medical expenditures.
There are many more helpful features for car owners in the Allstate Mobile auto insurance app, which enables customers to submit insurance claims promptly.
Personal Finance Apps
Managing personal finances, let alone savings and investments, is difficult for most individuals worldwide. The top fintech startup app ideas continue to include financial counselling services because we are not all financially knowledgeable from birth.
Robo-advisers, which provide aid with retirement, savings, and investments, are now slowly entering the mainstream.
Thanks to apps like Mint, customers can examine a holographic representation of their money, including loans, credit card balances, and investments.
Peer-2-Peer Payment Apps
If you're seeking unique fintech concepts, you might want to consider peer-to-peer payment applications. These applications are designed to send money between people, such as friends and family. The direct transfer of funds from the customer's account to the recipient's digital wallet occurs. Today's peer-to-peer payment programs are linked to banks, digital wallet services, or independent payment systems like PayPal.
Take a deeper look at Venmo and Zelle if you're considering how to build fintech applications for peer-to-peer payments. While Venmo also functions with a few online businesses, Zelle is used to sending money to friends and family.
Trading and Investment Apps
Some trendiest fintech app developments in the current financial environment include apps for trading stocks and assets. Blockchain, AI, and machine learning are combined in trading and investing apps to dramatically enhance trade outcomes. E algorithmic trading makes trading with many accounts simultaneously possible, which removes human mistakes and emotional elements, makes wise judgments based on data, responds immediately to changing market conditions, and makes smart decisions based on data.
Users can quickly gain insights into possible investments and make well-informed decisions using AI and data analytics. Users can learn trading and investing using a variety of applications, including Robo-advisors.
Robinhood is one of the trading applications increasingly dominating the US market. The anticipated cost of this stock trading and investing app is approximately $7.5 billion.
Alternatively, you may create an app to assist companies in adhering to rules and regulations and reducing the risks related to such matters. Regtech applications are designed for various purposes, including monitoring new rules, identifying risks, doing compliance checks, and translating requirements into specific actions businesses must take to avoid fines.
The development and filing of regulatory reports are automated by the Israeli fintech company Cappitech. Businesses can monitor their data security with the use of regtech applications.
Dathena, a fintech firm headquartered in Singapore, provides businesses with a collection of solutions for automating the application of security rules and protecting data.
Mobile Banking Apps
Clients turn to digital banking for rapid and hassle-free access to financial services. Due to the requirement to preserve social distance, digital-only banks like Ally Bank have emerged due to strong market demand and have shown to be the most advantageous choice during the crisis.
Traditional financial institutions, including Wells Fargo, Bank of America, and Huntington Bank, have also created branded mobile banking applications and competed directly with newcomers.
A fintech banking app often provides customers with online access to tasks including cancelling and opening accounts, deposits, doing online transactions, purchasing credit cards, etc. Additionally, AI chatbots are integrated to provide instant financial guidance and consultations.
Another excellent illustration of internet banking software is Citi Bank. Basic banking, access accounts, Citibank accounts, Citigold, and City priority are the five levels of banking service packages available to clients. The average total amount of the accounts determines the fees and APYs. Users' average account balances may be found by linking their savings, checking, and retirement accounts.
Last but not least, think of creating a bitcoin trading app employing the benefits of blockchain. Digital assets kept on distributed ledgers include cryptocurrencies.
One illustration of such apps is Coinbase, which has a built-in cryptocurrency wallet and is the most popular trading platform for cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
The use of blockchain in fintech includes, among other things, the following examples:
- Money transfers,
- Loaning money
- Handling of insurance claims
- Managing assets, etc.
Blockchain apps may have a significant advantage due to their assured information integrity and security.
Digital Wallet Apps
Do you want to create a platform that will always be available to your clients? Make a digital wallet application! People value the ability to maintain all of their bank card information in one location and pay for anything in a couple of seconds. A digital wallet software may substitute both cash and conventional credit cards. Still, it may also be appealing because of the potential added value of integrating profitable choices like discounts and cashback benefits.
You've most likely heard of PayPal. It's one of the most well-known digital wallets, allowing consumers to easily conduct global transactions. Millions of people use PayPal because they know their information is secure and can make any payment in just a few clicks.
Bill Reminder Apps
A straightforward yet promising idea for a fintech startup is a bill reminder app. Typically, a personal financial app would include a separate section where you may track your monthly bills. You may turn this feature into a standalone app for people who struggle to keep up with their monthly payments, such as rent, energy, water, or phone bills. In light of this, consumers with hectic schedules should utilize a monthly bill tracker.
An excellent illustration of productive bill reminder software is Prism. Prism incorporates all the advantages of bill monitoring applications and has the fundamental features of fintech software, including examining your balances in one location. You only need to plan your bills; the app will add them to a calendar and remind you when it's time to make a payment.
Best Features of Fintech Apps
The majority of fintech applications have a lot of similar features. To effectively compete with other app market competitors, your app doesn't always need to be completely original. Sometimes, it needs an improved user experience and a few extra features.
Users should be able to sing in smoothly and effortlessly, with all the necessary security precautions. Two-factor authentication is a must; a good idea would be to complement it with face and fingertip recognition. Using biometrics for sign-in will soon become a universal standard.
Quick Scan Feature
When using a smartphone, one of the most challenging aspects is manually entering data while you're on the road or when you need to respond quickly. This is where card number and QR code scanning greatly improve the user experience.
By allowing users to select the information they wish to receive, custom alerts give them a higher personalization level. Your software will unquestionably become more user-friendly if you allow users to unsubscribe from unpleasant alerts.
Many payment applications must feature cashback. Users of your app earn additional cashback as they perform more transactions. Make sure to include this function while you develop a fintech app because it will contribute to improved client retention rates.
AI bots and Assistants
When you integrate a virtual assistant or chatbot into your fintech application, your consumers receive immediate customer care. You also get rid of the overburden on your customer care team. Customers also adore chatbots and robo-assistants because they provide prompt responses to queries without the strain of face-to-face conversation.
Fintech business entrepreneurs may find that building an app jam-packed with capabilities backfires since customers may prefer a straightforward app that won't lead to "tool fatigue." Some third-party services, nevertheless, could be quite important. For instance, it could be crucial to offer consumer payment app choices for ordering food, purchasing groceries, or purchasing airline tickets.
Are you searching for a skilled Fintech application development firm to collaborate with on your next Fintech project?
Selleo, a software development firm, aims to apply its experience in creating feature-rich FinTech products, such as digital wallets, payment gateways, insurance apps, banking portals, etc. For further details contact us now!