It is no secret that any business needs to constantly evolve to remain competitive. This directly applies to the financial services sector as well, whose consumers year after year are placing higher and higher demands on financial institutions regarding reliability and transparency of their activities, as well as the ease of receiving services. Fintech development is an extremely promising direction, which attracts both customers and executors. Let’s try to understand what fintech app development is and how this process is organized.
What is fintech app development?
It is impossible to imagine a modern bank without automated management systems. Before the active development of fintech, banks used to develop IT direction mainly for increasing the safety of operations and minimizing operational costs. Modern fintech app development is focused primarily on customer convenience.
Now fintech companies actively develop applications for financial transactions via cell phones, create payment aggregators and platforms for transactions in alternative currencies, as well as for raising funds without the involvement of banks, and much more.
What are the types of fintech app development?
Let’s take a look at what types of fintech app development are most relevant today.
Payments and money transfers
Internet payments, including those involving cell phones, are becoming more and more popular among people. Contactless payments and Bitcoin payments are also developing. Many fintech apps use Blockchain technology to minimize costs and increase reliability.
Crediting
In addition to the classic bank lending, P2P (person-to-person) lending to individuals and P2B (person-to-business) lending to businesses is developing. In this case, the funds for the borrower do not come from a bank, but directly from the investor.
Capital management and operations in financial markets
Innovations in this area lie in the automation of the decision-making process. Special financial services are being created e.g. robo-consultants, which automatically generate online investment decisions formed on the basis of information processing according to a certain algorithm.
Insurance
Since banks work quite closely with insurance companies, consider the introduction of innovation in the insurance industry as well. New technologies are used here in all processes – from sales analysis to the use of Blockchain technology to pay insurance companies.
How does the fintech app development process go?
Custom fintech software development process consists of several key steps.
IT Consulting
During this stage of the fintech app development, specialists analyze your idea, target audience, and estimate the resources required to implement it.
UX/UI design
At this stage of fintech app development, design specialists think over the appearance of the application and the logic of interaction between its elements.
Development
This stage of fintech app development implies writing the source code for the application.
Integration
Specialists then launch the software and integrate it into the company’s internal business processes.
Maintenance
Fintech app development doesn’t end here. It is necessary to make sure that everything will run smoothly, and also to refine and update the software if necessary.
How much does fintech app development cost?
The average cost of developing a fintech app varies from $50,000 to $300,000. However, the exact figure depends on a broad range of factors, such as the functionality and the time it takes to develop it.
However, the cost can be significantly reduced by contacting specialists in other regions. For example, it will be almost twice cheaper to build a fintech app in Eastern Europe than in Western Europe or the US.
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The variants of cooperation between financial institutions and fintech companies can vary from the simple use of fintech companies’ services to the full-fledged technological partnership, investing in the implementation of new systems, or buying already implemented projects. Contact Perfsol now and we will start fintech app development together in no time.
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