Understanding the Fintech Technology and it Rise in Detail
With the advancement of technology, every company is moving towards digitalization. They know that the secret of futuristic innovation lies in the palms of digital technology. That is the reason why many businesses have opted to shift their business online, so that they could get maximum benefits. The rapidly rising fintech industry is also one of them, as it is quickly making huge inroads in the digital circuit. Those business that are related to this sector must need to know how to create a fintech app that can facilitate their customers. It is quite necessary for them due to the rising competition, hence they should not think twice about that.
During the last few years, the fintech industry has witnessed a massive growth. Well, if seen logically, it was always there on the top, but with the arrival of different financial apps, its footprint has become more evident. Today, it has become a mainstay of the financial world as each and every transaction is dependent on it. Businesses too know about the importance of fintech, which is why they are quickly moving towards it.
In this blog, we will take a look at the rising importance of this field. We will let you know why fintech is seen as the future of finances in the world. Besides that, the blog will also discuss how to create a fintech app professionally. This will assist many beginners to know about the basics of fintech app as how it is created using right software development methodologies.
So, without delaying further, let us first understand what is fintech and why it has seen a massive rise in the world during the last few years.
What is Fintech?
Fintech is a term that is used for every business model that is built on the bases of finance and technology. This almost covers every financial business today, because all of them are thriving on the wave of digital technology. Earlier, this term was not much common, but with the arrival of many online applications, fintech became a known word to everyone. It defined how financial world is closely linked to the technological advancement, and why businesses must need to think about it.
Today, every financial institution relies heavily on digital interactions. From banks to ecommerce stores, fintech is a major part of every business. It is therefore important to take professional software development services and incorporate various elements of fintech in every business function. It will simplify various financial operations, allowing companies to manage various types of online transactions easily.
The Rise of Fintech Market
Many people do not know about the word of fintech, yet they are closely linked with it. They might think that fintech is not part of their business, or they are not related to its services. Well, they are certainly ill-informed because fintech has become a part of our lives. It has established footprint in every market, and no business can thrive without incorporating fintech in its model.
The rise of fintech market is exemplary, as it has made huge inroads everywhere. From personal finance to mortgage solutions, fintech looks essential for everything. Many people who do not know how fintech is impacting their financial operations, take a look at the list of function given below. It will let you understand how fintech is helping us to do various operations day to day without doing much manual efforts.
- Online money transferring
- Personal finance
- Trading solutions
- Regtec financial applications
- Mortgage solutions
- Banking services
- Online lending
- Insurance solutions
Types of Fintech Applications
As defined above, fintech has seen a massive growth during the last few years. It has impacted different industries, encouraging many businesses to adopt its model quickly. Due to this, different types of fintech applications have been developed and introduced in the market. These apps have simplified different types of things, allowing customers to perform various operations easily.
If you do not know much about the types of fintech app available in the market, take a look at the list given below. This will define some of the common apps that we regularly use, as well as those applications that are created for a specific purpose.
Online Mobile Payment App
Many of us do not know that online mobile payment apps represent a big part of fintech technology. These apps are used by millions around the world to simplify online payments, yet only few of them know about their real category. They are quite easy to use, allowing people to transfer money from one place to another in a matter of minutes.
Wealth and Investment Apps
As the digitalization is progressing fast, many investment institutions have developed their mobile apps to facilitate customers. These applications are smartly built to let you buy stock, ETFs and other assets with the ease of your fingertips. That is the reason they are also related to the fintech technology serving thousands of customers.
Built with advanced technologies, lending apps also showcase how fintech model smartly works. These apps are created with several automated features that help to streamline online loan services. They also provide full access to online documentation, so that a customer can perform all the formalities from just one application.
How to Create a Fintech Application: Important Steps to Consider
Creating a fintech application often looks difficult to some people. It requires detailed knowledge and skills related to software development. Those who do not have sound understanding of software processes, always look confused while developing the fintech apps.
If you also want to know the correct process to develop fintech application, take a look at the tips defined in this blog. These points will let you know how the development process should start keeping various things in mind. Let’s take a look at them below.
Research the Market
First of all, you need to research the market to see what type of fintech applications are currently being used in the industry. This will give you plenty of ideas for the development of your own app. You can use them to devise a development strategy and build fintech apps as per the latest software development trends.
Unfortunately, many project stakeholders do not research the market before creating a fintech application. It proves to be costly for them when the app fails to get any market attention. This type of approach not only wastes their time, but also plenty of money in the overall process as well. It is therefore advised to first research the market before starting any project. It helps you to take the right decision and follow the process that fits best for development.
Write Secure Code
After conducting a brief research, it is now time to develop the fintech application. To do that, you must need to write a secure code for every feature of the application. This is an important point that needs to be understood properly. If you will not pay attention to it, then your fintech app can have serious loopholes that can bring major external attacks.
There are some specific protocols you need to use while writing the code of a fintech app. It is not a random application that can be created with a normal data structure, instead it requires a specialized mechanism to write code for particular fintech features. So, always remember to first learn how to code securely, as that is considered an important part of fintech app development.
Setup Payment Gateway
It is known to everyone that payment gateway is the most important thing in fintech applications. It should always be integrated by keeping different things in mind that are related to payment processing. A lot of times, project stakeholders choose wrong payment gateway for fintech applications. They usually do this because of having little knowledge about the market which is also a key prospect.
As per the user reviews, Stripe is currently considered the best payment gateway for fintech apps. It provides various features to streamline payment processing via online channel. The integration of Stripe in an application is also quite easy. The platform provides a readymade API to integrate Stripe into any application. Besides that, you can also use other payment gateways for your fintech app such as PayPal, Payoneer, Apple Pay and more others.
Implement Chat System
To improve on-point customer services, you need to integrate a chat system into the fintech application. This practice has become very popular these days because businesses know the value of their customers. They do not want to lose them by giving late answers, hence they integrate automated chat systems in the fintech applications to facilitate their customers.
Talking about automated chat solutions, one of the thing that is making huge rounds over the internet currently is ChatGPT. It is an AI-powered tools that helps to automate chat systems on finger tips. The quality of the responses are so good that you will precisely feel having a presence of real person at the other end. For fintech apps, this chat system must be integrated in the system, as it can ensure to provide quick responses to the customers.
Implement Proper QA Testing Procedures
After completing the core application programming and integrating APIs, it is now time to test the fintech app. This is a very crucial phase in which you have to evaluate different features smartly. Many times, errors are not detected during the development. They can only be identified at the end of the process when several QA tests are performed.
It is therefore important to do the QA testing precisely, so that every hidden error can be tracked on time. Nowadays, developers use different automated tools to run QA processes. These tools are quite effective, as they save a plenty of precious time. However, to use them, you should have a basic QA testing knowledge, as how different tests are executed. Therefore, try to first learn the basic concepts of QA testing, so that you can work with all types of tools and processes efficiently.
That takes us to the end of this blog in which we have discussed about the rapidly rising fintech technology in detail. It has certainly taken the financial market by storm, enabling businesses to manage different online transactions effortlessly. Not just that, but fintech has also brought a positive change in the lives of a common man by simplifying various operations. The emergence of fintech apps has given everyone a great leverage to access and manage their financial wallets easily.
If you are also looking to develop a fintech application with advanced features, get in touch with us today. We have got years of experience in software development, hence we can assist you to develop all types of applications effectively.
Frequently Asked Questions (FAQs)
1. What is fintech?
Fintech is a model made with a combination of different industries i.e. finance and technology. It integrates both of them to present a cohesive application that can handle major financial tasks using advanced technology.
2. What is a fintech application?
A fintech application is made to ease financial tasks using advanced technology services. It helps users to simplify different financial operations using the power of online channels. That is what makes these apps special among others in the industry.
3. How fast is the fintech market rising?
The fintech market is rising quite fast in the world. Today, everyone is linked with this model due to getting ease in handling different online transactions. From banks to ecommerce stores, everyone is dependent on the fintech technology to manage their day to day payment tasks.
4. How to create a fintech app?
To create a fintech application, you need to first research the market and select a development process. Then, you must need to write a secure code to develop various features of the application. Lastly, do not forget to run QA tests as it is essential to validate the efficiency of any application.
5. How much does it cost to develop a fintech application?
The software development cost of a fintech application varies due to many reasons. It depends on the features required in the application, as well as the timeline defined. Generally, the cost of a fintech app ranges from $10K to $20K on a normal average.