Fintech app development is one of the formal talks in town regarding the FinTech industry. Over the past few years, this sector has undergone significant change.
Either you discuss financial marketing or market digitization. Fintech apps are in high demand in the market, but are you getting the desirable application that you want? Your fintech application should have features that are customized to your business process and the requirements of your customers.
The majority of financial institutions rely on app development to make financing easier to manage in most regions.
As per the Statista Digital Finance Sector Market Stats
- The largest market will be Digital Investment with a AUM of US$152.20bn in 2024.
- The average AUM per user in the Digital Investment market is projected to amount to US$257.50 in 2024.
- The Digital Assets market is expected to show a revenue growth of 17.4% in 2025.
- In the Digital Payments market, the number of users is expected to amount to 5,480.00m users by 2027.
- Total AUM in the Digital Investment market is projected to US$152.20bn in 2024.
- The distinctive characteristics of KPIs within the FinTech sector preclude their combination and presentation as a singular number representative of the whole FinTech industry.
Image Source: statista.com
By 2026, this fintech industry is projected to grow to $324 billion at a compound annual growth rate (CAGR) of 25.18%.
Image Source: explodingtopics.com
It can be challenging to locate qualified IT specialists who can assist you in developing customer-focused fintech application solutions.
The use of AI to forecast users’ typical behavior in a banking application is just one of many fintech trends that are improving the application. Additionally, as per demand, there are a few must-have features to make the application customer-centric.
Today in this blog, we will talk about trends, features, statistics, and the cost of a fintech application for the upcoming market.
So let’s get started with some trends!
Latest Fintech Trends in 2024
The fintech sector has undergone a significant change in response to audience demand. Fintech applications in the current market have covered many fintech trends, and you will find most of the applications for digital banking, payment, insurance, etc., but the market is vastly improving and becoming more customer-centric.
Undoubtedly, the industry is enhancing itself, so the market will keep on changing, and sooner or later, we will have so much more to see.
Let’s see the latest trends that you need to follow for your fintech application;
1. Blockchain Technology for the Upcoming Era
The cryptocurrency market has taken traders and investors on a wild ride this year.
International fund transfers currently have a reputation for being time-consuming and expensive. However, blockchain technology aims to address these issues with faster international payment processing times, increased security, and typically lower costs.
In a recent poll, it was found that 52% of consumers believe cryptocurrency is a “valid alternative” and that 45% of consumers already use it to send money abroad.
The fintech sector will likely experience increased demand as a result of the customer’s response, and at the same time, demand will likely increase. This trend is clearly a mandatory option you should consider for your fintech application if you want to stay competitive in the market.
In the competitive landscape based on an extensive assessment of the key strategic developments adopted by the leading market participants in the FinTech blockchain industry over the last few years.
The key players profiled in the global FinTech blockchain market are:
– IBM Corporation (U.S.)
– Coinbase (U.S.)
– Ripple (U.S.)
– Accenture (Ireland)
– Salt Blockchain, Inc. (U.S.)
– Gemini Trust Company, LLC (U.S.)
2. Embedded Finance is more Consumer-centric
Basically, embedded finance is the integration of financial features or services into the offerings of businesses that are not financial. The ecology of embedded finance is vast. Its focus has widened to cover allied areas such as payment processing and insurance. It includes financial services such as banking, credit, and investing.
Small and medium-sized businesses (SMEs) are interested in investigating embedded finance solutions from digital platforms, according to a global survey of 2,500 SMEs across 10 markets conducted by Accenture. Accenture forecasts a revenue uplift of up to $92 billion within the embedded finance market by 2025.
The ecosystem of embedded finance is enormous. Its purview has been widened to incorporate related sectors like insurance and payment processing. It includes financial services like lending, investing, and banking.
Actually, this is called as “Innovation that will enhance the customer experience”
Here are some market leaders thinking about the adoption of Embedded Finance in their online fintech businesses:
– Stripe
– Balance
– Resolve
– TreviPay
– Parafin
3. A Bright Future of Fintech with Cloud Computing
Financial institutions can scale storage and enormous processing capacity in the cloud at a low cost. Open banking and the digitization of the FinTech sector are made possible by the cloud.
The cloud trends to watch include edge cloud, an ecosystem of storage and processing resources, cloud containers as a service (CaaS), cloud microservices architecture, and cloud integration of artificial intelligence. More than 24 percent growth per year is anticipated for financial cloud services, according to McKinsey.
4. Voice Pay
Through the use of digital assistants in financial management, fintech companies hope to increase the usage of these devices. Users can expect voice biometrics to offer trustworthy data protection. While engaging in other activities, the owner can use voice commands to purchase goods and check the total. It is not necessary to manually enter the data.
With its long-standing partnership with Amazon Alexa, Capital One Corporation is actively developing voice payments, which let customers pay their credit card bills. Other fintech companies are using voice assistants to advise clients on complex issues and take the place of chatbots, managers, and contact center employees. By 2026, it’s predicted that the market for voice and speech recognition technology will have almost tripled.
5. Artificial Intelligence
Many operations at banks, credit bureaus, and insurance firms are enhanced by clever algorithms. The typical user behavior in a banking application is “studied” by artificial intelligence.
Al notices suspicious behavior and warns the client and the bank in the event that a fraudster gains access to the platform. Based on AI, smart virtual assistants are created. These are chatbots that help customers solve problems around the clock. The technology analyzes user habits and offers personalized financial advice on more favorable terms for the client.
Also Read- Top 11 Use Cases of Artificial Intelligence (AI) in the Finance Industry
6. BNPL (Buy Now Pay Later)
The rising popularity of BNPL can be attributed to an alluring combination of material and intangible advantages, including ease of use, flexibility, interest-free or low-rate financing, and the ability to make a significant purchase right away without having to go through the hassle of applying for credit.
Over the past few years, the global “Buy Now, Pay Later” market has expanded quickly. It is anticipated that this rapid expansion will continue.
7. Alternative Financing
The term “alternative finance” refers to financial activities that are not part of the capital markets and banking system. All non-bank options, including non-bank lending, that are available to small businesses are referred to as “alternative funding.” This aims to improve traditional methods of finance in categories such as payments and invoicing, consumer lending and credit, small business lending and credit, and more.
Financing that is accessible outside of conventional big banks is known as “alternative financing.” It gives founders more flexibility and variety in choosing solutions for financial services.
8. Decentralized Finance
Decentralized finance, or “DeFi,” manages financial transactions using cryptocurrencies and blockchain technology. Peer-to-peer financial services offered on open blockchains, primarily Ethereum, are collectively referred to as “DeFi.”
Through the availability of financial services anywhere, regardless of identity or location, decentralized finance eliminates the need for centralized financial models. Through individual-focused trading services and personal wallets, DeFi applications give users more control over their finances.
9. Bank-as-a-Service (BaaS)
BaaS, or banking as a service, is an end-to-end model that enables digital banks and other third parties to directly connect with banks’ systems via APIs so they can develop banking offerings on top of the providers’ regulated infrastructure and take advantage of the open banking opportunity that is reshaping the world’s financial services industry.
A model for giving web and mobile app developers a way to connect their applications to backend cloud storage and APIs is known as “backend as a service” for mobile apps.
10. AI-based Chatbots
For companies that depend on interaction with customers, such as financial institutions, chatbots are no longer a novelty but rather a necessity. Artificial intelligence (AI)-powered chatbots are capable of mimicking human conversations, quickly resolving client issues, and performing repetitive tasks, freeing up human staff to handle more complex and crucial issues.
Finance chatbots aim to streamline essential financial processes, particularly payments. If the platform is poorly designed, money transfers could be challenging and stressful.
Must Include Features in Your Fintech Application
Although the features of fintech applications differ from app to app as per the requirement and purpose of the application, there are a few must-have features that are mandatory to have in your application.
- Regional Language Choice
As mobile banking penetrates the rural market, it might be advantageous to develop a multilingual app to make sure that everyone has access to the digital ecosystem. Users who do not speak English well will be able to learn the UI if the app supports regional languages, which will benefit users from all regions. This is one of the top features you should include in your app
- Security
We are all ears about fraud and cybercrime. The financial sector deals with susceptible information, so the security of the application should have no vulnerabilities. The security features in the application should have a cloud data migration facility, data ownership, digital identities, and more.
- Blockchain Integration
Blockchain in financial services is incredibly promising and has the potential to address major problems currently. Transparency and security can both be guaranteed in financial services using blockchain technology. Integrating blockchain can support stock exchanges, cross-border payments, fund investment, and more.
- Multi-Currency
Well! Fintech applications have advanced features like multi-currency applications. It enables you to link your accounts in various nations and keep track of them all in local and converted currencies using daily exchange rates.
- Intriguing Interface
It’s a very basic concept that you need to make it easy for your customers to explore and use the application. Poor navigation instructions could make you lose the customer’s proper interaction with the application. An in-app search box where the user can type their desired query should be included in the app. You should use intuitive shortcuts in the interface to quickly access common app features.
- Personalized Experience
Nowadays, a mobile app’s personalized experience is its most important feature. This function may be useful for drawing in and keeping the young clientele. Think about in-app virtual assistants and tailored insights based on a customer’s spending patterns or cash flow. These features help you catch your audience’s attention and have worked well in contemporary times.
Also Read- How to Develop An Algo Trading App? Key Features, Cost & Development Guide
Types & The Cost of Developing a Fintech Application
The cost of the development of an application differs depending on the type of application that you want.
Portfolio Management App: It is entirely figured out for tracking the portfolio. The investment tracker feature keeps an eye on your investment expenses, such as mutual fund fees, to help you save money. The cost of such applications is usually between $45k and $125k.
Stock Trading App: The average cost of developing a stock trading app might range from $5k to $200k. However, this is a rough estimate. The actual cost could differ based on different factors. Robinhood is one example of a stock trading app.
Alternative Investment: These are assets that aren’t stocks, bonds, or cash, in general. The average cost for building an alternative investment app is between 45k – 150k.
Buy Now Pay Later App: With this app, you can split your payment into a number of manageable, equal installments. Typically, there are no interest charges and only a few small fees. Suss app development typically costs between $65k and $175k.
Digital Payment (P2P): The price range for an MVP of a P2P payment app is between $100,000 and $150,00. The application’s design and development could affect the overall development cost. A peer-to-peer payment app allows users to transfer money between their e-wallets or bank accounts.
Crowdfunding: The cost to create a typical crowdfunding app ranges from $60k to $230k. The features and functionalities of the app will determine the exact cost of developing a crowdfunding app. Crowdfunding is a method of raising capital for businesses that focuses on getting smaller sums of money from a larger group of people.
Insurance: The price to develop an insurance application is in the $50,000–$120,000 range. To calculate the exact cost of developing your insurance app idea, you must Consider the team involved. The user’s application makes it incredibly easy for him to access information about his insurance.
Crypto wallet App: To give you a general idea, the price to create a cryptocurrency wallet app can range from $45,000 to $1,70,000. A wallet’s key, which is the wallet address required to sign cryptocurrency transactions, can be found there.
Also Read- Latest Finance App Ideas for Startups
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Why Choose Quytech for Fintech App Development?
Developing a new fintech app is time-consuming. Quytech offers a less demanding and more effective alternative to development by bringing together expertly qualified resources from diverse fields on an ‘as-needed basis. We offer customized solutions to help startups to achieve their goals at the earliest possible opportunity.
Hire Quytech for a fintech app development project, and here is why:
- Reliable offshore software development provider
- An experienced team of developers, QA, and designers
- Scope for UX/UI design: -Platforms as per your preference
- Development in multiple languages
- Clear comprehension of the financial domain and its requirements
- Experienced team of developers and designers.
Conclusion
FinTech applications are, in most cases, mobile and cloud-based. The reasons behind this are simple: consumer behavior is shifting towards the use of smartphones, and the majority of those using financial services are millennials, who expect their data to be available at all times.
While the technology behind FinTech apps might be complex, it’s important to remember that ease of use is vital for widespread adoption. Ease of use could only be made possible by assembling the most feasible features. Another thing to take into consideration for fintech app development for startups is to follow the latest trends and be the pioneer in adding the latest functionalities to your application as per the customer’s demand.
Quytech is a leading company that can help you develop a fintech application. No matter what sort of application you want, we provide you with customized solutions. we are one of the most trusted fintech app development company. Contact us for any queries.