Fintech Application Development in 2022: Detailed Handbook

Over the past few years, FinTech applications have become widespread in a variety of industries. FinTech companies raised a total of $210 billion in 2021, according to KPMG.

Source: KPMG’s Pulse of Fintech H2 2021

Popularity and profitability encourage companies to seek help with FinTech app development. In the first quarter of 2022, there were 1.74 billion downloads of financial and FinTech apps, according to Sensor Tower’s State of Fintech and Crypto Apps 2022 report.

Source: Sensor Tower’s State of Fintech and Crypto Apps 2022 report

In 2022, interest in FinTech ESG solutions, modernization of key banking platforms and services, and data apps have increased. Developing KYC, AML, and BNPL systems is another critical market segment. FinTech Application Development for cryptocurrency and blockchain, contactless and instant payments, use of AI technologies have also continued to be attractive to investors.

📌 FinTech Application Development: Types of Apps and Examples

There are numerous categories of FinTech apps:

• Payments. FinTech application development services related to payments and online banking will remain essential. In addition to well-known companies like PayPal, there are several impressive cases of FinTech App development. One such example is Heartland Billpay, which offers a billing system to simplify digital invoicing and in-person payment.
• Insurtech. This industry combines innovations in the insurance industry: mobile apps, Al, and other tech-centric methods.

• Regtech. This is regulatory technology that combines innovations for improving regulatory governance. Elliptic succeeded in FinTech web application development, providing crypto compliance solutions and analytics.

• Blockchain/cryptocurrency. Enterprises are increasingly using these technologies to expand their operations. Check out more ideas on how to use blockchain in FinTech in 2022.

• Cybersecurity. This segment includes FinTech Application Development for fraud detection. For instance, Cylynx incorporates pre-transaction checking that flags suspicious transactions.

• Wealthtech. These apps automate wealth management operations and simplify the client’s investment procedure.

Get ideas for your FinTech app by looking at these examples. 

📌 Trends That Drive FinTech App Development

Several factors have fundamentally accelerated the development of FinTech apps.

The first is the digitalization of traditional financial institutions and banks. Everyday challenges and customer requests require modern solutions. FinTech application development services are in high demand.

The need for online and remote services is on the rise. Users increasingly want to use mobile apps and online communication services. Meanwhile, companies will strive to improve their activities. This will manifest itself in tools for digitizing document management, replacing traditional consultants with online solutions.

In addition, there are rivalries between companies, marketplaces, aggregators, and various service providers. It is profitable to develop your solution to provide services and build processes faster. The easiest way is to enlist the assistance of a FinTech application development company like dev.pro.

Revising traditional financial products is another approach. For example, insurance enters the territory of loans; loans appear where insurance has always dominated. Hybrid models arise, combining different components.

✅ FinTech Application Development: Step-By-Step Algorithm

Understanding algorithms is essential to succeed in FinTech app development. It’s hard to find good recommendations when you google “mobile or web application development FinTech.” Learn about the most frequent steps involved in developing a FinTech app!

1. Selecting a contractor

In the first stage, it is essential to decide to whom you entrust such an important task: your own developers, outsourcing, or a FinTech application development company. Not all companies cooperate with developers who can implement these specific solutions. Outsourcing is a financially profitable option, but missed deadlines or information leakage is possible. Collaborating with a company may not be the cheapest option, but it will provide maximum quality. When selecting a software development partner for such projects, you may consider going for a company run from the US but with development centers around the world.

2. Goals and objectives setting

Determining a FinTech application’s role and what tasks it should solve. Moreover, it is essential to decide which tools should be implemented.

3. Data collection

Several critical analytical processes take place at this stage, including information gathering and searching for weaknesses and growth points. This stage also involves studying the target audience, competitors, and market features, as well as profiling and segmenting the audience.

4. Statement of technical specifications for the company or developers

To compile this document, you can use several questions that will help simplify the process. What are your app’s commercial objectives? Consider the app’s goal, business strategy, and the issues that it will assist users with.

Is this an improvement to an existing tool/platform, or are you starting from fresh with a new app? The more data you have on users’ age, income, and background, the better.

Outline the platforms, including versions on which your final product will operate. Select which devices your app will be available on. Will there be versions for PC and mobile? Define the functions of your app. What will people be able to accomplish with it?

What tasks should the developers complete? Some examples include coding, testing, UX/UI design, and product support services. Which duties are outside the scope of the developers’ remit? For instance, your development team’s to-do list may not include server configuration for the mobile app backend.

5. Creating a list of product hypotheses

This stage involves conducting experiments to validate hypotheses and fixing the verification process in the product concept.

6. Formation of a backlog of product requirements

The backlog includes the distribution by types of features, goals, and roles in the team. There is building business logic and creating a design system at this stage.

7. Classic development

This involves working on user stories, preparing UX/UI, writing code, and testing MVP.

It is essential to pay special attention to the functionality as well as appearance. The app should be simple, trouble-free, and accessible to everyone.

The designer draws the necessary elements. They then introduce the corporate identity and, if necessary, develop it separately. This team member also develops UX design and creates the application interface. Once the design has been accepted, the developers begin implementing the software.

8. Analysis, analysis, and more analysis

This stage involves determining success using metrics and analytics and transforming the  MVP into a full-fledged product.

9. Application testing

The simplest application cannot be released without preliminary tests, which is especially important in the case of FinTech applications. Developers should carry out these tests using potential users. This will assist in particular to check the integration of payment systems.

📌 Tech Stack for Mobile FinTech Application Development

The success of the application development process is also impacted by the tech stack. The following factors should influence technology selection:

– requirements and specifications

– mission and goals of the app

– technical abilities of the team

– data protection and security measures

Java, Swift, C#, and Kotlin are the most commonly used languages when it comes to developing FinTech apps. You must select the database you will be working with and the database management system. Furthermore, you will need to choose a framework to create user interfaces.

Objective-C and Swift are the two main programming languages used in iOS, followed by Xcode and Appcode are two other popular toolsets.

Android FinTech app developers typically use Java or Kotlin. Android Studio and Android Developer Tools (ADT) are the primary languages used in the development process.

The most well-known frameworks for hybrid app development are Cordova and Ionic.

📌 Cost of FinTech App Development

The cost of developing FinTech apps is determined by several elements, including the development team’s hourly rate, the company’s prices, and the complexity of functions.

You can get an exact price after offering companies your detailed specifications. This kind of work is both time-consuming and expensive. Therefore, when ordering applications, people usually focus on the hourly wages of developers. Several specialists can simultaneously execute one project, reducing the time required to complete it.

The median annual remuneration for an app developer in the United States is $86K and the high range is reaching $131K, making it the most expensive region in the world. The annual median in India is $6,3K with the highest at $12.3K, according to Payscale.

📌 Fast-Track Your FinTech Project With a Reliable Software Development Partner

This is a good idea if you decide to entrust your FinTech project to experienced professionals.

You gain from the synergistic effect of combining your business idea with a savvy tech partner, cutting cost, time-to-market, and minimizing downtime.