FinTech solutions offer better ways for people to manage their finances, so this change is for the better.

In this overview, we’ll reveal the key technology opportunities and share our experience on how to build secure FinTech applications.

FinTech App Potential and Adoption

Companies choose to build FinTech app solutions to simplify and increase the effectiveness of financial operations with a diversified set of high-tech solutions.

Currently, the secure FinTech industry encapsulates the set of various technologies, including payment processing, digital wallets, and lending services.

In addition to providing functionality for managing sensitive information, these automation tools have improved the efficiency of business processes. These benefits extend far beyond traditional banking.

FinTech is Applied to Mobile Apps in 3 Key Ways:

  1. Adding financial features to non-financial apps. Now, each business owner can process in-app transactions.
  2. App monetization. Secure FinTech services made the appearance of the Freemium model possible, meaning the presence of paid features in a generally free mobile app.
  3. Meeting customer demands. Already existing and new technologies make banking apps in the customers’ eyes more effective and secure.

As the leading trends in Fintech application development, artificial intelligence, blockchain, gamification, bots, and voice technologies shape the future of innovation. All of them possess the power to reinforce your business performance and customer experience even more.

FinTech Use Cases

These days, FinTech applications are very popular and serve the financial needs of various industries, including banks, insurance, and eCommerce.

Erica

Bank of America decided to build a FinTech app to enable mobile banking for their clients. Serving as a virtual financial assistant, this mobile solution has a diversified set of features:

  • All your bonuses in one place
  • View your account balances
  • to see your monthly spending
  • find past transactions
  • receive refund notifications
  • Monitor recurring transactions
  • Schedule payments and receive bill reminders
  • Receive notifications when duplicate changes are made
  • Monitor your credit score for important changes

All-in-all, this solution facilitates everyday banking and provides personalized and proactive insights to support financial activity.

Shopify

As an eCommerce platform, Shopify adopts FinTech instruments to ensure safe payment processing in the system. This company is a striking representative of non-financial players that start offering financial services without leaving their industry. The term that represents this trend is “embedded finance.“

In essence, Shopify provides infrastructure for other eCommerce companies, including in-built FinTech solutions for trading. In particular, the platform has Facebook Shop integration and provides instalment payments to clients who buy for the price between $50 and $1,000.

This way, the ability to offer secure and efficient financial services with FinTech tools generates profits and creates revenue growth for the company.

Lemonade

The FinTech app offers instant access to a variety of insurance services. The set of features includes claims, giveback, and policy 2.0. Through AI-powered claim management, claims can be filed quickly and easily. To submit a claim, you only need to press the “Claims” button, tell the app what happened, and let AI run its anti-fraud algorithms to instantly approve it or send it to the team.

Giveback is a service that lets customers choose a nonprofit organization to care for and send unclaimed money that is left. All you need is to sign Lemonade Policy, a radically simplified, modernized, and digitized insurance policy.

Development Tips: How to Create an Outstanding FinTech App

Normally, the FinTech application development process consists of these stages:

  1. Product concept. The development process starts with defining your product, along with determining its purpose, researching the market, and calculating the possible risks.
  2. Vendor selection. Once you know what you do, it’s time to answer the question, “Who?”. At this stage, check the resource base of each vendor carefully to make sure this company can become your reliable tech partner in the long run.
  3. Technology stack choice. The exact technology set for developing FinTech apps will depend on the expertise of the development team and your budget constraints, among other factors. Choose wisely.
  4. UI/UX design. The main focus of a FinTech app is to ensure the most satisfactory customer experience. It’s important that the design has full functionality and presents all these features in an easy-to-use manner.
  5. MVP development. This product helps to test your product idea by investing a minimum in the app development itself. What’s more, you will get customer feedback right away and develop software so that it addresses their needs more accurately in the future.

In the FinTech app building process, it’s important to make wise decisions and consider all the opportunities in each development stage.

For example, the ideation stage should go beyond corporate brainstorming and include in-depth research, like PwC best practices. Moreover, MVP development isn’t effective without sufficient testing before the release.

From our development practice, going for outsourcing is the best choice in terms of cost-effectiveness and quality standards. These days, software development outsourcing is rising, meaning the ability to provide enhanced experience with AI and IoT, work with blockchain services, and stick to the highest cybersecurity standards.

Nevertheless, it is important to make an informed decision about your technology partner and to be aware of all the possible risks and pitfalls.

5 Main Features for Building a Fintech App

  • API integration. In order to guarantee a satisfactory level of user experience, your FinTech app should be integrated with other applications.
  • Chatbots. Combined with AI capabilities, this technology provides customers with essential and accurate support and maintains this service 24/7.
  • Notifications. The financial sphere is dynamic and constantly updated. Without the notifications feature, they will miss important news or have doubts about whether the transaction was successful.
  • Security. FinTech apps deal with sensitive information, and it’s crucial to introduce at least a two-factor authentication defence for customers.

3 Core Tips to How to Build a Secure FinTech Application

Generally, the development of the FinTech industry has improved the security standards for mobile apps. That’s because the safety layer is the key one for FinTech apps.

Unfortunately, not every tech vendor is aware of it: most developers prefer to copy the quick solution from StackOverflow or introduce already existing crypto algorithms. That’s how buggy software has flooded the market.

In the given circumstances, FinTech security is one of the strongest ones in the mobile app development market. Below, you will find the exact things to do to make secure FinTech solutions.

1. Payment Gateway Protection

Providing a safe payment gateway is a must-have measure for secure FinTech development. Being a technology that collects and transfers data from a client to an acquirer, it acts as an interface between a merchant’s website and its acquirer.

In other words, it deals with sensitive personal information that should be protected accordingly. Among must-have measures, your Fintech app development company should add SSL for secure connections, have a PCI certificate, enable tokenization, and provide 3D secure authentication.

2. Dedicate Enough Time to Testing

Also, FinTech security comes as a result of passing a sufficient number of checks and validation. In the software development process, they happen in the testing stage. Being titled “penetration testing,” this set of measures is aimed at detecting vulnerabilities in the app and contributing to creating an attach-resistant code.

The effectiveness of this step depends heavily on a clear understanding of the app security requirements. Besides, QA testers should work through every possible scenario during functional testing. That’s why the professionalism of these team members is crucial in FinTech development.

3. Invest in IT Security as a Whole

Finally, it’s impossible to maintain FinTech security in a vulnerable IT ecosystem in the long run. That’s why it’s important to develop a defensibility approach, meaning the creation of a safe cyber environment as a whole.

A list of key measures includes leveraging a robust IT infrastructure, designing secure application logic, ensuring web-server security, and writing secure code.

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