Fintech stands for financial technology that refers to web and mobile applications that automate, optimize and improve financial services for business owners and customers alike. By engaging modern technology and security best practices for fintech application development, companies can deliver easy-to-use and safe software solutions for managing financial transactions and operations. This article focuses on types and features of fintech apps, and the costs of developing them.
In recent years, the market has expanded and shifted towards customer-oriented products such as neobanks, education portals, stock market apps, investment solutions, and more. Check out these astounding 11 business management software that has the potentials to change the face of your business.
4 Major Uses of Fintech Apps:
The introduction of digital transformations into the banking system has helped financial institutions solve many common problems that users and companies face, among them are:
1. Plethora of Payment Options
The growth of fintech allows an expansion of payment methods that businesses can offer and customers can utilize. The cost of adding another payment method to an app or website goes down as well as the security level increases with the integration of technology. Nowadays, customers can pay by using a debit or credit card, via external methods like PayPal and Stripe, use a cryptocurrency, and even pay in a foreign currency.
Small business owners can use online business banking to open accounts that integrate into mobile apps. It makes cash flow management processes easier and helps to provide more accurate predictions.
2. Access to Financing Options
New businesses often struggle to get approved for a loan to expand or even launch their operations. Individuals without an extended credit history can also face obstacles when trying to receive a loan from a bank. Fintech is able to disrupt the credit market and allow people alternative ways to acquire funding. For example, peer-to-peer loan platforms make financing more accessible and affordable, thus allowing people and businesses to pay off their debts faster.
3. Helping the Unbanked
As of 2017, 1.7 billion people worldwide remain unbanked, and a third of them cannot open a bank account because they do not meet the minimum balance requirements. Fintech has the potential to change that and provide access to both personal banking and online banking to a larger number of people.
Modern apps can even help customers to manage their finances by offering tips and solutions saving money. Finally, you no longer have the need to travel to a bank to get an account as you can achieve that using the app.
4. Access to Investing
The investment market has over the years been traditionally very exclusive and difficult to enter. Fintech app development has changed the game and made investing easier, more affordable and attainable to anyone who is interested. Investment applications usually provide tips and ideas on investment strategies and even allow users to elevate their skills using stock trading simulators for training without spending actual money.
6 Types of Fintech Apps
At the top of the best insurance apps you will find Allstate Mobile App (iOS and Android) that provides a full set of services to access insurance policies, claim reports, optimize payments and even receive roadside support. For investment apps, you can explore Invstr (iOS and Android), an app that offers courses on investment, provides fantasy stock games to train your skills, and helps you establish and maintain your investment portfolio.
Brigit (iOS and Android) is an industry-leading cash advance app that allows you borrow to up to $250 without undergoing a credit check or paying any interest on the loan.
Fintech app development services can help you with various types of applications for different target audiences and purposes. In this section, we will go over the main types of fintech mobile applications, and highlight their various benefits and costs of development.
1. Insurance Apps
Insurance apps is one of the many fintech apps that help users find an appropriate insurance plan as well as calculate the possibility of incidents that might require their use. The types of insurance include various purposes such as life, travel, healthcare, car, and others. These applications connect insurers and the insured thereby allowing them to get instant help as well as choose the most affordable and suitable plan.
Insurance companies on the other hand enjoy the exposure and can establish a closer bond with their user base. They can now streamline management of claims, provide ID cards and easy access to policies, automate payments, and offer 24/7 customer support.
One of the most prominent examples of insurance apps is Oscar. This app makes health insurance more accessible by eliminating copays and coinsurance costs. Users can also schedule appointments with physicians and receive test results and prescriptions via the app. The average cost of insurance fintech app development is about $70,000 to $90,000.
2. Investment Apps
The second on my list of fintech apps is the investment aap. Investment solutions unlock the exclusive world of investment and make it more affordable and attainable to the average person. These apps are mainly focused on inexperienced people that do not have thousands of dollars at their disposal.
With these apps, customers can now receive relevant tips from specialists, and start investing with a few dollars, and play fantasy stock games to figure out how the market functions. Additionally, users can learn more about cryptocurrencies and its trends thereby investing in the ones that are likely to grow in the future.
One of the most popular investment apps for newbies is Acorns, it offers small steps of investment by rounding up every purchase and collecting the difference to make an investment. The application is perfect for users who are new to the market and cannot afford to invest substantial amounts of money.
The cost of developing an average investment app is within $120,000 to $140,000.
3. Banking Apps
Banking apps bridge the gap between financial institutions and unbanked citizens. There are still many people in the world that cannot afford to open a traditional bank account due to the minimum requirements. Banking applications solve this problem and allow everyone access to convenient, secure, and affordable banking services.
Ally is one of the newest banking apps that offer advanced fintech app security and an easy-to-use interface. Besides accessing and transferring their money, users can also utilize investment features and customize a debit or credit card. Finally, the app incorporates services to transfer money simply using the person’s phone number or email address instead of extensive banking information.
The cost of mobile application development for banking depends on the complexity of the app and starts at $100,000.
4. Regtech Apps
RegTech stands for regulatory technology and includes compliance, identity management, risk management, regulatory reporting, and transaction monitoring. The industry caters to companies that use cloud computing and SaaS to ensure compliance with regulations. Their main goal is to utilize the latest technologies such as Machine Learning and Big Data to minimize potential breaches and hacks, and to increase compliance.
Alyne is a compliance management cloud solution that helps companies makes informed decisions by evaluating their risks. Their digital dashboard allows business owners to monitor their compliance requirements and perform risk analysis. As a result, companies are more cognizant of their cybersecurity and compliance performance, and can enhance the missing parts thereof.
The cost of regtech financial apps development starts at $150,000.
5. Loan Apps
Peer-to-peer lending apps strive to help people acquire loans for their business ventures, pay off their student debts, and even make a down payment on their new house. Instead of using financial institutions and paying off high interest rates, people can access more attractive options through these loan apps. Another viable option is cash advance solutions that allow users to borrow smaller amounts of money, usually about $250 per day and pay it back without any interest.
Kiva is a peer-to-peer lending app, this app allows people to lend over $25 to any individual. Once the borrower pays the loan back, users receive the lent money that they can reloan to another person or withdraw the fund.
Loan lending app development can cost somewhere between $60,000 to $80,000.
6. Personal Finance Apps
Applications that help individuals manage their personal finances are another type of the fintech market. They facilitate budgeting, accounting, invoice processing and management, as well as provide insights into personal finance. Users can learn about investment options, tax advice, and insurance types that suit their jobs and plans.
Personal finance apps range from providing educational material and offering accounting software to giving out personalized tips based on the user’s information.
Mint is a personal finance app that encompasses financial goal setting, budgeting, expense tracking, reporting, and more. The app also helps users keep their accounts safe by alerting them about unusual activities.
The costs of personal finance mobile app development vary from $80,000 to $100,000.