In essence, fintech or financial technology is a term used to refer to an industry that specializes in providing financial services based on modern digital technologies.

Currently, many startups are developing innovative solutions related to electronic payments, and financial management based on Data Science solutions, artificial intelligence, Big Data, and machine learning.

As people become increasingly demanding about the speed and ease of use of software, mobile fintech applications are gradually replacing traditional financial solutions.

Stages of Creating a Fintech Application

Creating a fintech product is a large-scale process that requires a careful approach to each stage of development. Read more. let's outline what you need to do to launch a successful app:

1. There should be a clear idea of what problem the fintech application should solve and how it can contribute to business development. At this stage, we research the market, collect data about potential customers, and outline ways to meet their needs with the help of this application.
2. Most fintech solutions only have a mobile and web version. Therefore, design is crucial, as the appearance of a software product contributes to the formation of trust in the brand. Another feature of fintech applications is that they are strictly regulated.
3. System requirements. This is one of the core levels, as applications have very complex architectures and specific internal processes. Functional requirements define the tasks that the software must perform and describe the behavior of the product. As for non-functional requirements, they place constraints on exactly how features are implemented.
4. Approval of third-party integrations. Not everything available to the end user is developed directly by fintech, instead, they integrate a wide range of functions.
5. Software development process. There are two main approaches to product development: Waterfall and Agile. This model is not suitable for today's startups due to the constantly changing requirements for developing fintech products.
6. Testing friends and family. Once the digital solution is available for production, you can ask family members and close friends to test it. Feedback can help make some changes to improve the app.
7. Public release. This is a turning point for the fintech product development team. Customers are starting to use real money, regulators are closely monitoring new players in the market. Despite all this, a public release is the best thing that can happen.
8. Continuation of development. The software development team does not “sit on the bench” after the release. Product managers always have a roadmap to follow, which is a large set of features.
9. Maintenance. This phase includes helping customers with problems they encounter while using the fintech application. In addition, regulators demand that issues be resolved as quickly as possible, while customer support, treasurers, or the compliance team sometimes lack the tools necessary to resolve a problem quickly.

Types of Fintech Applications 

• P2P applications allow users to directly transfer funds between each other's bank accounts. Cardholders do not have to use the services of a common bank or have the same payment system.
• Money management applications allow users to independently manage their investments and make stock trades. They are equipped with search and trading tools that will be useful for both beginners and professionals. Some of the more popular investment apps include Robinhood, Acorns, and Stash, the latter of which is ideal for those just starting to master the stock market.
• Mobile wallets are electronic wallets that store your bank account information on a mobile device, provide access to it, and allow you to make online purchases.
• Insurance apps can be used to submit applications, process payments, and even get insurance quotes. They cover different areas, starting with auto insurance and ending with medical.
• Digital banking applications provide all traditional banking services through the Internet. You can check your balance, make transfers and payments, and get personalized spending management advice from your mobile device.
• Budget control applications are designed to keep your account: create a spending plan, track them, and find new ways to save.

Сonclusions

Fintech applications are a modern trend, as they allow companies to provide their services within the digital ecosystem. Automating operations, increasing efficiency, and customizing the service are just some of the benefits that such applications provide. However, their development is a multi-stage process that requires effort.