How to Improve Your Fintech App: The Next Big Leap for Your App
“This fintech is definitely the new boom!”
“You mean fish net?”
“No Dad, Fintech. Like Finance + Technology.”
Not only the boomer generation but a significant population of the current generation is also not very well versed with the term “fintech”. This brings the limelight to the need for understanding what fintech is.
Automation of financial services is fintech. Yes. That’s it. It’s as simple as that. But it’s not as simple as that. Even though the fintech industry sounds like a relatively new concept, its origin can be traced back to the early 1950s. The introduction of credit cards represents the concept of fintech- to eliminate the need of carrying physical currency. PayPal founded in 1998, is the first fintech company operating on the internet & creating a breakthrough for the current tech age. With this, the fintech revolution was initiated and made its way through mainstream banks, the online stock market, blockchain networks, social media payments, e-commerce payments, etc. In short, it revolutionized everything about the way we make payments today.
That’s all about a brief history of the fintech industry. Now that your app is up and performing well in the market, you might be wondering why to improve it. Why can’t we let it run the way it is already? Here are the answers to your doubts:
The fintech market was valued at approximately USD 112.5 Billion in 2021, and adding to the opportunities, it is expected to cross USD 332.5 Billion market value by 2028. These numbers are not only the scope of the industry but also indicate the need to be the forerunner to make the most of it.
- Growth of digital banking: Access to digital banking is now simpler than ever. Through digital-first banks, many customers currently manage their finances, apply for and repay loans, and buy insurance. This sector’s growth will probably continue to be fueled by its ease of use, with the market for digital banking platforms predicted to expand globally.
- Blockchain Technology: Without the involvement of a government body or any third-party organization, blockchain enables decentralized transactions. Since its inception, blockchain technology and applications have expanded swiftly, and 2023 has seen a continuation of this trend as more businesses adopt high-tech data encryption.
- Artificial Intelligence: To refine fintech services, AI and ML technologies have altered how fintech organizations scale. Reduced operational expenses, increased client value, and fraud detection are all possible with AI and ML. We can expect these technologies to play a bigger part in the development of fintech as they become more accessible and affordable, especially as more traditional banks convert to digital banking.
Planning to create a Fintech app or improve the existing one?
Now that you know how the fintech industry is shaping tomorrow, do you think your app is ready to face the challenge? There is no harm in running through a checklist again. If it turns out positive- well & good. But what if things go south? You are not losing the game. You still have enough time in hand to boost things. Keep your worries aside and read on to know more about how to improvise on your fintech app plan to capture the best of the market position.
Categorize your app:
A fintech application includes a lot of business variants and thus the right division of characteristics makes it easier for solution building. The major categories in fintech industries are:
- Digital Banking App: Web or mobile banking apps are the perfect solutions for people who wish to manage accounts without physical interaction with the bank. With the gaining popularity, banks constantly added more features and now these apps cater to all needs right from opening an account to applying for a loan.
- Investment & Trading App: User can manage their investments and indulge in the trading process through such apps. These apps not just help them manage their profile, but also invest and make trade deals.
- Consumer Finance App: These apps might not have a payment or trading functionality as they aim to help the user control their expense. The users can plan their expenses and control the money flow.
- Insurance App: This category app focuses on smoothening the insurance industry, bringing everything on one platform.
- Digital Wallets: The purpose of these apps is clear- allowing people to make online payments. The main feature of such apps is security to safeguard users from fraudulent transactions and unauthorized access.
Check on must-have features:
The key features change according to the purpose an app is built for. But in the bigger picture, there are certain must-have features that all fintech apps should include.
- Security: When it comes to a fintech app, security is a zero-compromise feature. As the primary dealing of the app is with the user’s financial information, any security loophole might cost heavy. This is why app developers implement multiple security layers like biometrics or data encryption to ensure high-level security.
- Simplicity: The purpose of these apps is to simplify the chaos of going to the bank and dealing with multiple processes. That is why it is important to keep the functionality of the fintech apps simple. Keep things direct to ensure that the users don’t have navigation difficulties.
- Personalization: With the advancement in AI, personalization became a basic added feature. AI helps you analyze the user pattern and conclude relevant inputs based on their activities. When the user gets personalized recommendations, it retains them for a longer period and attracts a new audience and revenue.
- Notifications: Push notifications can be a good communication strategy among banks and customers. You can update the latest policies and information on time, ensuring that they get in touch with you whenever required.
Deal with the challenges:
A fintech application catering to the majority of the potential will be a success, but there are going to be risks that you need to take into account. These challenges keep evolving themselves and thus become crucial for you to stay updated with the environment. Keep yourselves updated to make a game plan ready to break all barriers.
- Legal Challenges: The fintech industry deals with a lot of private information from a huge public which forces the government to keep a watch on them closely. Different countries have different laws for such companies that have to abide by mandatorily. When you launch a cross-border fintech app, take into consideration the impact of all laws and regulations.
- Market Competition: In 2021 there were over 26000 fintech startups worldwide. This number was 12000 a couple of years back in 2019. This space is surely making fast strides in both B2C & B2B sectors. When you enter this industry, every big & small app, traditional bank, financial institute, or for a matter big sharks like Google & Apple, are your competitors. The existing players have an already established audience base, which might make it challenging for you to earn the trust of your potential users. To attract them to your application, you need to offer something more convenient and unique.
- Security: Data security in fintech is a commonly advised topic and is something worth mentioning over and again. A small loophole is enough for an attack worth causing a million-dollar loss and demolishing the goodwill. Be prepared to protect the data from all types of cybercrime. One mistake can cause years of recovery, with no guaranteed success.
Look out for possible refinement:
In this ever-evolving digital world, fintech appears to be the answer for quick and reliable solutions. To have steady growth in the market, one should be ready to make certain profitable investments with a clear plan. Here are a few ways to ponder over market success.
- Introduce a new service: The expansion scope in a fintech app is endless. Even though online payments and tracking account balances are the primary conveniences of fintech apps, more functions can be brought in. Try to implement industry-specific features in existing services like loans or insurance.
- Branding: While your product reflects your brand, you need to do a lot to glorify your brand recognition. Pool in online and offline marketing activities to gain more attraction. Adding gamification, bonus loyalty points, personalized offers, etc can help you build your brand. Keep a simple logo with a user-friendly UX to create easy brand recognition and align them with your values.
- Customer Service: Building a fintech app is one thing, and building a support team is another. Users can get in touch with the company 24/7 when they are struck somewhere. Implement a chatbot functionality to serve your customers with instant help. Such facilities will contribute towards increasing their satisfaction and thus turning them into a loyal customer base.
- Educate: With the idea of fintech spreading like wildfire, more and more people are inclined towards them. But they hesitate to take a deep dive as they lack knowledge of the same. As a fintech brand, you can use this opportunity to become a trusted knowledge bank and educate them by providing relevant up-to-date news about the financial world. When they place trust in your words, they will be motivated to opt for your service too.
Summing it up, it is clear that digitalization is the future of the financial world. Blockchain and AI are already welcomed wholeheartedly, and the industry is eagerly waiting to see what can be improvised in terms of providing more convenience. On the other hand, such complex intelligence needs a lot of professional attention. If you want a dedicated team to make miracles in the fintech industry, Black Widow Tech is here to help. We help you organize the feature set, trends, and risk-dealing strategies to meet your goal. We have a record of working with fintech apps for a long time and have deep experience in developing finance-related technologies.
Add your name to our clientele list, by joining hands with us!