Fintech application development has become prevalent these days. Many financial institutions are turning to such apps as they allow them to scale. But how to build a fintech app? Is it hard? Let’s see how to build a fintech app from scratch and not regret it.
Fintech app development – why is it needed?
Before you learn how to develop a fintech app, you need to know why it is needed. And rightfully so.
The world has evolved to become more aware of personal finance over the last decade. People want to take control of their money and make sure they’re spending it wisely. This has created a big need for fintech app development, which helps people manage their money with ease.
But to build fintech apps, you should have some tricks up your sleeve. There are plenty of them nowadays, and if you create a fintech app without having an idea of the market, you can suffer. Let’s see what you should know first.
Important things about fintech apps
Fintech apps have their own specifics. Without following a strict model, you might not be able to create a product that your customers will like. So which are the crucial factors to consider at the start?
Monetization
One of the first decisions you’ll need to make as a fintech startup is how users will eventually pay for your app and whether you’ll be taking a cut of each transaction. Having a clear model makes it easier to pitch your app to investors, but it can be difficult to choose between so many options. You can choose that your customers pay an upfront fee to use their service, or you can charge them on a recurring basis.
Security
The internet is a room full of strangers who are just looking for a reason to go somewhere else. The online world has become a haven of scammers and hackers, and many consumers want companies to protect them from this. An easy way to do this is by offering customer support in real-time that’s linked to an e-commerce platform.
Advanced features
Nobody wants to pay for basic features. You will want to offer a lot of advanced features – like a couple’s budget, tracking all transactions and calculating the balance automatically, giving pro tips based on account spend, etc. You can’t make users pay for your fintech app without advanced features. So make sure you add more value to it.
How to build a fintech app with outsourced partners?
Sometimes, it costs you too much to build something in-house. Your team either lacks the technology stack, or it costs too much to put out with the task. What do you do next?
Hire local outsourcing partner
If you’re based in the US, you can hire another US agency to help you out with your task. There is the added benefit of speaking the same language at a great level, knowing the business culture of your partners, and so on. However, it does cost more.
Nearshore partners
Nearshore partners are people in neighboring countries who share similar time zones and similar business cultures. Let’s say Germany and Poland. While Poles are not similar to Germans in terms of languages spoken, if you are based in Germany, you can save a good amount of money while being able to visit your partner at any time due to close proximity.
Offshore outsourcing
This is typically the cheapest option. Let’s say an American company wants to outsource their fintech development in Ukraine. While the time zone differences might be problematic (communication issues), your business gets the most value from this model.
Summary
How to build a fintech app is a tricky question – you need to focus on many areas in order to attract customers. But the best thing about outsourcing is you can reduce the heavy lifting and ensure your projects run smoothly, and it doesn’t drain your budget unnecessarily.
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