Financial innovation has transformed both the banking sector and its processes. In this article, we tell you more about what FinTech is, and how some of the digital services and technologies that have transformed financial transactions work.
FinTech Definition: What are FinTech companies?
FinTech stands for Financial Technology and is based on the use of new technologies for the development and provision of financial services for individuals and companies. But how does FinTech work? FinTech is not a single technology, but an entire sector. It includes companies committed to innovation to improve or automate offerings, services and processes in various areas of finance.
FinTech was developed specifically to fill the gap between the services offered by conventional banks and the expectations of increasingly tech-savvy customers. Have you ever been frustrated with your bank over the inability to complete an online transaction?
FinTech activities are carried out by both established banks and start-ups that want to address particularfinancial needs. Due to its reliance on adaptability and close customer proximity as well as its provision of efficient solutions via apps and online platforms, the FinTech ecosystem has been a success.
FinTech aims to offer individuals and businesses better financial solutions in a variety of areas, including investments, lending (e.g. through collaborative economy initiatives such as crowdlending) and payment processes. In addition, banking services and expertise are being improved, for example by neobanks. Although FinTech is not yet able to replace the banking business 100 percent, it offers added value to the financial services of traditional banks: more cost-effective services, more transparency and the opportunity to compare different offers.
How to create a FinTech app? Essential steps
When companies have outlined the main idea of their app – they know the type of FinTech solution they want to build and have decided on the main functions that should be included in it – they are halfway to the realization of their app. The other half is doing the project and market research and finding the software development team. Here are the steps you need to follow.
Step 1: Research the market
The company has to make a decision in this step regarding whether it is worthwhile to build its FinTech solution and whether it will be valuable to users. They must look at competing products and conduct a small amount of market research to accomplish this. Watch out for the following additional things.
- The region in which the app operates
- Which laws the app should comply with in the region
- Who are the end users of the developed solution
When time to market is critical and whether it is necessary to develop the MVP solution first to collect customer feedback. Follow this link to dive deeper into the FinTech industry.
Step 2: Assess the project
Following a market analysis, the business has a better understanding of the types of users who might download its app and the factors that should come first when creating the software. They can now evaluate how much work is required to complete the app’s construction and make an approximationof the project’s budget and timeline.
The budget and timeline depend heavily on the tech stacks companies choose for their apps. Therefore, the final decision on both aspects will be made after discussing the project with the software development team.
Step 3: Find the team
Finding professionals to build a solid and effective FinTech solution can be quite a challenge. As it often requires a fully equipped and highly experienced team rather than individual software developers. If a company does not have an in-house team, the optimal decision that can help save the budget would be to turn to software development company outsourcing.
Another option is when a company however has an in-house team that has some issues with the software development project.
Conclusion
Building a FinTech solution is a popular decision that companies large and small make to improve their customer experience and generate significant revenue. There are a variety of FinTech app types to choose from and many more advanced technical features that can be implemented.
However, starting and developing a FinTech project is not easy. For this reason, a lot of businesses choose the FinTech software development services offered by software development outsourcing companies.
For your FinTech project, we are prepared to assist you if you’re looking for highly qualified specialists. We have teams of FinTech development experts who have successfully deployed various finance related apps for our partners from all over the world.
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