FinTech App Development Trends That Are Disrupting The Financial Sector

While the COVID-19 has been a curse for many industries, FinTech has found a silver lining. Despite the given crisis, the financial sector, with the help of emerging technology, has pierced into a brand new phase. The phase where financial services providers evolve and acquire access to various markets and products.

When the financial sector collides with technology, they form FinTech, as in Financial Technology. The revolution facilitated much-needed things during the pandemic — for example, contactless payments, digital insurance, mobile banking, and even trading. Altogether, FinTech provides solutions to real problems of the current time, contributing to potential post-pandemic recovery for the global economy.

In addition, FinTech mobile app development has shaken up the way people consume financial services. The rise of FinTech apps influences customer behavior. Today, customers prefer next-gen service providers with a human-centered approach. And to meet their expectations, the financial landscape is updating and innovating constantly worldwide.

Do you know what is in FinTech, motivating the broad adoption of FinTech app development?

• Mobile technology doesn’t bound your financial services with physical proximity and allows you to extend your services worldwide efficiently.
• FinTech makes financial services consumption easier and faster for consumers.
• You can convert the big data into meaningful data for your business.
• Customers’ affinity towards credit and millennials rising for the stock market trading make FinTech the crowd favorite among venture capitalists.
• Money transfers, Online payments, Trading apps have improved traditional approaches to general financial transactions.
• 24/7 Accessible facility, satisfying experience & functionality.

On that note, it has become essential for financial institutions to adopt advanced technology solutions. By acquiring an emerging FinTech trend in mobile app development, organizations can facilitate their customers beyond remote financial transactions. All you need is the fusion of the right FinTech app trend and modern technology.

If your business somehow has something to do with the financial sector, it’s a golden period to turn digital. As a helping hand, this post entails the top-notch FinTech app development trends that vouch for success in 2021 and beyond. Bonus, you will also get a brief about FinTech App Development Cost in 2021.

Popping Trends In Financial Technology

• Artificial Intelligence

AI can be a dominant factor in the FinTech market. Research and Markets predict a Compound Annual Growth Rate of 23.27% for AI in FinTech and that it will likely hit $22.6 billion by 2025.

FinTech heavenly relies on workflow automation, and fraud detection is a must. The increasing demand for automation is driving Artificial Intelligence in digital financial solutions. AI applies methods derived from human behavior using the data and improves results to an extent. The technology reciprocates with cognitive workflow automation and gets along with sophisticated processes as well.

Simply put, AI in FinTech applications: automates routine operations, detects fraudulent acts, renders personalized financial advice, and analyzes high volumes and distinct data for insights. For example, using AI to scan documents, you can save time checking online trade regulations. This way, you prevent costly mistakes that consume time to correct.

• Machine Learning

In addition to AI, ML is another significant technology widely used in FinTech for many purposes. In FinTech, machine learning algorithms come handy to automate trading activities, detect fraud, and provide financial advisory services to investors. With ML, financial organizations can analyze millions of data sets in a short time. The data analytics can then be used for projecting market trends and future opportunities earlier than the traditional method.

Plus, recommending services customers might find helpful with Machine learning algorithms is a no-brainer. For example, ML algorithms continuously collect and analyze customer data, including loan payments, insurance, or bank balance and let you offer personalized financial service at their fingertips. Currently, the technology is being used in the insurance sector, mobile banking, trading, targeting, and encouraging customers, reducing the risk and fraud.

• Blockchain

It won’t be wrong to say Blockchain is a backbone technology to drive the FinTech revolution. Blockchain is notorious for underpinning cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and over 4000 others. The Distributed Ledger Technology — DLT logs transactions and data openly. The ledger is distributed, published, and stored at various locations. It’s decentralized; no mediator is administering this ledger.

No middleman means unnecessary expenses and hidden fees and faster transactions. Besides, Blockchain helps win the battle against fraud, providing FinTech companies with secure KYC, onboarding, or account opening. McKinsey estimates blockchain-based customer onboarding can create up to $1 billion of savings in operating costs for retail banks globally and reduce regulatory fines by $2 billion to $3 billion (exhibit).

The cryptography, security, and privacy Blockchain offers to make it ideal for digital-only banks to build FinTech apps. The market share of Blockchain in the banking sector was 29.7% in 2020. Despite banking, decentralized tech facilitates payment systems globally, investing and lending, authenticating documents, etc.

• Reg-tech

Regulation compliance is one of the fundamental challenges faced by FinTech mobile applications, customers, and prospects. Regulations are volatile, and it’s their nature to reshape the regulatory and compliance environment in the Finance sector. This is where Regulatory Technology-RegTech comes into play. RegTech employs cloud computing, SaaS technologies, big data, and artificial intelligence to manage regulatory compliance and automates crucial processes.

RegTech accelerates regulatory processes and meets compliance requirements in real-time, including:

• Risk management protocols,
• Checks against daily regulatory alerts,
• Controls to actively mitigate risk,
• Know Your Customer (KYC) and Anti Money Laundering (AML) compliance

Enriching digital transformation is drifting into RegTech, making it inevitable for FinTech adopters. Consequently, the RegTech market is on fire, appearing as an unavoidable FinTech Trend in 2021. According to market research, RegTech market size is projected to reach $28.33 billion by 2027 from $5.46 billion in 2019. Isn’t it worth it?

• Chatbot

User experience for FinTech apps is as crucial as for (or might even more than) any mobile application. Complicated compliance, verification, or transaction processes may make your app inconvenient to use. Here a chatbot in the place can simplify clumsy user interfaces. A friendly investment/banking assistant is a thousand times better than a dull questionnaire to escort users through the sophisticated financing world.

An advanced chatbot with native language processing renders a human-like conversation experience. Besides, chatbots act as your loyal employees, working 24/7 to provide instant customer support. And yes, the technology is scalable and also delivers valuable insights into your customers.

You can take Cleo as an example which is an AI-based chatbot. It links with users’ bank accounts to track their spending, manage their budget, and recommend how much they can afford to save.

Okay, so I know these are fruitful technology trends for FinTech startups, but…where Do I apply the above FinTech application development Trends?

Bankable FinTech Mobile App Ideas For Startups

• Lending App
• Mobile Banking App
• Insuretech App
• Digital Financial Assistant App
• Mobile Trading/Investment App
• Crowdfunding App
• Peer-to-peer Payment Apps
• Regtech Apps
• Cryptocurrency Apps
• Loan And Money Lending Apps
• Digital Wallets Apps
• Bill Payment Apps
• E-mortgage Apps

I chose the app idea and on my way to drafting a business model. But how do I plan a budget? How much does it cost to develop a FinTech app?

Estimating the Cost to make a FinTech App

You cannot know the exact amount of budget for your FinTech app development just like that. But you can estimate how much your FinTech app will cost based on your answers to the following questions.

• What type of FinTech app will you build?
• What trends of Financial Technology will you adopt?
• Are you developing a FinTech app for Android or iOS, or both?
• What APIs will you integrate into your app?
• What are security measures to consider?
• Does your mobile app design include complex UI components?
• Do you want to acquire a Native app development and Cross-platform app development approach? (in native, you develop separate apps for different platforms, and with the cross-platform approach, you build apps for multiple platforms from a single codebase)
• Have you decided upon a technology stack?
• Do you have outlined essentials and advanced features for your FinTech app?
• Is there any scope for MVP development?

Your answers to these questions conclude your preferences. And based on your preferences, a mobile app development company can estimate the FinTech app development budget. It’s recommended to have the below team members in your team for a successful and timely outcome.

• Front-end developer
• Back-end developer
• UI/UX designer
• Business Analyst
• Project Manager
• QA engineer
• DevOps engineer
• Team lead

If you are looking for a figure, the cost to develop a basic version of a FinTech app starts from $10000. It extends with the functionality you desire to add.