Did you know that the fintech industry will be worth $305 billion by 2025? Fintech apps’ convenience and security drive this growth. Digital banking, peer-to-peer lending, robo-advisors, and blockchain are transforming financial services. 

Since the pandemic, over 26,000 fintech companies have emerged worldwide. Market Data Forecast predicts the market will hit $324 billion in 2026. It expands at a rate of 23.41% each year. Statista reports that people will spend about $202.9 billion on in-app purchases this year.

This article covers everything you need to know about fintech and how to build your app. Keep reading to learn more.

What is fintech?

Fintech stands for “financial technology.” It utilizes technology to improve, simplify, or transform traditional financial services. These innovations make financial tasks more accessible and more efficient.

Fintech includes:

• Software, Algorithms, and Apps: Available for both desktop and mobile devices. 
• Hardware: Sometimes, it includes devices. For example, intelligent piggy banks teach kids about saving.

Fintech platforms help you with everyday tasks. These include depositing checks and moving money between accounts. You can also use them to pay bills or apply for financial assistance. They also handle complex tasks, such as peer-to-peer lending and crypto exchanges.

Businesses use fintech for payment processing, e-commerce transactions, and accounting. It has recently helped with government programs like the Paycheck Protection Program (PPP). Since the COVID-19 pandemic, many businesses use fintech for contactless payments. They also use it for other tech improvements.

Why is fintech cybersecurity important for businesses?

FinTech cybersecurity is essential for your business for a few reasons:

• Keeping Data Safe: You protect people’s personal information and financial details. Cybersecurity helps keep this data safe from hackers and thieves.
• Earning Trust: People need to trust that their financial information is safe with you. A hack can hurt your reputation and make customers not want to do business with you again.
• Following Rules: Financial businesses have to follow strict rules. Such as GDPR and PCI-DSS. Good cybersecurity helps you to follow these rules and avoid getting into trouble.
• Preventing Money Loss: Cyber attacks can steal money and cause a lot of damage. Strong cybersecurity helps protect your business from losing money in this way.
• Keeping Business Running: Cyber attacks can ruin your work. They can cause delays and waste time. Good cybersecurity keeps everything running, even during an attack.
• Protecting New Tech: We must protect new technologies. Using more digital tools provides hackers with more ways to attack. New financial technologies also give hackers more ways to attack. Cybersecurity keeps these new technologies safe.
• Staying Ahead of Hackers: It is hard. Cyber threats change daily and are getting smarter. You need to continually update your cybersecurity. This helps protect against new types of attacks.
• Protecting Investments: You’ve spent a lot on technology and data systems. Cybersecurity keeps these investments safe and secure.
• Being the Best: A robust cybersecurity system can make your business stand out. Customers like it when you protect their data, so they choose you over others.
• Encouraging Innovation: Cybersecurity enables you to try new financial technologies and services. You don’t have to worry about hacking.

Overview of 5 Fintech App Security Challenges

Fintech apps are changing how we handle our finances. Yet, they also face unique security challenges. Let’s take a look at five key areas you should be aware of.

Authenticating Real Identities

How do you make sure users are who they say they are? To solve this, fintech apps use multi-factor authentication (MFA). This means you must use a password, fingerprint, or facial recognition. Moreover, advanced tools using AI help spot fraud and identity theft.

Guarding Sensitive Data

Fintech apps handle important information. This makes them targets for hackers. Thus, it’s important to encrypt data both when it’s stored and when it’s sent over the internet. 

Moreover, strict access controls limit who can see this data. Regular updates and patches also help fix security weaknesses.

Navigating Third-Party Partnerships

Fintech apps work with other companies for payments or data analysis. We must conduct a rigorous examination of these partners. They should have high security standards. Regular audits ensure that they follow security protocols.

Adhering to Legal Requirements

Following financial regulations is essential for fintech applications. You must understand laws like GDPR and PCI-DSS and ensure your app complies with them. 

Setting up a system to manage compliance helps keep everything in check. Moreover, staying updated with any legal changes ensures you remain compliant.

Being Mobile: Convenient but Risky

Mobile apps offer great convenience, but they come with risks. Secure mobile app development is critical. It includes using secure coding practices and regular security tests. 

Mobile device management (MDM) tools help protect your app on users’ devices. Teach users safe mobile practices. Tell them to avoid public Wi-Fi for transactions. This is very important.

Step-by-Step Guide to Building Your Fintech Application

Step 1: Hire a Team That Utilizes Secure Coding Practices

First, you need to find a team that excels in secure coding. Start by researching potential teams with experience in fintech. Then, check if they have certifications in secure coding and cybersecurity. 

Interview the team to gauge their knowledge and ask about their approach to security. Look at their previous projects. Make sure they have delivered secure and functional apps. 

Finally, sign a contract with security and confidentiality clauses to protect your project.

Step 2: Define Minimum Viable Product (MVP) Scope

Begin by identifying the core features your application needs to have at launch. Use user stories to understand what your users want and need.

• Next, focus on these features based on importance and feasibility.
• Create a roadmap outlining the development phases for your minimum viable product.
• Set clear milestones so you can track your progress and stay on schedule.

Step 3: Select Your Technology Stack

Choosing the right technology stack is essential. For the backend, you might consider Node.js, Python, or Ruby. Look at frameworks like React, Angular, or Vue.js for the front end. 

Also, select a database such as MySQL, PostgreSQL, or MongoDB. For scalability, think about cloud services like AWS, Azure, or Google Cloud. Don’t forget to integrate security tools and practices to keep your app safe.

Step 4: APIs for Basic Functionalities

Identify the APIs you need, such as payment gateways and data storage. Plan how you will integrate these APIs into your application. Ensure that you have detailed documentation for each API. 

Therefore, test the APIs to ensure they are reliable and perform well. Establish monitoring to maintain optimal system performance. Address any issues immediately.

Step 5: Design UI/UX

Start by conducting user research to gain insights into your target audience. Create wireframes. They lay out your design. Develop interactive prototypes. They test the design flow. 

Gather feedback from potential users and stakeholders. Use this feedback to improve your design. Design an app with an intuitive interface and attractive graphics.

Step 6: Test Launch

First, conduct internal testing to identify and resolve bugs. Then, release the app to a small group of beta testers. Collect feedback on usability and functionality from these testers. 

Address any issues that arise during testing. Finally, prepare your app for launch. Ensure everything runs smoothly. Fix all major bugs.

Step 7: Update Your Application

After launching, check the app’s performance every day. Collect feedback from users to learn about their needs and issues. Update the app frequently to repair bugs and introduce new features. 

Ensure to release security updates to maintain user data safe. Keep improving the app based on what users say and what’s happening in the market to remain competitive.

Key Technologies Used in Fintech Mobile App Development

When developing a fintech app, it’s crucial to understand the key technologies involved. Three essential technologies include AI (Artificial Intelligence), blockchain, and IoT (Internet of Things). 

Before building a fintech app, it’s essential to understand these technologies. Learn how they fit into the development process.

Artificial Intelligence (AI)

AI is everywhere these days, not only in fintech. It is part of our daily lives, performing tasks that humans used to do. This includes calculations, customer service, and writing. 

In fintech, AI has one important use: for credit checks and deciding loan eligibility. AI looks at the data you input to check your financial status. This makes the process faster and more efficient for banks.

Blockchain Technology

You’ve heard about blockchain because of cryptocurrency. Yet, in fintech, it’s all about security. Blockchain records and encrypts data in a way that’s difficult to alter or hack. It makes it ideal for keeping your financial information safe in fintech apps. 

Besides security, blockchain also accelerates processes and reduces costs. It utilizes decentralization. It stores and retrieves data from many sources. This makes data transfer faster and reduces storage costs.

Internet of Things (IoT)

The Internet of Things connects devices over a wireless network. They exchange data without human intervention. It’s not only about computers and phones. IoT is also present in products like doorbells and security systems. 

So, how does this fit into fintech? Well, it’s a game changer here. It helps gather more client data. It also enhances security with features like login verification. 

IoT also offers customization. It enables fintech apps to work with physical devices, such as card readers. This makes the technology even more versatile.

What Are the Various Types of Fintech Applications?

Fintech, or financial technology, apps come in many forms, including:

• Payment and money transfer applications.
• Digital banking applications.
• Investment and wealth management applications.
• Peer-to-peer lending platforms
• Insurance comparison and buying applications.
• Lending applications.
• Personal finance apps
• Blockchain and cryptocurrency applications.
• Regtech applications.
• Crowdfunding applications.

These fintech apps can make your financial life easier. They can be safer and cheaper than traditional banks. They are instrumental if you have a busy schedule or live in a remote area.

David Brear, a fintech expert, says technology will drive banking for many years. Banks must embrace these changes. If not, fintech and big tech firms will take over.

Here are some examples:

• Robinhood: An investment brokerage app. It allows you to invest without paying any additional fees.
• Chime:  A mobile banking app. It gives you early access to your paycheck. It offers free ATM withdrawals. It also has tools to track your spending.
• MoneyLion: It offers lending and savings services, while helping you manage your finances.

Why Are We a Good Fit for Your Fintech App Development?

At One AgilitasConsultants, we create top-notch Fintech apps. We customize them to your needs. Here’s why we’re the perfect partner for your Fintech app development:

Expertise in Fintech Solutions

We have deep expertise in fintech. As the industry grows, we understand financial technology. This includes mobile payments and blockchain.

Secure Coding Practices

Security is essential in financial technology. We focus on secure coding practices to protect your application. This keeps user data safe and ensures your peace of mind.

Custom Development

Every fintech app needs unique features. We offer custom development services to customize the app to your exact requirements. It ensures your app stands out in a competitive market.

Comprehensive Technology Stack

We use the latest technologies and frameworks. These include Node.js, Python, React, and Angular. This helps us build strong and scalable fintech applications. Our choice of technology stack ensures that your application excels.

Integration of AI and Blockchain

We utilize advanced technologies, such as artificial intelligence, to provide innovative financial services. We also utilize blockchain technology to enhance security. As discussed in the article, these innovations are important for modern fintech applications.

Proven Track Record

We have developed and implemented various fintech solutions. Our portfolio showcases our capability to handle complex financial applications with ease.

User-Centric Design

Our design process focuses on creating intuitive and easy-to-use interfaces. We ensure that your app provides a smooth user experience. This is vital for retaining users and keeping them happy.

Agile Development Process

We follow an agile development process. This enables us to adapt to changes. It also helps us deliver your project on time. This approach ensures that we meet your evolving business needs.

Comprehensive Testing and Launch

We perform extensive testing to guarantee your app is secure and bug-free. Our test launch process gathers valuable feedback. This helps refine the app before its official release. It ensures a smooth launch.

Continuous Support and Updates

After launch, we offer ongoing support. We issue frequent patches to maintain seamless and protected app operation. We listen to user feedback and make necessary improvements to stay ahead.

Partner with Tech Delivery Partners for your fintech app development. We offer the expertise, innovation, and support you need to realise your vision. Contact us now to learn more.