How to Create a Financial App: Steps, Cost, and Tips

Jan 23, 2024 5 min read 112
Daria Sizova Business Development Manager
How to Create a Financial App: Steps, Cost, and Tips

Fintech has made a real breakthrough in the financial services industry and has led to a rapid growth in the value of the sector. Experts predict that the value of fintech will be worth $699.50 billion by 2030, with the digital banking market reaching $217 million by 2025.

Why it's Profitable to Create Financial Apps

The ever-growing reliance on digital solutions for financial management has paved the way for lucrative opportunities in the financial technology (fintech) sector. Creating a financial app provides businesses with a platform to offer innovative services, streamline financial processes, and meet the evolving needs of tech-savvy consumers. As the demand for convenient and secure financial tools continues to rise, developing a financial app can position your business at the forefront of the fintech revolution.

Steps to Create a Financial App

  1. Market research. Before diving into development, conduct thorough market research. Identify your target audience, analyze competitors, and understand market trends to ensure your financial app addresses specific user needs.
  2. Define objectives and features. Clearly outline the goals of your financial app and the features it will offer. Consider functionalities such as budget tracking, expense categorization, investment management, and secure transaction capabilities.
  3. Choose the right technology stack. Select a suitable technology stack for your financial app based on factors like scalability, security, and platform compatibility. Decide whether you'll build a native app for iOS, or Android, or opt for cross-platform development.
  4. Design a user-friendly interface. Design an intuitive and user-friendly interface to enhance the user experience. Prioritize simplicity and clarity in navigation, ensuring users can easily access and utilize the app's features.
  5. Development. Collaborate with experienced developers to bring your financial app to life. Regularly test and iterate the app during the development process to identify and address any issues promptly.
  6. Certifications and compliance. To ensure regulatory compliance and user trust, obtain necessary certifications with each release. Adhering to standards like PSD2 (Payment Services Directive 2), PCI DSS (Payment Card Industry Data Security Standard), and eIDAS (electronic Identification, Authentication, and Trust Services) is crucial.
  7. Testing. Rigorous testing is essential to identify and rectify any bugs, security vulnerabilities, or performance issues. Conduct thorough testing on various devices and platforms to ensure a seamless user experience.
  8. Deployment. Deploy your financial app on app stores after obtaining the necessary approvals and certifications. Implement a phased release strategy, if needed, to manage user onboarding and ensure a smooth launch.
  9. Post-launch support. Provide ongoing support, updates, and improvements to address user feedback and keep the app current with industry trends.

What You Need to Know Before Creating a Financial App

Before embarking on financial app development, consider the following key aspects:

  • Stay informed about financial regulations to ensure your app complies with industry standards and legal requirements.
  • Implement robust security measures to safeguard user data and transactions. Regularly update security protocols to counter emerging threats.
  • Clearly communicate how user data will be handled and stored, ensuring transparency and building trust among users.
  • Explore opportunities to integrate your financial app with popular third-party services, enhancing its functionality and user appeal.

The Technical Side of App Development: The Key Features

Building a successful financial app requires incorporating essential features such as authentication, transaction history, integrations, and others. 

Feature

Description

Development Timeline

User Authentication

Implement secure authentication methods, including biometrics and two-factor authentication, to ensure user identity and protect account access.

1-3 months

Transaction History

Provide users with a comprehensive overview of their financial transactions and categorize expenses for better financial management.

2-4 months

Budgeting Tools

Enable users to set budgets, track expenses in real-time, and receive notifications when approaching budget limits.

3-5 months

Payment Integration

Integrate secure payment gateways to facilitate easy and secure transactions within the app.

2-4 months

Investment Management

If applicable, incorporate features for investment tracking, portfolio management, and real-time market updates.

4-6 months (varies greatly by complexity)

Alerts and Notifications

Keep users informed about account activity, upcoming bills, or potential security concerns. Provide timely alerts and notifications for important financial events or suspicious activities.

1-2 months

This timeline assumes a sequential development process; however, in agile or simultaneous development environments, these timelines may overlap and the overall development time might be reduced.

Planning a Budget for Creating a Personal Finance App

Estimating the cost of developing a financial app involves considerations like development team expenses, technology stack, app complexity, and ongoing maintenance. Budget for certifications, security measures, and compliance to ensure a robust and secure application. Keep in mind that ongoing support, updates, and marketing will also contribute to the overall cost of maintaining a successful financial app.

In conclusion, the financial application development process requires a strategic approach, adherence to security standards, and a clear understanding of user needs. Software Development Hub will help create a financial position, taking into account the objectives and specifications of the business. By following these steps and staying on top of industry trends, a consumer finance application can become a valuable asset in the competitive fintech landscape.

Categories

Financial App

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