FinTech is one of the most exciting technology areas to focus a new business on. FinTech’s profitability makes it extremely attractive to startups and the apps they create. But creating and developing a financial app isn’t the hardest part of the equation. Knowing what is trending and what tips are required to make that app appealing is the tough part. In this article, we’ll take a closer look at five tech tips that can help startups develop a successful fintech app today.
What is FinTech?
Although the term may sound new, fintech has been around for several years and you have been using it without knowing that it has an industry all its own. Fintech is the abbreviated term for financial technology. This is defined as the many forms of technology that provide users with financial services through software. Examples of fintech include online banking, mobile payment apps, and even cryptocurrency is considered a form of fintech. Although the term describes a broad category, fintech includes several different technologies that have been designed to alter how consumers and businesses interact with their finances through the internet or other computer software. The main difference between fintech solutions and traditional financial services is that fintech competes with traditional services.
5 Key Fintech App Development Features for a Successful Startup
Here are the five tips startups can use to create fintech apps:
1. Incorporate Artificial Intelligence (AI)
Artificial Intelligence plays a vital role in app development. What makes it so useful in this technology is that AI comes with four features that can be key in the development of any kind of fintech app. AI can detect data pattern changes and will use that to tune the model. This saves startups the cost of tracking the changes and manually applying them to the model. AI can also take imperfect data and analyze it to discover insights that can be used in making business decisions. AI does not require the storage or processing of data before creating analytics. What AI does instead is stream the data so that patterns can be identified. Finally, AI can handle unstructured data and make sense of it to improve the app development outcome.
2. Use Blockchain Technology
Although blockchain technology is often identified solely with cryptocurrency, it is an important element to factor into any fintech project. It provides enormous security for transactions. However, blockchain technology offers more than that. It also provides a hash algorithm that permits secure data to be shared. For startups looking to create apps for fintech, it makes sense to include blockchain technology in app development. Its superior level of security alone lends itself to be connected to apps that deal with transactions using money, payment portals, or other forms of currency.
3. Remember Chatbots
A chatbot is today’s automated customer service department. Almost all financial apps use them. Chatbots provide a means to quickly respond to user questions and they offer human-like conversations. What makes chatbots most valuable is that they are cost-effective and easy to scale, are data-driven, and are available immediately to customers. There are three different types of chatbots: Informational bots that provide general information; transactional bots that assist customers to complete transactions; and advisory bots. These interact with customers providing information based on customer needs.
4. Add Voice Technologies
This is one of the top trends currently in fintech app development. Essentially, voice technology is using voice commands to accomplish various tasks that would otherwise have to be executed manually. You’ve already seen it done with such virtual assistants as Amazon Alexa, Siri, and Google Assistant. Voice technology can best serve the fintech app development industry by providing customers with quick answers or solutions to tasks. Using voice commands, businesses of all sizes can work more efficiently with tasks being taken care of in a fraction of the time they would be traditionally. Incorporating voice technology gives a startup a fighting chance in the fintech industry by building on the convenience produced by using voice activation.
5. Step Out of the Box
As exciting as the fintech app industry is, the only way to succeed as a startup is to use innovation for inspiration. That means being ahead of the trends and setting the pace for new things to come. This is only possible with extensive knowledge of the financial industry and how an app can be applied to a part of that industry to improve it. Releasing a new version of an existing app won’t do that. Instead, a new approach to an old problem may unlock a clue and lead to the creation of that one app everyone will need to have on their phone or tablet. By thinking outside of the box and brainstorming with other creative individuals, a startup can get a foothold in the industry and may end up developing the top fintech solution for the year.
Fintech has attracted a lot of attention. The number of financial apps now available gives you an idea of the popularity of this industry. How do startups compete in such a competitive marketplace? A few technological tips can help startups head in the right direction but creativity must come from the people involved in that fintech app development business and their knowledge of the financial industry. And the final results rest with consumer or client demand. If a new app is nothing new in the overall scheme of things, it won’t gain traction and will disappear. But by leading the way through innovation, startups have a chance at penetrating the already busy fintech app industry.