How To Build A Fintech App?

Planning to Build a fintech app?

Fintech apps are revolutionizing how people manage their finances, offering everything from mobile banking and payments to investments and cryptocurrency trading—all from a smartphone.

Today consumers demand financial solutions that are quick, secure, and user-friendly.

That’s why so many people are looking to create a fintech app. With this venture, you’re entering a booming industry that’s expected to reach $332.5 billion by 2028.

However, building a successful fintech app requires more than just a great idea.

From understanding the development process to choosing the right tech stack, every step must be meticulously planned.

In this guide, we’ll walk you through everything you need to know about how to build a fintech app, including the features you should include, the costs involved, and how to ensure your app stands out in a competitive market.

Ready to start your own fintech business? Let’s dive into the essential details of developing a fintech app that’s secure, scalable, and future-proof.

Here’s your guide to build a fintech app:

Understanding Fintech Apps & Their Growing Demand

First things first, “What is a fintech app?”

A fintech app, or financial technology app, is a digital tool that lets you manage, transfer, and invest money easily.

Think of apps like PayPal, Venmo, or Robinhood.

All these popular fintech apps are designed to simplify financial transactions for both businesses and individuals.

Whether you’re looking to create a fintech app for mobile banking, payment processing, or even cryptocurrency, the possibilities are endless.

In 2024, fintech apps are more in demand than ever. Why?

Well, more people are ditching traditional banking methods for faster, more secure digital alternatives. If you want to build a fintech app, now’s the perfect time to dive into this booming market.

• The global fintech market is projected to hit $332.5 billion by 2028.
• 75% of global consumers are expected to use digital payment systems by 2025.
• Over 90% of smartphone users worldwide have used at least one fintech app.
• The fintech adoption rate has grown to 64%, up from 16% in 2015.

Is Building a Fintech App a Smart Decision in 2024?

Let’s ask the big question “Should you build a fintech app?”

The answer is: Absolutely.

The fintech market is booming like anything. 2024 presents an ideal landscape for creating a fintech app.

Here’s why:

♦ Explosive Market Growth

The fintech market is on fire right now and shows no signs of slowing down.

Globally, the market is expected to reach a whopping $332.5 billion by 2028, with a compound annual growth rate (CAGR) of 20.5%.

This rapid expansion is driven by an increasing shift toward digital financial solutions, fueled by the need for faster, more accessible services across personal finance, banking, investments, and more.

Traditional financial institutions are struggling to keep up with this digital revolution, leaving a massive gap for innovative fintech apps to fill.

If you decide to build a fintech app today, you’re positioning yourself in one of the most profitable and fast-growing tech markets.

♦ Skyrocketing Consumer Demand for Digital Financial Services

Consumers today are all about convenience, speed, and control over their financial activities.

Traditional banking, with its time-consuming processes and outdated systems, no longer meets their expectations.

By 2025, over 75% of global transactions are predicted to be carried out through digital payment systems.

What does this mean? It means consumers are hungry for apps that let them manage their finances on their terms, whether that’s making payments, investing, or managing budgets—all from their smartphones.

Fintech apps cater to this demand perfectly, providing a seamless, user-friendly experience that traditional banks simply can’t offer.

For businesses looking to create a fintech app, this is a golden opportunity to meet growing consumer expectations and capture a large user base.

♦ Tech Innovation is Driving Fintech Growth

Fintech apps are becoming increasingly sophisticated, thanks to groundbreaking technologies like artificial intelligence (AI), blockchain, and biometric authentication.

AI can offer users personalized financial advice, automate investment strategies, and enhance fraud detection.

Blockchain brings enhanced security and transparency, which is particularly valuable in transactions and cryptocurrencies.

Biometrics, on the other hand, provides an extra layer of security that’s becoming non-negotiable for consumers concerned about data breaches.

Because of these innovations, 90% of smartphone users worldwide are expected to use fintech apps by 2025.

These technologies not only elevate the user experience but also ensure higher levels of trust, which is crucial for financial apps.

If you’re developing a fintech app, leveraging these cutting-edge technologies can set your product apart, making it more attractive to both users and investors.

Types of Fintech App (& Examples)

The term “FinTech” refers to a very large industry.

In the same fashion, fintech apps cater to various financial needs, revolutionizing how individuals and businesses manage money.

Whether for payments, investments, or managing personal finances, these apps have made traditional financial systems more accessible, efficient, and user-friendly.

Here’s a breakdown of the major types of fintech apps, each serving a distinct purpose within the financial ecosystem.

► Digital Wallet Apps

Let’s start with the most common and popular form of fintech apps, eWallet, digital wallet, or Mobile Wallets.

eWallet apps have transformed the way we exchange money, making it incredibly easy to send and receive funds.

These apps allow users to transfer money between accounts, pay bills, and make purchases without needing cash or physical credit cards.

Often linked to a user’s bank account or debit card, digital wallet apps provide convenience with just a few taps on a smartphone.

The popularity of these fintech apps is all time high, lead to a surge in eWallet app development.

Popular examples:

• PayPal
• Venmo
• Cash App

► Digital Banking Apps

Digital banking apps offer a modern alternative to traditional banking, allowing users to manage their financial accounts without visiting a physical branch.

Being the cover boy of fintech, banking app development is super popular and beneficial.

With the rise of neobanks (banks that operate entirely online without physical locations), users can enjoy reduced fees, better interest rates, and more intuitive interfaces compared to traditional banks.

Popular examples:

• Chime
• Revolut
• Monzo

► Investment & Trading Apps

Investment and trading apps have made stock market participation accessible to the average person by removing the complexity traditionally associated with investing.

These apps allow users to buy, sell, and manage their investments directly from their smartphones.

Many offer commission-free trades and provide educational tools to help users make informed decisions.

Needless to say, inspired by top apps like robinhood, acrons, and so on, there are a lot of businesses who have shown interest in developing a trading app.

Popular examples:

• Robinhood
• Acorns
• eToro

► Peer-to-Peer (P2P) Lending Apps

P2P lending apps or loan lending apps eliminate the need for traditional banks by connecting individual borrowers with lenders.

These platforms provide an alternative way to get loans, often with lower interest rates for borrowers and higher returns for lenders.

Borrowers apply for loans through the app, and individual investors can choose to fund part or all of the loan, earning interest in the process.

Due to the high revenue generation potential, loan lending app development is extremely popular.

Popular examples:

• LendingClub

• Upstart
• Prosper

► Personal Finance Management Apps

Personal finance management apps give users control over their financial lives by helping them budget, track expenses, and manage savings.

These apps often connect to users’ bank accounts, credit cards, and investment accounts, providing a clear, real-time picture of their financial situation.

Users can set goals for savings, track their spending habits, and receive insights into how they can improve their financial health.

Many personal finance apps use AI to provide personalized tips and recommendations, making financial management more straightforward and less overwhelming.

Popular examples:

• Mint
• YNAB (You Need a Budget)
• PocketGuard

► Insurtech Apps

Insurtech apps are designed to simplify the insurance process by allowing users to purchase policies, file claims, and manage premiums—all through their smartphones.

These apps modernize the traditionally complicated insurance industry, providing users with real-time access to their policies and claims, and often utilizing AI to streamline customer service and claims processing.

So, if you want to enter the fintech market, launching an insurance app is a good idea.

Popular examples:

• Lemonade.
• Root
• Oscar Health

► Cryptocurrency & Blockchain Apps

Cryptocurrency and blockchain apps allow users to buy, sell, and store digital currencies, while also offering secure platforms for decentralized transactions.

It goes without saying that in recent times, crypto platform development has went through the roof. That’s what makes it such a favourite if you are planning to launch a fintech app.

These apps are at the forefront of fintech innovation, using blockchain technology to create decentralized, transparent, and secure financial ecosystems.

Popular examples:

• Coinbase
• Binance
• MetaMask

Fintech Apps’ Essential & Advanced Features

Let’s talk about fintech app’s features.

In simple words, a feature can break an app or make an app. If you are planning to build a fintech app that hit bull’s eye, you need to get this right.

To help you with just that, here’s a list of essential (must-have) and advanced (a step ahead of competitive) features:

Essential Features

1. User Registration & Authentication

Every fintech app needs a secure and simple user registration process.

This usually includes multi-step authentication with options like email verification, phone number validation, or social media login to make onboarding quick yet secure.

A robust registration and login system ensures that users’ personal information is protected right from the start.

2. Secure Transactions

Handling money means your app needs strong transaction security.

This includes encryption for all transactions, secure payment gateways, and two-factor authentication (2FA) to prevent fraud.

Users need to trust that their financial data and transactions are fully protected every time they interact with the app.

3. Account Management

A core feature of any fintech app is giving users control over their accounts.

Users should be able to view their balance, transaction history, and manage their payment methods.

Whether you’re developing a digital wallet, banking app, or payment system, account management is crucial to delivering value.

4. Notifications & Alerts

Push notifications keep users informed about their account activities, upcoming payments, or suspicious transactions.

Push notifications or SMS alerts allow users to stay updated in real-time, making the app more engaging and enhancing security.

5. Budgeting Tools

For personal finance apps, budgeting tools are essential.

These tools allow users to categorize their spending, set savings goals, and track their financial health over time.

It’s a must-have for apps focusing on helping users improve their money management.

6. Payment Gateway Integration

For payment and banking apps, integrating a secure payment gateway is crucial.

It allows users to process payments, transfer funds, and make purchases seamlessly.

Popular gateways include PayPal, Stripe, and Square, but custom integrations are often used for unique fintech platforms.

7. Data Encryption

Given the sensitive nature of financial data, strong encryption protocols must be applied to all user information.

This protects users’ personal details, transaction history, and account information, ensuring the app complies with industry standards and regulations.

8. Customer Support

Every fintech app should provide a quick and accessible way for users to get help when they need it.

Whether through live chat, email, or phone, having dedicated customer support options builds trust and enhances the overall user experience.

Advanced Features

9. AI-Powered Analytics

AI in fintech does wonders.

Using artificial intelligence to analyze user data can provide personalized financial insights and recommendations.

For example, AI can suggest better investment opportunities or alert users about potential savings based on their spending habits.

This kind of personalization can significantly improve the user experience.

10. Blockchain Technology

Incorporating blockchain can enhance security, especially for cryptocurrency or peer-to-peer transaction apps.

Blockchain offers transparency, immutability, and decentralization, making it ideal for securing transaction records and reducing fraud.

11. Biometric Authentication

Security is critical for fintech apps, and biometric authentication (using fingerprint or facial recognition) adds an extra layer of protection.

This advanced feature is becoming increasingly popular, especially for high-security apps like banking and cryptocurrency wallets.

12. Robo-Advisory

This feature uses AI to provide automated, algorithm-driven financial advice without human intervention.

Robo-advisors are commonly used in investment apps, offering users portfolio management based on their risk tolerance and financial goals.

Also Read: Robo Advisor Platform Development

13. Cross-Border Payments

With the growing demand for global financial services, offering cross-border payment options can set your fintech app apart.

Integrating this feature allows users to send and receive money internationally with low fees and real-time exchange rates, which is essential for businesses or individuals working across borders.

14. Multi-Currency Support

If you’re developing an app that caters to international users, multi-currency support is a must.

This feature allows users to hold, convert, and transfer multiple currencies within the app, enhancing its versatility and global appeal.

15. Smart Contracts

For apps dealing with loans, investments, or insurance, smart contracts can automate processes and ensure transparency.

These self-executing contracts run on blockchain technology, ensuring that terms are automatically enforced once predefined conditions are met.

16. Financial Literacy Tools

Many users, especially younger ones, are looking for ways to improve their financial knowledge.

Adding financial education resources, like articles, videos, or interactive tools, can increase user engagement and make your app a trusted resource for financial management.

These essential and advanced features not only make your fintech app functional but also competitive in a crowded market. By including both basic features that every user expects and advanced tools that offer extra value, you can create a fintech app that stands out and meets the needs of modern users.

Fintech App Development Process

It’s time to learn how to create a fintech app?

Building a fintech app is a complex yet rewarding process.

It involves multiple stages, from ideation to post-launch maintenance, each of which requires careful planning and execution.

Below is a detailed guide to the development steps for creating a fintech app with security compliance.

Let’s get right into the development process:

Step 1: Ideation & Market Research

The first step in developing a fintech app is to identify the problem your app will solve.

This means coming up with an IDEA.

Is it helping users manage their personal finances? Offering a faster payment solution? Or maybe something more niche, like a crypto wallet or robo-advisor?

Once you have a clear idea, conducting thorough market research is essential.

This includes understanding your target audience, analyzing competitors, and identifying gaps in the market that your app can fill.

The goal here is to ensure your app idea is both innovative and in demand.

Key Tasks:

• Define your app’s purpose and target users.
• Conduct competitor analysis.
• Validate your ideas with surveys, interviews, or focus groups.

Step 2: Planning & Features List

Once you’ve validated your app idea, it’s time to create a comprehensive plan.

This plan should outline the key features your app will have (both essential and advanced), the project timeline, and the development methodology you’ll use (such as Agile or Waterfall).

During this stage, prioritize the features you want to launch with (MVP – Minimum Viable Product), which can be expanded in later versions.

Key Tasks:

• Create a detailed feature list.
• Develop a project roadmap and timeline.
• Choose a development methodology (Agile, Scrum, etc.).

Step 3: UI/UX Design

Fintech app’s UI/UX design is very important. Here, ease of use and trust are top priorities.

In this phase, your design team will create wireframes and prototypes that outline the app’s layout and flow.

Every screen should be intuitive, with the goal of making financial transactions as simple and secure as possible.

The design process also includes branding, ensuring that your app has a consistent look and feel that resonates with your target users.

Key Tasks:

• Create wireframes and design prototypes.
• Focus on user-centric, simple, and secure design.
• Ensure brand consistency throughout the app’s interface.

Step 4: Tech Stack Selection

Choosing the right tech stack is crucial to ensure the scalability, security, and performance of your fintech app.

Fintech apps need robust back-end architecture to handle transactions, process data, and ensure user security.

Here’s a common tech stack for fintech apps:

Step 5: Development

The fintech app development phase involves writing code to bring your app to life.

This is where your development team builds front-end and back-end components, integrates APIs, and ensures that all features work together seamlessly.

In the Agile development process, this phase happens in sprints, with regular iterations to review and improve each version of the app.

Key Tasks:

• Develop the front-end and back-end of the app.
• Integrate third-party services like payment gateways and authentication systems.
• Perform regular code reviews and testing during development.

Step 6: Testing & Quality Assurance

Fintech app testing and assurance is very important because of the sensitive nature of financial data.

Your app must undergo rigorous quality assurance (QA) testing to ensure it works flawlessly across various devices and operating systems.

This includes functional testing (to ensure features work), security testing (to prevent breaches), performance testing (to handle large numbers of transactions), and usability testing (to ensure a seamless user experience).

Step 7: Compliance & Regulatory Checks

Fintech apps must comply with strict financial regulations, depending on the region or country they operate in.

For example, apps dealing with payments or personal data must adhere to regulations like GDPR (General Data Protection Regulation) in Europe or PCI-DSS (Payment Card Industry Data Security Standard) in the U.S.

It’s important to work with legal experts during this phase to ensure your app is fully compliant.

Key Tasks:

• Ensure compliance with financial regulations like GDPR, PCI-DSS, or PSD2 (Payment Services Directive).
• Get approval from financial institutions or regulatory bodies if needed.
• Implement encryption and data protection protocols.

Step 8: Deployment

Once the app is tested and ready, it’s time for deployment.

This involves launching the app on platforms like the App Store (iOS) or Google Play (Android).

During this phase, you’ll also need to ensure that the app meets the guidelines for each platform, which can vary.

Deployment doesn’t just mean launching the app—it’s also about setting up backend servers, databases, and cloud services to ensure the app is ready for real-world use.

Key Tasks:

• Deploy the app on relevant platforms (iOS, Android).
• Set up cloud servers for scalability (AWS, Google Cloud, etc.).
• Conduct final checks to ensure compliance with app store guidelines.

Step 9: Post-Launch & Maintenance

After launching, the work doesn’t stop.

It’s time to start fintech app maintenance.

You’ll need to monitor the app for any bugs, update it with new features, and ensure continuous compliance with regulations.

Regular maintenance is key to keeping your app relevant and secure.

Post-launch analytics tools can help you track user behavior, identify pain points, and optimize the user experience.

Key Tasks:

• Monitor the app for bugs and performance issues.
• Update the app with new features and security patches.
• Analyze user behavior and feedback for future improvements.

Developing a fintech app is a complex journey that requires a well-structured process and the right technical choices. From ideation and market research to post-launch maintenance, each stage plays a critical role in creating a fintech app that is secure, scalable, and user-friendly.

Cost To Develop A Fintech App

It’s time to talk numbers and ask the big question:

How Much Does It Cost To Build A Fintech App?

On average, the cost to create a fintech app ranges between $50,000 and $300,000.

The cost to develop a fintech app can vary widely depending on several factors such as the app’s complexity, the development team’s location, and the features you want to include.

Let’s break down the key cost components that influence this range:

This is a general cost breakdown based on the general assumption and our in-house expertise.

For a more accurate fintech app development cost estimate, please contact our team or an expert app development company.

Monetization Strategies

Once you’ve built your fintech app, the next step is to ensure it generates consistent revenue.

Fintech apps offer a range of monetization models, and choosing the right one depends on your app’s specific features, audience, and long-term goals.

1] Transaction Fees

One of the most straightforward fintech monetization models for fintech apps is charging users a small fee for every transaction they make.

This is common in payment apps and peer-to-peer (P2P) lending platforms.

Users typically don’t mind paying a nominal fee, especially when the app provides convenience, speed, and security.

• Revenue Potential: Transaction fees can range from 0.5% to 3% per transaction, which can generate significant revenue if your app handles a high volume of transactions.

2] Subscription Plans

For fintech apps offering premium services, a subscription-based model is highly effective.

This model works well for apps offering extra features such as advanced analytics, robo-advisory services, or premium customer support.

Users pay a monthly or annual fee to access these features.

• Revenue Potential: Subscription fees can vary depending on the services provided. Personal finance apps like YNAB charge around $14.99 per month, while more complex services like robo-advisors (e.g., Betterment) charge a percentage of the assets managed, typically around 0.25% per year.

3] Lending & Interest Margins

For apps focusing on lending services, earning interest on loans is a major revenue generator.

In this model, the fintech app acts as a middleman between borrowers and lenders, charging a margin on the interest rate.

P2P lending platforms or digital lending apps often use this model.

• Revenue Potential: LendingClub charges borrowers an origination fee of 1%-6% and lenders an investor fee of around 1%, creating a reliable revenue stream.

4] In-App Advertising

If your app has a large user base, in-app advertising can be an additional revenue stream.

You can offer relevant financial ads (for example, investment opportunities or insurance services) that align with your users’ needs, ensuring that the ads are not intrusive.

• Revenue Potential: Advertising can generate revenue through cost-per-click (CPC) or cost-per-impression (CPM) models.

5] Interchange Fees

Fintech apps that offer virtual or physical debit and credit cards can earn revenue through interchange fees.

These are fees paid by merchants whenever users make a purchase using the fintech app’s card. This model is especially popular among digital banking apps.

• Revenue Potential: While interchange fees are typically small (around 1%-3% of the transaction value), they can add up quickly, especially for apps with a large user base.

6] Data Monetization

Many fintech apps collect valuable user data related to spending habits, income levels, and investment preferences.

By anonymizing this data, apps can sell insights to third parties such as financial institutions or market research firms. This can be done in a way that respects user privacy while still generating revenue.

• Revenue Potential: Data-driven revenue streams can be quite lucrative for apps with large datasets. This model is often used by financial institutions to better understand market trends and consumer behavior.

7] Affiliate Marketing

Some fintech apps partner with financial services providers to promote their products and services.

For example, a personal finance app may recommend credit cards, insurance plans, or investment products.

The app earns a commission for every user who signs up through their platform.

• Revenue Potential: Affiliate commissions can range from a fixed fee (e.g., $50 for a new credit card sign-up) to a percentage of the user’s spending over time.

Common Challenges Faced in Fintech App Development

Developing a fintech app comes with unique challenges that can impact your project if not addressed early

But worry not, here’s a solution to each challenge you might face in creating a fintech app.

Also Read: Lessons For Fintech Startups

► Regulatory Compliance

One of the biggest hurdles in fintech app development is ensuring compliance with various financial regulations.

Solution:
To overcome this challenge, work closely with legal experts to ensure your app meets all regulatory requirements.

In addition to this, implement best practices like data encryption, two-factor authentication, and secure payment gateways to safeguard user data.

► Data Security & Privacy

In fintech apps, security is paramount.

Since fintech apps handle sensitive financial information, they are prime targets for cyberattacks.

Solution:
Implement robust security measures such as AES encryption, multi-factor authentication (MFA), and regular security audits.

Use secure APIs and follow security standards like ISO 27001 to ensure all data is transmitted and stored safely.

► User Trust & Retention

Trust is the foundation of any fintech app. If users don’t feel confident that their money and data are safe, they won’t use your app.

Retaining users in the fintech space is especially challenging, as users are often cautious about adopting new financial technologies.

Solution:
Focus on creating a seamless and transparent user experience.

Make sure that users understand how their data is being used and offer easy access to customer support.

Implementing features like real-time transaction alerts and detailed account summaries can also build trust by offering transparency and control.

► Integration with Third-Party Services

Many fintech apps rely on third-party services like payment gateways, banking APIs, or identity verification systems. However, integrating these services can often be complex and prone to issues.

Solution:
Work with experienced developers to integrate third-party services seamlessly.

Always perform thorough testing of these integrations to ensure they work flawlessly across different devices and platforms.

Opt for reliable services with strong support systems and ensure that they comply with relevant regulations.

► Scalability Issues

As your app grows, it will need to handle more users, more transactions, and more data.

If your app isn’t built to scale, you might experience performance bottlenecks, slow load times, or even crashes during peak usage times.

This can hurt your reputation and result in poor user retention.

Solution:
To ensure scalability, invest in cloud-based infrastructure such as AWS or Google Cloud.

These services offer auto-scaling features that can handle surges in traffic without impacting app performance.

► High Development Costs

Fintech apps, especially those requiring advanced features like blockchain or AI-driven analytics, can be expensive to develop.

App development cost can spiral if not managed properly, leading to budget overruns and project delays.

Solution:
Start by developing a Minimum Viable Product (MVP) that includes only the most critical features.

This allows you to test the market and gather user feedback before investing in more advanced features.

Also, consider outsourcing to development teams in regions with lower rates, such as Eastern Europe or Asia, without sacrificing quality.

► Cross-Border Transactions

For fintech apps that operate globally, handling cross-border payments can be a major challenge.

Currency conversions, varying transaction fees, and differing regional regulations make it difficult to create a seamless global payment experience.

Solution:
Use established cross-border payment solutions like Wise to manage international payments.

Ensure your app complies with AML and Know Your Customer (KYC) regulations in all the countries where it operates.

Consider partnering with local financial institutions to streamline the compliance process.

With all this said, it’s time to choose a fintech app development partner:

Nimble AppGenie – Your Fintech App Development Partner

At Nimble AppGenie, we specialize in creating cutting-edge fintech apps that are secure, scalable, and compliant with industry standards.

As a trusted fintech app development company, we have extensive experience in building apps across a wide range of fintech sectors, including mobile banking, payment solutions, investment platforms, and cryptocurrency exchanges.

Whether you’re a startup or an established enterprise, Nimble AppGenie is your partner in innovation.

We provide end-to-end fintech app development services, from concept to launch, ensuring that your app delivers real value to users and drives business growth.

Conclusion

Building a successful fintech app requires careful planning, a strong development team, and a focus on security, compliance, and user experience. With the growing demand for digital financial solutions, now is the perfect time to create a fintech app that meets market needs and stands out in a competitive landscape.

FAQs

Niketan Sharma

Niketan Sharma is the CTO of Nimble AppGenie, a prominent website and mobile app development company in the USA that is delivering excellence with a commitment to boosting business growth & maximizing customer satisfaction. He is a highly motivated individual who helps SMEs and startups grow in this dynamic market with the latest technology and innovation.