Fintech companies sourced $135.7 billion in global funding in 2019. And almost two billion adults aren’t yet a part of the global financial system. That’s nearly 30% of the worldwide population. So the potential and scope in the fintech market are indeed lucrative. And what do you need to capitalize on this potential?
A fintech app. Yes, that’s all that you’d need.
There were a total of 24 companies that gained unicorn status in 2019. And we are sure that in 2020, and in the coming years, more applications in the fintech market would make the cut.
But how to build a fintech app?
Well, there is no shortcut to this. You know that stakes are high. And the rewards are higher. So, you need to be prepared for a long drawn process.But nothing eases a long drawn process than a plan that is prepared to perfection.
And while we cannot make your plan for you, we can surely present you a blueprint. A blueprint that would help you create an app that has the potential to be the best fintech app for your startup.
Let’s get started
Analyze niche options and find where you’ll fit
The first step to building your fintech app is identifying what niche you want to target. You need a starting point. And identifying your niche is the point where you should be starting from.
How to find a fintech app niche?
The basic process of finding a fintech app niche is similar to finding a niche for any other business.
- Analyze the market segments that are getting a lot of traffic. Go where the world is going.
- Identify gaps in market demand and supply. And go where the world should be going.
In either case, make sure the niche you choose has demand. There is no point in building an app that people won’t use.
Some niche areas with potential that you can consider include –
- Regtech (Regulatory technology)
Banks in the US spend $70 billion each year, bringing their activities in line with regulatory requirements.
- Blockchain apps
- Trading apps
- P2P (Peer-to-Peer) trading apps
- Wealthtech apps
Robot advisors, retirement Robo apps, or even micro-investment platform applications have a lot of potential.
- Insurance tech apps
Once you have narrowed down your search to a couple of niche options, zero in on the niche that you are most passionate about.
Although, don’t forget to carry out comprehensive market research before finalizing anything.
Educate Yourself in Either Finance or Technology
No one ever started a business without knowing the basics of the field. And if you want to build your fintech app and compete with other fintech companies, you need to know your business.
You can either attain mastery in the finance vertical that you have selected as your niche. Or you can become a pro at the tech aspect of app building.
You can go with proper degree programs on the side while you are analyzing your niche and carrying out market research. Or you can also go for online training courses and certification options.
Moreover, you should also understand that fintech is a very dynamic market. Changes keep happening with enhancements in technology. And you need to keep up with the changes.
Reading and keeping an eye on the latest market developments is important.
Identify your competition and your USP
Once you have found your one potentially unicorn worthy idea from the pool of fintech app ideas, you need to identify your competition as well.
You aren’t the first one in the market. And you are also not going to be the last one. It is in your best interest that you understand the competition that you face. Both from the existing players in the market and other future entrants.
Once you have carried out the SWOT (Strength, Weakness, Opportunity, Threat) analysis for all of your major competitors, you’ll also be able to fine-tune your Unique Selling Proposition (USP).
When you know what your competitors are offering (and what they are not offering yet!), you can better market yourself as the gap filler in the market.
This is where the second phase of your fintech app development starts. Until now, you were thinking, planning, and researching. Now is the time to actually start doing what you have been planning for.
Before you can develop your app, you need to build your business, right?Just like you’d want the four basic resources (man, machinery, money, and management), you’d need them for your fintech app development too.
And yes, before starting, you need to understand the legal compliance, permissions, and approvals that you’d need. Once you are done with that, you can move forward.
For starters, you need a dedicated team of tech experts who can handle the application development and the software architecture of your app. Then you need strong management, a robust finance team, and a dedicated marketing team
Also, you’d need app developers, graphic designers, and testers who would take your idea from an on-paper to an app that is ready to be launched on the app store. Once you have earmarked the people who’d be working hand in hand for you, i.e., your core team, you need funds.
Now, you can find funding from several sources. Even other fintech apps for crowdfunding can help you find funds to fuel your fintech app. If you are looking for angel investors or venture capitalists, or even financial institutions that would be willing to fund your idea, you need two things.
One, rock-solid research. And two, superb strategies. While the first would help convince prospective investors about your fintech app’s potential. The latter would assure them of returns they are likely to gain from your venture.
Also when you are creating the app, here are the features that it should have –
- Ease of use
- Data security
- Mobile responsiveness
- Clean design
- Creative and simple UI/UX
- Support solution/Feedback collecting mechanism
- Voice support
- Multiple payment integrations
- A comprehensive but uncluttered dashboard
Some other things that you’d need to do include:
- Build business website
- Begin your marketing efforts
- Keep your eyes and ears open for starting stage criticism to chisel away the rough corners in your fintech app idea and the application itself.
- Ensure there is a scope for scalability and the potential to adapt to dynamic market fluctuations.
Understand the Future Trends to Stay Upbeat with the Market
The glossy statistics that you read and hear about finance companies are a great motivator. But, you shouldn’t ignore the possibility of being obsolete in the near future.
You sure would know how pagers took the world by storm but were soon outshone by feature phones. If you don’t want into the pager category or be called a one-off wonder, you need to understand how much potential does your application hold for future diversification.
You should, no doubt, start with a focus on a single service. But, you cannot just keep doing that forever. You need to be able to keep up with the changing market needs.
Try answering questions like –
- Does my app have scope for adding more functions?
- Can my app handle more volume?
- Can I add more layers of security to my app?
- Does my app have scope for implementing changes based on feedback?
Once you have Yes as an answer to all these questions, only then should you go ahead.
Now that you know what route you need to follow to create the best fintech app for your startup in 2020, there is just one thing left to do. Creating the app. So, that’s what you should be doing.
And if you follow the steps mentioned above in the right way, you’d find no trouble in competing with the existing players and other startup companies in your industry vertical and niche.
The world is yours to take on; just make sure you do your research right, set your strategies straight, get the funding to fuel your plan, and you’d be ready. Ready to launch a fintech app that holds the potential to become a part of the unicorn crew.