The fintech industry landscape develops fast, with a prediction of fintech users reaching 674.62 million in 2028, according to Statista. Companies must keep up with recent technological trends and user expectations to stay competitive. That’s why fintech app development is becoming increasingly crucial in the strategy of financial institutions, with over 60% of the population using financial apps.
Financial apps are gaining popularity among bank users, investors who require quick access to their investment portfolios, and individuals who need digital wallets. Customers use investing, budgeting or mobile apps as alternative transfer solutions. Fintech app development services help institutions attract more clients, gain a competitive advantage, and become a part of a long-term digital strategy.
Users can choose among different financial apps, and nowadays, a bank or a financial institution should offer a mobile banking app. Creating an application has many benefits, including a broader client reach, convenient access to financial data, and increased safety of users and institutions.
At Neontri, we’ve developed a rewarded mobile app for the biggest bank in Poland, which operates for almost 12 million customers and almost 8 million active mobile applications. We know the critical steps of the fintech app software development process and its positive effects on clients So, why should you build a fintech app, and what steps are included in the process?
Fintech app development
Fintech app development, as a process of creating mobile applications for financial services and institutions, offers a variety of functionalities, such as mobile banking, money transfers, budgeting, etc. Still, there are a few steps businesses can take to ensure the process of financial application development is at the best possible level.
Set goals and objectives
The first step for any application should be defining its objectives, target audience, and setting goals. At this point, businesses must decide what the application will do and what customers it aims at. For example, if there’s a need for a digital wallet with budgeting functionality, you should think about the essential features of the app. This may include adding popular payment providers through APIs. Find more statistics and facts about Android and iPhone users in our article: 136% More People Have Androids Than iPhones.
This is also the moment when businesses need to consider limitations, such as:
- specific regional legal requirements (e.g., GDPR in Europe)
- integrating with legacy systems
- app scalability, etc.
Choose development team
If you don’t have an in-house development team, you should analyze the pros and cons of having one before you decide on a development provider. For long-term and complex projects, it’s usually better to have your own team of experts with good knowledge of the company culture and project requirements. If you’re feeling uncertain about where to start when hiring, our article on how to find an app developer will help you pinpoint the best hiring strategies.
Still, many businesses don’t find it necessary to have their own development team in-house and decide to outsource. This solution also has its pros and cons. Outsourcing a team with experience in fintech app development, a strong understanding of legal requirements and security protocols may be a better choice if you don’t have easy access to IT specialists.
Define tech stack
With a defined scope and app goals, it’s easier to define a proper technological stack for development. It’s important to choose secure and reliable, advanced technologies that are capable of supporting a fintech app and its demands. Financial apps deal with huge amounts of data, so the technology must be adjusted to the actual usage of the program.
Swift and Kotlin are the most common technologies used for front-end programming. Python, Kotlin/Java, and C++ are widely used in back-end programming and fintech application development. These languages are great choices for their scalability and security. When it comes to storing data, SQL databases are a safe option.
When defining the stack, consider cross-platform development that involves creating software that operates seamlessly across various operating systems (like iOS and Android) and has a broad spectrum of features using a single codebase.
Data security planning
There’s no doubt security is crucial for financial services and even more important for mobile payment apps in fintech. There are a few ways to ensure the proper security of users’ financial and personal data in fintech app development. One of them is implementing encryption methods that protect data which is securely stored in a specialized database.
Moreover, mobile apps add another layer of security with a safe internet connection, adding devices to trusted ones and applying security certificates that prevent unauthorized access to customer data. In some regions, it’s also necessary to implement relevant regulations, such as GDPR in the European Union or PCI DSS, for safe payments.
Pro tip: To ensure the fintech app development process is carried out at the highest possible level, businesses must focus on a few key steps that help them provide their customers with the best app. This involves thorough research to define goals and objectives, finding the right team and technology stack, and meeting all legal and safety requirements.
Create a fintech app
Effective process management is one key to success in application development. Streamlined process management helps create a fintech app faster. In product development, teams usually use agile methodologies to keep the development process flexible and adjust it to changing requirements. Some teams mix scrum and Kanban approaches to maximize efficiency.
Agile methodologies ensure efficient development progress with regular sprints, planning, retrospective meetings, and continuous communication with all stakeholders. It enables iterative project development, ensuring all encountered problems are addressed quickly.
Depending on the app type, the time and cost to develop it may vary.
| Type of application | Development time (average) | Cost (average in USD) |
| Banking app | 2,000-3,500 hours | 30,000-300,000 |
| Personal finance app | 1,500-2,500 hours | 50,000-300,000 |
| Lending and insurance app | 2,000-3,000 hours | 45,000-200,000 |
| Investment app | 1,500-2,500 hours | 60,000-120,000 |
The time of development depends on the features offered to users and specific legal and compliance requirements.
Stages of fintech app development
The development process of fintech apps is very similar to that of any other apps and involves involves thorough planning, development, implementation, QA, and maintenance.. However, finance-related applications need to consider specific compliance and legal considerations.
When developing a fintech application, it’s also important to include key functions for users and administrators.
| User features | Admin features |
| Seamless account management and financial reporting for investment decisions | Automation features to streamline workflow |
| Customizable interface for easy access to key app elements, like spending trackers | Data analytics and dashboards with relevant user information |
| Visualization and highlights of key finance information, like upcoming payments and cash flow | AI-powered features |
| Relevant real-time alerts and push notifications | Advanced security measures |
| 24/7 chatbot support and virtual assistants, advanced financial literacy | Seamless integration |
Step #1: Planning
The journey to a successful fintech mobile app development usually requires proper planning, including 4-5 steps while focusing on the following:
- regulatory compliance considerations
- key features and functionalities
- technical requirements and stack
- fintech market research and competitive analysis
- budget and timeline estimations.
These are the core elements of the planning process for fintech app development. They provide a framework for the successful building of fintech software solutions and fintech software development services.
Pro tip: Implementing all the planning steps will make the development process more manageable. Rich documentation, precise requirements, a defined tech stack, thorough market research, and other estimations will help prevent potential issues and changes in the development process.
Step #2: Development and implementation
After the planning stage, development takes place. Programmers start building the app’s core features and functionalities using the selected tech stack. They iterate the project with a skilled team of a project manager, testers, and a business analyst. The team usually consists of 11-17 specialists. The development process requires project management and regular meetings.
| Role | Number of positions | Responsibilities |
| Software Developer | 6-9 | Write the code for the application. |
| Product Owner/Product Manager | 1 | Represents the business needs and prioritizes features./Oversees the project timeline, budget, and resources. |
| Tester | 2-3 | Test the application to identify and fix bugs. |
| Business Analyst | 2-4 | Ensures developed solutions meet the initial goals. |
In the development process, programmers can build specific features on the core of the app. The QA team should be involved from the start and have access to a safe testing environment to make sure the development team delivers features according to documentation and specifications. Remember that adding more features to the app in the development process may impact the timeline and cost of the product.
For teams looking to innovate while maintaining control over project scope and unexpected challenges, delving into AI app development strategies can provide a distinct advantage.
Pro tip: Frequent updates, quick bug and problem reporting can speed up the development process and help prevent errors later. A good bug-reporting tool is helpful in such cases. To effectively work with a team, you need to make sure everyone knows their responsibilities and the project goal. Avoid micromanagement and ensure clear communication among all team members.
Step #3: Quality assurance (QA)
As the development process progresses, manual and automation quality testers check if the application works according to the assumptions made in the planning. Specialists make sure the app functions optimally, and customers will be able to use it without problems on any mobile device. They report any bugs they find for the development team to fix. Through proper testing, the team ensures the app’s reliability. Based on our experience, we recommend to involve QA members in regular meetings in order to:
- identify potential problems early
- focus on the importance of quality from the beginning of the development process
- identify and address possible risks
- improve user experience
- prioritize critical problems.
Involving the QA team in the process from the start will positively impact the quality of the development process and the project timeline. Proactive risk management during development establishes the framework for modern fintech security systems that defend against the sophisticated nature of contemporary digital threats.
Step #4: Deployment and launch
When the development and testing phases are completed, providing secure and reliable hosting infrastructure is necessary to ensure minimum service downtime and apply security measures against data breaches. Then, the app can be rolled out and launched for customers. The apps are added to appropriate stores (Google Play for Android and Apple Store for Apple). After the launch, data on user activities can be gathered for further analysis.
The time of delivery of the project may vary depending on the project’s scope, complexity, and the number of specialists on the team.
| Complexity | Simple | Medium | Complex |
| Time | 6-12 weeks | 3-6 months | 1-2 years |
The table only overviews the average time needed to develop a fintech app project.
Step #5: Maintenance and updates
The app can be updated based on customer feedback, reviews, analytical data, and the changing technological environment. Insights can guide the development team toward new functionalities, bug fixes, and security enhancements. The maintenance phase should continue as long as the app is used and updated.
| Stage | Time |
| Planning | 1-4 months |
| Development and implementation | 6-24 months |
| Testing | Development time + 4-6 weeks |
| Maintenance | Ongoing |
This is a rough estimation of the timeline for each stage of project development. The total time can vary depending on the effectiveness of the team, selected tech stack, team size, and other factors.
The smart way to build payment apps: Payment App Development: From Concept to Compliant Market Launch
Best practices for building a fintech app
Building a financial app includes similar stages as building any other app, with extra focus on compliance and legal requirements. Moreover, financial applications need specific security measures often required by the law, such as European GDPR.
Choosing the right development approach
Before developing the app, the company must decide whether to use an in-house development team or outsource. Both approaches have their pros and cons that should be considered. The final decision should depend on the budget and scope of the project.
Accessibility and usability
In the development process, take into account accessibility for different types of users. The app must be user-friendly and have a clear interface with key elements highlighted in the app. This way, people with accessibility issues can easily navigate the app. Users value the simplicity and aesthetic look of the app, but the usability features for older users or people with disabilities must also be taken into consideration.
Security frameworks for fintech apps
Financial applications need proper security frameworks and measures. The frameworks and regular audits are the best way to ensure regulatory compliance in fintech app development. Depending on the law and region, different methods are used to protect customer data and ensure the security of processes.
In the US, the Gramm-Leach-Bliley Act has been implemented to ensure each enterprise develops a privacy policy with information on how customer data is collected, used, and protected. For card payments, there’s the Payment Card Industry Data Security Standard (PCI DSS), which safeguards cardholder data used in financial transactions.
Another way to ensure data security is to implement AI security solutions that can help in fraud detection and prevent recurring fraud attempts. Artificial intelligence and machine learning can also enhance the security of user authentication by offering advanced biometric authentication, such as face recognition features. Moreover, AI can monitor any unusual patterns in real time and flag potential threats.
Ongoing maintenance and updates
There’s no doubt that addressing user needs and keeping up with the changing environment is a way to ensure a great experience for customers. That’s why implementing updates and/or new features is very important. Moreover, the app should be maintained to keep its functionality at the best possible level. Remember that maintenance and support are recurrent costs that impact the financial viability of the app, so keeping bugs at a minimum from the start is crucial.
Following trends
The fintech development landscape is changing rapidly, and it needs to adapt to the increasing needs of users. It’s a good idea to follow fintech app development trends and implement new solutions, such as artificial intelligence and machine learning to boost the efficiency and security of the app. Another trend worth mentioning is open banking, which allows third-party developers to create apps around financial institutions, leading to more personalized financial services.
Mobile payments and digital wallets are also an emerging trend in the fintech market, as more and more people use their smartphones as payment methods.
Neontri, your fintech app development company
Neontri has launched 100+ banking and financial solutions for leading European banks. Our fintech app developers, being the experts in the financial industry, partnered on a mobile banking application for one of the biggest banks in Central Eastern Europe, which has won multiple awards and is used by millions of customers.
Our experts have also created a PSD2 hub, connecting 300+ Polish banks with third-party payment providers. The platform ensures compliance and data security and fuels innovation in the fintech sector. Neontri’s tech talents also prepared a mobile banking MVP in just 7 months using the custom framework and a mobile banking app within 12 months.
With over 15 years of experience in the fintech and banking industry we are proud to be the partners of leading banks and payment providers. Fintech development services are at the core of our services, and we guarantee the best fintech solutions on the market.
Contact us to unlock your fintech business’s full potential that will attract customers and increase revenue.
Conclusion
In the evolving fintech landscape, companies need to keep up with technological trends and user needs to remain competitive. Mobile banking, payment, investment, budgeting, personal finance apps are gaining popularity due to their convenience, accessibility, and helpful features.
When developing a fintech app, the company must choose a specific technology stack, like cloud computing, dedicated to financial technology, implement specific legal requirements, and do proper research and planning. It’s also important to decide if outsourcing a development team or having your own development team is a good option.
FAQ
What are the key benefits of developing a fintech app for banks and finance institutions?
The key benefits of developing a fintech app for banks and financial institutions include increased efficiency of services, improved customer experience, and enhanced engagement. A well-designed and user-friendly app can also attract new customers to the bank.
How do we choose the right technology stack for the fintech app?
When choosing a technology stack for the fintech app, you need to consider its objectives, target audience, and goal. Then, you should choose technologies that are secure to make sure all sensitive data is protected. Scalability is also important, especially if you want the app to develop with time to meet changing user demands.
What is the typical timeline for developing fintech apps?
The development timeline for any software application varies depending on many factors, such as complexity and team size. A basic fintech app may take a minimum 2 months to create. Medium-complexity apps may take longer, about 6 months. Complex applications may require even up to 2 years.
Should we develop the app in-house or outsource to a development partner?
You should use outsourcing if you don’t want to have a dedicated software development team. Outsourcing can help reduce costs, enables access to a broad talent pool that may not be available for your in-house team. Such teams can help deliver the app faster to the market.
In-house teams ensure greater control over the development process, as well as increased security of project-related information. Communication with an in-house team is also streamlined compared to outsourcing.
What features should a fintech app include to meet customer expectations?
Customers expect specific functions from a fintech app. Depending on its goal, it should include basic financial features, such as bank account management, money transfers, digital payments, bill payments, etc. The app should connect with the bank database in real-time to provide customers with financial information about account balance and transaction history. Moreover, fintech apps should include security measures and 24/7 access to customer support.
What are the risks associated with fintech app development, and how can we mitigate them?
Financial apps deal with huge amounts of sensitive data that must be protected. They may be prone to cybersecurity threads, like data breaches, phishing attacks, and more. That’s why proper security measures must be implemented. Encryption, multi-factor authentication, and regular app security testing and audits are necessary.
