Building Fintech: Essential Features, Market Trends & Growth Perspective

One of the hottest topics in the tech sector is fintech. We can see multibillion-dollar investments in this industry and an increase in the number of businesses working on FinTech projects.

The fintech market was worth $112.5 billion in 2021 . Given the attention this industry receives, it will increase at an average annual growth rate of over 20% to reach $332.5 billion by 2028.

More than 66% of bank executives throughout the world say fintech will help rethink wallets and mobile payments, increasing client access to the financial industry. Clients of financial institutions value FinTech solutions as well.

This brings us to fintech apps. One of the highest retention rates for any app category is seen in this type of application. The average retention rate over the course of 90 days is 58% , which is significantly higher than the industry standard of 48% for other apps.

This is partially caused by the way fintech apps work. Users frequently send payments and check their bank balances, therefore it stands to reason that financial apps are used more regularly. But the greatest fintech apps' features and techniques account for a significant portion of the retention success.

Thinking about creating your own fintech app? Let’s have a talk.

1. Fintech market trends

The financial technology industry is on the rise and we can already identify patterns in how people interact with it. These are the emerging fintech market trends:

Alternative Financing

Business financing provided by nonbank institutions is referred to as alternative financing (or alternative finance). Some of them are not even loans.

One non-loan funding choice is revenue-based finance (RBF). RBF financing is reimbursed as a percentage of the company's monthly revenue rather than in set amounts on a predetermined schedule. Another kind of alternative financing is invoice factoring, which involves selling a company's unpaid bills at a discount in exchange for quick cash.

Alternative financing has been an idea for some time, but it wasn't until the recent e-commerce and startup boom that it became widely accepted. This is because traditional bank lenders frequently refuse to grant financing to young or online enterprises since they are regarded as "high risk."

Embedded Finance

Embedded finance is simply the incorporation of financial instruments or services into non-financial institutions' product lines. The embedded finance ecosystem is very large. Its scope has been expanded to include related industries like payment processing and insurance. It encompasses financial services including banking, credit, and investment.

Buy now pay later (BNPL) is a field of embedded finance that is rapidly expanding across the board. With this payment method, customers can order goods now and pay for them later. Typically, this is done by breaking the total cost of the purchase into a number of instalments that will be paid back over time.

Blockchain Technology

The cryptocurrency market has taken traders and investors on a wild ride this year. In the worst of times, relative to the high the year before, about $2 trillion in paper wealth vanished.

Nevertheless, the slump may just be temporary. This is partially due to the considerably broader applications of the underlying blockchain technology, one of which is cross-border payments.

The procedure of sending money internationally is currently time-consuming and expensive. However, with greater speed and security for foreign payments as well as often reduced prices, blockchain technology seeks to overcome these challenges.

According to a recent survey , 45% of consumers already use cryptocurrencies for conducting international financial transfers, and more than half (52%) believe it to be a "legitimate option."

All these market trends are setting the tone for a prosperous fintech future. If you want to build a fintech app, make sure to align our mission with the course of innovation. And then, check out these:

2. Must-have features for fintech apps

Seamless Dashboard

Users of financial apps have access to a wide range of tools. So it would be a good idea to have all of these tools on a handy dashboard. Additionally, all of the user's relevant information must be displayed here.

Multiple Payment Gateways

Fintech is all about enabling a dynamic flow for money. By integrating multiple payment gateways, users can transfer money easily to many platforms.

User-First Navigation

Every developer is aware that simple navigation is an essential component of app engagement. Many people, however, are unaware that the purpose of navigation is to shorten the amount of time a user spends using the app.

Naturally, it depends on the situation. If it's a game, then the obvious answer is that users can spend large amounts of time on the app.

In a banking app, though? Not really. If they do, it may be an indication that they are having trouble navigating.

Frictionless Design

Forms are areas of your app where users must enter data to transfer money or sign up for an account, among other things. Improving UX and retention — requires keeping this as frictionless as possible.

Friction is anything that prevents app users from moving from point A to point B. This may appear in apps as unclear copy, small, difficult-to-tap fields, or an unkempt layout.

App Security

Last, but not least — this is the absolute must for fintech apps. Security in a fintech application is essential because users entrust you with their confidential information regarding themselves and their finances. To provide a high level of security, you can use encryption methods, biometric and two-factor authentication, or even blockchain technology.

Security should receive the utmost consideration because fintech apps handle the most sensitive consumer data. Make sure the app only displays the last three card digits and restricts the number of failed login attempts.

3. How to build for growth

A good fintech app stands out from the crowd on the storefront by offering a first-rate user experience. Follow these market trends and make sure to mark every feature mentioned, in order to build a customised user flow for a smoother experience.

With Sensidev, you can ensure all of the above and build an app wired for results. Partner with us now and let’s build for growth!