A ResearchAndMarkets report predicts that the size of the fintech industry will reach $305 billion by 2025, a trillion-dollar industry with a growth rate of 20%. And why not? Most smartphone owners depend on fintech apps at work and personally to digitize their payments, track spending and investments, financial asset management, budget planning, and so on. But even with all its merits, fintech app design and development isn’t exactly a walk-in-the-park riddle with compliance, security, competition, and institutional challenges.
However, on the other hand, they can offer different experiences that may be interesting and fun for the person who uses them. For example, financial apps can add context instead of following traditional methods to create an enjoyable user experience that still meets regulatory obligations.
About fintech
Fintech involves using technology to make financial services more efficient. This can encompass a wide range of different services, from mobile payments to peer-to-peer lending. And with the ever-growing list of fintech companies, it’s clear that this is an industry with much potential.
Fintech is the technology that is used in the backend systems for established financial institutions. However, it has shifted to more customer-oriented services, so there is a new definition of Fintech. Fintech can now be used in other sectors, including retail banking, fundraising and nonprofit, and investment management.
In the past, financial services institutions offered various financial services under one umbrella. This range of services included traditional banking activities to trading and mortgage-related tasks. Fintech “unbundles” these tasks so that there is an individual offering for every move. Because of this, Fintech companies can be more efficient in their operations while also cutting down on costs associated with every transaction.
Many might have differing views that Fintech security is highly safe. Instead, Fintech is much more secure than traditional banks. For example, several sources indicate that conventional banking is behind regarding security. This is unfortunate but true, as Fintech’s fundamentals include the effective use of tech and compliance with security.
What types of fintech apps are there?
It’s important to know that there are different finance branches, and each requires its strategy for developing a fintech app. Here are some popular types of Fintech today:
1. Digital Banking
It allows you to complete transactions, open accounts, invest or do other things depending on the bank and who it caters to. Digital banking applications are becoming more common for banks that go a whole new way of doing things.
2. Digital Wallets
Cryptocurrency offers a more secure way to store your money online, making it easier to purchase goods or services. The currency provides the usability of cash, or even better, a digital credit card that can be used across both the internet and brick-and-mortar stores.
3. Investment, Trading, and Financial Management
Instead of going to your bank or a trader’s office, you can now trade and invest with a smartphone.
4. Consumer Solutions
These apps allow consumers to access various financial services, such as credit loans. They also have the power to integrate into other platforms, like stores.
5. Insurance
Financial technology apps include Insurtech, which offers customer service and insurance policies. They can manage CRM, show policies, and calculate risk.
6. Regulatory
Regtech fights regulatory violations by monitoring performance and generating alerts when necessary. It is a tool that can be used in Fintech and other industries. fintech
7. Real Estate
Increasingly, real estate services are being offered digitally. These new digital solutions have made the process more efficient and cheaper.
Five challenges businesses face during fintech app design and development
Fintach app design and development is tricky. You not only have to worry about your users but also ensure you are sticking to required compliances and security protocols. However, let us keep the discussion limited to designing the user interface.
Challenge 1: Not boring the customers
Problem:
Designers are challenged to design something engaging, despite being rather boring. Since financial products tend to be a bore, the real challenge lies in designing something that can intrigue a user.
Solution:
To create financial UI designs that are not bland, make them fun and joyful. A product with a clean design, smooth flow, and positive reinforcement in the right places is about making users interested in doing your own thing. It counters boredom by bringing excitement to tech that can bring a bright financial future.
Quick tip:
By including fun elements and keeping a clean, subtle and smooth flow, you can create designs to keep users engaged. Ensure consistency by focusing on their goals and maintaining minimal and pleasant colors.
Challenge 2: Not overloading users with too much info
Problem:
When it comes to financing, simplicity is key. The more complicated a financial app is, the less likely people are to use it and get overwhelmed by clutter. Too many features are counterproductive and make things clearer for the user.
Solution:
Your app should be designed to simplify the onboarding process, following a human-centric approach. Keep in mind your app doesn’t require a steep learning curve, and keep the information architecture contextual.
Quick tip:
Streamline the onboarding process, so it’s quick and easy to start. Place the most relevant information first to avoid confusion, and use navigation cues to guide the user through their new experience.
Challenge 3: Not overwhelming users with too many features
Problem:
These applications can give you access to important financial information anytime, anywhere. You can monitor your bank account, make transfers, track investments and pay bills, among other things. These apps can be good but also become a nightmare for users and designers.
Feature creep is a common feature in Fintech and can cause the user to experience software overload. This means that many apps are created with too many features, making it difficult for users to choose and use the app they desire.
The most frustrating thing is when the app makes too many complex features available at one time. This confuses users and frustrates them, and ends up resulting in a bad user experience.
Solution:
Say “no” to the unnecessary features that can clutter your software design. Think of the user first, and focus on their primary objectives. Show them unique information about your product at a time, not too much at once, and design with information architecture to be easy to use.
Quick tip:
User research and testing should be conducted before designing a product. Have the users you’re designing for in mind, simplify complicated terms and jargon, consider the UX writing, and provide guidance to bring clarity.
Challenge 4: Keeping the financial language simple
Problem:
Language is essential to any financial site or app, so neglecting it would be inexcusable. Financial statements and other words are often difficult to understand, but with the right UX design, even people who don’t know what they mean will be able to use the product successfully.
Solution:
Designers should create an easy-to-understand design that works for novices and experts. To do this, designers must create a termbase with accurate product information without overwhelming users. This process might be complex for any UX team; not getting it right will affect the adoption and retention of your product.
Quick tip:
Avoid complex terms and use formats that are easy to read. Make sure you can explain what your article is about, even if you’re using terminology that may be unfamiliar.
Challenge 5: Providing explicit call-to-actions to help the users make better decisions
Problem:
Most financial apps help customers with their finances differently, teaching them how to invest their change or helping them budget. However, what’s often missing from these apps is the ability to help break behavior patterns that encourage poor money management.
Solution:
UX designers should incorporate emotional feedback with data to provide a more compelling customer experience. For example, if the customer is about to make a decision that will save them money, designers should recognize that and reward them. This will keep the user engaged in your product by making them feel good.
Quick tip:
Follow the user’s emotional state to motivate them with content. Gather information and set parameters to offer the best advice. Help provide content that is personalized, relevant, and informed.
Designing requires an extra layer of protection, ergonomics, and appeal to be viable. Being particular about who you trust is key when finalizing a design agency. It is important to choose a company with domain expertise and UX knowledge, as they can make the right decisions for you.
Connect with Divami Design Labs to get your Fintech app designed and developed.
Steps for successful fintech app design and development
There is no one-size-fits-all answer when it comes to a fintech app design. However, there are a few critical steps that all successful fintech app developers take to create a successful product.
1. Select Your Specialization and Ensure Legal Compliance
Choosing your area of fintech focus is the first step. There are two approaches you can take. Either pick a specific fintech category and look into what can be improved there, or come up with new concepts and see where they fit. For example, good investment opportunities are always available if you develop mobile apps for Fintech.
Following your selection of a niche, ensuring your application complies with all applicable laws in the regions where it will be used is essential. Fintech applications work with critical data. Therefore, it is necessary to ensure that it complies with the law to assure your clients’ utmost security and privacy. This step is crucial, so you should take your time with it. Legal issues and heavy fines might result from failing to ensure legal compliance.
2. Choose the technology and estimate costs
Compliance goes beyond following the rules for releasing apps to Google Play and Apple’s App Store regarding mobile app development for finance. Therefore, it would be best if you undertook compliance research to discover potential legal obstacles and limitations based on your target market.
The languages used to create apps are numerous. Furthermore, the choice of the programming language depends on the availability of resources- both time and money. Therefore, to produce a project scope documentation, it is generally helpful to have a written list of all your requirements and an estimated budget.
