How much research is too much research? You cannot afford to cut corners while putting a sound business plan into action. We get it. This could be quite confusing and tedious. But we do have some cues for you.
Investing in different types of fintech software development could be one of the most rewarding decisions for entrepreneurs. Software have the largest share, acquiring 47% of the global fintech industry. The global fintech market is expected to reach $225.1 billion by 2027 at 12.9% CAGR. Thus, it’s a suitable time to become a part of this industry with a remarkable app. Oh, and believe us when we say, Fintech is here to stay!
In this Blog
- What does the fintech industry consist of?
- Types of fintech apps you can build as a startup
- Is there scope for measurable growth with fintech custom software development?
All financial technologies that are continuously overtaking conventional payments, e-commerce, banking, and wealth management are together referred to as "fintech." Despite the difficulties, fintech applications are becoming more and more prevalent, enabling individuals and businesses to manage their finances effectively.
Types of Fintech Software Development for Startups
Fintech software development integrates technology into financial sectors in the form of budgeting apps, banking or blockchain platforms, etc. These software/applications help businesses become more customer-oriented. However, since this industry is widespread, you must understand the effects and consequences of different types of apps. To make sure that you yield good returns, it’s important to determine the value of your product to the consumers.
Let’s take a look at the most popular types of fintech apps and understand how they would affect your position in the industry.
1. Payment Gateways
All of our readers should be well aware of payment gateways and how they have made our lives less complicated. These payment applications let the users pay using their debit or credit cards by becoming a secure intermediary between the users’ banks and merchants. Along with payments and money transfers, these apps also allow users to check their account balance and verify if there are enough funds and send data across banks.
Most fintech software development services revolve around creating a feature-rich and secure payment app. While this is generally a B2C effort, the market stats are quite positive for someone wanting to invest in the same.
The global payment gateways market reached US$ 21.5 billion in 2021. By 2027, it’s expected to reach US$ 32.4 billion at a consistent CAGR of 7%. Obviously, the pandemic remains a major reason for this surge, but we should deny how technology has changed people’s ways of dealing with a lot of things.
- Compliance with various necessary data security standards
- Autofill features that allow faster and instant payments
- Anti-fraud procedures to highlight and secure against risky payments
- International payments in multiple currencies
- Provisions for dispute resolution
2. Insurance and Pensions
InsurTech or Insurance technology is one of the fastest-growing types of fintech applications. By 2026, the global InsurTech market value is expected to reach $29.75 billion at a CAGR of 30%.
With the advancements in the modern world, InsurTech nowadays is highly dependent on data from wearables and more. Applications are inclined toward offering ultra-personalized services, dynamic plans, and better recommendations. Since there are a lot of opportunities to explore, you can seek robust application development at lower acquisition costs with proper planning.
- Document management features to make sure all relevant information is searchable and automatically updated.
- Task management features that allow creating and assigning tasks easier, setting deadlines, and tracking progress.
- Commission tracking features that automate payment reconciliation keep a record of the agent’s commission.
- Instant messaging to connect with clients and resolve issues in real time.
3. Accounting Systems
Pretty much every business needs a robust accounting system to make sure their regular business operations can be easily recorded and analyzed in the future. There are different types of accounting software that can be developed according to the audience and operations you want to cater to. The global accounting systems market is expected to grow up to $45.3 billion by 2028 at a CAGR of 19.6%. Thus, it’s a worthwhile opportunity to consider whether you’re seeking a solution as a startup idea or want to improve your existing business.
Some common types of accounting software include:
- Core accounting software
- Billing and invoicing software
- Payroll Software
- Enterprise Resource Planning Software (ERP)
If you’re seeking robust accounting software, look for a fintech software development company that specializes in the same.
- Payable/Receivable accounts for invoicing, billing, and payment collection.
- Cash management features with automated currency converters and the ability to generate cash flow statements.
- Bank reconciliation for withdrawals, deposits, and other transactions with specific accounts.
- Asset management features like tracking depreciation costs for tangible assets.
- Budgeting and forecasting to analyze expenses/earnings and predict the future financial position of your business.
Looking for the best technologies to build your fintech project?
Read Our Blog: Reasons to Choose React Native for Fintech App Development
With the growing demand for automation in money lending activities and processes, the industry is likely to witness a surge in lending apps. We get it. You might be seeking exact numbers. In 2027, the lending apps market is predicted to reach US$10.65 billion at a CAGR of 27.92%; which was estimated to grow up to US$3.11 billion by the end of 2022.
These apps simplify the process of loan requests and support better interactions between lenders and borrowers. By automating peer-to-peer lending, such apps benefit both traditional lending institutions and independent digital lenders. Earnin is one of the finest examples of lending apps, especially in the USA.
4. Lending Apps
- Credit score calculation to ascertain the creditworthiness of a borrower.
- Loan calculator to estimate the monthly loan payments.
- Loan origination features to support the process of loan application including document submission, determining interest rates, and loan approval.
- Auto investment lets users diversify their investments based on their preferences, risk tolerance, and interest rates.
5. Regulation and Compliance Technology (RegTech)
RegTech apps use Data Science, AI, and cloud computing to offer reliable SaaS solutions for financial compliance. They can detect fraudulent behavior or abnormal patterns. Like any other fintech solution, the global RegTech market has a bright future. It’s expected to grow at 17.55% CAGR from US$6.5 billion in 2020 to US$28.83 billion in 2029.
Companies can assess payment behavior, hidden risks, and false positives. Since such applications focus on pointing out and preventing fraudulent activities, there would be many potential users in the industry. For government agencies, e-commerce companies, and others who depend on extensive transactions online, smooth-functioning apps make a lot of difference.
- Risk analysis and fraud detection to filter individuals or groups that might be suspicious and hold possibilities of fraud. These features help in knowing the trustworthiness of a person or a collective based on their past activities.
- Automated compliance tasks according to the latest regulatory updates.
- Push notifications for alerts and easy access to necessary updates.
- Dashboard for risk assessment and to assess and maintain transactional data.
Looks like too much information at once? But research is not about shortcuts. It’s important to make the right decision regarding what type of fintech application you should host.
6. Blockchain & Cryptocurrencies
Blockchain is one of the fastest-growing segments of fintech software development. The blockchain market is expected to reach $36.04 billion in 2028 at 59.9% annual growth rate. A whopping number of users continually show interest in cryptocurrency trading. Although new regulations made the future chaotic, there are several developed countries including the USA, where things seem brighter. Moreover, blockchain comes with built-in trustworthiness which makes it even more valuable for the ones seeking to leverage its benefits.
- Regular audits to assess the authenticity and ownership of assets.
- Automated credit scoring to ensure all users get the benefits they seek.
- A robust payment infrastructure to settle transactions securely, in real-time.
- Asset tokenization. This would be something really important as blockchain allows digitizing any physical asset including equipment and real estate.
7. Crowdfunding Platforms
Fintech software development for crowdfunding platforms aims at creating something that operates outside a traditional banking ecosystem. This is basically about building a platform that allows users to pitch their ideas to a wider audience. Thus, the users can get funding from hundreds of individual sources.
8. Tax Management App
Considering numbers? Well, the global crowdfunding market which was $17.51 billion in 2021 is predicted to grow up to $42.93 billion by 2028 at 16.40% CAGR. Crowdfunding apps are turning out to be one of the most viable alternatives for P2P lending apps.
- Project pages that show a progress bar and the funding goals.
- Payment gateway integrations for easy transactions.
- The fundraisers’ dashboard shows various details like transaction history, new projects, and progress bar.
- Investors’ dashboard with backed projects, rewards, and transaction history.
- Social networking and sharing features that allow promoting projects via word of mouth.
One service that your fintech software can offer is automating intricate tax management procedures. Automated services will undoubtedly catch users' attention as they rush to complete tasks on time because everyone is in a hurry. The global tax management software market is anticipated to reach USD 11.19 billion in 2026 at a 10.4% CAGR.
- Automated tax calculator that offers region-specific formulas and templates.
- Document and compliance management features with customizable tax management forms.
- Banking systems and payment gateway integration for secure transactions.
- Analytical dashboard that lets the user prepare customizable reports.
9. Investment App
Introducing innovative tech that makes investments more accessible and manageable could be your take from fintech software development services. You can easily seek inspiration from industry leaders and come up with an extraordinary idea that creates a shift in the market. Understanding your audiences and competitors will bring great outcomes.
- Portfolio management features along with major financial factors, cost, and performance.
- Order management features to execute orders and process trade.
- Stock performance and transaction reports to visualize and evaluate historic data.
- Supplemental feeds to get additional data streams like corporate actions, pricing, and dividend accruals.
There are many types of fintech apps that you can build as a foundation for a thriving startup. The ones we covered above, however, are most likely to offer you noticeable advantages. Make sure before deciding a direction to work in, you have a proper plan, guidance, and service providers who’d execute your idea perfectly.
Seeking Fintech App Development Services?
Narola Infotech is a fintech software development company that swears by the experience and outstanding skills of its teams. With 1500+ happy clients from over 50+ countries and 95% client retention, we are proud to be an expanding team of enthusiastic experts. All thanks to our result-oriented, professional approach, clients have positive things to say about our work
If you’re looking for reliable fintech software developers in the USA, we would be pleased to serve you.