A Comprehensive Guide to Fintech App Development

by Alona O. on Nov 25, 2024

Fintech is no longer the disruptor — it’s part of the financial world’s fabric.

The stakes are high if you plan to build a fintech app. It’s not enough to just have a good idea; you need to execute it with precision. Otherwise, the fintech market will ignore your solution, no matter how much soul and creativity you pour into it.

Users expect seamless functionality, top-notch security, and real-time updates.

Whether it is a personal finance app or an enterprise-level insurtech management app, clients want to be impressed by perks and never let down by core functionality.

Regulatory requirements in the fintech sector are strict, and any slip-up can lead to severe legal and financial consequences.

You’ll need the right tech stack, scalable infrastructure, and security practices baked in from the start. No matter how little development time to build a product you have, there is no releasing an app without multi-layer testing.

And then, of course, there is a cost of development.

Are you still interested?

Well, fintech application development and testing are among our key focuses, so we know what it takes to get it right and create an app that works and sells.

Let’s start with a few keynotes to set the tone for the article:

Key Takeaways on How to Develop a Fintech App in 2024

#1. Fintech is established. The disruption phase is over. Fintech is now a major player, focusing on building more efficient, accessible, and scalable financial services.

#2. Embedded finance is booming. API-first architectures are enabling non-financial companies to integrate banking services directly into their platforms, opening a $7 trillion market by 2026.

#3. Digital payments lead innovation. Tokenization, NFC, and QR codes are driving frictionless payments, especially in markets with limited access to traditional banking.

#4. AI/ML is transforming finance. Predictive analytics, fraud detection, and personalized financial advice powered by machine learning are at the core of modern financial apps.

#5. Blockchain and DeFi integration. Smart contracts and decentralized platforms are key to secure, transparent financial services and offer unique opportunities for app development.

#6. RegTech is streamlining compliance. Big data analytics and AI are automating complex compliance tasks like KYC and AML, creating opportunities for fintech apps to simplify these processes.

#7. Building a fintech app requires security at the forefront. Fintech app development must prioritize data protection, encryption, and secure payment gateways to ensure trust and compliance.

#8. API-driven fintech apps. Integration with third-party services, such as banks or payment processors, is essential for fintech app scalability and functionality, making APIs a vital part of development.

#9. Scalability is key for fintech app success. Apps must handle increased user bases and complex data with a scalable architecture, ensuring growth without sacrificing performance.

#10. Reliable partners make a difference. Choosing a trusted, niche partner for development and testing ensures your fintech app not only meets high standards but also scales effectively with quality assurance and expertise built in from the start

But these are just snippets. We bet, you came for more.

Understanding the Fintech Industry

Fintech uses technology to improve and automate financial services. It covers various types of fintech solutions, from mobile banking and investment apps to cryptocurrency and blockchain technologies.

Fintech’s origins and evolution

Fintech began in the late 1990s with the introduction of online banking. It gained momentum in the 2000s with the rise of smartphones and mobile apps.

1998: PayPal is founded, marking a major milestone in digital payments.
2007: iPhone launches, setting the stage for mobile banking apps.
2008: Bitcoin is introduced, laying the groundwork for blockchain and cryptocurrencies.

The 2008 financial crisis accelerated fintech growth as traditional banks faced increased regulation and public distrust.

2010s: Peer-to-peer lending and crowdfunding platforms like LendingClub and Kickstarter rise.
2015: Fintech startups like Revolut and Stripe change digital banking and payments.

2017: Open banking regulations (PSD2) in Europe revolutionize how financial data is shared between banks and third-party services.
2020: COVID-19 accelerates digital transformation, giving way to contactless payments, digital wallets, and robo-advisors.
2021: Buy Now, Pay Later (BNPL) services like Klarna and Afterpay surge in popularity.
2023: AI-driven fintech apps become mainstream.

How fintech works today

Fintech companies use digital platforms, software, and sometimes hardware to offer financial services.

They often rely on data analytics, artificial intelligence, and machine learning to process information quickly. For instance, a fintech app might analyze a user’s spending habits to offer personalized financial advice.

Fintech application development is difficult, no matter the app type, because it is functionally complex, requires niche specialists, and is subject to strict and evolving compliance and safety regulations.

Types of Fintech Apps

From banking and payments to investing and insurance, there’s an app for almost every financial need. Let’s take a look at the most popular types of fintech apps and what they bring to the table.

Digital Banking

Digital banking apps have been around for a long time. We use these apps to manage our banking accounts, track expenses, transfer money, and strengthen security, all without having to go to the bank. Most banks offer their customers a proprietary application, while those who don’t are looking into mobile app development as the next step of their transformation. As of 2023, 70% of mobile users choose applications to access banking services, and this number is only set to grow in the near future.

Most banks now offer their customers a proprietary application, while those who don’t are looking into mobile banking app development as the next step of their transformation.

As of the first quarter of 2024, 73% of mobile users choose applications to access banking services, and this number is only set to grow shortly.

Revolut, Varo, Bank of America, and Capital One are some of the best banking apps. You can look at them to draw inspiration from.

Convenience. Online access, transactions handled in minutes, most functions available 24/7, on weekends and public holidays.

Security. Evolving threats — regular updates, multi-factor authentication, instant alerts on suspicious activity, encryption for sensitive information.

Cost efficiency

Lower fees compared to traditional banking due to reduced operational costs.
No more charges for paper statements or in-branch services.
Competitive interest rates on loans and savings, thanks to fewer overheads.

Real-time updates

Immediate notifications on deposits, withdrawals, and payments.
Track every transaction as it happens, reducing the chance of mistakes.
Easily monitor your account balance to avoid overdrafts or missed payments.

Payment processing apps

Payment Processing Apps are becoming increasingly important as we move away from cash. More people are shopping online and using their phones to pay for things in stores. Here is why these apps are only growing in popularity:

Allow payments via smartphones or computers.
Handle credit cards, bank transfers, and digital wallets.
Use encryption and tokenization to protect financial data.
Process payments instantly.
Offer insights on transaction patterns and customer behavior.
Integrate with other systems, connecting with accounting software and e-commerce platforms.
Manage recurring payments (subscriptions and regular bills).
Support cross-border transactions and currency conversions.
Cut costs on transaction fees compared to traditional methods.
Simplify checkout processes for customers.

InsurTech (Insurance tech) apps

InsurTech is the use of technology to improve the insurance industry. Insurance technology startups and traditional insurance companies are both using these technologies to change how insurance works, making it more user-friendly, cost-effective. Insurance apps:

Move policies and claims online.
Analyze information to set better prices and spot fraud.
Create insurance that fits modern needs, like pay-per-mile car insurance.
Speed up processes, automates tasks to handle claims and questions faster.
Personalize coverage, tailors insurance to individual needs using AI.
Improve risk assessment, for example, using sensors to understand health risks better.
Reach people who couldn’t easily get insurance before.
Provide easy-to-use apps and websites for managing insurance.

Financial planning apps

Financial planning apps are becoming more popular as people’s money situations get more complex. With multiple bank accounts, credit cards, loans, and investments, it’s getting harder to keep track of everything. Many people feel they need more control over their finances, and these apps help them do that:

Automatically categorize and monitor spending habits.
Set and manage budgets for different expense categories.
Create and track progress towards financial goals.
Connect multiple bank accounts, credit cards, and investments.
Alerts for upcoming payments to avoid late fees.
Monitor portfolio performance and asset allocation.
Track and plan for debt repayment.
Suggestions for optimizing savings based on spending patterns.
Resources and tips for improving financial literacy.

Lending apps

Lending apps are digital platforms that allow users to borrow money quickly and conveniently using their smartphones. These apps have become increasingly popular as they simplify the loan process and make it more accessible to a wider range of people:

Users can sign up using email, phone number, or social media accounts.
Quick loan application, often broken down into simple steps.
Automated assessment of creditworthiness using various data points.
Different types of loans with varying terms and interest rates.
Loan calculators help users estimate monthly payments and total interest.
Integration with payment gateways for loan disbursement and repayment.
Users can view loan status, repayment schedules, and transaction history.

It would be irresponsible of us not to mention that lending apps may sometimes be dark horses of financial app development. Critics argue that some apps exploit vulnerable borrowers through:

Predatory interest rates. Extremely high APRs that trap users in debt cycles
Aggressive collection practices. Harassment or threats to recover debts
Inadequate credit checks. Lending to those who can’t afford repayments

We don’t envy regulators who need to find a balance between innovation and consumer protection. While mobile application development for fintech is hard, imagine, what a nightmare is to regulate it. Providing our clients with fintech app development services, we take into account regulatory and compliance requirements.

Neobanks

Neobanks are fully online financial institutions built from the ground up with modern technology, unlike digital banks, which are often online versions of existing banks. While neobanks share many advantages with digital banks, such as 24/7 accessibility and lower fees, they offer additional benefits:

Faster development and rollout of new features and products.
More intuitive, user-friendly interfaces designed for mobile-first use.
Easier connection with other fintech apps and services.
Community-driven features, as some offer social components or community-based financial tools.
Innovative account types like shared accounts or sub-accounts.
Instant transaction categorization and spending analysis.
Often better exchange rates and lower fees for global transactions.
Some offer early access to direct deposits.
Granular control over card usage and security features.

Investment apps

Investment apps are mobile applications that allow users to manage investments, trade stocks, and access financial markets directly from their smartphones. This type of app offers a range of features to help users make investment decisions and manage their portfolios:

Easy setup and management of investment accounts.
Buying and selling stocks, ETFs, and other securities.
Real-time updates on investment performance.
Access to stock quotes, news, and analysis.
Many apps offer reduced fees compared to traditional brokers.
Ability to invest in partial shares of expensive stocks

Some apps offer robo-advisor services for hands-off investing.

From personal finance to enterprise-level solutions, our team is here to turn your fintech ideas into reality

Build a Fintech App: The Most Promising Verticals and Areas

Remember all those “Fintech is disrupting traditional banking” articles?

Well, that disruption is done. It’s already happened. Enter an app store and see how many fintech mobile applications it has just in the “recommended” section. You have been probably using the app like that today already.

Fintech is a major player now. And the focus has shifted to building a stronger foundation, making financial services more efficient, accessible, and integrated.

The real game is in using technologies like AI, blockchain, and API-first architectures to create seamless financial ecosystems. Here are some of the most promising verticals for financial app development you need to consider if you want to make your app future-proof.

Embedded finance

API-first architectures enable $7 trillion market projection by 2026. Banking-as-a-Service (BaaS) models allow non-financial companies to integrate financial products directly into their platforms without becoming full-fledged financial institutions.

Digital payments

Tokenization, near-field communication (NFC), and QR code technologies power frictionless transactions. These systems bypass traditional banking infrastructure, particularly beneficial in markets with limited financial services access.

AI and Machine Learning in finance

Predictive analytics drive credit scoring improvements. Anomaly detection algorithms enhance fraud prevention. Natural language processing enables personalized financial advice.

Machine learning models continuously refine through iterative learning, boosting operational efficiency and user experience. Such apps also have an extra promo point.

The growing role of AI/ML in finance is so impactful, that we have written a separate article on AI in banking. Check it out, it has all the latest use cases.

Decentralized finance (DeFi) and blockchain

Smart contracts on blockchain networks automate financial services. Decentralized exchanges (DEXs) yield farming protocols, and non-fungible token (NFT) platforms operate on distributed ledger technology, ensuring transparency and immutability of transactions.

Regulatory technology (RegTech)

Big data analytics and machine learning automate compliance processes. Focus areas include Know Your Customer (KYC), Anti-Money Laundering (AML), and real-time transaction monitoring. These tools help financial institutions navigate complex regulatory requirements efficiently.

Algorithmic wealth management

Advanced algorithms power tax-loss harvesting, risk assessment, and dynamic asset allocation in robo-advisory platforms. Machine learning analyzes market trends and adjusts investment strategies in real-time, moving beyond simple portfolio allocation.

Mobile money and financial inclusion

Distributed ledger technologies and peer-to-peer networks create robust financial ecosystems in emerging markets. Mobile networks and digital wallets provide essential financial services, often bypassing traditional banking infrastructure.

Distributed systems, machine learning, and API-driven architectures converge to reshape financial services.

This technological integration creates new market opportunities and challenges established business models across the financial sector.

Proven fintech expertise: Check out our case studies. See how our team has built and tested fintech apps for clients worldwide

Learn more

Must-Have Features and Extras for Fintech App Development

Banking app is fintech, and investment robo-adviser is fintech. Must-have features for them will significantly differ. Still, when we discuss fintech development services with clients, we try, from the start, to separate must-have features and nice-to-have features.

Must-have features

User registration and authentication

Secure sign-up and login processes are essential. That’s just that.

Implement OAuth 2.0 for secure authorization
Use bcrypt for password hashing
Integrate biometric authentication (fingerprint, face ID)

Account Management

Ability to view balances, transaction history, and perform basic account operations. Account management basic and advanced features fully depend on the type of financial app you are developing. However, there are some basics to implement:

RESTful API for account operations
Real-time data synchronization using WebSockets
Caching mechanisms for faster data retrieval

Payment Gateway Integration

Secure payment processing capabilities.

Whether it’s transferring money between accounts, paying bills, or making online purchases, an efficient and secure payment gateway is indispensable. So, when building mobile apps for fintech, look into the services that can be implemented to ensure quick and hassle-free money transfers. PayPal, Stripe, or APIs can be a good way to go.

Implement PCI DSS compliant payment processing
Use tokenization for secure card data storage
Integrate with multiple payment providers via a unified API
Implement 3D Secure 2.0 for enhanced transaction security

Security Features

End-to-end encryption, two-factor authentication, fraud detection.

Fintech applications must comply with security requirements to ensure protection of customer’s data against unauthorized access, breaches, and cyber threats. Therefore, your app should have features like biometric or two-factor authentication, encryption, blockchain, or any other advanced security protocols that can safeguard sensitive information.

Implement end-to-end encryption using AES-256
Use SSL/TLS for secure data transmission
Implement JWT (JSON Web Tokens) for stateless authentication
Use OWASP security standards for app development
Implement real-time fraud detection using machine learning algorithms

Dashboard

A central hub for users to access key information and features.

Dashboards are an element of a UI design. They contribute to the convenience of application by providing customers with visualized representation of their spending. Think payment history, account balances, upcoming bills, savings goals, investment portfolios, or even financial trends over time.

Use data visualization libraries like D3.js or Chart.js
Implement lazy loading for improved performance
Use WebSockets for real-time data updates
Implement responsive design for cross-device compatibility
Use caching mechanisms for faster data retrieval

Push Notifications

To keep users informed about account activities and updates.

Notifications and alerts allow people to keep track of their financial activities and take timely actions in case of discrepancies or opportunities. Not only that, but they also allow businesses to interact with their users, increasing both conversions and retention rates.

Implement Firebase Cloud Messaging (FCM) for cross-platform notifications
Use silent push for background data updates
Implement rich notifications with actionable buttons

Customer Support

In-app support options to assist users. It can be a basic chat-bot for starters, or even a page that explains how to get assistance via email.

Integrate chatbots using natural language processing (NLP)
Implement in-app ticketing system with RESTful API
Provide screen sharing capabilities for remote assistance

8. Accessibility features like voice assistance

Now it’s become important to strive for inclusivity, which is where improvements like voice technology and others come into play.

Integrate with platform-specific voice assistants (Siri, Google Assistant)
Implement custom wake words using keyword spotting algorithms
Use text-to-speech (TTS) and speech-to-text (STT) APIs
Implement WCAG 2.1 guidelines for accessibility compliance
Use semantic HTML and ARIA attributes for screen reader compatibility

9. Clear UI/UX

Most people stick with applications that look good and are easy to navigate, and the finance sector isn’t an exception. Here are general guidelines as to optimizing UI/UX design:

Resist the temptation to use too bright colors or symbols that customers are unfamiliar with. Most likely, this will make them feel uncomfortable and eventually drive them away from your app.
Don’t overcomplicate things. Even if you’re creating a complex banking app with advanced functionality, it should be easy to use without a learning curve.
The download speed should be fast. Anything that loads slower than 2 minutes doesn’t stand a chance of succeeding in the highly competitive world.
Accessing bank accounts and transferring money shouldn’t take a long time. The simpler and more intuitive the process, the better.

Nice-to-have features

Personalization

Customizable interfaces and settings. Clients are used to it, fintech mobile app development just cannot happen without at least basic personalization:

Implement machine learning algorithms for user behavior analysis
Use collaborative filtering for personalized recommendations
Integrate A/B testing framework for UI/UX optimization

Multi-Currency Support

Ability to handle transactions in different currencies. Not all the apps need it of course, but if the type of your product would benefit from it, consider the following:

Implement real-time exchange rate API integration
Use BigDecimal for precise currency calculations
Implement multi-currency ledger system

QR Code Scanning

A QR scanner allows for swift and effortless transactions with just a touch of the screen. This feature alone can improve the UX of the app, making it more appealing in the eyes of customers.

Implement QR code generation using libraries like ZXing
Use device camera API for QR code scanning
Implement error correction for damaged or partially obscured codes
Use deep linking for in-app navigation from scanned codes

Gamification

Elements to make financial management more engaging. Often, people start using an app for its main features, but stay for gamification.

Implement achievement system using microservices architecture
Use real-time leaderboards with Redis
Integrate social sharing APIs for user engagement

ML and AI-powered features

Like robo-advisors or predictive analytics.

Machine learning is no longer a luxury but a necessity in fintech app development. By analyzing volumes of data, it can make predictions as to the user’s future behavior and preferences and offer tailored finance advice, whether they’re planning to buy or sell or are looking for investment opportunities.

Implement TensorFlow or PyTorch for machine learning models
Use natural language processing (NLP) for chatbots and voice interfaces
Implement predictive analytics using time series analysis
Use reinforcement learning for personalized investment strategies
Implement anomaly detection for fraud prevention

Open APIs

For third-party integrations and expanded functionality.

Implement OAuth 2.0 for third-party authentication
Use GraphQL for flexible data querying
Implement rate limiting and request throttling for API management

Language Options

Multiple language support for broader accessibility.

Implement i18n (internationalization) framework
Use content delivery networks (CDNs) for localized asset delivery
Implement right-to-left (RTL) layout support for applicable languages

API Integration With Financial Services: A Player Beyond Any List

While it might seem that fintech has emerged as an independent alternative to traditional banks, it’s not quite the case. It depends on the banks quite a lot. In fact, a vast majority of fintech app development companies are integrated with banks by means of APIs, enabling them to access user accounts, transaction histories, and other essential financial data.

This integration offers a number of benefits, including:

Seamless transactions. Direct integration with banks ensures that users can effortlessly transfer money between their fintech apps and bank accounts, making transactions quicker and more efficient.
Real-time data access. By connecting with banks via APIs, financial platforms can provide users with real-time account balances, transaction updates, and other valuable data, ensuring that users always have the most up-to-date information at their fingertips.
Enhanced security. When apps are integrated with banks, they also benefit from the same high-level security protocols, such as end-to-end encryption and two-factor authentication.
Automated financial services. Integration with banks also gives an important advantage of being able to automate services such as investment advice, budgeting tools, and bill payments, creating a more streamlined and hands-off financial management experience for users.
Reduced operational costs. Also of note is that collaboration with banks often results in reduced processing fees for transactions, benefiting both fintech software solutions and their users.
Regulatory compliance. Finally, working in tandem with banks ensures that mobile banking software is more likely to stay aligned with financial regulations and standards, minimizing the risk of legal complications.

What’s new

Open banking APIs. These are enabling greater collaboration between traditional banks and fintech startups, fostering innovation and new service offerings.
AI-powered APIs. Integrating artificial intelligence for more sophisticated data analysis, fraud detection, and personalized financial advice.
Blockchain and DeFi APIs. Emerging to support decentralized finance applications and cryptocurrency services.

The most favorite APIs of fintech app developers

Plaid. Widely used for connecting apps to users’ bank accounts and accessing financial data.
Stripe. Very popular payment processing API that allows startups to easily accept online payments.
PayPal. Another widely used payment API, especially for businesses looking to handle international transactions.
TrueLayer. Gaining popularity for open banking services, allowing access to banking data and payment initiation.
Yodlee. Commonly used for personal financial management and data aggregation services.
MX. Popular for financial data aggregation, cleansing, and insights.
Coinbase. Frequently used by startups working with cryptocurrencies.
Alpaca. Growing in popularity for commission-free stock trading API.
Onfido. Commonly used for identity verification and KYC processes.
Finicity. Popular for credit decisioning and account verification services.

11. Tink: A rising star in open banking APIs, used for payment initiation, financial data aggregation, and personal finance management.

12. Dwolla: Known for simplifying bank transfers and ACH payments, helping businesses integrate seamless, low-cost payment processing.

Need help connecting with banking APIs? Our integration specialists ensure smooth, secure connections with any financial service provider

Gaps and Opportunities in Development for Fintech

To create an application that can pave the way towards success, it’s important to learn what gaps and challenges exist and address them in your fintech offering. Let’s delve deeper into these aspects.

Data security

The biggest gap in the world of fintech that still holds a lot of users back from using mobile banking applications is security concerns. Data breaches and cyber attacks aren’t as rare as it may seem. To give you the gist, 76% of all attacks that occur are financially motivated, putting fintech at a high risk. Considering these numbers, it is no surprise that people feel rather reluctant to share their sensitive data with virtual platforms.

Addressing сoncerns

Multi-factor authentication (MFA). To attract more users and not fall victim to cyber-attacks, fintech platforms should implement MFA, ensuring an additional layer of security. This way, even if someone somehow gets their hands on a password, unauthorized access can be prevented.
Regular audits and penetration testing. It’s essential to regularly examine the app for vulnerabilities and potential exploits. This proactive approach can help identify and address security loopholes early in development.
Data encryption. Encrypting sensitive data, both in transit and at rest, ensures that even if data is intercepted, it remains unreadable for unauthorized entities.
Real-time alerts. With the advent of AI and ML, fintech platforms can now keep track of user behavior and transaction patterns in real-time. Thus, if they detect any anomalies or suspicious activities, they can trigger instant alerts, informing the security team to take immediate action.

“When it comes to data storage in fintech platforms, these solutions typically handle data from a variety of sources, such as bank transactions, accounting programs, third-party services, and even IoT devices. To manage this data effectively, it’s advisable to create a universal storage solution, perhaps a relational database with a robust network of connections and indexes. Alternatively, a non-SQL storage can be used for more unstructured data.”

Mykola Pyvovarov, Head of Mobile

Mykola also claims, that the mixed approach may be best, incorporating:

Relational Databases for scalable, structured data (e.g., user relationships, campaigns, contracts).
NoSQL Databases for unstructured data like content, media, or analytics.
ElasticSearch for powerful search capabilities, especially useful for discovery features. For time-sensitive data, such as IoT or monitoring systems, databases like InfluxDB or TimescaleDB could be a good fit.

Compliance with legal regulations

Fintech, just like any other industry that deals with sensitive data, has to fully comply with legal regulations. If it doesn’t, the team could, at best, face serious penalties, and at worst, shut down their business permanently.

Addressing concerns

Be sure to learn everything you can about the requirements regarding the use of finance apps in your area. In some cases, it can be a good idea to resort to the service of a professional legal consultation to navigate you through all the complexities. Don’t forget that government policies tend to change over time, so make sure to keep a close eye on it so as not to miss anything important.

Financial inclusion

Many fintech apps are primarily targeted at users who already have access to banking services. However, there’s a vast untapped market, especially in developing regions, where millions remain unbanked.

Addressing concerns

Low-cost services. The main reason many remain unbanked is the cost associated with traditional banking services. Knowing that, fintech platforms should be able to offer affordable solutions, with minimal fees, to attract this demographic.
User education. The lack of understanding how financial systems work is another barrier to financial inclusion. So, going the extra mile and offering users educational resources, tutorials, and user-friendly interfaces can work a trick.
Collaboration with local entities. It’s a good idea to seek collaboration with local organizations, NGOs, or microfinance institutions that can help you reach out to the unbanked population more effectively.
Offline capabilities. In many developing countries, consistent Internet access can be a problem. To address this issue, teams should develop applications that can work offline and then sync when there’s connectivity to ensure continuous service.

Build fintech apps without regulatory headaches. We handle compliance so you don’t have to

How Much Does It Cost to Build a Fintech Application?

The cost of fintech software is directly related to the features of your app and integrations you plan to implement. Obviously, if you want to create an investment app with ML, blockchain, and other higher-end technologies, it will take longer to develop it, and it will cost much more compared to a basic solution. And vice versa. A simple fintech application will be much quicker to get up and running and cost less.

Overall, the average cost of fintech app development in 2024 ranges from $30,000 to $350,000 and depends on the team you choose, where they’re based, and how experienced they are in the finance niche. For example, app developers from Asian and Eastern European countries charge around $20-45 per hour, whereas development teams from the USA will ask $70-$100 for the same amount of work.

Fintech Application Development Step-by-Step

There are many approaches to a modern fintech application development process. We can make it five steps, or 12 steps, include extra discovery steps or remove an MVP stage completely. It all depends on the tasks you have, your time, budget and goals. Still, there are some basics that work both for building a simple fintech app and a complex blockchain-powered investment app that allows dealing with multi-currencies worldwide.

#1. Research the fintech mobile market and choose your way

Embarking on the fintech software development journey begins with market research. This is the first and the most important step. It’s like scouting the terrain before setting up camp. You need to understand the lay of the land — the current trends, the needs of your potential users, and the competition.

What’s trending?
Where’s the gap that your app could fill?
Maybe there’s a certain group of people who aren’t being catered to, or perhaps there’s a service that can be done better?

Once you’ve got a clear picture, focus on your niche. Remember, it’s better to be a big fish in a small pond than a small fish in a big ocean.

#2. Hire an IT partner to develop a fintech application

Once you’ve wrapped up your mind around the niche that you want to grow your business in, the next step is to partner with the right IT company. Finding an experienced team that knows the ins and outs of the tech world is often half the battle won. They can help you navigate through the complexities of the app development process and translate your business concept into a functional and secure digital solution.

However, finding an IT partner is easier said than done. There are many companies that claim to be professionals in fintech, but only a small part of them actually is. And which part it is, is often a guessing game.

To find a reliable fintech software development company, start by looking at their track record. A reputable IT partner should have a robust portfolio of successful fintech projects. Don’t just take their word for it. Ask for case studies, client testimonials, and even direct references.

Next, consider their expertise in the particular domain you’re interested in. For instance, if you’re looking to create a budgeting app, a mobile app development company with a strong background in digital banking might be a good fit.

On top of that, consider how the company approaches security. Not only do they need to have a solid understanding of data protection laws and compliance requirements, but they should also have a track record of implementing robust security measures in their projects.

Aside from that, you want a partner who is transparent about their processes, open to your input, and responsive to your concerns. At the end of the day, fintech mobile app development is a collaborative process, and how well you can communicate with each other can make or break the project.

“In many cases, the customer may not be a technical expert, so a business analyst (BA) steps in to facilitate better communication and help identify the necessary requirements. It’s crucial for the BA to be familiar with financial applications and the specific terminology used in banking or accounting. The first challenge is to properly uncover and define these requirements in a way that’s clear and actionable for the development team.”

Mykola Pyvovarov, Head of Mobile

If you’re looking for a partner, we’re more than happy to become your reliable guide in this endeavor. We have over 350+ specialists with a long track record in the finance and banking sphere, as well as a close-knit team of testers, which allows us to bring the most daring app ideas from concept to implementation without a hitch.

Furthermore, we offer customized solutions. Whether you need help with building a fintech app or are looking for a partner to help integrate your fintech app with API, QArea’s team has got you covered.

The team size: Consider app development cost

Generally speaking, there’s no one set rule for how many people there should be on the team. Every project is unique, as is the size of the team. Sometimes, you may need a smaller group of specialists who can pivot and adapt quickly. In other cases, particularly for more complex fintech projects, a larger team with a diverse tech stack may be necessary.

In addition, the team size may change based on the phase of the project. As a rule, the initial stages require a lean fintech app development team, but as the project moves into the phases of design and development, the team may need to expand to include additional developers, designers, and testers.

Overall, the key roles most typically found in fintech app development processes go as follows:

Project manager. Your strategies and point person who keeps the project aligned with your goals.
UI/UX designers. The creative wizards who ensure your app is not only visually appealing but also user-friendly.
Developers. The tech guys who build fintech apps, writing code that turns design into functionality.
QA testers. The detail-oriented analysts who rigorously test the app to ensure every feature works flawlessly.

It’s worth noting that once the team is assembled, the development process is handed over to the developers and you can basically sigh with relief. However, if you prefer to keep things under control, you can negotiate further partnership details to ensure ongoing involvement and oversight. This can include regular progress meetings, milestone reviews, check-ins on the development status, or any other form of communication and reporting that you feel most comfortable with.

Take advantage of our expertise to choose the right tools and frameworks for your fintech app.

Build a secure, scalable solution with QArea’s tech team.

#3. Create a clear development plan

To build a successful fintech app, it’s essential to have a clear development plant at hand. Starting from the initial concept and market research to design, development, testing, and post-launch plans, it should include everything from the get-go. A development plan serves as a blueprint for the project, ensuring that every aspect of the app’s creation has been factored in.

First things first, you need to decide on the platform that best aligns with the goals of your project. If you’re not quite sure which one you need, your team should be able to point you in the right direction.

Next, consider the features that are essential to your project. However, don’t overcomplicate things. Concentrate on the most important features that play a crucial role in software development and plan all the nice-to-have features for the next iterations after you test your app idea and understand what it’s worth.

Along with your team, decide on the project architecture and tech stack. This is where the technical expertise of your IT partner becomes invaluable. The architecture of your finance solution is its backbone, determining how scalable, reliable, and maintainable it will be.

“Another major challenge is the architectural solution. Most fintech applications are deployed using cloud services, so the architect needs to have experience with the infrastructure and services offered by cloud providers.

It’s also important to consider the customer’s future plans during the design phase, ensuring that the architecture allows for future integrations with AI and machine learning (ML) modules. This will enable the system to handle tasks like forecasting, decision-making, and generating complex reports.”

Mykola Pyvovarov

With that in mind, make sure that you choose the programming languages, frameworks, and tools to be used based on both current project needs and future growth. All types of fintech mobile applications can be created with in-built scalability in mind.

Tech stack to develop fintech apps

When choosing a tech stack for fintech, prioritize:

Security. The stack should have robust security features to protect sensitive financial data.
Scalability. It needs to handle high volumes of transactions and data processing.
Regulatory compliance. The chosen technologies should support compliance with financial regulations.
Performance. Fast processing speeds are essential for real-time financial operations.
Integration capabilities. The ability to integrate with other financial systems and APIs is important.

Here are some suggestions that you can mix based on your project and your team combination.

Frontend

React. A JavaScript library ideal for building dynamic, interactive user interfaces. Its component-based architecture allows for fast updates and high responsiveness.
Angular. A full-featured frontend framework that works well for large-scale fintech apps, offering two-way data binding and dependency injection.
Vue.js. Lightweight and flexible, Vue is perfect for smaller fintech applications or those requiring high performance with minimal overhead.
TypeScript. A strongly typed superset of JavaScript that helps catch errors early, making apps more maintainable and scalable.

Backend

Node.js with Express. Ideal for building high-performance, real-time apps with microservices architecture. It’s asynchronous and event-driven, which makes it scalable and fast.
Python with Django/Flask. Python is widely used in fintech for its clean syntax and readability. Django provides a robust, out-of-the-box solution, while Flask is more lightweight and flexible for custom architectures.
Java with Spring Boot. Java remains popular for building scalable fintech backends. Spring Boot simplifies dependency management and configuration, making it suitable for large, complex systems.
Golang. Great for building microservices due to its performance, simplicity, and concurrency capabilities. It’s well-suited for fintech platforms requiring fast execution and low memory usage.

Databases

PostgreSQL. A powerful, open-source relational database. Known for its strong support for transactions, making it ideal for handling financial data.
MongoDB. A NoSQL database used for unstructured data or when scalability and flexibility are required. It’s often used alongside relational databases for fintech apps.
Redis. In-memory data storage for caching and handling real-time data, especially useful in improving response times for high-frequency transactions.

Frameworks and tools

Kubernetes. Essential for orchestrating containerized apps, enabling seamless scaling and management of microservices in a cloud environment.
Docker. Provides containerization, making it easier to deploy apps consistently across different environments.
RabbitMQ/Kafka. Message brokers for event-driven architectures. Kafka is particularly good for handling high-throughput data streams, while RabbitMQ is more flexible and reliable for distributed systems.

Security

OAuth2 and JWT. For secure authentication and authorization, especially for handling user sessions and API communications.
OpenSSL. To implement secure communications via encryption and SSL certificates.

This stack allows fintech applications to handle complex workflows, high loads, and sensitive data with reliability, speed, and security. Typically, a well-chosen partner for fintech app development provides you with a certain range of tech stack combination.

#4. Integrations in fintech app development

Have you ever wondered why an industry like fintech with its immense potential is quite slow at picking up speed and progressing? The main reason is because it’s strictly regulated, and dealing with sensitive financial data is full of challenges and complexities. That’s where API integrations come into play.

APIs allow reputable banking institutions to share financial information of their clients with third parties in a secure and controlled manner.

By and large, APIs can be of three types:

Open (also known as public);
Partner (B2B);
Internal.

Let’s take a closer look at each of them and find out when it’s best to use which.

Open APIs are designed to be accessible by any developer, which allows for innovation and expansion of services, but requires more attention to security.

Partner APIs are more controlled and are shared between business partners. They allow for a secure exchange of data between companies that have agreed to collaborate.

Internal APIs are primarily used within an organization to improve its internal systems and processes (hence the name).

Which one to choose comes down to the specific objectives of the project. Let a product owner and fintech app developers discuss it early in the planning process. Everything else, from the choice of tech architecture to business model, directly relates to it.

#5. MVP development process and peculiarities

MVP, or a minimal viable product, is a proven way to launch fast, feel the market, and get real feedback about implemented and necessary features.

“Big companies use MVP to show what is going on, and startups use MVP to learn and define where they are going.”

Bruce Mason, UK and Delivery Director

It can also save you a boatload of money.

Roughly speaking, while the app development cost of a full-scope software solution is $120,000 to $300,000, the cost of building a fintech MVP falls within the price bracket from $10,000 to $60,000.

A good fintech MVP should have:

1. Killer features that constitute a difference — how you stand out.

2. Target features — a specific functionality, the key idea of your product.

3. A few frills — extra features to play with, some eye candy for a user. If you have too many frills, you are wasting money.

The problem with creative MVP as a part of your fintech app design and development strategy is that you cannot roll out a half-compliant, somewhat secure solution.

“Fintechs can’t just push some mock-ups but can still create MVPs and benefit from them. There may still be manual processes that sit behind the feature. You need to have a working solution as a whole. How much of that system is tech-based, how much is paper based, how much is done at hoc can be played with.”

Bruce Mason, UK and Delivery Director

#6. Bring your app idea to life in design

Design is about aesthetics, user experience and functionality. So, once you’ve decided on the essential features to test in MVP, the next step is to translate those features into a quality design that is pleasant to look at and easy to use.

According to a Forrester Research study, a well-designed solution can see an increase of 400% in conversions.

This is where you need help from experienced UI/X designers — in-house or provided by a fintech development company of your choice. They will take the core functionalities and craft an interface that is not only visually appealing but also intuitive and user-friendly.

“Once the requirements are set, the next challenge lies in designing the user interface. Unlike consumer apps, fintech solutions typically don’t need flashy animations or a glamorous design. Instead, the focus is on creating a user-friendly interface. For this, a designer skilled in creating intuitive layouts — especially those with tables, filters, clear graphs, dashboards, and reports — is essential.”

Mykola Pyvovarov, Head of Mobile

7. Develop a fintech app ready for launch

After you get the feedback from users regarding your MVP, your team can move forward with full-scale development. This is where the rubber meets the road, and your app starts to come to life. The development phase is a meticulous process that involves turning your validated idea and carefully crafted designs into a fully functioning application.

A good way to approach fintech app development includes employing an agile development methodology. This approach allows for flexible planning, progressive development, iterative testing, and incremental delivery. It’s particularly effective in managing fintech mobile apps, where requirements can change rapidly in response to user feedback.

In our experience, no matter the methodology, fintech app development services get customized to a particular company, their product, timeline and other specifics.

8. Make a fintech app high quality with testing

Fintech apps require strict testing due to their handling of sensitive data and complex transactions. Our approach targets the most critical areas.

Manual testing

Manual testing is essential for finding issues that automated tests might overlook, especially in fintech apps where user interactions are complex. Key areas include:

User flow validation. Dealing with critical paths like account creation, fund transfers, and investment actions to ensure the process is logical and smooth.
Edge case scenarios. Testing uncommon situations, such as transferring funds between different currencies or handling failed transactions due to network issues.
Visual inspection. Checking how financial data visualizations render across devices, ensuring accurate and clear displays.
Usability testing. Evaluating the ease of use for complex financial tasks, which is critical for user satisfaction and retention.

Manual testing lets testers think creatively and adapt to changing user expectations and regulatory demands, catching issues that might not fit into predefined automated test cases.

Automated testing

Automated tests are crucial for frequent regression testing. For example, adding a feature like instant bank transfers requires verifying that core functions like balance checking and transaction history still work. Tools like Selenium WebDriver for web and Appium for mobile apps allow efficient cross-platform testing of key banking features.

Security testing

Security is a top priority in fintech. We focus on:

Penetration testing to find vulnerabilities in authentication and encryption.
OWASP Top 10 checks, with emphasis on injection flaws and access control.
Encryption verification for AES (data at rest) and TLS (data in transit).

A security breach can cause massive financial damage and loss of user trust, so these tests are critical.

Performance testing

Fintech apps must handle high traffic efficiently. We conduct:

Load testing to simulate peak transaction periods (e.g., stock market opening).
Stress testing to find system limits, guiding scalability decisions.
Endurance testing for long-term stability with continuous data streams.

Tools like Apache JMeter simulate thousands of concurrent users, identifying bottlenecks in APIs and database queries.

Compliance testing

Fintech apps must meet strict regulatory standards. We test for:

Data protection as required by GDPR and CCPA.
Financial regulations like PSD2 for payment services.
AML/KYC compliance to meet anti-money laundering and customer verification standards.

These tests ensure legal compliance, preventing fines and legal issues.

API testing

Fintech apps rely heavily on APIs. Our API testing ensures:

Data integrity across microservices.
Rate limiting to prevent API misuse.
Proper error handling and status code responses.

Failures in API integrations can cause incorrect financial calculations or failed transactions, making API testing crucial.

We focus on these areas because they directly impact security, performance, compliance, and data integrity—core components of a reliable fintech app.

From security to compliance, we know the gaps in fintech development and how to address them. Let’s build a solution that stands out and scales up

Create a Fintech App that Trends: A Few Examples for Inspiration

In 2024, we’ve seen several established players solidify their positions in the market, while innovative startups are poised to make significant impacts in the coming year.

From investing and banking to regulatory compliance and cross-border payments, these fintech leaders are addressing real-world challenges with creative, technology-driven solutions. Let’s look at some of the standout fintech apps of 2024 and the promising startups to watch in 2025.

Successful fintech mobile apps in 2024

Robinhood continues to lead in commission-free stock trading, attracting younger investors with its user-friendly interface and expansion into cryptocurrency. Chime, the online-only bank, has grown significantly due to its no-fee structure and early direct deposit feature. Revolut has become a go-to for international travelers and remote workers, offering multi-currency accounts and low-cost money transfers.

Promising fintech startups for 2025

Fynhaus is gaining attention for its advanced RegTech solutions, using AI to provide real-time transaction analysis for anti-money laundering compliance. Peratera is set to disrupt cross-border payments with its virtual account system covering over 190 countries. JustiFi is making waves in the embedded finance space, helping businesses seamlessly integrate financial services into their existing platforms.

These companies represent key trends in fintech: democratizing investing, digital banking, international finance, regulatory technology, and embedded finance. They’re addressing real needs in the market, from making financial services more accessible to helping businesses navigate complex regulations.

So, if you want to make your fintech app the next unicorn, take a leaf out of their book.

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Wrapping Up: App Development for Fintech in 2024

Building a fintech app is no small task.

From choosing the right tech stack to ensuring security and compliance, every decision matters.

We’ve covered the critical steps: understanding the different types of fintech apps, selecting must-have features, and integrating key APIs.

Testing is crucial — your app must be reliable, secure, and capable of handling real-world challenges.

In fintech, trust is everything. Users depend on these apps for their financial security, and one slip can break that trust.

By following the steps outlined here, you’ll be well-prepared to create a fintech app that not only works, but thrives in the market.

If you need a reliable fintech app development company with strong expertise in both development and testing, we’re here to help.

Our team can guide you through the entire process—from design and development to comprehensive testing.

Let’s build a fintech app that users can trust.

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Written by

Alyona O., Сopywriter

A copywriter with 13 years of experience in marketing and tech-related fields. Loves researching about topics and investing them in depth. Has a passion for learning new things and expanding her horizons. Her greatest joy is bringing value to readers by imparting her knowledge and insights through well-researched and compelling content.

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