Fintech apps revolutionize the industry by changing the way of borrowing money. With the advent of technology and smartphone adoption, most of us are tracking and managing our money through mobile apps. People are moving fast forward to financial apps for the hassle-free management & planning of finance. The fintech Startup Product Development app is the biggest example of a financial app that brings tremendous change.
Making your customers satisfied with the upgrading technology becomes easy. Those days are gone when you solely depend upon the huge lines to submit a cheque or deposit the money! Thanks to all those mobile financial applications that make the process of online bill payments, viewing bank statements & rapid fund transfer easy. Now you can make all these things possible with just one click. People relying on the financial industry understand the importance of building secure Startup Product Development fintech apps.
Effects Of Digitization & Adoption Of Fintech Apps
The effect of digitization & covid-19 altered the financial industry, and in this article, we will reveal how! Fintech was considered the back-end system of the financial institution, but later, in 2022, it allowed you to perform multiple things. You can manage everything on your smartphone! From managing your insurance to paying the bills for your food, you can manage everything from this.
With this, you can have a peaceful financial life. The use of mobile banking has increased, and applications like Paytm have expanded their reach by offering multiple scopes like bill payment and gold trading. This battle of serving such apps is getting fiercer with the contenders like WhatsApp, Google Pay & PhonePe. But in some precise conditions, it is found that some people still fear believing in these. Because this application deals with personal information, it is tough to build the users’ trust. Are you expecting such applications for your Startup Product Development business?
Let’s complete this guide to understand the step-by-step process of building a successful Fintech app that makes your customer easy. But before that, let’s start with the challenges that mostly put people in doubt!
The Basic Fintech Security Challenges
A huge number of financial applications are highly dependent upon the application that facilitates transactions to the end users. The developers of the fintech apps should be mindful while developing the applications. They should be aware of the strategies and technologies that help them to strongly mitigate the challenges effectively. So, here we listed some top concerns of fintech security challenges.
1. Cloud Computing Security Issues
Financial services like the payment gateway system, digital wallets and internet banking services rely on this platform. Most fintech apps are based on this system because of the undeniable security, speed, accessibility and all! Well, it has a lot of data flow, making this system the easiest option for attackers. Choosing a reliable cloud provider system with up-to-date security options is always recommended.
2. Malware Attack
This is another prevalent security theft. The fintech apps are built upon blockchain-based payment protocols. Malware can make its place from various sources like malicious websites, emails, third party software and so on! These attacks are worst because the transfer rate is high and can crash the whole system. You must add features to your fintech apps to get away from this through the Startup Product Development company.
Also Read: How To Develop A Product Strategy For A Startup: The Ultimate Guide
3. Breach In Application
We all know that applications are the easiest option for attackers. The Fintech companies rely heavily on the application so that customers can easily fill up their sensitive data & transfer money with just a single touch. Gaining access to the application is easier for attackers, so regular screening is needed to avoid such vulnerabilities.
4. Identity Theft
Most financial institutions rely on one-time payments, passwords and biometrics to secure transactions. It is usually done to verify the person’s identity, but there is a major drawback that they missed out on! But hackers or attackers are well aware and can siphon a huge amount of information. To mitigate this risk, fintech companies should use more than one verification option. Make sure the verification gateway should be based on different technologies to make the penetration more difficult!
5. The Compliance Requirement
Depending on the type of financial institution, you must comply with the different standards. There are certain security standards like DSS, PSD2, GDPR and many more. You might face severe security issues and hefty fines if the app doesn’t meet these requirements.
6. Data Ownership
The fintech companies always follow robust procedures for regulating who can access, modify, and delete, create data. Handling data ownership requires updating the multiple legal processes and technical challenges. Apart from that, the involvement of third party services also makes the application in danger.
7. Financial Challenges
Securing Startup Product Development FinTech apps can be very expensive. Based on the scalability and infrastructure of your business, you have to update this. However, if you are not updating the apps because of this, you are taking your steps forward to a great risk.
In addition, some more risks create breaches in Fintech apps, like human errors and adopting mobile platforms and IoT devices. If you miss out on these security concerns, it could badly impact your business. However, the increasing regulatory bodies & compliance requirements force the industry to build secure apps by following strong strategies.
5 Strategies To Follow While Building A Fintech Application
1. Share The Compliance And Security Efforts With Your Users
Every Fintech company deals with stringent compliance, for example, FCA, FTC, GDPR, CRPB, etc. As per the US regulation, for example, the apps should adhere to both types of state and federal laws. While building the Fintech apps, you should ensure the mobile app security practices. The security practices should be bulletproof so that the customer data should be safe. Make sure the application shouldn’t be compromised with malicious attacks.
You should be concerned about network security, strict access control, & encryption. You must explain to the users what compliance efforts you must go through and what regulatory policies you should measure! Be concerned about the security protocols you are going to use for safeguarding the data & money. By following all such things, you can build trust among your customers.
2. Be Transparent With Your Customers
Transparency in your business is the key to success. Financial service providers should be transparent with things to build trust in the user’s mind. They must ensure the users that the information they receive through the application is accurate and relevant. Lack of transparency only leverages the user’s mind with reluctance. Apart from this, you have to make sure about security.
Ensure the customer’s transactions they are making through the apps are secure. The fintech apps are built to deal with lots of personal data. So, it’s the developer’s responsibility to make it safe and secure. Data breaches and any security gaps can ruin the value of your business. So, while developing the application, make sure the app is protected and is not being accessed by any unauthorized person.
Also Read: Fintech Trends In Mobile App Development To Watch Out For In 2022
Add the necessary payment gateway systems and technologies that alert people if any suspicious event occurs. The alert should be sent to both the organization and the user. Strong multi-authentication is also needed to maintain a high level of transparency. The fintech companies should be crystal clear about the cost of their service. In addition, also share the benefits of your app that a user can grab after using the application.
3. Explain The Fintech Service
Explaining the Fintech services isn’t always easy to explain. You should make your customer understand the Fintech services. Let them understand what your app does with the simplest language. Those who don’t have a background in finance let them understand the value of technology in recent times. To satisfy the prospective users, explain to them the different concepts.
Let them understand what features should be there in a Fintech application. Every user deserves clarity & transparency, and it can only be done when cooperating with them. You should communicate with your users in a clear language. Let your customers be aware of the marketing tactics. Communicate with them about your guiding principles. Communicate with everyone starting from the investors to partners.
You should be able to solve their ideas. The most basic question you should be prepared with is what fees you should charge them. What type of third party products should you refer to the customers? How would you charge your customers, and what is the revenue of your business?
The best thing you can do to win your user’s trust is to build up the trust signals. Show your customers about third party reviews, accreditation, and other security deals. The Startup Product Development app should represent the small detailing of the business. No one uses apps that look unprofessional. So, be careful about the look.
4. Leverage With Artificial Intelligence
Artificial intelligence has been growing in the industry and technology is growing daily. Every industry should understand deep learning machine capabilities. The fintech companies facilitate AI technologies like opening bank accounts, customer identity verification and many more. AI has the potential to enhance the fintech app straightforwardly.
Ensure that the analytical insights that should be developed are relevant to the business strategy. Ask the developers about how the data can be collected through decision-making. Apart from that, you should be sure that the fintech apps are less complex. The complex fintech Startup Product Development apps can make it difficult for users. The less complex fintech app can help the users to figure out how to navigate the use of the application.
The app you are building should be easy to use. Make sure the customers shouldn’t feel any struggle while making the transaction. Keep the fintech app simple but implement this with strong payment authentication. You can also provide tutorials to your customers to guide them in the initial days. Build a fintech app that should be more engaging and efficient for the users.
5. Get Information About Customer Retention
Last but not the least, understanding the user experience is key. The biggest mitigating step to minimize the challenge for fintech apps is getting reviewed by the users. Most financial institutions deliver the application with basic functionalities. As a result, these applications don’t receive much attention from users.
These are not user-friendly and appealing. So, you should be concerned about the user experience. Make sure the application should be intuitive in design. Understanding customer analysis is an excellent way to improve the app’s visibility. It helps you deliver the solution to the customers they need. To match the expectations, you can make any survey or anything.
Customer retention is an important aspect to consider. In the fintech industry, it is rather challenging. There are more marketing efforts that should be considered for educating potential users. With fintech apps, a business can acquire new ones after retaining old customers. Use the right tools that help the customers to make it easier.
There are so many fintech firms that are blamed for the security lapses. No doubt, the Cyber security industry has become more sophisticated than before. Security is the biggest concern when it comes to developing a fintech app. It should be the top priority that the developer should take concern about.
Dealing with the worst developer can extend financial consequences & put your business in danger. Every business wants to maintain its reputation, and it can be only possible when you have the right developer. By ensuring compliance and regulations, you can build a successful fintech app.
You can build a successful and secure Startup Product Development app by following the strong ethical ways above. The Fintech apps are a great example of granting your customers the best financial experience. So, if you want to glorify your business, developing a fintech app should be on your priority list. With this, you make your customer an easy, seamless experience for watching their expenses to establish and maintain the budget. This informative article is for those who want to build a secure and decent fintech app which meets their needs.
Mobio Solutions is providing FinTech App Development Solutions for Startups and Enterprises providing quality Information Technology solutions and outsourced product development. We will help your enterprise to stretch and validate your business model by utilizing Elegant Development approaches.