What is a Fintech App and why you should develop one

Fintech app development is gaining a tremendous amount of popularity across the world. The increased adoption of mobile phones has allowed digital innovation to drive the financial industry at an unprecedented level.
With the surge of new investment and attention, it's important to understand what makes fintech applications so popular and how it all can help accelerate financial industries' growth.

Why develop a Fintech App?

Blockchain and cryptocurrencies are increasing in popularity in the technology world every day. It's predicted that blockchain technologies could potentially be used in multiple industries. Some of the industries include healthcare, insurance, real estate, and banking, amongst many others.
A Fintech app is an application that uses financial technology to provide services for its users. Fintech application development has gained attention in recent years. If you are thinking about developing a FinTech app, you should know what it takes to create one. Let's view these apps and find out what makes them different from others.

Types of Fintech Apps

There are many types of fintech apps available for both businesses and consumers alike.

Digital Payments

These apps allow people to pay for products and services instead of using credit or debit cards from their mobile devices. They also allow people to pay bills with ease and keep track of what they owe. Some examples include Square, PayPal, and Venmo.

Banking Apps

Banking apps are available for almost every smartphone and tablet, making it easy to access your money no matter where you are. There is a wide range of banking apps, including those that help you perform typical banking tasks like paying bills and monitoring your account balances and those that allow you to do more advanced things like sending money to friends and family or buying stocks.

Wealthtech

Apps like these are designed for all sorts of investors, from novice traders to experienced professionals. Basically, a wealthtech app enables you to lend, invest, and manage your money and investments in one place. These apps offer great variety since they allow users to do everything from managing their bank accounts to buying stocks. Today's most popular type of wealthtech app provides investing tools or a virtual trading platform.

Insurtech

Insurtech apps can help customers manage their insurance by providing them with information that allows them to use their plan to benefit the most from what it offers. In some cases, they can even automate specific processes and aspects of the insurance policy to make it even more convenient for customers.

Regtech

Regtech apps are a relatively new market, but the applications they provide have been tried and true for years. Regtech apps are used by financial service companies to help their customers with regulatory compliance. Compliance is essential in banking, insurance, and other financial industry sectors, and these apps make it easier for banks to comply with consumer protection laws.

Key technologies in Fintech Mobile App development

Fintech apps use various newly developed and highly innovative technologies to operate. Here are the key tech factors that play a role in every fintech payments app.

Machine Learning and AI

Artificial intelligence is not new in the grand scheme of things. Still, it's only been recent that fintech companies have started using it – largely due to improvements in data collection and processing technology. Machine learning is a subset of AI that relies on algorithms to learn from data without being explicitly programmed where to find answers.

Deep learning takes this one step further: instead of just building a model based on available information, deep learning allows machines to create their models by identifying patterns and associations between various factors. These tools are powerful because they allow computers to identify trends and make predictions based on them – whether you're making financial forecasts or trying to predict customer behavior.

Blockchain

Blockchain tech is reshaping the finance industry by changing the way we store data, transact business and share information. Blockchain is decentralized and distributed across multiple nodes or locations, which means there's no central point of failure or attack. It's permanent (immutable), so it helps build trust among parties doing business with each other. It offers protection against identity theft because all users have access only to their encrypted data — not the entire database — and all transactions are verified through consensus among the network before being added to the chain.

Chatbots

The fintech industry has been moving rapidly over the past few years, from online banking options to digital payments to chatbots. Chatbots are AI-powered software applications that can interact with customers in real-time just like a human would. The increasing popularity of chatbots is due, in large part, to their ability to provide a high level of customer service. They can also be deployed on multiple platforms.

The top fintech industries that stand to benefit from chatbot technology include payments, lending, and investment management. Chatbots can improve the services of these industries by providing better customer service, improving customer experience, and reducing costs.

Gamification

Gamification is a new trend in software development. It shows that people can be motivated by points, achievements, and leaderboards. Gamification is a tool that allows development companies to increase users' engagement with their products and achieve the goals they set. Most of the time it is used in fintech apps.
The main goal of gamification is to create an engaging experience for its users. It motivates them to take actions that are beneficial for both the company and the users themselves. For example, you can use gamification in personal finance apps to keep track of your expenses, set a savings goal and stay on budget.

Fintech Apps you should know about

Here are three leading fintech payment apps you should know about.

Robinhood

Robinhood is an app that lets you buy and sell stocks, ETFs, options, and cryptocurrencies all commission-free.

Mint

Mint is a free finance management tool that helps track your finances and set financial goals. You connect it with your bank accounts and credit cards to help see where your money is going.

Coinbase

Coinbase is a digital currency wallet that allows you to buy, sell, and store cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Fintech is an ever-growing field

Fintech is an ever-growing field. Distinctly different from finance, fintech businesses focus on technology based on the traditional finance industry. It's obvious that this sector is becoming a more and more valuable part of our economy and it's growing fast.
Fintech app design and development is one of Merge's specializations. Keep your business current and relevant by contacting us today and building your fintech payments app.