Custom FinTech Solutions for Startups

The FinTech market is booming now, as it brings technological innovation and finance together. FinTech software is thus gaining popularity day by day, offering automated and secure financial transactions and seamless omnichannel user experiences. The digital transition of financial operations also fuels the FinTech market’s growth, which is estimated to continue at a CAGR of 23%+ until 2025 at the very least.

Thus, every startup wishing to integrate robust and secure financial solutions for their users should consider financial custom software development. Here is a guide to custom Fintech tools’ types and solutions you can pick for your business startup’s smooth market entry and effective customer service.

FinTech App Types for Startups

First, it’s vital to note that any custom software you develop for your business architecture should target specific user needs. There is a wide array of FinTech solutions for numerous financial aspects, such as p2p payments, invoicing, payroll, lending/borrowing platforms, etc., available for all business types. Here is the product range from which you can choose.

• Money management
• Online banking
• Trading and investment
• Accounting
• Lending and borrowing

FinTech Product Trends in 2022

The FinTech market progresses quickly, keeping pace with broader tech trends in the digital market. So, to come up with a relevant solution, you need to embrace these trends in software development.

#1 Web 3.0

The modern drive for decentralization and user control over personal finance has given rise to the advent of Web 3.0. It is a new, decentralized Internet concept devoid of any single controlling authority, allowing peer-to-peer transactions based on self-executing contract mechanisms. Thus, you can appeal to larger numbers of users by incorporating decentralized payment solutions into your business platform.

#2 Wealth management

The number of retail investors has risen tremendously over the past few years. The trend was associated with the COVID-19 pandemic and greater availability of treading and investment tutorials to help individuals enter the stock or crypto market. Thus, wealth management apps for investment, trading, stock analysis, staking/farming, and the like have become popular among users.

#3 RegTech

FinTech and blockchain have posed numerous challenges to conventional financial regulations. Their digital-only, decentralized nature has made it hard to oversee financial operations and ensure safety. Thus, new RegTech software emerges in the FinTech sector to provide risk management, legal counseling, and robust regulation.

Credit: Valere.io

The Cost of Custom FinTech Solutions

Once you decide to create a custom FinTech software product for your startup’s needs, you need to consider several factors affecting the price of such a project.

• Determine the budget you have for the needed software and choose a freelancer, outsourcing company, or local agency providing turnkey solutions based on your resources.
• Take into account the price differences in different regions. For instance, using local developers’ services may be too costly if you own a startup in North America or Western Europe. In this case, you can opt for outsourced services in Eastern Europe, Asia, or Latin America.
• Share the details of your project with the chosen outsourced provider to get the final quote. While a basic FinTech app with minimal features can cost you around $50,000, adding sophisticated features and a complex architecture will inevitably increase the project’s price.

Development Challenges to Overcome

FinTech software creation comes with numerous issues you need to monitor throughout the development process. By checking all these points off the list, you can be sure that your app will be a safe and functional product.

• Legal compliance

Though FinTech software is digital-only, it still needs to comply with the local or international legal regulations for financial transactions. A failure to do so is very costly for the startup, so the development process should go with the understanding of binding regulations in mind.

• Anti-fraud measures

The major flaw of digital apps is a different user verification process that doesn’t require a physical presence in a banking institution or office. Thus, FinTech apps are considered more vulnerable to financial fraud schemes, which can be prevented by rigorous authentication and authorization procedures.

• Security

Data security is key for all clients, as they risk personal and banking details in case of the app’s hack. Besides, the app’s owners can be subjected to enormous fines in case of improper customer data storage and protection. Thus, it is critical to guarantee customer data security by encrypted coding and rigorous security audit of the app before its launch.

• Safe APIs

Modern FinTech apps rarely exist in a vacuum. Most of them integrate with other software in the Web 3.0 ecosystem to ensure seamless user experiences. However, the API bridges between apps typically become their most vulnerable spots prone to hacker attacks. Thus, your provider’s task is to ensure the end-to-end security of your app’s API connection and data transfer via payment gateways, cloud servers, etc.

FinTech Is the Future of Business

As we’ve just seen, FinTech is a massive trend in the modern business landscape. So, startups wishing to win a fair share of the highly competitive digital market should provide safe and user-friendly FinTech solutions to their demanding clientele.

Opting for custom software development is a better way to go. It guarantees ownership and scalability of your product, better security, and other advantages that plug-and-play solutions don’t give. So, keep the recommendations from this article in mind and embrace the 2022 trends to enter the market with a splash.