Modern technologies have revolutionized the banking and finance sector. Fintech (Financial Technology) has made the entire ecosystem more convenient, accessible, faster, secure, and profitable. Moreover, as one of the hottest industry trends, it offers a great deal of business opportunities.
If you’re planning to give wings to your entrepreneurial dreams, a startup built around a fintech app is one idea you can definitely explore. But what type of fintech app should it be? What are the top fintech app ideas you can consider in 2022 and beyond? What are the things you should consider before launching a fintech startup? Continue reading to find out-
An Expose of the Fintech Market
Fintech integrates technology into financial products and services to enhance their delivery and usage among consumers. When fintech first came into existence in the 21st century, it was mainly used for technologies used by financial institutions to manage their back-end operations. But in the last decade, it has expanded into a more consumer-focused role.
According to Allied Market Research, the global fintech market was worth $110.57 billion in 2020. By 2030, it is expected to reach $698.48 billion, growing at an impressive CAGR of around 20% between 2021 and 2030.
The rising demand for digital financing, especially among millennial and Gen Z consumers, is one of the primary reasons to fuel the growth of the fintech sector. Moreover, there are several developing countries with significant underserved regions but rapid smartphone and internet penetration. As a result, vast fintech opportunities are waiting to be discovered in such countries.
Top 10 App Ideas for Fintech Startups
1. Digital Banking
Digital banking has transformed the banking industry. In fact, consumers now prefer the 24×7, on-the-go convenience and flexibility offered by online solutions like banking apps over visiting physical bank branches. It is also why every leading bank across the world already has a mobile banking app or is planning to launch one soon.
Moreover, there are also digital banks like Discover Bank, Starling Bank, Monzo, and Revolut gaining widespread popularity, especially among young working professionals. So, if you’re looking for a fintech app startup idea, you can build a feature-packed mobile banking app and partner with reputable banks to help them provide their customers with access to an innovative banking solution.
2. P2P Payment Solutions
The massive growth of peer-to-peer payment, especially since the COVID-19 pandemic, has made the P2P payment app an excellent fintech business idea. Popular P2P payment apps like PayPal, Google Pay, and Venmo already have millions of global users. These apps allow people to instantly send and receive money directly into their bank accounts.
But the consistently growing popularity of payment apps has also made the sector highly competitive. However, if you succeed in building a robust, secure, and easy-to-use app with something unique and valuable, yours could be the next leading P2P payment app.
3. P2P Lending
If not a P2P payment app, how about a P2P lending app for your fintech startup? From $67.93 billion in 2019, the P2P lending market is expected to surpass $558.91 billion in 2027. These apps function as a marketplace, connecting borrowers and lenders without involving any financial institution.
There are already some leading P2P lending mobile apps, such as Prosper, Funding Circle, MyConstant, etc., and yours could be the next. Moreover, you can also focus on specific lending segments, like personal loans, educational loans, medical loans, business loans, car loans, or home loans.
4. Personal Finance Management App
Money management is as important as earning money. But unfortunately, most people lack this critical skill. So, how about building a mobile app like Mint, Personal Capital, EveryDollar, or GoodBudget to make personal finance management stress-free and simple? The segment already has a considerable user base which could multiply rapidly in the coming years.
It is also worth noting that from 2020 to 2022, personal finance apps have topped the most installed apps on a global scale. Moreover, the segment also offers various subcategories. For instance, your startup app could help with budgeting, money management, investments, debt payoff, or bill payments.
5. Crowdfunding Solutions
Crowdfunding apps are digital platforms where funds can be raised for various causes or campaigns. Such apps are growing in popularity on a global scale as they can be used by non-profit organizations, businesses, and even other startups to raise money through crowdfunding.
GoFundMe, Kickstarter, Seedrs, and Indiegogo are some leading crowdfunding platforms and apps enabling people to crowdfund various personal and commercial projects. So, if you’re brainstorming fintech app ideas for your startup, building a crowdfunding app is something that you can explore.
6 Data Security
When matters are related to finances, it is essential for the platform or app to offer complete security to its users. If you’re from an IT background, you can consider building your startup around data security or app security, such as solutions like Security Anywhere, Malwarebytes, and Safe DNS. Other financial apps could use your product or service to secure their platform and sensitive financial data.
With GDPR laws already implemented in the EU, it is only a matter of time before similar regulations are put in place by other countries. Once that happens, it’ll be mandatory for fintech companies to demonstrate how they secure user data. So, the popularity of data security solutions is expected to explode.
7. Blockchain App
Unlike other fintech app ideas for startups on this list with a specific purpose, a blockchain app is more of a technology with extensive applications in the finance industry. For instance, mobile gaming app like Axie Infinity allows players to buy and sell in-game virtual assets through blockchain technology.
Similarly, there are solutions, such as IBM Blockchain, which businesses can use to refine their supply chain management. So, entrepreneurs can think of a unique and useful application of blockchain technology and build their fintech startup around the idea.
8.Trading and Investment Apps
Trading and investment apps witnessed the highest growth during the COVID-19 pandemic. The on-the-go flexibility offered by mobile apps like Robinhood, Investing.com, eToro, and Charles Schwab is quickly making them the preferred choice over other online and offline platforms.
Apart from stocks, forex, and commodity, a mobile app for cryptocurrency trading and investing is another great option. If your goal is to make your presence felt in the world of startups, starting your journey with a trading and investment app can be an excellent choice.
9. Bill Reminder App
Bill reminder apps like Easy Bills Reminder, Mobills, Prism, and Timely Bills can be a lifesaver for busy professionals. With so many utility bills to take care of every month, it is only natural to forget to pay all of them before the due date. But not anymore! With your startup’s bill reminder app, no bill payments will be skipped.
You can also integrate a bill payment facility from within the app to offer enhanced convenience to the users.
10. Regtech App
Apart from cybersecurity, another aspect that financial companies often struggle with is regulatory process compliance. A regtech app can help organizations automate many processes, like compiling reports, verifying customer identification, monitoring transactions, etc.
There are already some regtech startups, like Chainalysis, Tessian, 6clicks, and Tookitaki, that are reshaping finance and are expected to grow steadily in the coming years. If your startup can come with an easy-to-use and secure regtech platform and app, you might have found yourself a winner for your startup idea.
Things to Consider While Launching Your Fintech Startup
Coming up with the fintech app idea is only one-half of the startup battle. You’ll have to consider other things to expand your probability of making it big. A few such things are-
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Work on Your Business Plan
Once an app idea is locked, you should start researching and working on a business plan to define the product/service in detail.
Aspects such as industry, operations, market analysis, and finances should be part of your business plan. Even for approaching investors or lenders, you’ll need a well-defined business plan.
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Understand Compliances
As you want to build a fintech app, compliance is a factor that deserves your utmost attention as the finance and banking industry is stringently regulated.
While you’ll probably need a full-fledged legal team in the future, for now, start learning more about the legal limitations, regulations, and laws applicable to your industry.
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Find the USP
As fintech is a growing industry with vast opportunities, it has become highly competitive. So, to stand apart from the crowd, your fintech app should have something unique that could become its USP.
Go through the revenue and business model of other competing apps to see if you can find something that they might have missed. That missing link could make all the difference in your startup’s success.
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Secure Funding
Once you have the app idea, business plan, and USP in place, it’s time to look for funding. You can approach family and friends, venture capitalists, angel investors, and banks to raise funds for your startup. Crowdfunding is another option you can consider.
If you are not fully aware of how this whole startup funding works, ensure that you take adequate professional assistance.
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Partner with a Reputed App Developer
Even the best fintech startup idea can fail if it is not implemented correctly. To turn your app idea into a reality, you should partner with a reputed app development company.
Choose a leading company that has been in the industry for a long time and is well-experienced with startup app development projects. In addition, you can check the portfolio of the app development company to know more about their past projects.
What are the Best Ways to Turn These Ideas into Successful Businesses?
There are various ways to go about launching a startup. But one common method trusted even by many now global businesses, like Facebook, Uber, Airbnb, and Dropbox, was building an MVP (Minimum Viable Product).
In simple words, MVP is a product with only some essential features. For instance, if it is a P2P money transfer app idea, its MVP will only have the basic money transfer feature with no other frills. Startups use MVPs to validate product ideas and attract early adopters.
If the MVP works as expected and starts gaining some momentum, it is then made into a full-fledged product for mainstream use. So, who will build an MVP for your fintech app? Your app development partner.
You can look for a reputed app development company that has already built such MVPs for other startups so that you can rest assured that they will succeed in building the MVP as per your requirements. But as MVP development could take up to 3 months, it’d be wise to partner with a development company early in your startup journey.
Frequently Asked Questions
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Which technologies can help your fintech app stand out from competitors?
Some of the leading fintech technologies you can consider for your startup app are Artificial Intelligence (AI), Machine Learning (MA), the Internet of Things (IoT), Robotic Process Automation (RPA), Blockchain, and biometric security.
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How long will it take to launch a fintech app?
Converting a fintech startup idea into a working app could take 6-12 months. The duration depends on several factors, including how long it takes for funding, establishing the business, building the app, etc.
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What programming languages are used for building a fintech app?
Java, C++, C#, Python, Kotlin, HTML, Swift, Flutter, JavaScript, CSS, React Native, and Dart are some of the most popular coding languages for Android and iOS app development.
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How can you make money with a fintech app?
There are various ways to make money with a fintech app. For instance, if you’re building something like a finance app, you can generate revenue directly from the app users.On the other hand, if you’re offering some service, you can charge a subscription fee. App advertisement and referrals are other popular ways to generate revenue with a fintech app.
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How to choose the right app development company for a fintech app?
Choose a reputed company that has been in existence for a long time. It would be a significant advantage if the development company already has vast experience working with startups and building MVPs.You can also check their past work and existing clients to know more. Even the initial consultation with the company should give you a good understanding of their capabilities.
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