Top 5 Must-Have Features To Build Fintech Apps

In today’s fast-paced digital era, the world of finance is rapidly evolving, with global investments estimated at $59 billion and projected to reach $124.3 billion by the end of 2025. The rise of Fintech apps has revolutionized the financial industry, empowering users to manage their finances efficiently, securely, and conveniently. As an expert software development company dedicated to crafting innovative solutions, BandaPixels understands the critical role that Fintech apps play in shaping the financial landscape. In this article, we’ll explore types of Fintech apps that can be built and the must-have features to build successful Fintech apps that not only meet user expectations but also ensure security. So, let’s dive in!

Online vs Traditional Banks

To understand the whole picture, let’s explore what is the major difference between online banks and traditional banks. The key distinctions revolve around their operating models and how they provide banking services to customers.

Fintech Apps Catering to Modern Financial Needs

When it comes to Fintech apps, the possibilities are vast and diverse, catering to various financial needs and preferences. These apps have transformed the way people interact with their money, offering convenience, security, and efficiency at their fingertips. Here are some of the most sought-after types of Fintech apps:

Digital Banking Apps

Digital banking services have become the cornerstone of modern finance, allowing users to conduct banking transactions right from their smartphones from anywhere, anytime. Statista projects that the number of digital banking users worldwide will surpass 3.6 billion by 2024. The rapid adoption of digital banking is being driven by a number of trends in the banking industry, including the convenience and flexibility of these services. Best digital banks offer features like balance inquiries, fund transfers, bill payments, and account management, providing users with unparalleled convenience and accessibility to their finances.
As the adoption of digital banking continues to grow, it is likely to significantly impact the banking industry. Banks going digital will need to adapt their offerings to meet the needs of digital-savvy customers. They will also need to invest in new banking technologies and security to protect customer data and stay competitive in the digital era.

Payment Wallets and Mobile Payment Apps

With the rise of cashless transactions, payment wallet apps have gained immense popularity. A study by eMarketer estimates that mobile payment transactions will reach $5.5 trillion globally by 2024, highlighting the growing preference for cashless transactions and shaping the future of digital banking.
These apps store users’ debit/credit card information securely and facilitate seamless mobile payments at various merchants, including grocery stores, restaurants, and retail stores simplifying day-to-day transactions.
In addition to convenience, payment wallet apps also offer a number of security features. For example, they often use two-factor authentication to verify users’ identities before allowing them to make payments. This helps to protect users’ accounts from fraud.
As the popularity of payment wallet apps continues to grow, they are likely to become even more widely used in the future. These apps offer a convenient and secure way to make payments, and they are making it easier for people to go cashless.

Investment and Trading Apps

Investment and trading apps have made the world of finance more accessible to everyone. These apps allow users to explore investment opportunities, execute trades in real-time, and get market insights and analysis. This has democratized finance, making it possible for anyone to invest and trade, regardless of their financial background or experience.

Personal Finance Management Apps

According to a survey by The Harris Poll, 82% of Americans believe that using a personal finance app has helped them manage their money better. These apps help users take control of their financial well-being by tracking expenses, setting budgets, and providing insights into their spending habits. They enable users to work towards their financial goals while becoming more financially responsible.

P2P Lending and Crowdfunding Platforms

P2P lending apps connect borrowers directly with lenders, bypassing traditional financial institutions. Crowdfunding platforms enable individuals to raise funds for various projects and causes from a community of backers, fostering financial inclusivity.

Must-Have Features To Build Fintech Apps

Now, we finally get to the online banking features section. 
Of course, the specific features of a fintech app will vary depending on the specific services that the app provides. However, there are some basic features that are essential for any app that provides financial services online. These features include:

1. User-friendly Interface

A user-friendly interface is a crucial aspect of any successful Fintech app. It is the gateway through which users interact with your app’s features and functionalities. A well-designed and intuitive interface ensures that users can navigate the app effortlessly, making financial management a seamless and enjoyable experience. By prioritizing user-centric design principles, Fintech apps can foster greater engagement, build user trust, and ultimately, enhance overall user satisfaction. A user-friendly interface in a Fintech app sets the foundation for a positive and productive user journey, enabling users to confidently manage their finances with ease.

Here are some of the key elements of a user-centric fintech app:

• Intuitive design: The app should be easy to understand and use, even for users who are not familiar with fintech products. The design should be clear and concise, and the app should use simple language that is easy to understand.
• Easy navigation: The app should be easy to navigate, with clear and concise menus and buttons. Users should be able to find what they are looking for quickly and easily.
• Responsive design: The app should be responsive across various devices so that users can access it from their computers, smartphones, or tablets. The app should adjust its layout and functionality to fit the screen size of the device.
• Seamless user experience: The app should provide a seamless user experience, from opening an account to conducting transactions to accessing financial data. The app should be easy to use, and it should not require users to jump through hoops to complete tasks.

2. Secure Authentication and Biometrics

Security is a paramount feature of online banking apps as they deal with sensitive financial data. Implementing strong authentication measures like two-factor authentication (2FA) and biometric verification (fingerprint, facial recognition) instills confidence in users that their information is safe and protected. Let’s take a closer look at the significance of these security measures.

Two-Factor Authentication (2FA)

Two-Factor Authentication is a security process that requires users to provide two different forms of identification before accessing their accounts. The typical combination includes something the user knows (like a password) and something the user possesses (like a mobile device). According to industry studies:

• 2FA reduces the risk of unauthorized access by 99.9% compared to single-factor authentication using just passwords.
• Fintech apps implementing 2FA have experienced a significant decrease in successful account breaches, with a reported reduction of up to 80%.

Biometric Verification

Biometric verification uses unique physical traits, such as fingerprints and facial features, to identify and authenticate users. The following statistics highlight the advantages of biometric verification:

• Facial recognition technology boasts an accuracy rate of over 98%, making it one of the most reliable biometric authentication methods.
• Fingerprint recognition has been found to be even more accurate, with an impressive success rate of 99.9% or higher.
• A survey revealed that 86% of consumers prefer using biometric authentication methods over traditional passwords for their financial applications.

By adopting these technologies, Fintech apps can gain users’ trust, ensuring that their sensitive financial data remains safe and protected from unauthorized access. As the industry continues to evolve, staying at the forefront of security practices will remain crucial to maintaining user confidence and safeguarding valuable financial information.

3. Personal Financial Management

Fintech apps empower users to manage their finances effectively. Incorporating personal financial management tools allows users to set budgets, track expenses, analyze spending patterns, and receive personalized financial insights, promoting better financial decisions. Some common personal financial management tools include:

• Budgeting Tools: Allocate specific amounts to spending categories like groceries, utilities, entertainment, savings, and track expenses against budgets with alerts for limits.
• Expense Trackers: Automatically record and categorize transactions from various accounts, providing a clear spending overview, and identify areas for potential expense reduction.
• Financial Goal Setting: Set specific financial goals, track progress, and receive reminders to stay on track for saving, buying a house, paying off debts, or building an emergency fund.
• Cash Flow Analysis: Assess income, expenses, and savings over a period to understand overall financial health, identify surplus or deficit, and make necessary adjustments.
• Investment Management: Track investment portfolios, monitor performance, and receive alerts on market changes or investment opportunities with certain personal financial tools.
• Bill Payment Reminders: Stay organized with bill payments using timely reminders before due dates to avoid missed payments and late fees.
• Financial Insights and Recommendations: AI-powered tools generate personalized insights and tips on saving, optimizing spending, and improving financial well-being based on user habits.

4. Real-time Alerts and Notifications

Keeping users informed about their financial activities is crucial. Real-time alerts and notifications for transactions, account balances, upcoming bills, and security updates enhance user engagement and help prevent fraudulent activities. By promptly notifying users of any unusual or suspicious account activities, such as large transactions or login attempts from unrecognized devices, personal financial tools empower users to take immediate action to protect their accounts and sensitive information. Additionally, providing regular updates on account balances and upcoming bills enables users to stay on top of their financial obligations, avoid overdrafts, and maintain better control over their finances. These proactive features not only foster a sense of security and trust in the personal financial tools but also contribute to a positive user experience, making individuals more likely to actively use and rely on these tools for their financial management needs.

5. AI-powered Chatbots and Customer Support

AI-powered chatbots have significantly transformed customer support in Fintech apps. They give instant responses, offer personalized financial advice, and guide users through anything they need, 24/7. Say goodbye to waiting and hello to efficiency, as chatbots handle routine tasks, leaving human agents to tackle more complex issues. They learn from each interaction, becoming smarter with every chat. The financial goals just got a whole lot easier to achieve with these tech-savvy helpers by your side.

You can see how these and other features have been implemented in Budgety, a fintech app developed by BandaPixels.

Wrapping Up

Fintech apps have become an integral part of our lives, reshaping how we manage and interact with our finances. Building a successful Fintech app demands a combination of cutting-edge technology, user-centric design, and stringent security measures. Always prioritize user feedback and keep your app evolving to meet their needs. By offering the right features and a user-friendly interface, your fintech app can become an essential financial tool for people all over the world.

Building a fintech app is a rewarding endeavor, but it requires expertise, profound research, and analysis to deliver a valuable solution for users. BandaPixels’ specialized product development team can help you build a competitive fintech app. Contact our sales manager to discuss how we can turn your idea into a successful reality. Let’s collaborate and bring your vision to life!

by Valeriia Solokha