Challenges Faced In Developing Fintech/Finance App For Startups

Last Updated on January 21, 2022

From shopping for something as small as a nut to a whole big house, fintech is everywhere! Even after having all the ideas and information one needs to invest in fintech mobile applications, there are some barriers one needs to look into with great attention, or else they can be a puddle the investors fall into if neglected. From a wide perspective, there are two types of challenges in developing a fintech app for the finance industry; technical challenges and strategic challenges.

Technical Challenges

these challenges are related to the app idea, the technology used for it, and how it will hit the market.

Strategic Challenges

These are the problems based on secure funding, complying with the government’s rules, and readying the pitch deck. These are focused on the organizational structure and not on the idea of the app.

We will now look into some of these challenges in detail.

1. Data Privacy & Security

Data privacy has been a hot topic when designing a mobile application. Even the companies with the highest and the strongest security system can be hacked nowadays, which is a threat for the investors. The users’ vulnerability is at stake when it comes to virtual security, as it’s not just the money that is being stolen, the customer’s personal information is also on the line. The crucial information includes bank account passwords, security pins, credit, and debit card pins, and sometimes the address of the user. Cybercrime has increased with almost everything going digital. Even the companies with 100% customer security are at risk. This is a risk for the fintech company as well because it takes just a small breach in the trust that can change the minds of a user if he/she feels a threat. There are many other apps that will be competing with you, so it won’t take much time for a user to uninstall your app and look for an alternative.

2. Complying With Government’s Mandates

Many people were taking advantage of the loopholes in the government’s rules and regulations related to digital finance. So stricter rules are now applied to protect the customers from being mobbed. Even if you are using the simplest way to develop an app, government rules are something you should look into. It is very crucial for your app to comply with all the legalities introduced by the government. The tech used, the business model, the software programs, and everything else should fall under the government’s policies, failing which, there can be some serious penalties for this. There are some most important things that you should anyhow comply with the government norms, for instance, money laundering, cryptocurrencies, protection of user data, account aggregation, etc. A professional tech expert should be hired if you really don’t want these flaws in your software.

3. Coping With The Latest Technologies

Technology is an ever-growing field and keeping up with this tech blessed world is a tough thing to do. If you are looking to build an app for a fintech company, it is important for you to know the latest advancements in technology. It requires brawny technology to build a mobile app so that it sustains every place. Various technologies have come up, and they have made the job easier, but for people who are not so familiar with these technologies, it will prove to be a setback for the company. People will always choose applications that are up-to-date and will always use the ones that are easy to use, and as a matter of fact, technological updates make things easier. So think twice to select a tech for your mobile app.

4. Effective Marketing And Growth

Suppose you have your fintech application ready with the latest features, made with all the precision, and even complies with the government’s norms. Now the question is, how will your app hit the market? How will it grow? It is important for you to know your audience and to have a good strategy to put your app out there. The competition matters in this field, as there are many people building applications like you do. So your app has to be unique in some way, and your strategy must be off the roof so that your app reaches your audience. To be better than your competitors, you will have to put in a lot of money, a lot of human efforts, and many services. Making the best product is not just enough for your app. You will have to inform the people about your product, what its specialty is, and build an effective strategy so that it helps in advertising and further collaborations. It will help your app gain fame, and it will spread some brand awareness.

5. User Experience

Having a good fintech app doesn’t just depend on how good your eWallet app is or how much fame your application gets. Your clients or customers should be happy with your services. Customer satisfaction is the key to your business’ success. User experience depends on how easily someone can get a hold of your application. It should be interactive and should make the customer feel special. There are a maximum number of millennials using digital technologies, so a company would build an app that prefers the younger generation. But there appears a problem, as the older generation is trying to gain some knowledge about the technologies. So there has to be a way to fulfill both the demands from the old generation and the millennials. One must study who their target users are and what the age group is. Accordingly, they should design the interface. A company should hire an expert for designing the interface for a better user experience. They can use their design thinking, which is an iterative process and takes a lot of knowledge only they might have.

Conclusion

With all the technologies coming ahead of us, it is going to be tough to enter the fintech world without all the knowledge. It is surely a money-making business, but there are many risks that come along. As an investor, you should know what idea will go ahead in the market and which will fall. And these should not just be based on gut feeling, but a proper study of the market, the numbers, and how genuine your app idea is. Fintech will be touching the sky in the coming years, and it’s obvious that every company will have its own mobile app. The market will surely back your Finance app idea, as the industry is about to touch the trillion-dollar mark soon. These were the things that an entrepreneur should have a clear and unique app idea about before they take a step inside the fintech world.

If you want to create your own fintech app for the finance industry, you should work with an app development company that has a highly experienced app developer who can turn your app concept into a reality.