Times are changing, well they have been for a while, and at rapid speed! As a result, industries worldwide must pick up the pace regarding the types of solutions offered to their customers and business partners.
Fintech products and services are sweeping the scene in the finance industry as more innovative technology is developed for the improvement and efficiency needed in our digital society. However, all things money-related can not bear to remain untouched by digital processes as the demand for more accessible, more user-friendly Fintech continues to grow.
From mobile banking and payment apps to stock trading and QR code payments, Fintech is becoming necessary for businesses to stay competitive. But the question is, how do you know which type of Fintech is needed for your business? Our article will take a glimpse into the important aspects companies should consider when building their very own Fintech products.
Narrowing Down Your FinTech Product Options
There are a ton of areas to consider when looking at what type of Fintech products you want to build, such as wealth, personal finance management, banking, and lending. However, the creation of Fintech products and services goes far beyond surface level. We’re experiencing the evolution of Fintech, where sub-niches have begun to emerge.
Companies are not just looking within the finance industry to find solutions to frequently asked questions and problems. Fintech business is making its mark in areas such as eCommerce and affiliate marketing.
Money touches nearly every aspect of a business, from sales to lead generation and operations. Where there’s money, there’s an opportunity to improve how you handle the finances within your company.
“There is still plenty of room to grow, as many businesses have yet to adopt niche solutions. A bunch of services is already implementing cryptocurrency and blockchain technology into their offerings, paving the way for more innovative financial solutions.”-Nik Zimarkov.
Therefore, narrowing down what your needs are and what sub-niche would be the most beneficial for you to consider is necessary for driving a successful competitive advantage through these types of Fintech products.
What are your main functions and needs as a company? Whom do you want to target? Where do you see the potential to automate, speed up or simplify your financial processes? These questions will help guide you in picking your sub-niche for not only the development of your competitive advantage but the eventual success and growth of your business.
Legal Implications of FinTech Products
Before you start diving headfirst into the development of your Fintech product, there are some essential things you must know. The main concern is knowing how your company can legally and safely handle your customers’ and affiliates’ financial data and digital transactions.
Handling money is serious business, and financial institutions and digital financial products and services must adhere to particular regulations and standards to ensure their customers and the greater public are protected from theft, fraud, and other cyber threats or breaches.
There are many local and international regulatory guidelines that, depending on the type of Fintech you build, will need to be implemented into the planning and development of your product. Some of the regulatory bodies consist of the following:
- Anti-Money Laundering (AML)
- Federal Trade Commission (FTC)
- Fair Credit Reporting Act (FCRA)
- Electronic Funds Transfer Act (EFTA)
- Payment Card Industry Data Security Standard (PCI DSS)
- General Data Protection Regulation (GDPR)
- Consumer Financial Protection Bureau (CFPB)
There are many other regulatory laws that you’ll have to know as they differ depending on the state, region, or country you are in and serving. Not to mention the many licensing permissions needed to conduct specific operations, such as trading cryptocurrency or stocks.
Being a regulatory-compliant Fintech business will make all the difference in protecting your business from legal trouble, as well as help protect your business and customers from unfair and unsafe business practices.
Security at every level should be important to any company investing in building Fintech solutions. Ethical practices will always be seen as a plus for the customer and any other affiliates who decide to use your products or services. Moreover, complainant Fintech businesses gain more trust and confidence from their users.
Consider the Scalability of Your Fintech Product
Most businesses are aware by now that scalability is a significant factor in how you grow your financial product offerings. In addition, scalability brings added value to any technology solution and should be a deciding factor in which type of technology you choose.
Developing a Fintech stack that scales is not only a smart choice but necessary in saving time, lowering costs, driving more efficient processes, and providing additional opportunities to offer more valuable solutions to customers.
Choosing the right technology to help you achieve scalability is essential. However, not all technologies are created equal, and only some solutions will fit the varying needs of a Fintech business.
The benefit of a customizable solution is the ability to use third-party interactions to enhance your digital product offerings, such as application programming interfaces (APIs) and POS systems. These integrations allow greater flexibility in current and future product offerings and features.
Choosing Your Product Features
Less is more, and as you look at your Fintech needs, it’s a great strategy to consider adding only the necessary features that have the best potential to provide the most value for your customers and contribute to the growth of your business.
Creating a minimum viable product (MVP) makes the most sense when you have to consider budgets and timeframes to launch. However, it may not be in the best interest to add all the features possible as only some features will be utilized to the fullest by your customers.
To gauge which product features would be the most impactful, consider what your customers want by collecting user data and feedback and understanding which features are becoming most prevalent in the finance industry.
For example, 53% of merchants had planned to offer additional payment methods in 2022. That is quite the number, and to have a competitive advantage and stay ahead in the industry, more companies must also consider offering multiple payment options.
Here are a few examples of the types of features and functionalities you can add to your finance product:
- Enhanced Security (facial recognition, thumbprint, two-step verification)
- Notifications (alerts, email, SMS)
- QR code scanning
- Personalized UX (insights, account details, credit score tracking)
- Digital bill pay and money transfers
- Online customer support and chat
Creating an MVP is a perfect strategy for smaller businesses and startups who want to develop financial products and services that will meet the needs of their customers, provide continuous value and give companies a competitive edge over their competitors. Additionally, more robust features can always be added later, further increasing user desirability.
ThinkUp for Your FinTech App Development
Your product offerings contribute to the success and growth of your business. Customers now demand more straightforward , easily accessible, and helpful finance technology to ease the stress and inconvenience of using traditional financial services and banking.
When considering the type of Fintech products you want to add to your product offering, consider partnering with a mobile app development team to guide you in developing your products. At ThinkUp, we’re experts in the design, implementation, and development of mobile products and highly knowledgeable in Fintech mobile development.
We understand the nuances, legal implications, protocols, features, and functions needed to build a successful Fintech solution. If you are looking for a Fintech mobile development team to bring your product to life, look no further than with us, your Fintech app development company.
