Building a Fintech App from Idea to Prototype

Fintech is one of the main areas of software technology used today. It is evidenced by the growth in the number of startups in this domain. From 2018 to 2020, it was 72 percent, from 12,000 to almost 21,000. Large-scale transformations concern, first of all, mobile solutions in the field of financial transactions and data processing.

In this short overview, we’ll tell you about the essence and importance of the sphere and how to build a fintech app that may well become “the next unicorn.”

What is Fintech?

In a broad sense, the concept of fintech is understood as a set of technologies related to financial transactions and money management (personal, corporate, credit, etc.). Actually, the word means “financial technology.” Building a fintech app is relatively fast; customers from B2C and B2B sectors demonstrate a high interest in this kind of solution so that the owner can reach a break-even point and profit literally in months.

Other benefits of fintech apps are:

  • Optimizing cash flow management;
  • Real-time customer analytics;
  • Reducing associated costs (bank fees, the salary of call center staff, etc.); and
  • High return on investment (ROI) through helpful, enjoyable to use apps with optimal cost-effectiveness.

Fintech Apps Types

The variety of mobile fintech products is enormous, and each “does its job” depending on the type. It can be:

  • Payment apps. It is the largest segment of fintech, which includes payment systems, mobile wallets, apps for cardless transactions, and similar products.
  • Mobile banking. These applications provide users with access to a wide range of services, from fast money transfers without visiting a bank office to expense counters.
  • Loan lending. Online lending is fast, convenient, secure, and confidential, and customers love it. Therefore, loan apps are also widespread.
  • Wealthtech. These apps allow any person to successfully invest money, generate income and reduce risks using built-in forecasting and stock analytics tools.
  • Insurtech. These apps help users simplify obtaining policies and receiving payments and allow insurers to gain access to a broader audience.
  • Cost management and budgeting. These apps are divided into simple assistants for accounting receipts and expenses (with manual numbers’ entering) and powerful systems with connected payment gateways.
  • Trading apps. They support real-time data exchange, send notifications of the stock market situation, broadcast streaming data, and allow you to make money without a deep trading experience.
  • Regtech. These apps help companies and startups solve fintech regulatory issues, assess risk, and comply with laws. In most cases, such products are based on machine and deep learning.

How to Create a Fintech App?

The entire process can be divided into several main stages: preparation, development, and launch with subsequent support.

The first thing to do is research to formulate the requirements and an accurate “portrait” of your application. You need to define how your app will attract users, do the target market research, competitor offers analysis, and gather relevant data to clarify project details and vision.

To make an app based on its primary goal and main features, the development team needs to:

  • Create wireframes — images to help present what the finished application will look like;
  • Develop a prototype based on wireframes, test it, and collect feedback from the first users;
  • Taking into account the test results, design a user interface (UI) and a high-fidelity prototype, test it;
  • Develop a minimum viable product (MVP) and a full-fledged app with a back-end;
  • Test the final version, send it to stores, provide users with support after its launch, and regularly update the app.

The most significant factors affecting the cost of developing a fintech application are the size, complexity of the project, and the hourly rate of the developers. The last condition can change the total price by 3–5 times, depending on the team’s localization. Specifically, hiring a software company in North America will pay, on average, US$100,000, while in Eastern Europe, it will cost US$40,000.

To estimate the total cost, you also have to consider the cooperation model between customer and contractor and the time needed to develop an app. On average, creating takes 5–10 months for a native product and 4–9 months for a web application.


Making a fintech app is by no means an easy process, but the game is definitely worth the candle. Modern technologies have significantly reduced development costs, and at the same time, attracted more attention from the audience and financial institutions to these products. Therefore, do not be afraid of difficulties, enlist professional support, and start moving towards your goal now.

If you want to get more information on how to develop a fintech app from idea to prototype and full-fledged product, read the full article on our blog.

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