In today’s tech-savvy scenario, the banking and finance industry has witnessed a massive digital transformation. The Fintech (Financial technology) industry has not only added convenience to the ecosystem but also made it more secure, quick, and profitable. It has offered a new set of opportunities, catering to the needs of the unprivileged audience and even bringing a significant effect on other businesses.
With the proliferation of fintech apps, consumers are now empowered to avail a plethora of banking and financial services using just their smartphones. Fintech startup ideas have revolutionized the BFSI market, enabling us to effortlessly perform various banking activities like fund transfers, card management, password changes, and more with just a few taps on our smartphones.
According to The Economic Times, “the global fintech industry is estimated to grow $1.5 trillion by 2030, a sixfold increase from $245 in 2023.”
The continuous adoption and advancement of finance apps have led to a significant increment in the number of fintech startups in the US and worldwide. According to Statista, as of May 2023, there were 11,651 fintech (financial technology) startups in America, followed by 9,681 startups in the EMEA region (Europe, the Middle East, and Africa).
Do you also want to start your fintech business and looking for some trending finance app ideas? Here are the 17 fintech app ideas to help you reach greater heights in today’s competitive landscape and prevent your fintech startup from falling down.
17 Profitable Fintech Startup Ideas for a Business
Since mobile phones have been deeply embedded into our everyday lives, we have been leveraging their capabilities to increase convenience and productivity. The adoption of mobile phones in the finance sector has revolutionized various financial processes. Furthermore, the COVID-19 pandemic has accelerated this shift, creating abundant opportunities for financial firms looking for new fintech startup ideas. Let’s delve deeper into the realm of fintech startup app ideas in 2023 and beyond.
1. Digital Banking
It is one of the most common and profitable fintech app ideas that can help you establish a successful startup. The demand for digital banking has reached unprecedented heights in recent years due to the ever-increasing penetration of computers, smartphones, internet, Artificial Intelligence (AI), and IoT devices. With these facilities, the idea of investing in digital banking apps has grown exponentially in the market.
In the past few years, a dramatic shift has been seen in the way people interact with their banks and relish banking services. Now, users no longer need to visit their local banks or ATMs for money transfers and other purposes. They can enjoy the various advantages of digital banking from the comfort of their homes. These advantages include but are not limited to the ease of making transactions, investing, opening accounts and deposits, blocking cards, adding beneficiaries, and much more with a few taps on their devices.
According to Grand View Research, the global digital banking market size was worth $20.8 billion in 2021 and is set to increase at a CAGR of 20.5% from 2022 to 2030.
2. P2P Payment Solutions
Developing a P2P payment application is one of the most popular financial app ideas, facilitating users with ease of sending money to different merchants, families, and friends. P2P payment apps like Venmo, Google Pay, Zelle, and PayPal provide consumers with an unmatched facility to instantly transfer money to different bank accounts – even when registered with different banks and payment systems. They are cutting down the need for third-party intermediaries or paying any commission fee for performing any transaction.
Also, these fintech mobility solutions use the latest technologies like NFC and face and voice biometric technology to streamline POS processing, enhance risk management, and deliver an optimal customer experience.
3. Personal Finance Management App
The personal finance management application is another best financial app idea to drive efficiency into this market effortlessly. With consumers getting more conscious about their earnings and savings, these applications are gaining traction in the market, making both investors and startups look ahead to leverage business ideas in finance.
These applications act as a weapon by which app users can categorize their expenses and incomes while tracking them in real-time to get a better understanding of how to manage their finances smartly and effectively. These personal finance app ideas also facilitate users to connect all bank and credit card accounts to update the data, along with automatic payment reminders.
Related Article: How to Build an Effective Personal Finance Application?
4. Robo Advising Software
Robo-advising, one of the proven ways fintech is attracting millennials, is also a great finance app startup idea. These machine-learning driven software are serving users with the finest of personalized and future-centric financial advice at lower costs. They are also analyzing their expenditures and investments to aid them in increasing their after-tax returns. In addition to this, they are adding convenience to the process with minimal-to-no human intervention.
As per Statista, the Robo-Advisors market is expected to reach $2.76 trillion in 2023. It clearly indicates that one must consider it as one of the most profitable fintech business ideas to rule the market in 2023 and beyond.
5. Loan Lending App
Creating a finance app for P2P lending is also one of the trending startup ideas in the fintech industry.
A loan lending app (also called a P2P lending app) acts as a marketplace where lenders and borrowers can connect and cater to each others’ needs without any intervention from a financial institution. While these applications enable borrowers to set the maximum loan rates they can manage, they also allow lenders to bargain with each other to offer funds at the lowest rate. And this way, get more customers or borrowers.
6. RegTech App
RegTech (Regulatory Technology) applications are also considered one of the best fintech startup ideas for emerging institutions in the industry. RegTech is the use of information technology that helps manage regulatory processes within the financial industry to comply with all the regulatory and compliance standards worldwide. They enable organizations to automate a major fraction of their processes, including customer identity verification, reports compilation and submissions, transaction monitoring and reporting, increasing customer retention rates, and so on.
7. Stock Trading App
Developing a stock trading app is yet another decision that can make you establish your business in the fintech industry.
Users, these days, are increasingly getting engaged with the platforms that let them get a comprehensive knowledge of shares, stocks, forex, and funds and invest in them efficiently. They pay more attention to applications that gather investment data from different sources and utilize them to calculate the asset valuation and make the right decision.
Related Article: Stock Trading App Development: The Whys and Hows
8. Digital Wallets
Since digital wallets are giving users an escape from carrying physical wallets or credit/debit cards, their market is also rising exponentially. These applications allow users to make payments in a few taps while getting lucrative coupons and offers in return.
According to Grand View Research, the global digital wallet market was valued at $6.2 billion in 2021 and is expected to grow at a CAGR of 27.4% from 2022 to 2030. It gives you enough reasons to invest in digital wallets.
9. Blockchain Applications
Seeing the growing impact of blockchain in fintech, embracing this technology for starting a financial business is also a profitable fintech startup idea.
Currently, various fintech startups like We.trade, Circle, LAToken, Veem, and PayStand are leveraging this technology to offer a myriad of options to their targeted user base. This includes:
- Performing transactions using cryptocurrencies.
- Paying for transportation only once after they receive information that the cargo has reached the port,
- Acting as a decentralized autonomous organization (DAO), where members work as per the programmatically defined rules that tell who their members can be, what business or activity is allowed, and how tokens or funds can be exchanged.
10. Crowdfunding Solutions
Crowdfunding is also emerging as one of the most successful fintech startup ideas for entrepreneurs, serving as the best alternate funding model. They help them raise funds for their new or existing enterprises via collective efforts from different individual contributors and venture capitalists.
Currently, there are a limited number of crowdfunding platforms, such as Indiegogo and Kickstarter, and the concept itself is only popular across the US and UK regions. However, it has been found that these digital solutions are gaining traction in the market and are predicted to have a market of $28.8 billion by 2025.
11. Insurtech Solution
Insurance has always been intertwined with banking in the finance sector, operating in synchronization with each other in various cases. And now that finance has turned into ‘fintech,’ insurance has also embraced its enhanced iteration known as ‘Insurtech.’
Insurance mobile app development is a strong solution to increase your customer base and scale your business. Incorporated with the power of the latest technologies like AI, IoT, Blockchain, Open API, and Machine learning, it empowers insurance companies to deliver impeccable customer experience. It helps analyze a heap of user data, check the market trends, understand user emotions and needs, offer customized yet quick policy comparison options, manage risks, and much more, without relying upon any third-party insurance broker.
Because of this, the global insurtech market, which was valued at $5.45 billion in 2022, is expected to expand at a CAGR of 52.7% from 2023 to 2030. With the convergence of technologies and innovations, the insurance sector will start deep-diving into insurtech mobile app development, hand-holding them towards digitalization.
Related Article: Insurance Mobile App Development: Everything You Need to Know
12. Crypto Exchange Platform
Developing a crypto exchange platform like Coinbase is also one of the best finance startup ideas to work on. These platforms allow users to enter the decentralized market by trading cryptocurrencies for assets like fiat money or other digital currencies. In other words, they allow users to exchange one cryptocurrency for another, get crypto tokens in return for fiat money, and even buy/sell their crypto coins. All while enjoying perks like transparency, lower fees, higher security, and faster processing.
13. Payday Loan App
Another fascinating application idea that one can invest and earn money is the payday loan application. Through this financial application, you can provide app users with a specific sum as a loan in their crises, like bill payments, hospital expenses, or EMIs.
App users simply need to add data about their work and connect the bank account. The application monitors the working hours, so users can cash when needed. Also, your application will deduct the cash once the users get the paycheck. Here is a glimpse of the proposed features to include in the Payday loan application:
- Take a particular sum as a loan with just a few clicks
- No hidden fees or charges
- Alerts and notifications of forthcoming payments
- Safe and secure protection of bank details
14. Bill Reminder App
A bill reminder application can be a valuable solution to those who frequently forget to pay their electricity, water, phone, credit card, and other bills on time. Thus, they have to bear unnecessary late payment charges. You can consider making an application that reminds users of the bill due dates. Alternatively, you can add this feature to your other financial app ideas.
15. Financial Record Maintenance
Keeping payment receipts, tax invoices, and other financial records can be troublesome for many. Thus, designing such applications can be a great financial business idea to make financial record maintenance an easy job for busy individuals.
You may like reading: FinTech vs. TechFin: Where is the Global Finance Economy Headed?
16. E-mortgage Apps
This trending fintech app startup idea gained immense popularity after the COVID-19 pandemic. Getting a mortgage used to be hard for people a few years back. Now, electronic loan applications have simplified the loan approval and disbursement process, facilitating applicants to get contactless loans rapidly without much hassle.
You may like reading: An Analysis of Coronavirus impact on Industries
Now that you know the types of finance business ideas you can work on, you might wonder where to start. Considering the same, here are some crucial steps you must follow to establish a successful business in the fintech industry.
How to Start a Fintech Startup?
Establishing a fintech startup can be an exciting venture, but it also requires careful planning and seamless execution of the same. With that said, in this segment, we will discover a step-by step-process to start a fintech startup, covering considerations and best practices which will take you on the path to success.
1. Define Your Niche
Fintech is a big sphere to explore. Striving to rule the entire finance world at once can be tricky. So, it is advisable to pick a particular niche among the different subcategories of the market, which are as follows:
- Payment and international money transfer
- Mobile banking
- Personal finance management
- Trading and lending
- Crowdfunding and
- Data analysis and financial decision-making.
Once you have chosen the niche, conduct market research to find out the specific audience your product/service will target. It will help you launch your top fintech startup locally and then enter the global market with better success ratios.
2. Learn About Compliances
When it comes to the banking and fintech industry, they are highly regulated. So, one must be familiar with all the specifications and characteristics of this highly complex sphere, which includes legal regulations, limitations, laws, and requirements.
3. Find Your Startup USP
Due to the ever-increasing set of opportunities, the fintech market is becoming competitive day by day. In such a scenario, it has become crucial for anyone coming up with a new finance app development idea to ensure it will beat the existing ones. They need to ensure their app idea is not generic and offers better functionalities than existing ones, which could be their brand’s USP.
Now, you should also do a competitive market analysis while doing customer surveys and reviewing different reports. This approach will help you find the common success factor among all the top players, their business and revenue model, and the pain points they fail to see, thus refining your idea.
4. Raise Funding
While you might have some savings, various fundraising ways like bootstrapping, crowdfunding, venture capital, and angel investment are prevalent in the market. So, look forward to these methods for raising enough money to financially support your fintech app ideas.
5. Know the Business and Technical Challenges
Establishing a fintech business comes with a set of challenges, particularly those linked to the transformative impact of digital technologies. For instance:
- Integration of AI and Blockchain
- Big data usage
So, it is advisable to gather comprehensive information about these challenges and hire the best financial software development services to address them efficiently.
6. Hire the Right Fintech Developers
No matter how powerful your app idea is, it won’t survive in the market without the right team of financial app developers. Therefore, you must partner with a reputed fintech software development company (like Appinventiv) to bring your vision into reality.
A team of professionals with a proven track record of developing fintech applications can help you choose the right technology stack, revamp your business strategies, overcome the hidden barriers, and scale up your fintech app idea.
7. Launch an MVP
Lastly, do not feel tempted to develop a full-fledged fintech mobile application. Rather, look ahead to testing the water with a Minimal Viable Product (MVP) first. An MVP allows you to enter the market at a cost-effective rate and helps raise funding.
What Are Some Examples of Financial Apps?
There are various financial apps available in the fintech industry, catering to the various aspects of personal finance, investing, budgeting, and more. Here are some real-world examples of financial apps gaining momentous traction in the fintech industry.
Mint is one of the most popular budgeting apps, allowing users to manage all their financial records in one place. With intriguing features like bill alerts, custom budgets, investment tracking, etc., Mint has secured a spot on Forbes Advisors’ Best Budgeting Apps of 2023.
Acorns is an investment app that helps users invest and save for their future. It offers automated investing and provides tools to help users save for retirement. With more than 20 million downloads, Acorns has been an ultimate investing and money-saving app.
Robinhood is a commission-free stock trading app that allows users to buy and sell stocks, ETFs, and cryptocurrencies, helping them save their financial future. The app makes investing accessible and offers a user-friendly interface.
Build Your Fintech Product with Appinventiv
Now that you know the trending FinTech startup ideas, it is time to partner with the right FinTech app development company like Appinventiv to realize your idea.
We bring a wealth of experience and technical competence to build custom fintech solutions for startups and enterprises. Our skilled team works closely with each of our clients to understand their business objectives and develop a well-aligned application.
Our comprehensive knowledge in the realm of cutting-edge technologies and deep understanding of the fintech industry has helped entrepreneurs with successful launches. One notable example is Mudra, a budget management application that transforms the manual nature of the financial budget management process.
Our software experts are apt at choosing the right tech stack to build fintech solutions. Also, we are well aware of the security and privacy concerns needed to deliver a successful financial product.
Talk to our team and start realizing your fintech startup ideas.
Frequently Asked Questions
Q. What is a fintech startup?
A. A fintech startup is a new business in the finance industry that leverages emerging technologies to provide financial services. It provides users with improved ways of managing money, conducting transactions, and accessing financial services that are more efficient, accessible, and customer-centric. Fintech startups typically harness the power of mobile applications to deliver financial services that help enhance convenience, speed, transparency, and user experience in the financial industry.
Q. What are the startup ideas for FinTech?
A. The fintech industry offers a wide range of finance business opportunities that leverage technology to disrupt traditional financial services. Here are some startup ideas for fintech:
- Digital Payments and Mobile Wallets
- Peer-to-Peer Lending
- Personal Finance Management
- Blockchain and Cryptocurrency Solutions
- Digital Wallets
To get a detailed insight into these trending fintech startup ideas, please refer to the above blog.
Q. What technologies are disrupting the fintech industry?
A. Blockchain, Robotic Process Automation (RPA), Augmented Reality (AR), Prescriptive Security, Artificial Intelligence (AI), and Quantum Computing are some of the technologies revolutionizing the fintech space.
Q. What are the best programming languages to build a fintech app?
A. Python, C++, Java, C#, C, and Ruby are some of the best programming languages to consider for finance app development.
Q. How do fintech apps make money?
A. A few of the fintech app monetization strategies that Entrepreneurs are focusing on are in-app advertising and referrals, business collaborations, subscriptions, and introducing API as a product.
Q. How to validate fintech application ideas?
A. One of the easiest yet effective ways to validate your fintech app ideas is to launch the MVP version. This app version, with the least possible features and functionalities, will help you test the competition in the market as well as raise funds while preparing the audience for the future.