The fintech revolution is taking the world by storm and
disrupting existing banking and other insurance services by offering the same
convenience and much more on a simple app. Today we will look at simple fintechapp ideas that can be launched quickly by taking advantage of easier Government
regulations and readily available white labeled solutions. The 3 fintech
startup ideas that we are going to explore today are comparison apps, fintech app
that aggregates different bank accounts and enables simple transactions and
insurance tech apps. Let us start
with comparison apps:
·
Comparison
apps – Comparison apps help to compare different financial
products from multiple providers. Comparisons apps are very common for
insurance products, pension, loans, investments etc. but also provide
comparison for other financial products like bank fixed deposits, mutual funds
etc. It helps users to see the products that suit them best and choose
accordingly. The companies make their money from the commission that they earn
from product sales and also from advertisements. Apps such as quotezone in UK,
Finanzen in Germany and multiple others make the cut.
·
Aggregation
Apps- The aggregation apps help to send and receive money,
Instant money transfer between account holders of the same app, Notifications
on accepting the request for money, loans, advisory and saving. Something of
this is very similar what we see in apps like Paytm and PhonePe in India. We
have global peers such as bnext in Spain, N26 in germany, bunq in Netherlands, Revolut
in UK and Monzo also in UK. Together these companies have raised more than US$
2 billion in funding and have around 20 million users. They are posing a big
challenge to traditional banks. With opening up of banking applications under
the PSD2 regulations in Europe, more banks have to open its platform and core
services through the Open APIs. This gives more opportunities for such
applications to come up in different countries globally.
·
Insurance
tech – Insurance Tech apps are primarily comparison apps that
helps compare between different types of life, health and commercial insurance
products. In this segment we have companies like Root Insurance in the US and
Next Insurance again in the US. While Root is an app that is dedicated for car
drivers Next Insurance provides coverage for businesses. A great feature that
Root offers is that the insurance amount is determined by the quality of
driving. When a driver drives with the Root app on, it gathers and analyzes
data from the smartphone’s sensors and after a few weeks, gives a car insurance
quote based primarily on how you drive.
While Next Insurance has raised $ 631 million in
funding and is available in all US states, Root is already listed in the NASDAQ
with a total funding of $ 527.5 million. These companies have changed the way
that people buy insurance and is a Win-Win for the apps themselves and large insurers
as it provides them a new sales channel with millions of users.
FinTech is gaining momentum because the services offered
appeal to the majority of consumers today. Most FinTech companies offer the following
benefits:
·
Speed
·
Simplicity
·
Customer autonomy
·
Distinct capabilities that are not part of a bundled
service
It should come as no surprise that these are all extremely
appealing characteristics for 21st-century consumers, especially millennials
and the digital savvy. The majority of FinTechs all share a common strategy —
transferring control to the customer. This means giving consumers the reins
when it comes to making the best financial decisions for them, through
transparency and easy access to information.
If you are planning to launch a fintech app some of the key
considerations are:
·
On which platform you want to launch your app
·
Features and complexity of the app
·
Technology stack of the app
·
Geographic location and experience of the mobile app
development company
The cost of development of an app can vary between US $10,000
to as high as $1,00,000 depending upon the complexity of the application. With
the advent of technologies like artificial intelligence, machine learning,
blockchain, and more, the finance industry is flourishing at an unprecedented
rate. People are now relying on mobile applications for transferring funds,
investing, and other finance purposes. That’s one of the biggest reasons why
the demand for finance app development is rising.
If
you are interested in other areas such as alternative credit scoring, peer to
peer lending which is another great area that is picking steam, small loans app
such as Lendingkart, faircent and others in India, asset management etc. you can choose based upon the market size and
other factors. Developing and maturing a fintech idea such as those mentioned
above can be a challenge. Connect with us at info@intelligentq.co.in so
that we can help you getting things off the ground!
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