6 Best Fintech App Ideas For Startups To Consider In 2022
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According to a ResearchAndMarkets report, the global fintech app market size is going to reach $305 billion by the end of 2025, growing at a 20% CAGR. As a result, Fintech is now one of the fastest-growing domains worldwide since the COVID-19 restrictions have opened brand new ways for companies to enter the digital space and reach numerous business opportunities.
Based on the fintech app industry overview provided by Finch Capital, in 2022, loans, lending platforms, mortgages, as well as life insurance services are absolute winners within fintech startups and well-known organizations. As the market is growing every day and adopting new tech advancements, we will see more and more competitors in the Fintech market.
We created this guide, especially for companies who want to enter this booming industry with an application but don’t know what trends are going to appear soon. So let’s start with the basics before learning fintech startup ideas.
What is a FinTech Startup?
Fintech startups represent any company that uses technologies to cover all consumers’ financial management needs. Fintech organizations always compete with traditional banking service providers since they offer brand-new, convenient, and more efficient solutions to the same category of consumers.
Since people tend towards convenience in everything they do on a daily basis, Fintech startups are highly popular and represent an excellent option for investments. Just imagine that nearly 96% of people all across the world have at least one Fintech app on their mobile devices. In addition, insurance companies and lenders also craft their own specific applications that simplify the whole working process.
According to this source, a very strong rebound in Fintech investment levels has been seen throughout 2021. Fintech startups highly benefit from its growing popularity as more and more investors see the future in these applications. When properly pitched, your startups can get high investments for further development. Learn how Fintech apps can help you build a better business.
6 Top Fintech App Ideas In 2022
Now you know what Fintech startups means, so let’s get a closer look at Fintech business ideas you can consider in 2022.
Robo Advising Software
Robo-advising is now one of the practice-proven ways for Fintech startups to attract people while also being a highly prospective idea for investment. The key idea that lies behind these applications is that machine-learning-driven apps provide customers with personalized and future-oriented financial advice at a low cost. They can also analyze users’ spending and investments in order to help them achieve higher after-tax returns and manage their money accurately. Additionally, they add extra convenience to the whole finance management process without using human resources.
Business Insider Intelligence report suggests that this type of Fintech application was able to manage approximately $1 trillion of funds in 2021. And they are going to reach $4.6 trillion by the end of 2022. The Robo-advising software is developed using AI and Machine Learning. The most popular startups that crafted this app include:
- SoFi Automated Investing
- Ally Invest Robo Portfolios
Personal Finance Management App
The personal finance management application is one of the most promising fintech project ideas today. Since people are becoming more interested in their money management, these products are attracting a large number of customers within a short time. This is why both investors and startups want to invest in this type of Fintech app.
As the name suggests, these applications allow users to always stay informed about their earnings and spending while also managing money in a convenient and easy place. This software usually categorizes all expenses and incomes, so customers can easily track them in real-time to get a clear picture of what they spend and earn on a daily basis.
According to a report provided by Attest, most people under 30 in the United Kingdom use some type of finance management app to help them control their budget. Most of these applications are built on Python and C++. Among well-recognised startups in this field are:
The third app that falls under the umbrella of best financial app ideas is RegTech. These software solutions are designed to help financial organizations comply with all the local and global guidelines. They allow companies to automate a key fraction of their processes, such as customer identity verification, report compilation, transaction management, and reporting, while also increasing the overall retention rates.
According to the report, the global RegTech market size is estimated to reach $55.28 by 2025, growing with a CAGR of 52.8%. RegTech applications usually use SaaS technologies, cloud computing, big data as well as artificial intelligence (AI) to manage regulatory compliance and automate the whole working process. The most popular RegTech startups are:
- Paragon Data Labs
Investment and Trading App
Choosing investment and trading app development can also attract users to your startup. Today’s people love the idea of having one place where they can trade, learn about investments, and check available shares, stocks, forex, and funds, while also investing in them with a few clicks. This is why they pay close attention to any new app designed for this purpose and look for the most efficient and convenient solutions for their needs.
Based on the report, the number of trading app customers using mobile apps steadily increased in 2020 due to the COVID-19 pandemic. The number of users also increased to over 150 million in 2021. For native Android investment and trading app development, most companies use Java and Kotlin languages. Top investment and trading apps startups are:
Crowdfunding is also on our list of top Fintech ideas for 2022. These applications are considered to be one of the most efficient alternative funding models for a vast range of startups. This is because these platforms represent one of those appealing options that can help Fintech startups get off the ground quickly while still keeping rights on whether to offer the option to share shares or not. Crowdfunding platforms are specially designed to allow startups to raise funds for their new or existing products through collective efforts from various people and venture capitalists.
One of the main benefits of such platforms is that the competition in the market is quite low now. In addition, the idea is highly popular in the UK and US, where the market size was estimated at USD 13.5 Billion in 2021, growing with an 11.8% CAGR. Experts predict that the global market revenue will reach USD 28.2 Billion in 2028.
Modern crowdfunding platforms are built using blockchains in the form of distributed autonomous organizations, also known as DAOs. In addition, the most popular exciting platforms provide e-wallets for their users. Among a small number of crowdfunding Fintech startups most famous include:
Crypto Exchange Platform
As you may expect from the era of cryptocurrencies and NFTs, crypto exchange platforms are an excellent idea for Fintech startups. As the name implies, this software is used by users who want to enter the decentralized market by trading cryptocurrencies for other assets like other currencies, fiat money, USD coins, or more. The idea is simple but in high demand, as people always want to exchange one asset for another and get crypto tokens in return for fiat money while also selling and purchasing new crypto coins.
The global cryptocurrency industry size was valued at $1.49 billion in 2020, while experts suggest the market will reach $4.94 billion by 2030, growing at a CAGR of 12.8% from 2021 to 2030. These applications are built using blockchain technology. This provides high transparency, lower fees, increased protection, and faster processing. There are only a few trusted and well-established crypto exchange platforms, so you can enter this space with an efficient and convenient product. The most popular startups that crafted crypto exchange platforms are:
5 Steps to Start a Fintech Startup
Now you know trends in the Fintech space. So it is time to explore the quick steps you need to know to start your startup. But if you want to learn more about Fintech app development, check our guide here.
Identify Your Niche
Fintech is a name of a vast category of sub-niches. This is why you need to find the right niche for your idea and your goals. In order to achieve this, you need to research the market, learn about main niches, analyze the market size, collect data and target audience and explore trends in your sub-niche. Do not try to cover all sub-niches with one application, as it will likely lead to failure in the market.
Learn Your Competitors
Once you identify your niche, find what are the main competitors in it. Do not just learn them; you need to get vital insights from this step. Therefore, you need to explore what apps they have, how they work, what users like, what are issues, how they enter the market, what features the apps have, and more. Learn from others’ mistakes in advance.
Find Your Startup USP
USP is the abbreviation for a unique selling proposition (also called a unique selling point). It is usually defined as a one-of-a-kind benefit that your startup will offer to future customers. Explore your main value to people and talk to the team to find the best USP you can offer users.
Being a startup, you will need to pitch investors your unique idea. There are many ways you can find investors or turn to crowdfunding platforms, but it is vital to know how to successfully present your product to investors. Check our guide about pitching investors here.
Find a Trusted Team
Last but not least step is to find a trusted app development company. Not all software providers know how to work with startups, so make sure the company you choose is the team that will help you get through all technical questions with no stress. Check the expertise in the Fintech industry and learn how the company helped startups raise money with the app they developed.
How Can Interexy Help?
Being one of the fast-growing app and web development companies worldwide, Interexy always knows all trends and technologies needed to realize any ideas. We have been working with various industries, where Fintech is one of the main ones.
We provide a vast range of Fintech app development services, including Digital Banking, Wealth Management and Investment, InsurTech, Online Payments & Transfering, Peer To Peer (P2P) Lending Platforms, and Personal Finance Management (PFM) as well as Cryptocurrency & Blockchain Development.
As a well-known company, we strive to provide only top-notch services to every and each client, catering to all unique needs and requirements. This means our team will cover the whole development process, allowing you to always stay informed about all changes and ensure your peace of mind.
Fintech is a highly popular industry that experienced immense growth after the COVID-19 breakdown. As a result, all companies, both startups, and well-established ones, now have to consider trends and technologies to cater to users’ needs and comply with regulations. Here we described the most bright ideas for startups to consider in 2022 if they want to enter the Fintech space and several steps they need to take to start the development. Book a free consultation with our experts to get more details about our development process! Let us ensure your success!
What is a Fintech startup?
A Fintech startup is a company that creates applications or web services that provide various financial services.
How to start a fintech startup?
First of all, you need to choose the niche, learn about competitors, analyze the market, pitch to investors, and only then start the development.
How to validate fintech application ideas?
If you have an idea but are unsure if it works, the best idea is to develop an MVP to validate it.