With over 5 billion smartphone users worldwide and 63% of them using at least one finance app on their smartphones, it is perhaps no wonder why so many businesses, brands, and companies are focusing on building finance apps.
While convenient access to finance is the key to success in the finance industry, there are however certain challenges that one needs to overcome on the path of successful finance app development.
For example, fintech startups must make their digital channels tight so that customers’ data are passed in the most secure way.
Another challenge comes with customer experience. Today, financial customers expect a certain level of care and if it’s compromised, the probability of earning them back in the future is significantly low.
These are just the highlights of some of the challenges that companies face when building a finance app. In this blog, we’ve listed the top finance app development challenges and how to overcome them.
That being said, let’s dive right in!
Top Finance App Development Challenges
1 – Data Security Issue
The issue of data security has become more prevalent in the last recent months. In fact, if there was a right time to protect customers’ data, it’s right now and within the finance industry.
Finance is one of the most sensitive areas for every person. So, it’s imperative that the finance app you develop protects your customers’ data as much as possible.
The best way to accomplish this is with facial and/or fingerprint authentication. These two under-appreciated features are the most-expected features in all finance apps.
Moreover, as the data security concerns evolve and continue to make headlines, it is crucial to continue innovating finance app security.
2 – Regulatory Issue
Of all the industries in the world, the financial services industry is one of the most regulated industries. This is why it’s necessary to ensure that every aspect of your finance app confirms all applicable regulatory environment.
For example, if your finance app is for customers in the Europe continent, it is compulsory for you to meet all the necessities of the General Data Protection Regulation (GDPR).
The GDPR policy basically advocates that mobile app owners can’t take the private information of their users on their will without getting their assent first.
3 – Customer Experience Issue
Mobile apps are not just about solving users’ problems. – it’s also about creating an experience so that users would want to use a mobile app as a part of their everyday lives.
Finance apps, as you might have anticipated, are no different. Therefore, you need to make sure that your users are not required to walk through a complex series of steps in order to complete a transaction.
In laymen’s terms, a user should not face any difficulty while using your finance app, even if he or she is carrying out a complex transaction. This is why you must take the customer experience of your finance app very seriously and make sure that your app is customer-centric and user-friendly.
4 – Customer Retention Issue
Customer experience of a mobile app is indeed an important aspect, but the true test of any mobile app’s success relies on how many users become engaged.
This is where customer retention comes into the picture.
According to a report, a mobile app losses nearly 90% of its active users 30 days after the app is installed.
On the other hand, the same report also revealed that a 5% increase in customer retention increases the profits between 25 to 95%.
So now that you have an idea of how important customer retention is, you need to focus on building trust with your customers by letting them know that you care about them. One way to accomplish this is through push notifications.
Although, you need to be careful with using push notifications as you don’t want to lead your customers to opt-out or worse uninstall your mobile app just to escape the annoying push notifications.
5 – Compatability Issue
One of the repetitive challenges that arise in almost every finance app development process is the compatibility issue. It means making sure that the finance app works across a huge range of devices.
If you’re developing a finance app, for example, then you need to ensure that every new update is backward compatible, meaning every new version of your finance app must work with the previous versions of smartphone operating systems both iOS and Android.
Finance apps are, of course, the need of the hour. They provide a wide spectrum of features, allowing customers to conduct all sorts of banking transactions. Though there are certain challenges that must be considered and taken care of, but if use the above-mentioned practices, you can easily make your finance app success in the industry.