How to Generate Revenue Through Fintech Apps? (5 Proven Strategies)
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By: Manish Shewaramani

How to Generate Revenue Through Fintech Apps? (5 Proven Strategies)

There are a few industries where constant innovations not only improve the respective domain but also disrupt the other verticals as well. Undoubtedly, Fintech is one of them.

Fintech is the amalgamation of Finance and Technology. The world is continuously moving towards digitization by embracing advanced technologies. The finance industry also harnessing emerging technologies such as Blockchain, Data Science, Artificial Intelligence, Machine Learning, etc.

With Fintech apps, financial institutions transform their conventional ways of serving the people by delivering a wide verity of financial services in a new format.

Classification of Fintech Services

  • Payment (consumer payment, cryptocurrency, & payment backend infrastructure)
  • Investment Management (institutional & private investment management)
  • Capital Rising (alternative financing & crowdfunding)
  • Deposit & Landing (digital banking, personal finance & alternative lending)
  • Enterprise Financial Software (collaboration & workflow software, accounting & invoice software, data & analytics software)
  • Market Provision (financial social networks and matchmaking & comparison)

Overview of Fintech Market

Fintech is relatively a new domain compared to other industries. It’s an advanced version of the financial industry. Fintech is disrupted by the startups who align all the financial services and activities with advanced technologies to provide financial services to businesses and individuals. Fintech apps help financial services providers serve their customers quickly, effectively and continuously.

Fintech Startups by Region

Image Source: Statista

As a result, “There were 5,779 financial technology (Fintech) startups in the Americans in February 2019, making it the region with the most Fintech startups globally. In comparison, there were 3,583 such startups in Europe, the Middle East, and Africa, followed by 2,849 in Asia and the Pacific region.” – Statista

Though there are numerous Fintech companies across the globe, very few are getting customer attention along with revenue generation through Fintech apps. Robinhood, Acron, Mint, Venmo, Coinbase, and Tycoon are the best apps in the industry.

This post contains the top five strategies that financial service providers have to consider to monetize their Fintech apps. Let’s redefine the business model of your app to empower your revenue stream.

5 Strategies to Make Money from Fintech Apps

Advertising [H3]

The most common and simple way to generate revenue from Fintech apps is by displaying commercials in the app. The app owners get paid by the third-party ad networks for running their advertisements. You can also earn bucks for each time users clicked.

You can associate with banking tutors, trading businesses, loan firms, etc. to promote their products and services through your app.

Another way to make money through Fintech apps is by considering banner ads and rich media.

Banner Ads

Banner ads appear on the home page of the app. You can display them with different sizes and at different places (top or bottom) on the screen.

Rich Media

Rich media are interactive advertisements that engage users for a long time, so they do not quite the session. The rich media ads could be mini-games, video, text, images, audio, etc. It is a smart way to run the commercials without hurting the user experience.

Subscriptions

This one of the most successful strategies to monetize Fintech apps. Allow users to use your app for the free trial for one month. After a month, if they want to use your app, they need to pay. If they are comfortable with your app, they will definitely subscribe it.

It is the most secure way of money making. As subscriptions are changed with flat rates, third party integration or percentage plannings are not needed. It’s a direct way to generate revenue for your finance business.

Peer to Peer Lending

The concept is all about an individual can take a loan from another individual using the Fintech app. It cuts down the layer of any intermediary and financial institution.

With this model, an individual can lend money to other individuals and earn interest. The main benefit to financial service providers is, they can charge a small amount as brokerage the connection. Thus, its an extra income source for the financial institutions.

This seems quite simple and easy to the borrower compared to passing through a complex process of financial institutions. Moreover, peer to peer lending removes paperwork.

Value of Global Peer to Peer Landing

Image Source: Statista

“The global Peer to Peer lending market was US$3.5 billion by the end of 2013 and it is expected to reach one trillion in 2025.” – Statista

According to Bloomberg, “The P2P lending market is forecast to reach $370 billion by 2025, after growing at a CAGR of 5.6% during the forecast period 2019-2025.”

P2P is a popular monetization method that gains attention and acceptance across different regions like North America, South America, Asia-Pacific, Africa, and Europe. However, North America is the largest market of Peer to Peer lending.

Robo-advisors

Robo-advisors are highly admired money-making platform that generates revenue through trading. It replaces the human financial advisors.

Usually, customers take the help of financial advisors for the better management of their wealth. Robo-advisers provide automated and algorithm-driven financial services that are at little or no human intervention.

It is beneficial for both parties: customers and app owners. App owners can earn money by charging less commission than traditional advisors. Customers can buy services at lower prices. Moreover, Robo-advisors automatically allocate, manage and optimize the customer’s assets.

Additionally, the app is available for the customers all the time that is quite comfortable for them. You can try this advanced monetization tactic for your Fintech app development.

In-app Purchases

Most of the Fintech apps are free to download. Most of them are making money through in-app purchases. Considering this business model, you can sell your products or services directly to the customers and boost your revenue stream.

While going with in-app purchases for your app, keep experimenting with the different options and analyze which one works best for you. Later on, you can define your business strategy by focusing on highly impactful in-app purchases.

How Does Credencys Help in Fintech App Development?

Credencys has successfully developed varied Fintech apps by understanding client requirements and analyzing Fintech market trends. Along with the development, we equally focus on the UI/UX if the mobile application to make users comfortable with the navigation and flow of the application.

We have a team of 100+ Android & iPhone app developers who have better insights about the must-have features and functionality of a Fintech market. Thus, they won’t only help you in developing a robust Fintech app but also provide technical consultation to build a cost-effective business solution.

Frequently Asked Questions

How much does it cost to make a Fintech app?

It is quite tough to define the exact cost of Fintech app development. The app cost depends on the features and functionality you want to add in the app. The Fintech app required a lot of integration and API services so it charges more than any simple app. A simple Fintech app with basic features costs you around $30000 to $50000. If you want to consider advanced and complex functionality integration then it would cost more than $100000.

How much time it will take to develop a Fintech app?

The development time of the Fintech app is based on how many features and functionality you want to add in the app. The more features you consider, the app development will take more time. A simple app can be developed within 6-8 months. An app with all the advanced features takes up to 12 months.

What are the important features of a Fintech app?

The essential features of a Fintech app are multi-tier functionality, real-time processing, fast & secure transactions, batch processing, integration with other applications (baking &financial apps and backend of web applications), and more.

What are the popular Fintech apps?

The list of best Fintech apps contains Revolute, Coinbase, Staring Bank, Mint, Lemonade, Trigger, acorns, BudgetBakers, Lawnmower, Robinhood, and more.



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