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Fintech App Development: 7 Challenges Need to Face While Develop Fintech Apps
- Emorphis Technologies
- Jun 9, 2020
- 6 min read
Mobile applications have become part and parcel for banks as the majority of the big players have their official mobile apps to cater to the financial needs of their customers. They have successfully captured the imagination of the people by elevating the customer experience beyond their expectations. Moreover, they have transformed the financial aspect of banking in such a manner that there is no need to get frustrated in standing in queues and instead, perform transaction procedures from anywhere and anytime. Nevertheless, there is a dark side of this picture also which is not revealed to the people. If you think that the development of the mobile application for the banking industry is as easy as developing a cemented road, then my friend; you are living in another world! For banks and other FinTech institutions, the road of an ideal FinTech app development is not as smooth as it might appear. Instead, its pathway is filled with several challenges that are ready to act as a blockade to impede the progress of developing an innovative mobile app for the banks. Henceforth, vigilance must be there to evaluate these challenges to prepare a better roadmap for effective mobile banking app development. Here is a breakdown of challenges which might create a hurdle for you in building user-friendly mobile banking apps for your customers:
I. Security is Major Concern which Can’t be Ignored
The security and app development go hand-in-hand and no one should be surprised about it. The cybercrime has been a major concern for every financial institution even though they give their 100% efforts to keep the data of their customers safe. Data privacy and security has been at the forefront issues for developing effective mobile application and with the focus shifting to banking apps, security has become paramount and has hit the top of the bucket list of the majority of those banking institutions who have shifted their business online. There is zero tolerance for a data breach because banking apps are quite sensitive and contain some very confidential information about the customers such as banking id and password, pin or CVV number, details of debit/credit card and many others. Even a minor flaw in the banking app will be able to provide ample opportunity to the hackers to peep in and illegally get access to the confidential data. One thing the bank management must remember that their business stands entirely on the trust factor and even a subtle hint about a slight lapse is sufficient enough for the customers to uninstall the app withing blinking twice.
II. Difficulty in Complying with Various Regulations
One of the major challenges in the banking industry which also has a direct impact on building mobile apps is regulatory compliance. It arises due to the dramatic increase in the regulatory fees to compensate with credit and earning losses which came into existence after the Financial crisis in 2008. Furthermore, the implementation of anti-money laundering laws has compelled financial institutions to have face-to-face interaction with customers for identification which is a cumbersome procedure. What’s more, if your banking business is also conducted overseas especially in Europe, then you have to meet the requirements of General Data Protection Regulation (GDPR) without which, it will be difficult for you to conduct business. To protect from severe consequences due to non-compliance, banks have been facing the additional burden of cost with risk to remain updated with the latest regulatory changes and also to satisfy several requirements based on it. Thereby, banks offering mobile platform services (like apps) need to comply with this regulation as per their deployment technology. And if they do not comply; then they have to face various legal actions which include fines, temporary suspension and in severe cases, permanent closure. Why banks are afraid of it? It is because non-compliance with regulations will tarnish their brand image and customers will wean away from their banking apps and in turn from their services.
III. Provision of Eye-Catching User-Experience (UX) is a Tricky Task
A recent survey has found out that 4 out of 10 users of mobile devices use their gadgets for performing financial transactions. Besides, another report found that one-third of smartphone users have at least one mobile app in their device to conduct financial activities. What is the aim of providing these details? Simply to make you serious and not to take UX of the application for granted and not to compromise with this feature at any cost. Focusing on designing those apps which are easy to utilize with customer-driven aspect must not be ignored. Furthermore, customers must feel relaxed in carrying out even complex transactions from mobile banking apps and focus on specialized issues appropriately. Even if these challenges are not enough, the provision of regular customary updates and following the latest version of the operating system is essential to create a user-friendly application. Only then, the creation of eye-catching UX for mobile apps is possible so that the customers can perform their financial transactions easily and without facing any difficulty.
IV. Selecting Platform with Modern Features is Not a Mean Task
It is a puzzling task for the mobile app developers to select a platform for the banking app which is in sync with all modern features. What’s more, they must also ensure that your banking apps are capable of working optimally on different platforms like iOS, Android and different range of devices. Nonetheless, the developers get struck in selecting features that should be included in the app. And starting from building MVA (minimum viable product) for every app is not the expertise of every developer. Moreover, focusing more on adding those features which will add productivity and thus enhances the customer base that must be made into a habit. So, the main challenge for the banking institutions is to deliver those mobile apps which come with exceptional functionality so that it will be easy for the user to perform their financial transactions on a daily basis. Also, the apps should assist the users to have access to digital payment with available options and the app ought to run without any glitches.
V. Building App to Provide Cross-Platform Experience to the Users
Another important challenge which has plagued the banking apps is catering them on diverse platform and devices as the customers are omnipresent; they are everywhere. It is a challenging task as most of the banking apps have platform-specific design and are considered as a “best practice” approach. But there are various challenges associated with building a mobile banking app capable of operating on multiple platforms. Sometimes the app might work best on Android devices but unable to work on the iPhone which creates a sense of confusion among people. Furthermore, the user wants to operate their financial transactions on the desktop but can’t perform due to the unavailability of features that make it work most proficiently. Thus, creating a cross-platform banking app for the customers is not an easy task as it seems.
VI. Keeping Pace with Latest Tech Trends
Another massive challenge for FinTech app development is staying updated with the latest technological trends. It is essential as the running of mobile application requires a powerful technology which can sustain it on any environment. For example, most mobile applications are based on cloud integration services which are in great demand for easy management and high-security level. Similarly, various other technologies have come to the service and are ready to rock the world of web development notable of being them includes, including AI, IoT, VR and many more which are renowned for providing improved customer experience through the apps with which they are associated. Henceforth, it becomes difficult for tech experts to choose which technology will make the life of the app work seamlessly for longer duration and deliver top-notch digital experience.
VII. Designing Apps which is Capable to Meet Expectations of the Customers
The present generation is more tech-savvy, smarter and informed about their surroundings and expects a high degree of personalized banking experience. Besides, there has been significant demographic shift and millennials are at the forefront in leading digitalization in their everyday life. Another raveling fact is that millennials make up the largest percentage of users of mobile banking (47%). So, it is prudent enough to say that they might expect advanced app attuned to technology and is capable to meet all their financial requirements with great ease.
Nevertheless, the older generation is also fast catching up to incorporate digitalization in their daily life and it puts a dilemma on banking apps to satisfy the needs of both older and younger generations at the same time. One thing should be noted that the key to success is to keep customers satisfied and banking institutions might find it hard to keep all its customers happy.
Summing Up
From the given write-up, one thing is clear that numerous challenges create a barrier in the development of innovative mobile banking apps for tech-loving customers. However, on the good note, these are not actually challenges; these are opportunities to help a banking organization to extract benefits from it and give a helping hand in developing a whole new digital world where mobile apps will be the “new boss “in the future of FinTech world.
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