Fintech apps are used for financial services such as accessing financial accounts, making payments, and sending and receiving funds. These apps have changed how people access and use their money by providing innovative financial solutions that are available on smartphones and computers. From mobile payments and transfers to investment and budgeting tools, fintech apps have increased access to financial services, empowering users to view and manage their finances with minimal effort. With the value of the global fintech market projected to grow from $294 billion USD in 2023 to over $1 trillion USD by 2032, this trend shows no signs of stopping.

The success of fintech apps has been driven by advancements in technology, the proliferation of smartphones, and an increasing demand for user-friendly, accessible financial services. This rise has been amplified by regulatory changes that have encouraged competition within the financial services sector and allowed startups to challenge established financial institutions. As a result, fintech has transformed how people bank and invest, while pressuring traditional banks to adopt more digitally oriented services to remain competitive.

Below, we’ll explain what fintech apps are, how businesses use them, and what kinds of benefits they can offer your business.

What’s in this article?

• Types of fintech apps
  
• Key features of fintech apps
  
• How businesses use fintech apps
  
• Benefits of incorporating fintech apps into your business
  

Types of fintech apps

Fintech apps have many uses within financial services. Here are some of the most common categories and types of fintech apps available.

• Payments and transfers: These apps allow you to send and receive money domestically and internationally. Examples include mobile payment systems such as Venmo and money transfer services such as Wise.

• Personal finance management (PFM): These apps help users manage their personal finances by tracking expenses, creating budgets, and providing insights into spending habits. Examples include Mint (its features are now moved to Credit Karma) and YNAB (You Need a Budget).

• Investment and trading platforms: These apps provide tools for trading stocks, bonds, cryptocurrencies, and other investment vehicles. They support both novice and seasoned investors. Examples include platforms such as Robinhood and E*TRADE.

• Banking and neobanking apps: These apps provide banking-like services without physical branches, and they often use artificial intelligence (AI) to improve customer interactions and service personalisation. Examples of neobanks include Monzo and Revolut.

• Insurance technology (insurtech): These apps provide accessible, user-friendly platforms for purchasing and managing insurance policies. Examples include Zinnia and Lemonade.

• Lending platforms: These apps facilitate quicker loan approvals and more flexible loan terms based on alternative credit scoring models. Examples include lending platforms such as LendingClub and Prosper.

• Regulatory and compliance (RegTech): These apps help financial institutions comply with financial regulations in an easier and more cost-effective way. They simplify processes such as Know Your Customer (KYC), Anti-Money Laundering (AML) protocols, and fraud prevention. Examples include companies such as Chainalysis and Forter.

• Wealth management: These apps target high-net-worth individuals and institutional clients with sophisticated tools for asset management, estate planning, and tax optimisation. Examples include platforms such as Farther and Savvy.

• Cryptocurrency and blockchain apps: These apps offer services including trading, crypto wallets, mining management, and decentralised finance (DeFi) applications to facilitate lending, borrowing, and earning interest on cryptocurrency holdings. Examples include platforms such as Coinbase and MetaMask.

• Financial planning and advisory services: These apps have automated services (robo-advisors) and hybrid services that combine AI and human advice to help individuals and businesses create long-term financial plans. Examples include Betterment and Wealthfront.

Key features of fintech apps

Although the exact feature set of each app will vary, here are some features you can expect in the most common categories of fintech apps.

Digital banking and neobanks

Account management

• Real-time balance checks
  
• Transaction history
  
• Statements
  

Payments and transfers

• Bill pay
  
• Domestic and international transfers
  
• Peer-to-peer (P2P) payments
  

Card management

• Card activation and blocking
  
• PIN management
  
• Transaction notifications
  

Budgeting and savings tools

• Expense categorisation
  
• Spending insights
  
• Savings goals
  

Neobank features

• Early direct deposit
  
• Fee-free overdraft
  
• Cashback rewards
  
• Virtual cards
  
• Joint accounts
  

Payments and transfers

QR code and contactless payments

• Scan to pay
  
• Near-field communication (NFC-enabled payments)
  

Security features

• Biometric authentication
  
• Two-factor authentication
  
• Fraud detection
  

Additional payment features

• Real-time money transfers
  
• Bill splitting
  
• Money requests
  
• Digital receipts
  
• Loyalty scheme integration
  
• Transaction histories
  
• Currency exchange
  

Personal finance management

Expense tracking

• Automatic categorisation
  
• Manual tagging
  
• Customisable categories
  

Budgeting

• Spending limits
  
• Progress tracking
  
• Alerts
  

Financial insights

• Spending analysis
  
• Personalised recommendations
  
• Goal tracking
  

Credit monitoring

• Credit score tracking
  
• Change reports
  
• Alerts
  

Additional features

• Bill reminders
  
• Investment tracking
  
• Net worth calculation
  
• Tax preparation assistance
  

Lending and borrowing

Loan application

• Online application
  
• Instant pre-qualification
  
• Document upload
  

Loan management

• Loan details
  
• Payment features
  
• Progress tracking
  

Credit checks

• Soft credit pulls for pre-qualification
  
• Credit score monitoring
  

Payment options

• Autopay
  
• Flexible payment schedules
  
• Early payoff options
  

Buy now, pay later (BNPL) features

• Virtual cards
  
• Instalment plans
  
• Retailer partnerships
  

Investments and trading

Portfolio management

• Dashboard of holdings
  
• Performance tracking
  
• Portfolio rebalancing
  

Market data

• Real-time quotes
  
• Charts
  
• News
  
• Analysis
  

Order placement

• Buy and sell orders
  
• Limit orders
  
• Stop-loss orders
  

Research and education

• Analyst ratings
  
• Educational resources
  
• Market insights
  

Security features

• Two-factor authentication
  
• Data encryption
  
• Account protection
  

Additional features

• Fractional shares
  
• Social trading
  
• Cryptocurrency support
  
• Robo-advisor integration
  

The following features are generally included on all fintech apps, regardless of category:

• User authentication and security: User data is protected with security features such as multifactor authentication (MFA), biometric logins (such as fingerprint and facial recognition), and end-to-end encryption.

• Real-time notifications and alerts: Users receive push notifications about important account activities such as suspicious transactions, major stock price changes, or reminders for bill payments.

• Dashboard and reporting tools: Users can access a comprehensive dashboard summarising their financial situation. They can also access visual representations such as graphs and charts tracking spending patterns, investment performance, and other financial metrics.

• Automated features: Users can automate bill payments; recurring transfers; and investment strategies that adjust based on market conditions and personal financial goals.

• Customisation and personalisation: Users can customise and personalise app interfaces and financial services. They can set personal budgets, choose specific alert preferences, and tailor investment portfolios according to their risk tolerance and financial objectives.

• Integration capabilities: Users can integrate fintech apps with traditional bank accounts, accounting software, and other financial services to centralise financial management.

• Transactional capabilities: Users can perform transactions such as transferring money, paying bills, or executing trades directly within the app.

• Customer support and education: Users have access to customer support including live chat, FAQs, and phone support as well as educational resources such as tutorials, webinars, and articles on financial literacy.

• Accessibility and inclusivity: Users have access to accessibility features such as high contrast modes, text-to-speech, and other assistive technologies as well as support for multiple languages.

How businesses use fintech apps

Fintech apps aren’t only for consumers. Businesses use fintech apps to improve operations in many areas. These include:

• Payment processing solutions: Businesses use fintech apps to simplify the process of receiving and making payments with mobile point-of-sale (POS) systems, online payment gateways, and apps that facilitate electronic invoicing and automatic billing. These solutions help businesses improve cash flow, reduce processing times, and lower transaction costs.

• Financial management: Businesses use fintech apps for financial management tools such as budgeting apps, expense trackers, and financial reporting software. These tools offer businesses real-time insights into financial health, which can lead to informed financial decisions and better cash flow.

• Access to capital: Businesses use lending platforms and crowdfunding apps for faster loan approvals and access to a broader range of lending products than traditional banks, often with more competitive rates and terms.

• Automated accounting and book-keeping: Businesses use fintech apps to automate accounting tasks such as categorising expenses, synchronising transactions across bank accounts and credit cards, and preparing financial statements. This makes tax preparation and financial auditing easier and more cost-effective.

• Payroll management: Businesses use fintech solutions to pay employees accurately and on time, in addition to automating tax calculations, tax withholdings, and benefit deductions. These solutions also help businesses comply with employment and tax laws.

• Fraud detection and risk management: Businesses use fintech apps to detect fraudulent activity and manage risks. Fintech apps use AI and machine learning algorithms to analyse transaction patterns for potential fraud, and they provide risk assessment tools to mitigate financial vulnerabilities.

• Customer relationship management (CRM): Businesses use fintech apps with integrated CRM systems to track customer interactions, manage leads, and improve customer service.

• Supply chain financing: Businesses use fintech apps to optimise their working capital and strengthen supplier relationships. These apps facilitate faster payments to suppliers, provide dynamic discounting solutions, and offer visibility into the full supply chain finance process.

• Insurance services (insurtech): Businesses use fintech apps in the insurance sector to simplify the process of purchasing insurance, managing policies, and filing claims.

• Regulatory compliance and reporting: Businesses use compliance-focused fintech applications for help with reporting requirements and adhering to financial regulations.

Benefits of incorporating fintech apps into your business

Fintech apps offer businesses several benefits. Here’s a closer look.

• Optimised business processes: By using automation, fintech apps reduce the time and effort required for tasks such as payment processing, invoicing, and financial reporting. Automation can mitigate human error and improve transaction times so businesses can focus on core activities and growth.

• Accuracy and transparency: Fintech apps provide a clear view of a business’s financial health using real-time data processing and advanced analytics. This transparency helps with accurate budgeting, forecasting, and financial planning. It can also help lead to more informed decision-making and better financial management.

• Lower costs: Fintech apps automate financial operations and reduce manual intervention. This can decrease labour costs, costs associated with manual errors, and fees for financial transactions and services.

• Customer experience: Fintech apps have user-friendly interfaces that improve the customer experience. Businesses can enhance their service delivery with convenient payment solutions, personalised financial advice, and loyalty schemes.

• Access to financial tools: Fintech apps provide small to medium-sized enterprises (SMEs) with access to tools and analytics – such as sophisticated risk management models, investment platforms, and detailed customer data analytics – previously only available to larger corporations.

• Scalability: Fintech apps can scale with your business and can accommodate growth in customers, transactions, and data – without the need for major additional investment. Financial systems grow with the business and support expansion efforts without compromising operational integrity.

• Regulatory compliance: Fintech apps incorporate features that help businesses automatically comply with relevant laws and regulations such as Anti-Money Laundering (AML) laws, tax regulations, and financial reporting standards.

• Global reach: Fintech apps can manage multiple currencies as well as compliance with international financial regulations, making global expansion more feasible and less risky.

• Tax compliance: Fintech apps automate the calculation, withholding, and submission of taxes to ensure compliance with local and international tax regulations. This can simplify tax administration and reduce the risk of penalties due to non-compliance.

• Credit checks: Fintech apps integrate credit scoring models that analyse transaction history and financial behaviours. This provides businesses with more accurate assessments of creditworthiness, reducing credit risk and potential bad debts.

• Mobile access: Mobile-optimised fintech solutions let business owners and employees access financial data and conduct operations from anywhere. This feature offers flexibility and ensures that key financial tasks can be handled promptly.

• System integration: Fintech apps integrate with existing business systems such as CRM, enterprise resource planning (ERP), and e-commerce platforms. This can create a unified approach to business management.