Wondering how to initiate your investment app development? Here’s a quick guide to help you get started!
The pandemic, coupled with the rapid growth of digitization has significantly transformed our lives for good. From the way we shop, to the way we learn, communicate, and even manage our finances, technology has seeped into every aspect of our life. One such beneficial change is the way we trade and invest. While earlier, investing in stocks required specific training, and the involvement of agents and brokers, among other things, now the process is considerably simplified. All you need today is a smartphone and a stock investing app.
This simplicity has opened up a multitude of options for businesses to expand their horizons by entering the fintech industry via highly functional investment app development. The profit margin of these apps is extremely high and this has therefore increased their popularity among entrepreneurs. Here are some stats that prove this phenomenon:
· According to Statista, the e-trading market is expected to grow from $8.7 billion in 2021 to $12.16 billion in 2028, showing a CAGR of 5%.
· Google searches for investments have increased yearly by 115%.
· As per this poll by Bankrate, 63% of smartphone users have at least one financial app installed, and 17% of these are stand-alone investment applications.
The data mentioned above clearly indicates the increase in demand for investment platforms and how this will be reflected in the years to come. It also proves that your decision to create an investment app is brilliant and at the right time. So, buckle up! Let’s learn more about the whats, hows, and whys of investment app development in detail.
Types of investment applications
1. Bank investment
These applications enable their users to invest and conduct specific banking operations in real-time, irrespective of the time and location. Such apps are often owned by licensed financial institutes.
If you want to create an investment app for banking purposes, make sure it enables users to seamlessly make investments, open IRA accounts, perform financial transactions, check bank account balances, save money, take loans, and conduct other banking activities.
2. Stock trading
This type of investment app development is designed to simplify stock trading. They’re developed to ensure that investment in the stock market can be done from any location and at any time. Some examples of stock trading apps include Robinhood, SoFi, Charles Schwab, Stash, etc.
3. Standalone apps
As evident from the name, these apps are developed with the sole purpose of providing investment opportunities to a specific target audience. These apps can be further divided into different types:
– DIY or Do It Yourself – these are apps that are built for both amateurs and professionals. They usually have 2 interfaces, one with the basic functionalities for amateurs and a second one with advanced features for professionals. Some examples include Binance and Fidelity.
– Human advisor – These stock investing apps offer a platform to connect a team of financial advisors with users who require investment advice (without the need for direct physical interaction). These apps can be both a standalone program or a hybrid investment advisory that offers this specific feature. One popular example here is Zoe Financial.
– AI advisors – This type of investment app development use highly-sophisticated Robo-advisors that use AI, big data analysis, a news feed, and complex algorithms to predict future market trends. There are also less technologically advanced Robo-advisor apps that use reliable financial analyst predictions. Some examples include Betterment and Wealthfront.
How will an investment app development benefit your business?
An investment application will give you real-time information about publicly traded companies. Such an app will enable its users to stay updated on the stock market and empower them to capitalize on readily available information at nominal application fees. Here are some advantages of creating an investment app:
· The increasing popularity and acceptance of the online investment industry are one of the primary reasons to create an investment app. You can rope in more and more users who are interested in finance strategies, portfolio management, and stock trading.
· You can also take advantage of the wide range of niches that you can target with your investment application. You can focus on smaller objectives like financial learning platforms, insurance advisory apps, a marketplace for cryptocurrency purchases, etc.
Steps to create an investment app
If you wish to stand out amidst your competitors and shine in the market, it is imperative that you build a highly functional, robust app. With user expectations reaching sky-high, businesses need to focus on user-friendliness along with functionality. And in order to create an app that requires you to follow a structured process.
Here are five steps you should include in your investment app development process to build an application that ensures your success.
This is the most crucial aspect of any development project. Start by asking yourself questions about the company’s goals and objectives, and what you are trying to achieve from the application. Also, evaluate your organization’s tolerance for risk in multiple situations if something goes wrong.
2. Business model
The business model of your investment app development should be initiated at the time of financial planning. You should consider what the cost of your services is, and what percentage of the commission you hope to get.
3. Research the legal regulations
Financial transactions should adhere to the laws and regulations that apply to the operations in the countries where you plan to conduct business. Therefore, your mobile app development should take into account these factors, the privacy of your users, and other related official guidelines.
4. Find a suitable team
This step can make or break your investment app development. In this regard, you have a couple of options – you can either form an internal team, include freelancers for specific skills, hire experienced developers from an outsourcing company to fill your skill gaps, or collaborate with a reliable custom software development company.
5. Build the application
Initiate the creation of an MVP for your app development. Once you have attained a functioning product, you can proceed to build your application with the essential features required to function. If you want to know in detail the steps involved in building an application, refer to this quick blog.
6. Test and improve
In order to create an investment app that functions well, it is important to keep testing its functionalities and keep improving. Effective software quality assurance will enhance your app’s quality and ends with a finished product that is made available for purchase and download.
7. Upkeep and support
Maintenance includes upgrades to support new operating system editions, third-party service updates, and other updates. You must constantly upgrade your library and framework versions to prevent security flaws. Frequently test your application for speed and security flaws and keep making necessary changes.
Following these steps in your investment app development process can work as a solid foundation to guarantee successful development outcomes. One recommended methodology is to move on with the development processes methodically and resolve conflicts that come along the way by giving a specific focus on Agile methodology.
Must-have features in your investment application
While you can choose the type of functionalities in your application, there are some must-have features that your app should definitely have.
· Registration & onboarding
· User profile
· Money management tools
· Money withdrawal functionality
· Security & safety
· Push notifications
· AI consultation & financial knowledge
While building an investment application may seem like a simple project, it needs expertise on various levels. From a deep knowledge of the industry to coming up with a unique idea, you should have the support of a reliable and experienced team.
We at Cleffex are here to support you if you are seeking an expert investment app development partner. We have an impressive portfolio of successfully completed projects for organizations of different sizes and working in various industries. By associating with us, you can be self-assured that we’ll give your investment application our complete attention and improve its practicality with a wide range of high-performing tools and features. Contact us to find out more about how we can help you!