In the past 10 years, fintech has evolved from a niche and elusive industry trend to a revolutionary force in the worldwide financial landscape.
Once associated with small startups, fintech today includes multibillion-dollar corporations, with a heavy presence in North America and Europe. Moreover, fintech has reached millions of people all over the world, with over three billion users in 2025.
However, this incredible growth has never been possible without fintech software development that has shown incredible power in all domains — payments, lending, wealth management, insurance, regulatory compliance, and even blockchain-based finance and decentralized ecosystems.
How Fintech Works
Fintech, short for financial technology, refers to the use of modern technology to improve, automate, or replace traditional financial services. It encloses everything from mobile banking and digital payments to investment platforms, insurance solutions, lending services, and sometimes blockchain-based finance.
An essential driver of fintech innovation is financial exchanges, which encompass trading platforms for stocks, cryptocurrencies, and derivatives. These platforms rely on advanced features such as high-frequency trading (HFT), live analytics, swaps, options, and other complex instruments.
Simply put, the main purpose of fintech is to accelerate financial transactions, keep them safe, and make them more convenient with the aid of technology.
In its nature, fintech is obtained through the implementation of specialized software, data, and virtual infrastructure:
A Brief History of Fintech
While fintech is commonly thought to be a fairly recent invention, its roots go back over half a century.
The wave of innovation began in the 1950s with credit cards, followed by ATMs and electronic fund transfer in the 1960s and 70s. These technologies gave people new ways of paying and gaining access to their money beyond the typical bank counter.
In the 1980s and 1990s, the spread of the internet transformed finance once again. Online banking became the norm, online brokerage platforms went digital, and early payment processors, such as PayPal, opened up, allowing for electronic payments to be sent at the touch of a button.
2000 and the 2010s were the decade of smartphones. Mobile banking software, digital wallet payments like Apple Pay and Google Pay, and person-to-person solutions like Venmo entered the daily lives of people, allowing them to transfer money, buy stuff, and pay bills right from their phones.
In the 2020s, fintech has advanced even further, moving toward fully digital banks known as neobanks, blockchain-powered decentralized finance, AI, and embedded finance, where financial services are built into non-financial platforms.
Fintech Banking vs Classic Banking
Fintech and traditional banking, indeed, serve the same purpose — supporting people to manage money — but they operate in very different ways. Traditional banks rely on legacy systems and physical branches, which can make processes slow and rigid.
Customers often need to visit a branch for services, fill out paperwork, and wait for approvals. Innovation tends to be gradual, and adapting to new technologies can take years.
Fintech, on the other hand, is built to be flexible and digital-first. Services are primarily online or mobile, allowing users to instantly complete transactions without leaving home.
| Aspect | Traditional Banking | Fintech Solutions |
| Regulation | Strict, well-established frameworks | Evolving with regular updates and strict compliance (AML/KYC) while integrating with traditional banking. |
| Infrastructure | Legacy systems, slow modernization (even mainframes from 1960s are still being used) | Cloud-native, API-driven, agile |
| Customer Experience | Branch visits, paperwork | Mobile-first, instant, intuitive |
| Innovation Speed | Conservative, slow adoption | Fast, experimental, adaptive |
| Risks | Stable but less flexible | Agile but faces cybersecurity challenges |
Fintech vs Traditional Banking
Understanding Fintech Software Development
Fintech software development is the process of creating digital solutions that transform the way financial services are delivered.
Still, developing fintech software goes far beyond writing code. It requires combining financial expertise with advanced technologies to design protected, useful, and intuitive software products.
A fintech software developer’s role usually includes analyzing business and technical requirements, integrating payment gateways and compliance tools, testing security and performance, optimizing user experience, and supporting the solution after launch.
What sets fintech development apart is its reliance on cutting-edge technologies, such as AI for personalized recommendations and fraud prevention, blockchain for transparency and trust, APIs for data sharing, and cloud platforms for scalability.
These technologies allow fintech offerings to process large volumes of transactions at high velocity, serve millions of consumers in parallel, and provide the level of convenience consumers increasingly expect from financial institutions.
Types of Fintech Software Solutions
Most people, when they hear fintech, expect digital payments. That’s partially true — the digital payments segment accumulates the largest user base, with over 443 million users in 2024.
However, fintech isn’t limited to one product or service — it’s an entire ecosystem of digital tools made to recast the way people and businesses manage their finances.
Digital Banking Apps
Digital banking apps replicate the services of traditional banks but deliver them entirely online. Users can open accounts, transfer funds, pay bills, and even apply for loans without visiting a branch.
Mobile Wallets and Payment Apps
Mobile wallets (PayPal, Venmo, Apple Pay, and Google Pay) have become one of the most widely adopted fintech solutions. They let users store digital versions of their cards and instantly make payments, both online and in physical stores.
Lending Platforms
Lending in fintech has several directions. Peer-to-peer (P2P) platforms connect borrowers directly with individual lenders, while Buy Now, Pay Later (BNPL) services let customers split payments into smaller installments.
Besides, lending platforms often use AI-driven credit scoring models to make lending decisions faster and more accurately.
InsurTech Solutions
Insurance technology, or InsurTech, simplifies traditionally complex insurance operations. They process claims in minutes, offer highly personalized policies, and cut down administrative overhead.
Customers, in turn, can manage their policies, file claims, and get instant updates all within a mobile app.
WealthTech Applications
Wealth management has gone digital through robo-advisors, trading platforms, and investment apps. Additionally, they offer commission-free trades, automated portfolio management, and educational insights, and appeal to both seasoned investors and beginners.
Personal Finance Apps
Personal finance apps (Mint, YNAB, and PocketGuard) help users track expenses, manage budgets, and set savings goals. By analyzing transaction data, they provide insights into spending patterns and recommend strategies to improve financial health.
Tax and Accounting Solutions
These solutions are made to deal with accounting and compliance tasks. They automate bookkeeping, tax filing, payroll, and expense management. Moreover, these tools reduce manual errors, guarantee adherence to local regulations, and save businesses much administrative time.
RegTech (Regulatory Technology)
A growing segment of fintech (the global market was valued at $15.80 billion in 2024), RegTech helps financial institutions comply with ever-changing regulations.
These solutions automate risk management, identity verification, and anti-money laundering (AML) processes. Often, they use AI and big data to detect suspicious activities and confirm businesses stay compliant no matter what.
Embedded Finance
Via embedded software development services, businesses can integrate financial offerings into non-financial platforms. For example, ride-hailing apps may offer in-app wallets, e-commerce stores can provide instant credit at checkout, and retail platforms integrate insurance products.
Business Benefits of Fintech Solutions
Fintech solutions give businesses a clear edge by offering financial services that are smarter, faster, and more agile.
One of the most meaningful advantages is faster customer acquisition. Digital-native services allow companies to quickly onboard and acquire new customers through apps and online channels without the arduous process of paperwork for traditional banking.
Another benefit is savings in the cost of operations. All the routine processes like payments, loan approvals, or compliance checks are almost fully automated, which avoids manual effort and reduces mistakes.
Fintech also generates new streams of revenue. Companies can offer lending or investing services, offer subscription-based services, or charge small fees per transaction. These methods allow companies to venture beyond their base product.
Lastly, fintech also offers access to smarter decision-making with data. Through analytics powered by AI, businesses can better serve customers, predict risks, and provide more personalized financial services.
Must-Have Features of Fintech Applications
For a fintech app to succeed, it needs to combine functionality with an impeccable user experience. Here, user-oriented interfaces are the foundation — customers should be able to effortlessly switch between the app sections, whether they’re checking balances, making payments, or applying for loans.
Another important element is live notifications. Instant alerts for transactions, account updates, or suspicious activity help users always stay informed and build trust in the platform.
Security is non-negotiable. Data encryption, multi-factor authentication (MFA), and biometric login protect sensitive information and reassure users that their finances are safe.
On top of the basics, fintech apps can deliver more value with financial insights through dashboards and visualizations. These tools help users track spending, monitor investments, and make smarter financial decisions.
Fintech Software Development Process
A fintech software development process prescribes a step-by-step procedure for producing financial software. It generally decomposes a whole action into less complex sub-actions intended to deliver high-quality outputs.
Although not so rigid in the steps, the fintech software development process typically involves the following steps:
1. Requirement Analysis and Planning
No matter what the next set of steps will be, the journey begins with requirements gathering.
In this stage, the team clarifies the app’s purpose, target audience, main features, and regulation requirements (e.g., KYC, AML, or PCI DSS). The well-defined plan is the foundation of the entire project.
2. UI/UX Design
Next comes creating the UI/UX design. Since fintech products deal with confidential details, the design has to be easy to use and credible enough so that users don’t inadvertently do the wrong thing.
3. Development
This is where coding takes place. Developers build the frontend and the backend (server logic, databases, payment integrations, APIs, etc.), as well as implement security measures.
4. Testing
Before launching, the app is properly tested. Functional testing confirms features work as expected, performance testing shows the app will hold up under heavy loads, and security testing protects against leaks or cyber attacks.
5. Deployment
After all testing has been done, the app is released to production. At this stage, it connects with live payment systems and becomes available to real users.
6. Maintenance and Updates
The process would not usually cease after release. The app needs to be continually monitored, revised, and updated. Developers can also implement new features and adapt to shifting regulations.
Fintech Development Costs
The cost of making a fintech solution is never fixed and differs based on its complexity, functionality, and security & compliance requirements.
The second meaningful criterion is the location where the development team is based — it could be pricier in the US or Europe and cheaper if you outsource from elsewhere. In general, the pricing looks like this:
- Basic apps (like a budget or digital wallet app) cost between $50,000 – $150,000.
- Mid-scale apps (such as lending platforms or InsurTech solutions) are likely to cost $150,000 – $300,000.
- Mass-market platforms (neobanks or trading apps) could cost $300,000+.
Companies also need to think about whether to produce software in-house or outsource development.
Assembling in-house offers more control but is less economical and typically more time-consuming (when it needs an additional hiring process). Outsourcing to an experienced fintech development partner is likely to be quicker and cheaper.
Regulations and Compliance in Fintech
Statistics show that fintech compliance is a central challenge impeding development, with over 60% of companies facing significant fines ($19.3 billion in 2024) and 93% finding it difficult to meet requirements.
However, since fintech companies regulate sensitive financial data, process transactions, and sometimes manage investments, they are obliged to follow legal and regulatory standards.
United States
In the US, fintech companies must adhere to several regulations:
- AMLA and BSA: Require financial institutions to detect and prevent money laundering, terrorist financing, and other illicit activities.
- USA PATRIOT Act: Strengthens identity verification procedures and reporting requirements to resist fraud and terrorism financing.
- PCI DSS: Ensures secure handling of credit card transactions and payment data.
- ESIGN and FCRA: Govern electronic signatures, digital contracts, and fair reporting practices for credit and financial data.
European Union
EU fintechs face strict data protection and banking regulations (PCI DSS is also widely used in Europe):
- GDPR: Protects personal data and gives users control over how their information is collected and processed.
- PSD2: Enables secure open banking, allowing third-party apps to access user financial data with consent.
- AML Directives: Require specific anti-money laundering programs, including customer verification, reporting suspicious activity, and monitoring financial transactions.
United Kingdom
UK fintechs follow both EU-derived and local regulations:
- FCA Regulations: Ensure financial products and services are safe, fair, and transparent for consumers.
- OBIE Standards: Govern secure data sharing between banks and authorized third-party providers.
Popular Fintech Software Examples
The global fintech domain is replete with companies. North America is home to more than 12,000 financial technology companies, Europe is a hub with over 9,200 companies, and the Asia-Pacific region hosts 6,365 fintechs.
However, there are some well-known examples that have already gained global recognition for their impact. These companies, as well as their products, can be taken as a role model for understanding what users expect from modern banking.
Chime
Chime is a fully digital bank with no fees. It helps users manage accounts, get early access to paychecks, and easily save money, all through a mobile app.
Main features:
- No monthly fees
- Early access to paychecks
- Automatic savings features
- Mobile-first banking experience
Revolut
Revolut is a multi-currency wallet and investment app. Users can exchange currencies, make international payments, invest in stocks or crypto, and set up savings goals — all in one application.
Main components:
- International payments
- Stock and cryptocurrency trading
- Budgeting and savings tools
- Live notifications and spending analytics
Mint
Mint is a personal finance app that tracks spending, creates budgets, and gives a clear picture of customers’ finances by connecting to their bank accounts and credit cards.
Killer features:
- Controls spending
- Creates personalized budgets
- Provides alerts for bills and overspending
- Gives an overall view of financial health
Robinhood
Robinhood is a trading app that lets people buy and sell stocks and cryptocurrencies without paying commissions. It makes investing simple, especially for beginners.
Key functions:
- Commission-free stock and cryptocurrency trading
- Easy-to-use interface for beginners
- Portfolio tracking and market insights
- Supports fractional shares
PayPal
PayPal is one of the first big digital payment platforms. It allows secure money transfers online, supports merchants, and makes international payments easy.
Main elements:
- Secure online money transfers
- Merchant payments and invoicing
- International payment capabilities
- Integration with e-commerce platforms
How to Choose the Right Fintech Software Development Partner
Creating a winning fintech application requires a partner who understands finance, technology, security, and compliance altogether. Working with the right company can save time and cost and guarantee success for your product.
Start by looking for experience in fintech. The partner should have worked on projects like digital banks, payment apps, trading platforms, or insurance solutions. Going through their portfolio proves you can figure out whether they’ve worked on issues like yours before.
Compliance knowledge is the second important criterion. As we mentioned above, compliance is not optional — fintech companies must follow a number of standards, such as KYC, AML, PCI DSS, GDPR, PSD2, and others.
A reputable partner will ensure your app complies with all regulations right from the beginning to avoid the cost and legal implications of fines.
Also consider overall technical skills. Make sure the team is experienced with mobile and web apps, cloud platforms, AI, blockchain, and API integration — everything needed to make a modern fintech solution.
Finally, check client feedback on Clutch or GoodFirms (or similar platforms). A reliable partner usually has some positive reviews highlighting successful projects, clear communication, and timely delivery.
Future of Fintech Development
The fintech industry is changing fast, making financial services smarter, safer, and easier to use. However, among the various changes, there are several particularly noteworthy areas that have a strong impact on the context of fintech.
AI, for example, will help apps give personalized recommendations, quickly spot fraud, and make lending decisions smarter.
Decentralized finance (DeFi) and blockchain will let people trade, lend, and invest without traditional banks, making finance more transparent and global.
Biometric security, like fingerprints and facial recognition, will replace passwords. IoT devices, such as wearables and connected cars, could handle payments, track spending, or link to health-based insurance.
Finally, green fintech will let users invest in eco-friendly projects, making sustainable finance more accessible and driving positive environmental impact.
Why Choose SCAND for Fintech Software Development?
With over 25 years of software development experience and more than several hundred completed projects, SCAND’s dedicated team has a proven track record in fintech, including digital wallets, trading platforms, payment systems, and InsurTech solutions.
We blend solid technical skills with extensive knowledge of finance to make your app secure, compliant, and user-friendly.
Compliance and security are at the heart of what we do. All our custom solutions meet KYC/AML, PCI DSS, GDPR, PSD2, and other relevant regulations, as well as have all the security controls needed to ensure safety.
Our team is also flexible and scalable, adapting to your needs and providing regular maintenance, updates, and new features as your user base grows.
Finally, SCAND is known for reliability and client satisfaction. Reviews on Clutch and GoodFirms highlight our successful projects, clear communication, and ability to deliver on time and within budget.
Frequently Asked Questions (FAQs)
What is fintech software development?
Fintech software development is the process of making digital software for financial operations, such as mobile banking apps, payment platforms, trading apps, and InsurTech solutions. These apps combine finance knowledge with modern technologies, such as AI, blockchain, and cloud computing.
How much does it cost to develop a fintech platform?
The cost of developing a fintech product always depends on its complexity, features, and compliance requirements. Basic apps, such as digital wallets or budgeting tools, typically range from $50,000 to $150,000. Mid-level apps, like lending platforms or InsurTech solutions, usually cost $150,000 to $300,000. For complex platforms, including neobanks or trading apps, development can exceed $300,000.
How long does it take to build a fintech platform?
Development time depends on the project’s coverage. Simple apps can take 3–6 months, mid-level apps 6–12 months, and complex platforms 12 months or more.
What regulations should fintech apps follow in 2025?
Depending on the market, fintech solutions must comply with KYC/AML, PCI DSS, GDPR, PSD2, and local financial authority guidelines (e.g., FCA in the UK, SEC in the US).
Can fintech applications integrate with other platforms?
Yes. Most fintech solutions use APIs to integrate with banks, payment gateways, trading platforms, and other financial services.
Why should I hire fintech software developers from SCAND?
SCAND has over 25 years of overall software development experience and more than 200 successful projects. Our team uses all cutting-edge technologies (AI, blockchain, and cloud platforms) and builds solutions suitable for any conditions.
