Unique Challenges With Building A Financial App

If you’re interested in building a financial app, you’ve probably heard about the unique challenges that you’ll face. These challenges range from securing funding to complying with government regulations. They also involve things like third-party integrations, performance testing, and pitch deck preparation. While many of these challenges may seem similar, they’re quite different. Listed below are some of the most common challenges that you’ll encounter while building a financial app.

Performance Testing

There are many factors to consider when performing performance testing for a financial app. This type of application has a higher volume of transactions than a typical website and requires more testing than a simple website would need. Hence, performance testing for a financial application must be a top priority. A properly designed performance test suite will help you ensure that your application is stable even when the number of users grows significantly.

Since banking apps handle high volume of transactions, performance testing is crucial to ensure that the app is reliable under varying load conditions. Several factors can cause performance issues, including poor connectivity and multi-tier functionality support. Backend integration is also a factor to be taken into consideration. Testers must keep an eye on spikes in transaction volumes and perform stress and load testing regularly to ensure zero performance issues.

Onboarding Optimization

In today’s world, consumers demand seamless, instant experiences. Typically, onboarding processes require heavy documentation, increased amounts of information, and continuous back and forth between parties. In fact, studies show that almost 40% of digital banking users abandon the process because of the length of the application. Instead, you should consider a flexible onboarding solution that cuts through the friction and speeds up the credit decision process.

The first stage of onboarding occurs when users download the app. As changes are made to the app, you can use in-app messaging to remind users to complete the process. To improve retention, try implementing A/B testing, which can test the best time to sign up for your app. Delay signing up for new customers for a few days to encourage them to complete the process sooner. For example, if users download your app within two days, the delay of sign up can increase retention.

Data Security

The rise in data breaches and cyber attacks has brought a renewed focus on security, and financial apps are no exception. In the first half of 2021 alone, cyberattacks on financial institutions increased 118%. Furthermore, 77% of financial apps have some form of vulnerability that could lead to a data breach. Such a breach would greatly damage the credibility of a financial firm. To mitigate such risks, Top software companies in Houston should ensure that all sensitive data is encrypted and adheres to strict data regulations.

Financial institutions have a unique set of security challenges. Apart from external threats, these organizations have to contend with internal threats and risks. Internal threats are especially difficult to address. While financial institutions have strict policies and regulations to follow, there is no denying that employees have access to sensitive data. Further, financial institutions often rely on third-party solutions to process data and may be able to overlook security measures. This creates a larger surface area for cyberattacks.

Third Party Integrations

The vast majority of financial apps depend on third-party data. This is why integration of third-party data providers is an important stage of financial app development. These services provide features that the app cannot offer itself. Depending on the type of service, these integrations may involve creating a third-party API or integrating with a third-party service. Data received from a third-party API may be used to process market offers, analyze a user’s credit score, and reveal fraud. Third-party integrations can also connect a user’s banking information with a third-party service. Open banking services are a good example of this, as they share their data with each other to provide customers with a better experience.

Unlike custom APIs, third-party integrations often require extensive testing and require seasoned testers. Developers should also be aware of the risks associated with third-party integrations. These integrations can be expensive and require constant maintenance, which isn’t practical for a small team of developers. Fortunately, there are several solutions available to solve these problems. For instance, a retail service may need to integrate data from multiple third-party services, including a payment gateway.

User Research

Building a financial Mobile App Development New Orleans presents developers with a few unique challenges. As a financial institution, you are required to build an app with awesome functionality. Users must be able to easily perform everyday transactions, apply for loans, or use other products. Your app should run smoothly and allow users to make digital payments via all available options. As an example, Google’s survey found that four out of 10 smartphone users used a financial app.

For eCommerce-oriented applications, payment gateways are essential for smooth payment processing. Payment gateways can include PayPal, MasterPass, and LiqPay. Financial budgeting apps often link to bank accounts and follow an open banking approach. This allows them to provide statistical insights into spending habits. Another challenge to building a financial app is navigating the ever-changing financial industry. Many regulations are constantly changing, and your application must be compliant with those changes to ensure the customer experience is seamless.