Let’s get real here – nobody likes fishing through their receipts and bills – every month – just to keep track of their expenses. It doesn’t sound like a very enriching thing to do. Yet, keeping track of expenses – and income – is crucial to maintaining personal finances. In the earlier days, people used quite complicated and long-drawn systems of bookkeeping. Nowadays, there is an app for almost everything.

As the personal finance applications market is getting saturated, it is becoming difficult to stand out from the rest with just a basic offering. Besides tracking what comes in and goes out of your bank account, a personal finance app development solution should include – the art of intelligent spending, smart saving and savvy budgeting.

The 2019 global personal finance market size valued at $1.024 billion is forecast to grow to $1.576 billion by 2027 – increasing at a CAGR of 5.7% between the 2020 – 2027 periods. The reason for the massive popularity of personal finance apps is ineffective budgeting and impulsive spending. However, most millennials are earning,spending and saving more than their counterparts of other generations.

8 Tips on Developing Effective Personal Finance Applications

Personal finance applications are gaining traction in the market from investors and start-ups looking to bridge the gaps between what customers are looking for in apps and what the market is offering. Even though the market is chock-a-block with apps, there is certainly room for improvement in the finance app segment. Here are 8 practical ideas on developing an effective personal finance app.

1. Account Integration is a Must

The perfect personal finance application should gather all financial details of users, including their savings accounts information, mutual funds, loan information, credit/debit card details and more. 

The app should be a one-stop solution for all financial needs of users. Moreover, if the fintech app development company can bring budgeting and investment tools into the application, users can benefit.

2. Real-time Tracking of Income and Expenditure

A personal finance app development process will be helpful only if it offers real-time tracking of the income and expenditure of users. Since this feature helps in saving time and money, it can come in handy for users. Moreover, having savings, expense and investment information in a single platform will be helpful as users wouldn’t require switching between applications.

3. Ensure Ease-of-Use

 73% of smartphone users have used an application to manage their finances. However, 53% of users who abandoned their financial apps chose other financial apps that better served their needs. This statistic goes on to show that users don’t show loyalty to apps that don’t cater to their needs.

Tracking investments and savings is a time-consuming and mundane task that doesn’t inspire interest in many. That’s why it is crucial to make financial applications as straightforward as possible. Every fintech app development company should try to strike the right balance between design and functionality. Apps should be easy to use while still providing excellent features and functionalities.

4. Harness the Potential of AI

Artificial intelligence is becoming all-pervasive. AI algorithms are helping app developers offer personalized services to users. Since AI is a self-learning algorithm, it helps categorize expenditure – into groceries, entertainment, medical, education, investments and more. 

Additionally, AI is also used in developing apps that employ analytics to help better understand expenditure patterns of customers.

5. Enhance Security Standards 

Security is of paramount importance when it comes to designing apps, especially a digital payment solution. Since fintech apps contain confidential and personal information about users, developers need to maintain higher security standards.

Multi-factor authentication adds a second layer of security to applications. Most financial apps require two-factor authentication, which makes it difficult for hackers to sneak into the applications. Moreover, users would also appreciate real-time alerts regarding transactions so that they can verify if the transactions are authentic or not. Using voice or fingerprints – biometrics – for authenticating entry into the digital payment solution helps boost customers’ confidence regarding the applications.

6. AI-Based Chatbots Provide Valuable Suggestions

Chatbots have access to customer’s information so that they can provide valuable suggestions to users. Chatbots keep track of the transactions, investment plans, credit scores, budget plans, and savings. By using AI, chatbots can use this information to analyze data and offer credible and valuable money management tips.

7. Customer Support Lends Credibility

There would hardly be any user who doesn’t require information about the application or a quick query they need immediate resolution. Having 24/7 customer support goes a long way in establishing credibility for the fintech app development company.

8. Reminders and Alerts

One of the most significant features of a financial application is having reminders and notifications regarding transactions. Customers would appreciate applications that provide them with timely notifications about their payment dues or account balance. Moreover, getting alerts about upcoming payments or investment tips can also prove beneficial to users.

In addition to this, having a currency calculator, tax calculator, trading analysis and investment tips also help users in the long run.

Wrapping Up

Developing a personal finance application demands a lot of planning, resource gathering and market analysis. It is a time-consuming process that needs constant updates to stay relevant to the customer’s preferences. Before deciding to go with a personal finance app development, make sure you clearly understand the app requirements and your target market.

So, if you think you have the winning digital payment solution idea that could just conquer the fintech world, reach out to a good app development company to help you get started. Make sure you have a clear vision for the app, a good enough budget to sail you through the entire process, time to get the process going, and an excellent team to do the work.