Blockchain Fintech Startups: Understand Cost and Core Features

By Suffescom Solutions

January 13, 2023

The world of crypto has already taken over the internet by storm. The other technologies of the underlying blockchain technology are touted to be the revolutionary phase of the internet. The area where the technology sector is doing the most favours. The world of cryptocurrency opens a world of lower costs, faster execution of transactions, improved transparency, and many other benefits. The world of crypto is thus holding a promise of carving a new native digital world without any central authority.

The fintech industry has made up a humungous share of the blockchain world for various good reasons. They further reduce the control of the bans in the finances at a large scale. It is not doubtful how blockchain is changing finance; it is evident that in the next years, we are set to witness a transformation in how we send, receive and store money. The fintech blockchain world is expected to reach a valuation of $36B by the end of the year 2028. DeFi would be the emerging financial technology based on the blockchain that will further control most future digital payments.

Even though blockchain use cases are expanding at a large scale, retail, entertainment, and transport can also flourish with improved financial management.

The top-level stock exchanges are exploring the blockchain world and allowing sudden stock settlements by lowering transaction operational costs and time. The London Stock Exchange is already exploring ways to explore blockchain opportunities with cross-industry groups and institutions. They aim to alter the way financial security is being traded around the globe.

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Almost all of the major stock exchanges are looking for a way to enter the world of blockchain. To understand better, let us understand the impact of blockchain technology on the financial sector through this article.

Blockchain’s Optimization With Fintech Technology

Blockchain will exist as an immutable block, and with that technology, it becomes possible to develop the entire ecosystem of apps in the fintech world. Blockchain is here to transform the financial processes regularly into an entirely transparent procedure built on a much more secure and efficient base of transactions.

When the blockchain is creating an ecosystem that is set to reform the finance sector without letting any third party enter their finances, financial transactions which are on the block will absolutely need a peer-to-peer network, lighting fast transactions, and complete transparency.

However, blockchain applications are within the world of finance and can account for a large number of transactions. With blockchain, users can capture full control over their wealth, thus paving the way for fully democratized financial landscapes.

Bankless Financial Management

The users of the financial platform that you wish to create will have to manage their wealth without worrying about bringing a bank into sight.

The ones who choose to hold these digital assets like Ether and Bitcoin can do that using blockchain-based digital wallets. These wallet holders have private keys that, while processing, feed unique public addresses to allow transactions with others. Thus, the ones who possess private keys are the sole owners of the assets.

Cryptocurrencies provide the freedom of ownership back to the population, and with the number of global blockchain wallet holders, charts are rocketing to 80 million worldwide in the year 2021. We can see very clear evidence of the influence of blockchain in democratizing finance which is ready to help individuals in a way that enables them to have much better control over their assets.

KYC Revolution

Presently, trust and identity verification is something that is dealt by intermediaries. They can eliminate the complex trust elements that are central to our current financial ecosystem.

Know-your-customer integration will take the place of the digital entities to evade multiple entries and verification. Such improvement in the security field will be sent directly to aid retail fintech, wholesale fintech, and investment fintech. They will also benefit broker-dealers, equity crowdfunding, and asset managers alike.

Payments Without Borders

Another reformative feature of the blockchain world is that you support borderless transactions through a decentralized currency that will use this framework. This technology will pave the way for faster and more direct payments with fewer costings easing transfers between accounts. As blockchain does not need authorization through middlemen, banks won't have the resources to transfer funds, so the payment processing fees for international payments are very low.

Blockchain will also support the way for better currency flow worldwide. Typically, the banks will charge some 10-15% of the amount transferred as the remittance fee- but with blockchain, this figure can be dropped to 3%.

Blockchain payments are extremely secure, and all the participants in a chain transaction need a chance to provide approval for transactions to go through. Anyone can check updated ledgers and the details surrounding the transfer.

Furthermore, there is no need for any third-party interference in transferring the funds. It is also suitable to use P2P transfers for leveraging smooth transactions. This will further enable the banks to fight fintech startups and generate their own set of fintech services.

Fintech has grown a lot to become an influential force in modernizing traditional finance institutions. As a result, the last 10 years were seen as a transition towards a cashless financial service, rebirthing a new hope for Fintech services.

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Cost Of Developing A Fintech App

To understand better, let us have a look at the cost estimation of developing a fintech app based on blockchain around the globe. The app development team serves as a crucial aspect in cost determination depending upon whether you hire freelancers, in-house teams or an outsourcing app development company.

Fintech App United State
Banking App $70,000-350,000
Investment App $50,000-175,000
Lending App $70,000-268,000
Insurance App $65,000-300,000
Consumer Finance $60,000-245,000

NOTE: The cost estimate stated above may vary as per the complexity, design, features and the development team while building a Fintech App.

Benefits of Blockchain in Financial Services

Blockchain has great potential to make the financial market not just better but also one that comes with great compatibility, transparency, and fraud resistance.

Transparency

Blockchain technology can improve financial sector transparency because users are carrying out transactions on a public ledger. By exposing inefficiencies like fraud, this transparency may help financial organizations find solutions that lower risk.

Adding Security

Online consumer activity is growing, making the digital world a haven for scammers. This worry might be lessened with blockchain technology. Compared to traditional fintech, payments and money transfers made using the blockchain are quicker and more traceable.

There is a chance that information could be intercepted as it passes through several financial intermediaries, increasing the likelihood of fraud. Blockchain's cryptographic methods, which add security to the transmission of information between participants, can close this oversight gap. Fintech companies and other large investment businesses need their data to be secured, and for such situations, blockchain technology is the appropriate option.

Lowering Costs

Blockchain offers consumers the chance to lower costs connected with traditional financial services as investors turn away from financial advisors to avoid paying greater fees.

Financial technology firms now make up a significant portion of the finance sector, enabling investors to create digital adviser accounts and make their own financial decisions. Fintech's link with blockchain will certainly get stronger as it takes on more significance in the world of finance.

Because investors are getting better value for their money and are receiving a balance between the automation of financial services and a reduced cost, this innovation may be advantageous for consumers. The average investor who wants to save money while using this new financial services environment ultimately benefits from this.

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Build Blockchain Fintech Application

The development of the blockchain-based fintech application is challenging but worthwhile because it necessitates specialization from the market research phase to application development and hiring of developers for the blockchain-based fintech application.

Research is the first thing that one should be absolutely certain about. One should have a very clear concept before entering the market. Employ specialized blockchain developers to create blockchain-based fintech applications. Verify the features the application will have before using it.

Hire Dedicated Blockchain Developers!

Once you will ensure what features you want to build in the fintech platform. After the blueprint of the business, you can hire a dedicated blockchain development company that can be your perfect solution provider. First, a proficient team can guarantee the unwavering quality of their code and its protection from unauthorized access since blockchain takes specific knowledge and participation.

Key Features of Fintech Applications

Account Creation

Anybody should be able to access the platform's credentials with the help of the registration process, which uses an email address, phone number, or social network account. The procedure should be simple to follow and secure from data hacking.

Account Management

The user should have no trouble accessing the panel where they can view their account information, including the bank balance and transaction history. More advanced features include showing credit and debit transactions individually, a monthly breakdown of transactions, etc. In any application, people are constantly looking for personalized solutions.

Payments

The mobile fintech software typically lacks payment functionality, but adding the ability to scan a receipt and pay or to deposit money directly into an account using a phone number could be beneficial. The payment made via the fintech application aids in labelling the app as trustworthy. The customer will be able to download several programs for a fee.

Support Service

One of the key characteristics that any program that offers services should have is a 24-hour support service. It aids the user in resolving any problem that may arise with their account. The customer support team contributes to users' increased willingness to utilize the product frequently.

Conclusion

The blockchain is the one-stop solution for future technology with great security and a decentralized format. The finance sectors are joining the blockchain-based marketplace for a better and more secure platform. Hire blockchain developers to develop a fintech platform.

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