Best 8 fintech startup ideas to start in 2024
Are you looking for an amazing fintech startup idea which would set the huge 300$ billion industry to disrupt mode?
If you answer “yes,” you’re in the right place.
This guide is here to turn your imagination of amazing FinTech startup ideas into reality that could drive your success in this continuously growing market.
We’ll walk you through the top-of-the-market concepts, explore how FinTech is remodelling industries, and give you the competitive edge you need to stand out.
Ready to turn your vision into reality?
Let’s start it without any hassle.
What is Fintech?
The general question that needs answering is: What is fintech?
Fintech is an abbreviation of both the words – financial and technology.
It means any application, software or technology used by individuals or companies to organize, perform research on, track, analyze, or make financial transactions on financial information.
In the last decade, with consumers using technology as a primary platform, fintech became a way for consumers to achieve progress with their financial concerns.
Consumers thus depend on fintech for many things including banking, budgeting, investment, issuance of credit and more importantly, the actual and real world benefits accrued from use of fintech solutions.
What is a Fintech company?
A fintech company on the other hand means an organization that in one way or another deals in finance or any application that requires technological help.
Fintech companies are typically industry challengers—they use technology to change the consumers’ relationships with the financial sector.
This frequently involves extending the range of financial services, reducing the price for these services, and offering quicker, more specific service to consumers.
Fintech is best used as a description a company uses for itself, not as a category assigned by an organization that governs it.
Overview of FinTech Market Statistics
Since the FinTech Market is a subsector within the finance industry, it has the highest growth rate of about 19.20 % CAGR.
Therefore, to answer the question, perhaps when is the right time to start a FinTech business? The answer is “Now.”
Do you need more statistics to strengthen your opinion on why it is the right time to start FinTech startups? Check the points below:
According to a consumer survey, 90% of smartphone users use mobile phones to make payments.
Indeed, Ant group is the largest FinTech company globally, and it already has more than $300 billion net worth.
Currently, 23% of consumers in the United States are using FinTech firm services, and usage is projected to skyrocket over the next several years.
FinTech: 94% of Financial service companies are optimistic about their growth prospects.
From the statistics above, you’re not going to reap the hugely attractive returns from owning a FinTech startup now.
If you are just looking to use this for your new venture, watch how to find an idea for a unicorn startup with potential and scalability.
Best 8 Fintech Startup Ideas
1. Digital Banking Apps
To many startups in the FinTech industry, digital banking is a gold mine or, as they say, a goose that lays golden eggs.
This is mainly because the it is widely used in numeration of various operations involving Automated Teller Services and other routine banking services.
In order to find the necessary variants, the list of key advantages of switching to digital business banking modern solutions to business owners is provided below.
Not only that options like the online bill pay simplifies the tracking of finances and tune your business away from the last charges by the service providers but many of them have flexible budgeting tools that assist business owners organize their expenditures and cash flows.
Banking service consumers are more interested in digital banking since it provides them the range of banking products and services to access without even having to visit the banks.
Without any doubt you can learn more how banking app development works.
Now, let explore important things to consider for this idea of an application for FinTech.
| About | Description |
| Demand of Idea | Digital banking was serving a market that consisted of less than 10% smartphone users in 2011. But in less than seven years, that number increase to 69%. Still not impressed? Let’s consider some similarly convincing statistics: 64 percent of the American people use the internet banking services. Over 50% of the millennial population is willing to switch to those institutions that specialize in digital banking. The total value of digital payment in the UK is over 210 million pounds at the present time. More than half of bank customers are willing to switch to digital banks in the near future. This is consisted American adults whereby 150 million of them have used their digital wallets to trade with cash at one time. If one is to look at statistics enumerated above, then it is possible to surmise that the market is ready for the advent of digital banking solutions. You only need the right idea. |
| Insights | Digital banking is the largest and most important segment of financial technology banking or FinTech banking. Most of the FinTech investments and usage can be driven to mobile banking as it stands as the most applicable FinTech sub-sector. It facilitates banking operations, account openings, deposits, investments to be more flexible for the average users. |
| Examples | Examples of Digital Banking Startups include:Mercury Technologies NovoRhoLiliGrasshopper Bank |
2. Investment Apps
Having an investment application enables one to put the right product that attracts the micro-investors. These apps put into the hand of average users platforms where they can fund their accounts, make buy and sell orders, etc.
For a startup founder or co-founder, an online trading platform provides your startup with access to numerous people interested in stocks and other investment opportunities.
Such individuals might not have the sort of funds required to make direct purchases from the legitimate channels.
Look at one more FinTech startup idea more closely.
| About | Description |
| Demand of Idea | From the statistics provided above, having an investment mobile app today means your startup is set to reap from the gigantic explosion that is expected to happen over the next 7 years. But you don’t have to believe me; rather take some time to think about these statistics that is provided below. Here are some statistics suggesting why owning an investment app now is a great idea: The use of the terms investment apps has increased by 115% YoY on Google. Data from Statista also show that as many as 10.2% of all users of a given age created an investment tool online within the past year. |
| Insights | Your product, if being sold, must assist users in sticking to an admirable investment plan. It should also be able to perform other financial related functions like track spending, minimize on wastage and make suggestions on matters concerning finance, in real time. One of the unique innovations found in nearly all the best investment applications is that of tracking bank accounts. This should also assist you when doing it for your startup on carving a niche for the business in the industry. Your application should contain the following features: Cross-Market Event-describing event from one market in relation to events in another. Fast completion of stock trading investments, Forex transactions and funds shares, and other virtual currency investments Categorized prompt notifications and alerts |
| Examples | Robinhood, Webull, Betterment, Acorns, Wealthfront |
3. P2P Payment Apps
If we look at the market in a very analytical manner then we can assure that investing in P2P payment solutions is a very lucrative business.
The Covid time and a myriad of other social causes have created a massive opportunity for this FinTech application in the finance sector.
What is about market investigation for this idea for a start up firm in FinTech? Let’s find out.
| About | Description |
| Demand of Idea | P2P apps are a recent bride of the FinTech Industry. Every other FinTech startup wants to have one, which isn’t far from the truth because various research figures indicate that. The survey on money transfers reflected that majority of the Americans transfer cash to their kin. Still, in this same statistic, 38% of the respondents replied they never sent any money to a relative in the last year. 34% of respondents replied the same statistic used bank transfer while 43% of respondents used a P2P platform. In the United States, most transfers are done through P2P platforms, and this graph well illustrates that. Therefore, from that survey one can safely assume that more people in America use P2P to transfer money through than banks. Also, an analysis into its growth rate indicates that the P2P market will grow at a CAGR of 30% through the period 2024-2027. This means that the market is indeed available for P2P apps, and the demand too it is expected to grow very fast. |
| Insights | Peer-to-Peer payment solutions allow the use of money to be transferred through the mobile devices accompanied by a linked card or bank account.P2P can sound rather vague so let us provide an example to help explain it P2P stands for person-to-person. For instance when one is out on a dinner date with a friend named Jane. When it was pay time, Jane preferred to use her credit card and you know you will have to settle your share of the bill by refunding Jane back. Apparently, you just need to launch the P2P app and make the transfer to Jane. P2P financial app money will be received directly by Jane and she can either keep letting it remain in the P2P financial app or move it to the bank account. Your P2P platform may have a different process of going about this, but the basic is the same. Now, why do we think it’s a very profitable FinTech startup to own? Simple! Statistics suggest that. |
| Examples | PayPalGoogle PayApple PayZelle |
4. Insurance Companies
The technology firms that offer insurance products are well known as “Insurtechs”. Such sort of FinTech startup ideas can be found at the intersection of financial and insurance technologies.
Insurtech apps are products built to help people apply for insurance and pay premiums online: From automobile insurance to personal insurance.
Many of the statistics that one is able to come across have revealed happening that insurance apps come with a perfect chance to assess areas that most of the Insurance firms consider unpopular to venture in.
Car insurance app has proved to be a revolution in customer relations as a business strategy for insurance companies.
Why do we deem this startup idea for a FinTech app relevant?
| About | Description |
| Demand of Idea | Due to the shift of financial processes to the web, the number of applications for insurance is increasing: as average insurance subscribers are gradually joining InsurTech. You should own a FinTech product in this market for the following reasons: Out of which $7.1 billion was invested in Insurtech Startups in the first half of 2021.The fact that about 44% of Insurtech firms around the world operate with a workforce of 1-10 implies that the brands come from a region with low labor cost.The survey reveals that 41% of the consumers are ready to change insurers because the new ones are more technology-oriented. Analyzing the above statistics it is clear to see that investors are more excited to invest more in tech Startups now more than previous. Moreover, the relatively low cost per worker ensures that startups will be in a position to realise a near vertical profit to cost ratio. |
| Insights | The established belief amongst most FinTech founders is that there is a big challenge that exists in the insurance industry.Insurtech helps an average individual to obtain extremely personalized insurance policies that they need at reasonable premiums. In addition to capturing improved pricing models, InsurTechs are experimenting with many more different game changers. Some of these features include systems that can effectively replace brokers in an AI manner. AI is a phenomenon that is now expanding at a fantastic rate, and here are the most important AI trends based on these AI statistics. If you are in doubt as to whether you should get Insurance app development services then it is advisable to go for healthcare and car insurance because they are more marketable. Game-changing features to have include: Machine learningBlockchainRobo-AdvisorsArtificial IntelligenceIoT (Internet of Things)Drone TechnologyBiometric |
| Examples | American Family InsuranceMetromileAllstate Driverwise |
5. Money Saving Apps
As the name suggests, these are applications that are intended for financial management or more comprehensively – for handling money.
In addition to the pricing aspect, there are other things that can be added to your menu to track your expenses, create a budget, and control the private money of your platform’s users.
These applications calculate how much money you need to spend every month, and then it subtracts your expenditure. The rest of the amount is then accumulated in an interest earning account with the said application. You can read more about algunos here on how to develop a personal finance app.
Besides savings, it also assist in keeping sometime for what one owes to the lenders.
Why this is a good investment opportunity in this idea for fin-tech start up?
| About | Description |
| Demand of Idea | Listed below are the multiple reasons why a startup should own a money-saving app. Among these reasons:On average, about money-saving mobile applications Esurance Driversense worksMean personal saving rate at current prices in the US rose gradually since 2015.targets & objectives These two remain the easiest but relevant statistics knowledge to have. The fact that 41% of Gen Z’s (aged 6-25) is currently using money-saving products mean that there will be a large base of users for the finance app in the future years. This is particularly the case because most Gen Z’s are only going to be entering the workforce as income earners. Moreover, actual personal savings, expressed as gross personal saving has been on the rise as a clear sign that there is enhanced culture of saving. The number of people who save more now has been boosted than it has ever been. |
| Insights | In the current market situation, there are two categories of money-saving apps that you can develop when you are a startup. These are:Habit trackersBudget plannersHabit trackers are those applications which perform an elaborative extract of the spend pattern. Creating such a FinTech solution requires the service of the AI engineer, as pointed out above. On the other hand budget planners, enable their users to set the amount of money they intend to spend, as well as plan for the future expenses. It entails that you make several analysis of the spending habit of your prospective clients in order to understand their bad spending habits in order to build relevant apps. Knowledge of their financial vulnerabilities will enable you select the right idea to address these concerns. |
| Examples | Mint BillTrackerIbotta |
6. Crypto Exchange Platforms
In particular, cryptocurrencies are often called the golden goose of fintech by the public. Ever wondered why? The answer is quite obvious – for one, it offers an opportunity to do away with intermediaries.
Nevertheless, one needs to bear in mind that the main transactions may still be covered by the crypto tax regulation.
For any startup, establishing your cryptocurrency exchange platform can prove lucrative because the market is predicted to grow at a CAGR of 7.1%
Crypto exchange platforms are fully involved in the exchange of cryptocurrencies such as Bitcoin, Ethereum, Litecoin etc, with fiat currency. But in some cases, they also assist in trading cryptos for other types of commodities and products.
If you intend to own crypto trading apps, you’ll be in a position where you are serving as a middleman between the client and the seller. You could also build a crypto arbitrage bot as a smart application or is an addition to your existing exchange.
However, please bear in mind that new cryptocurrency tax laws are being made every month so one must look out for current news on that before doing any of the above.
Read more about this FinTech startup concept.
| About | Description |
| Demand of Idea | Are you considering starting a digital currency exchange platform? Take a look at these compelling statistics: The total market capitalization for cryptocurrencies has reached $3.43 Trillion. There are currently more than 38,000 Bitcoin ATMs worldwide. On social media, a crypto-related post appears every two seconds. These figures clearly demonstrate the growing potential of the cryptocurrency market. When you consider the broader adoption and consumer enthusiasm reflected in these numbers, it’s evident that crypto is here to stay. Ignoring this opportunity could mean missing out on a transformative and lucrative market both now and in the years to come. |
| Insights | As Startup, you’ll earn money from fees and commissions when people trade cryptocurrencies like Bitcoin and Ethereum for regular money. Crypto exchanges can make you a lot of money, but setting them up costs a ton. If you’re short on cash, you can lower your software costs by teaming up with a bigger FinTech company and using their API. But if you want full control over how things grow and build a solution from the ground up that fits your needs then working with a blockchain development company will help you more. Here are some types of crypto exchange sites you might think about making: Centralized exchanges Crypto trading platforms Peer to peer exchanges Instant exchanges |
| Examples | Binance Coinbase Bitfinex |
7. Regulatory Technology (RegTech) Applications
Of course, there are some basic rules that companies can or simply have to follow regardless their size or industrial specialization.
RegTech solutions enhance the manner in which those companies deal with regulatory compliance, in terms of energy and time.
When starting your startup, you should know that RegTech apps are probably some of the most overlooked but most lucrative fintech solutions to build. How profitable?
Take into instance the realization that on average a company spends $10000 for regulation compliance per employee.
Given the huge amount of money being invested on regulatory compliances, selling an efficient RegTech product is sure going to land you a fat deal with a big firm.
And that’s what makes this idea for a FinTech startup one of the most interesting among others The idea of this FinTech startup will be among the most interesting among others because.
Let’s turn to stats for a moment.
| About | Description |
| Demand of Idea | Banks shell out around $270 billion for regulatory compliance RegTech is projected to hit $33.1 billion in value by 2026. Worldwide RegTech is set to expand at a CAGR of 21.27% from 2019 to 2026These three facts point to one thing: “explosive growth.” Creating a RegTech platform puts you in a position to benefit from this new market. |
| Insights | RegTech platforms play a vital role in helping organizations streamline and automate various processes. These include tasks like compiling reports, identifying customers, and managing transaction reports, among others. For instance, imagine a business overwhelmed by a massive volume of complex data. A RegTech platform can step in, analyze this data using advanced big data techniques, and pinpoint key areas the business should prioritize. |
| Examples | OnfidoSuadeFenergo |
8. Crowdfunding Applications
A crowdfunding app serves as an online space where individuals can gather money for a cause or person.
In this setting, numerous people contribute the funds necessary to get a specific project off the ground.
Even as many businesses faced money troubles during the Covid-19 pandemic, the crowdfunding industry thrived. Experts predict that crowdfunding platforms will see massive growth in the coming decade.
Since the launch of the first crowdfunding platform in 2000, running such a platform has always been profitable.
Let’s explore this FinTech startup concept further.
| About | Description |
| Demand of Idea | Despite fierce competition from established crowdfunding leaders, the market still offers significant opportunities for startups.Still unsure if this sector is worth exploring? Take a look at these statistics:Crowdfunding generates an annual revenue of $17.7 billion, according to Statista.Funds raised through crowdfunding grew by over 30% last year.By 2030, the global crowdfunding market is projected to reach a staggering $300 billion. |
| Insights | Before developing your crowdfunding platform as a startup, the first step is to define the type of app you want to create and identify its key advantages among the existing options. The main types of crowdfunding platforms include:Donation-basedReward-basedLending-basedEquity-basedRegardless of the type of platform you choose, a well-crafted marketing strategy is essential for gaining visibility and attracting attention to your venture. |
| Examples | Kickstarter Indiegogo Patreon Crowdfunder |
Final Thoughts
As we have explained everything regarding fintech startup ideas, you are ready to launch your fintech business now.
But in case you still have a confusion regarding fintech startup ideas and not sure where to ask, no worries, as Reliable Startup is here to answer your queries.
Contact us to discuss your dream fintech startup idea.
