Top 8 FinTech Startup Ideas to Launch in 2024
- Updated on 5 Mar 2024
- 12 min
Maksym Babych
CEO
Calling all innovators, founders, and product managers seeking cutting-edge FinTech startup ideas:
Are you an entrepreneur searching for an inspiring concept that will wow potential investors?
If you answered “yes” to the question, you’ve come to the right place.
This article will spark new FinTech business ideas to help your startup thrive in the $300 billion industry.
Let’s dive right into the main ideas.
FinTech Market Statistics
The FinTech Market is undoubtedly the fastest growing in the finance industry, as it has a CAGR of about 8.6%.
Financial transactions volume done via FinTech is expected to grow to $6.6 trillion by the end of 2021, from $5.47 trillion in 2020.
Thus, if you’re wondering, “when is the best time to launch a FinTech product?” The answer is “Now.”
Want more statistics to support the opinion on why this is the best time to start a FinTech startup? Check the points below:
- 90% of smartphone users make mobile-based payments.
- Ant group is the most prominent FinTech company in the world, and it currently boasts of over $300 billion net worth.
- 23% of US consumers use the services of a FinTech company, and this is expected to grow exponentially over the years.
- 94% of financial service companies are optimistic that FinTech will drive growth in the sector.
From the statistics above, you’ll be missing out on the highly profitable gains from owning a FinTech product now.
Need some blockbuster FinTech ideas to inspire your next product? Let’s dive right in.
8 Ideas for Launching a FinTech Startup Now
1. Digital Banking Apps
Digital banking is considered the goose that lays the golden egg for startups in FinTech. This is primarily due to its importance in the automation of financial transactions and other traditional banking services.
Switching to digital business banking modern solutions can provide many benefits to business owners.
Not only do options such as online bill-pay make it easy to keep track of finances and avoid late charges, but many of them also have powerful budgeting capabilities which makes it easier for business owners to manage their expenses and cash flow.
Banking service consumers are particularly enthusiastic about digital banking as it grants them access to a gamut of banking products and services without the hassle of visiting financial institutions. You can find out more about banking app development.
Let’s take a look at key insights for this idea for a FinTech app.
| About an idea | Description |
| Demand | Digital banking was catering for less than 10% of smartphone users in 2011. However, that number rose to 69% in less than seven years. Still not impressed? Let’s consider some similarly convincing statistics:
From the statistics above, it’s safe to conclude that the market is ready for digital banking solutions. You only need the right idea. |
| Key Insights | Digital banking is the “King-kong” of FinTech. A bulk of FinTech investments and usage can be attributed to mobile banking as it has the highest applicability among all FinTech categories. It makes banking services such as opening accounts, deposits, and investing easier to access for the average consumer. |
| Examples | Examples of Digital Banking Startups include: |
2. Investment Apps
Owning an investment application helps to create the right product that’s appealing to micro-investors. These apps give average users access to platforms where they can deposit funds, and place buy and sell orders, etc.
As a startup founder or co-founder, an online trading platform opens your startup to a vast number of people that are willing to invest in stocks and other investment platforms.
These people may not have the necessary financial resources to make direct purchases through official means.
Take a closer look at this FinTech startup idea.
| About an idea | Description |
| Demand | From the statistics above, owning an investment mobile app now automatically positions your startup to benefit from the immense boom that’s expected across the next seven years. Don’t take my words for it; ruminate on these statistics below. Here are some statistics suggesting why owning an investment app now is a great idea:
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| Key Insights | For your product to be profitable, it should help users to adhere to a noteworthy investment strategy. It should also be able to handle other financial tasks such as track spending, reduce wastage and even make financial suggestions in real-time. A revolutionary feature that most top investment apps have is one that allows users to monitor their bank accounts. Doing this for your startup should also help carve a niche for your business in the industry. Your application should contain the following features:
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| Examples | Here are some Investment apps that are currently making waves: |
3. P2P Payment Apps
If we take an insightful look at market trends, then investing in P2P payment solutions is undoubtedly a profitable venture. The pandemic and many social factors have carved a huge niche for this FinTech application in the financial market.
What’s about market analysis for this idea for a startup in FinTech? Let’s find out.
| About an idea | Description |
| Demand | P2P apps are the new bride of the FinTech Industry. Almost every FinTech startup is eyeing one, and rightly so because numerous statistics suggest that. Statistics show that most Americans transfer money to their loved ones.
This graph shows that most Americans make transfers via P2P platforms. From that survey, it’s safe to conclude that more Americans transfer money via P2P platforms than banks. Also, the P2P market is expected to have a CAGR of 30% between 2020 and 2027. This shows that the market is readily available for P2P apps, and the demand is also expected to increase rapidly. |
| Key Insights | Peer-to-Peer payment solutions enable users to transfer money from their mobile devices through a linked card or bank account. The term P2P may be somewhat confusing, so let’s use an example to illustrate. Assuming you are out on a dinner outing with a friend called Jane. When it’s time to pay, Jane decided to pay with her credit card, and you’ll have to refund her for your portion of the meal. You simply have to open the P2P app and make the transfer to Jane. Jane will receive the money immediately and can then choose to leave it on the P2P financial app or transfer it to her bank account. Your P2P platform may have a different process to this, but the basic is the same. Now, why do we think it’s a very profitable FinTech product to own? Simple! Statistics suggest that. |
| Examples | Here are examples of popular P2P apps:
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4. Insurance Apps
Tech companies with insurance products are famously called “Insurtechs.” This sort of FinTech startup ideas lie on the intersection of financial and insurance technologies.
Insurtech apps are products built to help people apply for insurance and pay premiums online: from car insurance to personal insurance
Numerous statistics have shown that insurance apps offer a unique way to explore areas that most Insurance companies find unprofitable to explore.
Why do we think this startup idea for a FinTech app matter?
| About an idea | Description |
| Demand | The digitization of financial processes has led to a rise in online insurance app usage as average insurance subscribers are now gradually picking up an interest in InsurTech. You should own a FinTech product in this market for the following reasons:
From the stats above, it is evident investors are keener than ever to invest in tech startups. Also, the low labor cost guarantees that startups will enjoy a massive profit to cost ratio. |
| Key Insights | The belief driving most FinTech founders is that the insurance space is ripe for a revamp. Due to Insurtech, an average person can now access ultra-customized insurance policies with more suitable pricing models. Beyond better pricing models, InsurTechs are also testing numerous game-changer features. Some of these features include AI software that can substitute the role of brokers. Need an idea of what type of Insurance app that you should create, opt for healthcare and automobile insurance as they’re in greater demand. Game-changing features to have include:
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| Examples | Some examples of Insurance apps are: |
5. Money-Saving Apps
As the name denotes, these are apps built for personal finance management.
Beyond just saving money, you can also include additional features that help to track spending, plan a budget, and manage the private money of your platform users.
These applications work by tracking your spending and deducting your expenses from your calculated monthly budget. The remaining funds are then saved up in an interest-yielding account with the application. Read more about how to develop a personal finance app here.
Beyond savings, it can also help to keep track of one’s obligations to lenders.
Why is there a good investment spot in this idea for a FinTech startup?
| About an idea | Description |
| Demand | There are multiple reasons why a startup should own a money-saving app. Among these reasons:
These two statistics are very simple yet important. The percentage of Gen Z’s (people aged 6-25) using money-saving products shows that there’ll be a huge demand for the finance app in coming years. This is particularly true because most Gen Z’s are just going to become income earners. Also, the steady increase in gross personal savings is a sign that the savings culture is growing. More people are saving now than ever. |
| Key Insights | There are two types of money-saving apps that you can create as a startup. These are:
Habit trackers are apps that carry out a deep analysis of your spending pattern. To build such a FinTech solution, you’ll need the service of an experienced AI engineer. Budget planners on the other hand allow their users to set spending limits and plan future expenses. Building both types of apps requires that you carry out an extensive analysis of the spending pattern of your target audience to understand their money management mistakes. Understanding their financial weaknesses will help you curate the right idea to solve those problems. |
| Examples | Here are some examples of money-saving applications: |
6. Crypto Exchange Platforms
Cryptocurrencies are generally referred to as the golden goose of fintech. Ever wondered why? The answer is pretty simple – because it can help to eliminate intermediaries.
However, it’s important to remember that crypto transactions may still be subject to crypto tax regulations.
As a startup, creating your cryptocurrency exchange platform can be a profitable move as the market is expected to grow at a CAGR of 7.1%
Crypto exchange platforms facilitate the trading of cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc., for fiat currencies. In some cases, they also help to exchange cryptos for other assets.
If you plan to own crypto trading apps, you’ll be an intermediary between buyers and sellers. You could also build a crypto arbitrage bot as a standalone app or as part of your exchange.
Keep in mind that new cryptocurrency tax regulations are being established every month, so look for the latest news on that front before starting any of the above.
Learn more about this FinTech startup idea.
| About an idea | Description |
| Demand | Not sure if you should start digital currencies exchange platform or not? Check these statistics out:
As you can see from above, the 254,445% increase in Bitcoin price shows that it’s the market of the future. Other stats, if properly considered, show crypto is widely accepted among consumers. Missing out of this market now may lead to great regret in the future. |
| Key Insights | As Startup, you’ll earn money by charging transaction fees and commissions from trading cryptocurrencies like Bitcoin, Ethereum, etc., for fiat currencies. Although crypto exchanges are super profitable to use, they are very expensive to build. If you have fund constraint problems, you can reduce your software development cost by leveraging the API of a more established FinTech. However, if you want to have more control over the development process and create a unique solution tailored to your specific needs, partnering with a blockchain development company can provide you with greater flexibility and customization options. Some types of crypto exchange sites you might consider creating include:
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| Examples | Top cryptocurrency exchange platforms: |
7. Regulatory Technology (RegTech) Apps
There are some ground rules that companies have to follow irrespective of their size or sector.
RegTech solutions assist those companies to meet up regulatory requirements in energy and time-efficient manner.
As a startup, you should have it in mind that RegTech apps are one of the most underrated, yet most profitable fintech solutions to create. How profitable?
Consider the fact that an average company spends $10,000 for regulation compliance per employee. With this large sum of money pouring out to regulatory compliance, pitching an efficient RegTech product will definitely get you a lucrative contract with a top firm.
And that’s what makes this idea for a FinTech startup one of the most interesting among others. Let’s take a look at statistics.
| About an idea | Description |
| Demand |
Those three statistics point to just one thing; “mind-blowing growth.” Building a RegTech platform today automatically positions you as a beneficiary in this somewhat new market. |
| Key Insights | They’re instrumental in helping many organizations automate numerous processes. Some of these processes include reports compilation, customer identification, transaction reporting, etc. For example, if a business receives a huge volume of data that it finds too complex. A RegTech platform can process this information through big data analysis and predict areas the business should focus on. |
| Examples | Here are examples of some RegTech applications: |
8. Crowdfunding Applications
A crowdfunding app is a virtual ecosystem where people can raise money for a cause or an individual. Here, a large number of people donate funds that are needed to kickstart a particular project.
Even when a lot of companies had financial constraints during the Covid-19 pandemic, the crowdfunding sector bloomed. It’s expected that crowdfunding platforms will enjoy astronomical growth over the next ten years.
Since the first crowdfunding platform was launched in 2000, till now, owning a crowdfunding platform has always been lucrative.
Let’s learn more about this FinTech startup idea.
| About an idea | Description |
| Demand | Despite tough competition from leading crowdfunding players, there’s still a huge opportunity for startups to enter the market. Wondering whether this is a lucrative sector or not? Check the stats below, and you’ll definitely agree.
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| Key Insights | The first thing you should define as a startup before creating your crowdfunding platform is the type of app you’d like to create as well as highlighting the main benefits among the existing ideas. The options you have are:
Irrespective of the type of platform you choose, a top-notch marketing plan will definitely bring you into the limelight. |
| Examples | Here are examples of some top crowdfunding platforms; |
Ready to Build Your FinTech Product?
After exploring these cutting-edge FinTech app ideas, you likely have one or more concepts in mind for your own startup.
But a stellar idea alone does not guarantee startup success. The right business model and a top-notch FinTech development partner are essential.
Whether you need an off-the-shelf FinTech solution or full-scale custom development, our designers and engineers have the specialized expertise to bring your vision to life.
Get in touch today for a free consultation on kickstarting the next big thing in FinTech.
