The times when investment opportunities were limited to institutional funds and large brokerage corporations are long gone. Today, investors are more tech-savvy and prefer to manage their investments on the go. Therefore, an increasing number of Fintech entrepreneurs in Australia are planning to develop a robust investment platform to catch up with the market trends and meet customer expectations.
However, the competition for investment platforms in the market is overwhelming! To help businesses develop an investment app that stands out, this article aims to give comprehensive knowledge about differentiating different kinds of investment platforms and how to build an outstanding one!
Before kicking off the digital investment platform development project, it’s essential to consider the type that aligns with your business vision. This decision not only helps define the platform's functionality but also ensures software can meet the specific needs of your target users.
Here are some common investment software types to consider:
Brokerage trading platforms, also known as ‘investment brokerages’ or ‘online brokers,’ are software solutions designed to facilitate the buying and selling of financial instruments such as stocks, bonds, and mutual funds. These platforms act as intermediaries, connecting investors with the financial markets and providing features to execute trades, analyze market data, and manage investment portfolios.
Online brokers provide direct access to a diverse array of investment possibilities, empowering users to make trading decisions independently. Since this software offers more control and flexibility, it can appeal to experienced investors.
Examples of best Australian investment brokerages include CMC Markets, Interactive Brokers, IG, CommSec, and Westpac.
Peer-to-peer (P2P) lending allows individuals to secure loans directly from other individuals, such as banks or credit institutions, bypassing traditional financial institutions as intermediaries.
Additionally, P2P lending platforms utilize various risk assessment methods to analyze the creditworthiness of borrowers. These assessments aid investors in making informed lending decisions by considering the risk profiles of potential borrowers.
P2P lending is also known as “social lending” or “crowd lending.” It has only been around since 2005, but the crowd of providers offering P2P loans in Australia already comprises MarketLend, MoneyPlace, OurMoneyMarket, and Plenti.
Read more: Revolutionize Lending Strategy with Bureau Lending Solutions
Robo-advisors are automated investment management platforms that provide automated, algorithm-driven financial planning and investment services without human supervision.
Investment management robo-advice is considered a groundbreaking development in formerly exclusive wealth management services, catering to a broader audience at a more affordable cost compared to traditional human advisory services.
The top robo-advisors should provide an easy account setup process, robust goal planning, account services, efficient portfolio management, and security measures, and offer low subscription fees for users. Besides Betterment and Wealthfront, some examples of well-known robo-advisors in Australia include Raiz, Spaceship Voyager, Sixpark, etc.
One in four Australians own crypto, as per a Statista survey conducted from 2019 to 2022. Similar to a broker, cryptocurrency exchanges allow users to buy and sell digital currencies like Bitcoin, Ethereum, Ripple, and others. These platforms also come in centralized and decentralized formats:
Some renowned cryptocurrency exchanges include Binance, Kraken, and eToro.
These platforms enable individuals to invest in a wide range of real estate projects, such as residential properties, commercial buildings, and land development.
Investors in the real estate sector have adopted crowdfunding platforms as an alternative to more traditional means of financing investments. These solutions provide real estate management services and opportunities for passive income, capital appreciation, and diversification.
The top equity crowdfunding platforms in Australia are Birchal and Equitise, which both provide opportunities for individuals, not solely professional investors, to invest in Australian firms.
Micro-investing platforms are developed to enable individuals to invest with minimal capital. These platforms are often designed with user-friendly interfaces, offering users access to various investment options like stocks, exchange-traded funds (ETFs), and bonds.
Some of the most popular types of micro-investing platforms include crypto, crowd investing, and platforms that comply with MiFID II regulations. Besides, key technologies used in micro-investing platforms include Artificial Intelligence (AI), blockchain, big data analytics, cloud computing, etc.
Developing an investment platform necessitates meticulous planning and integration of various technologies and systems. Additionally, prioritizing user experience (UX), ensuring security, and adhering to regulatory compliance are crucial aspects throughout the development stages.
Here’s a set of core features of investment platforms that Fintech companies should consider first:
Not every customer is The Wolf of Wall Street: some of them may require a trial account to refine their investment skills. Onboarding is an introductory guide that helps explain how the app operates. The onboarding stage holds particular importance due to the formalities involved in the registration process, such as electronic Know Your Customer (e-KYC) and Anti-Money Laundering (AML) procedures.
The eKYC process involves verifying users, gathering documentation, and conducting background checks online to ensure that only authenticated investors can join your investment system. Implementing KYC is essential for platform compliance with required security regulations and effective risk management. It’s essential to provide users with a comfortable feel.
In investment apps, personal profiles serve as investment portfolios, allowing users to oversee their assets and investment results for a day and the whole period of app usage. Since the investment portfolio often comprises essential information that users may need to check daily, Fintech companies should ensure the graphics, real-time analytics, diagrams, and statistics in this feature are not overwhelming and displayed clearly.
Investors seek comprehensive and transparent information on their money flow, encompassing buying, selling, cashing in, and cashing out. Create an investment service that empowers users to proficiently oversee their transactions through a clear and user-friendly interface.
Ensuring the safeguarding of user data necessitates the implementation of industry-standard security measures, including encryption, secure authentication, and routine security audits. Maintaining trust and addressing legal obligations entails adherence to relevant regulations, encompassing data protection and financial laws.
Users often deposit funds across various services such as banks, e-wallets, crypto wallets, etc. It is advisable for your application to facilitate money deposits from a diverse range of services. The broader the spectrum of services your app supports, the wider your target audience will be. If you want to expand the investment platform, this feature is worth considering.
Due to increasing market demand and user expectations, a smooth and user-friendly investment platform has become more demanded. Below are essential steps to develop an innovative investment platform and KMS Solutions' best practices to expedite the payback from the software launch and minimize project risks.
Having a comprehensive understanding of your target users, market, and the existing range of competitor offerings is vital to developing a product that is ahead in the race of most used and preferred apps. The KMS experts recommend starting the development journey by thoroughly analyzing the following aspects:
This step helps you determine the most suitable niche, platform type (web, mobile, or both), and monetization model, as well as outline a comprehensive set of functional and non-functional requirements for the solution.
An essential step before moving to the development phase is to decide what platform it will be: a web-based investment platform or a mobile investing app.
When it comes to developing an investment app, Fintech companies can either hire developers or offshore the software project to a trusted IT services provider. Offshoring investment software helps you save time and money while concentrating on the core competencies.
We advise finding software development companies that have domain knowledge in the BFSI sector and proven track records.
At this phase, your vision starts coming to life. The development team moves from a high-level platform concept to a clear solution design to deliver:
Fintech is a fast-growing sector that must stay abreast of technological trends. When hiring the software development team, take into consideration the prospects that are experienced in the tech stacks that you plan to develop the investment platform.
To optimize development costs and timelines, KMS Solutions often relies on proven frameworks and open-source APIs (open banking APIs, trading APIs, crypto APIs, etc.), where possible.
The developing and testing stage is one of the most complicated parts of any online investment software development. The offshored team will implement the deliverables outlined in the design phase utilizing approved technology stacks and coding structures.
The development of an investment platform should cover:
Prior to launching the investment platform, it’s essential to undergo thorough testing, which includes various assessments such as unit testing, integration testing, system testing, and usability testing. This process is crucial to guarantee the app's reliability, security, and user-friendliness.
It’s imperative that testing encompasses all functionalities, security protocols, and compliance with financial regulations. Additionally, the app should be tested under different conditions and on multiple devices.
The software development team will integrate the investment platform with all required internal and third-party software. Some APIs that businesses may need to integrate:
Moreover, integration testing is also needed to perform to eliminate possible logical errors and ensure smooth data flow between the connected systems.
In the final step, the development team configures the platform's infrastructure, establishes data backup and recovery procedures, and sets the final version live.
As a trusted IT service provider, KMS also helps to ensure smooth operation and high value of clients’ investment platform in the long term:
Developing an investment platform is a process that includes complicated aspects inside. Hence, the investment app that you plan to build should be strong and secure enough to deal with users’ personal information as well as payment data and protect them from cyberattacks. Additionally, it's essential to incorporate various integrations with internal systems to facilitate seamless data exchange and synchronization.
KMS Solutions is a trusted IT service provider that has partnered with many Fintech businesses worldwide to provide personalized digital solutions. We are a Vietnamese offshoring software development vendor with profound experience creating digital solutions for the BFSI sector. With more than 13 years of experience in the IT market, we know how to satisfy client’s financial business challenges by delivering robust financial software.
Contact our expert to discuss your investment platform in more detail.