Building a Micro-Investing Platform | DashDevs (2024)

Investing has long been considered a powerful tool for building wealth, but for many people, the barriers to entry can be daunting. Luckily, with the rise of microinvestment platforms, investing has become more accessible than ever before for individuals with limited time, knowledge, or funds.

In this guide, you’ll review the microinvesting app market in detail. Besides, you’ll delve into the types and features of microinvesting platforms and apps and discover how to develop and launch your own microinvesting product. Finally, you’ll obtain an insight into several related success stories inspiring to get started with your own microinvesting project.

Understanding the Micro-Investing Market

The micro-investing market has been growing rapidly in recent years as more and more individuals seek accessible and affordable ways to invest their money. The overview of the market in stats, trends, and numbers is provided in the infographic below:

What Micro-Investing App Is

For starters, there’s a fundamental concept before microinvesting software — the practice of micro-investing.

Micro-investing is the concept of investing small amounts of money, often through apps or platforms that allow users to buy fractional shares of stocks, ETFs, or other assets.

Microinvesting is basically the assisted usage of financial instruments at a lower scale. Compare an independent usage of an app to traditional investments, where agencies or personal bankers allocate funds into financial instruments as investors request by phone or in private visits. Or to modern-day, regular investment when investors monitor the market closely using sophisticated analysis tools. Well, acquiring and multiplying assets is notably easier with microinvesting.

At the same time:

Micro-investing solution, either application or platform, is a digital tool that providers users with access to the financial market, with stocks, bonds, ETFs, and other assets to invest in.

Micro-investing platforms and apps simplify investing by enabling users to start with as little as a few dollars. Besides, they typically have a simple onboarding and user-friendly interface. Such solutions make investing accessible to individuals with limited funds and knowledge of how the financial market works.

Types of micro-investing apps and their hybrids on the market are many. Main of them include:

1. Round-up investing apps. They round up to the nearest dollar on everyday purchases and invest the spare change for you automatically. Example: Acorns.
2. Fractional share investment apps. These allow users to purchase fractional stocks, ETFs, or other securities, making it possible for people with small amounts of money trade. Examples: Robinhood, Public.
3. Robo-advisors for micro-investing. Using algorithms, they build and passively manage portfolios that are diversified across thousands of stocks and bonds. As a bonus, they can tailor investments to the users’ desired risk tolerance. Examples: Betterment, Wealthfront.
4. Social micro-investing apps. In a sense, they meld social with investing in that users can follow and copy the portfolios of other (maybe more experienced) investors or friends. Example: eToro.
5. Thematic and goal-based investment apps. These tend to be more thematic investments centered on things like sustainability, technology, or some other niche market. Investors can choose to realign their investments with preferred values or financial goals. Examples: Stash, M1 Finance.
6. Savings-linked investment apps. They encourage users to save and invest simultaneously by offering features like automatic transfers from savings to investment accounts. Example: Qapital.
7. Micro-investment platforms with educational components. These involve tutorials, articles, and quizzes to teach about automated investing in the background as users play around with micro-investing. Example: Invstr.

Pro tip: Any of the listed microinvesting solutions can be either a standalone app or platform or an additional functionality to your main offering. Examples are Revolut’s Spare Change micro-investing feature integrated into Revolut App, and SoFi Invest’s Fractional Shares functionality integrated into SoFi App.

And in case you wonder what business benefits development and integration of a micro-investing solution can offer, here’s a complete list:

• Increased user engagement and retention
• Expanded customer base with diverse investor profiles
• New revenue streams through transaction fees and subscriptions
• Enhanced customer loyalty through value-added services
• Competitive advantage in the financial services market
• Opportunities for cross-selling and upselling other financial products
• Increased average revenue per user (ARPU)
• Enhanced ability to adapt to market trends and user preferences

Looking for a trusted provider of high-tech consulting services to advise you on a micro-investing solution? Reach out to DashDevs and let’s discuss.

How to Develop and Launch Your Micro-Investing Platform

Due to increased market demand and user expectations, a powerful and advanced investment app is now a necessary addition to mobile devices. It’s crucial to adopt a structured approach to developing a functional and easy-to-use app To remain relevant and competitive.

Here are the 10 steps you should follow to eliminate any concerns about creating the best possible mobile investment app.

#1 Conduct a Market Research and Identify Target Audience

In the very beginning, you need to acquire a solid understanding of the market and your product’s role in it. Here’s a step-by-step roadmap for this phase:

1. Define what you want to achieve through your research
2. Select appropriate research methods
3. Collect data using the chosen research methods
4. Analyze the data to identify key trends, patterns, and insights
5. Optionally, utilize data visualization tools to present insights
6. Draw conclusions about your target audience, market, and competitors based on your research
7. Continue to monitor the market and your target audience over time and adjust your strategy as needed

As mentioned, one of the goals of preliminary research is to understand the demographic you are targeting, their age group, gender, education, income level, etc. This will help you create a product that appeals to your target audience. Let’s elaborate on this aspect a bit more.

Target groups of micro-investing platform users are typically ones who are new to investing or have limited financial resources. The entire list is provided in the infographic below:

Besides, you need to have a firm understanding of your target audience’s needs to cover them successfully. Here are the examples of potential microinvesting platform users’ needs:

• Accessibility and ease of use
• Low minimum investment thresholds
• Educational resources
• Automated and flexible investment options
• Low fees and transparent pricing
• Social and community features
• Customizable risk profiles
• Mobile-first experience
• Transparency and trust

#2 Select the Business Model

In the planning stage, you need to select a business model that includes determining the cost of your services and the commission percentage you expect to receive.

For instance: Acorn can be used as an example of an investment platform that charges its users $1 per month to access its services, as per the subscription model. Moreover, Acorn allows its users to utilize around-up investing features. So, they basically present a hybrid of two models as their micro investments solution.

Note: The entire list of micro investing app types or models is provided in the section “What micro-service app is.”

Without further ado, here are the key considerations that should guide your choosing of an appropriate business model when you are building an investment platform:

• The business model of an existing digital product
• Target audience’s Investment preferences
• User engagement strategy
• Initial investments needed to establish a micro-investing product with one or another model
• Preferred revenue generation model
• Local regulatory compliance specificities
• Technology and platform integration
• Scalability and growth potential

#3 Decide on Core Features of Platform

The listed micro investing apps can be packed with numerous conventional and advanced functionalities. Key of them are provided in the infographic below:

If you have budget limitations and struggle with choosing features to add, then just keep it simple. You definitely need a payment processing core, authentication functionalities, and multi-asset investment options. Upon implementation, just scale your product until it satisfies your target audience.

#4 Learn the Requirements for Compliance

It is crucial to comprehend the legal and regulatory obligations in the region before commencing the primary development stage of the investment application.

Regulatory bodies in different countries establish rules for the financial environment and internet space, although there are similarities in the basic frameworks, which usually include user privacy, intellectual property, marketing and advertising, and detecting money laundering.

Below is a compilation of regulatory bodies and their respective legal compliance requirements for different countries.

#5 Find the Perfect Team and Choose Collaboration Model

There are several development and collaboration models you may consider following in your project. Here are them all:

#1 In-house development

The project is developed entirely by the company’s internal team, allowing for full control, direct communication, and deep integration with the company’s culture. Suitable for companies with sufficient resources and expertise.

In-house development grants complete control over the project, ensures direct communication among team members, and deeply integrates the project with your company’s vision and culture.

#2 Team augmentation

In this model, external specialists are temporarily added to the existing in-house team to fill skill gaps or boost capacity, providing flexibility without a long-term commitment. In the staff augmentation model, augmented team members work closely with the internal team but are managed by the client.

Team augmentation allows you to hire specialized experts with market-specific knowledge without expanding your permanent workforce, offering flexibility and scalability.

#3 Outsourcing

The entire project or specific tasks are handed over to an external vendor, who takes full responsibility for development, allowing the company to focus on core activities. Outsourcing services can be provided in the following collaboration types based on the desired payment approach and level of client’s control over the project:

Outsourcing basically lets you delegate the entire project or certain tasks to an external team, freeing up your internal resources to focus on strategic priorities while benefiting from the vendor’s expertise.

You may discover the differences between staff augmentation and outsourcing in another blog post by DashDevs.

Should you consider finding a provider of outsourcing or staff augmentation services, keep these key considerations in mind:

• Expertise and experience
• Communication and collaboration practices
• Cultural fit and alignment
• Flexibility and scalability
• Quality assurance processes
• Cost-effectiveness
• Security and compliance standards
• Time zone compatibility
• Project management approach
• Track record and client testimonials

#6 Build Scalable Architecture

From the technical perspective, such a development as micro investment app or platform is a complex intervention. Given that your outsourcing, augmented, or in-house team knows how to handle it, we would like to share high-level strategies for your additional considerations:

1. Implement a microservices architecture. Break down your platform into smaller, independent components or microservices. This allows you to scale each component independently based on usage and demand.
2. Use a containerization platform. It can be a containerization platform like Docker to package and deploy microservices. This approach allows for faster deployment and scalability.
3. Leverage cloud infrastructure. Use cloud infrastructure services such as Amazon Web Services (AWS) or Microsoft Azure to host and deploy your platform. They provide the ability to easily scale your platform up or down based on demand.
4. Implement caching and load balancing. Use caching and load balancing to improve performance and handle increased traffic. Implement a content delivery network (CDN) to reduce latency and improve the user experience.
5. Implement a monitoring and logging system. Create a monitoring and logging system to track and identify issues in real-time. This helps you quickly respond and scale up or down based on usage and demand.

#7 Choose the Right Technology Stack for Your Platform

If you choose to collaborate with an outsourcing team, they select and approve the appropriate technologies that align with your project’s requirements. This ensures that your app is stable and scalable.

There are many third-party APIs (Application Programming Interfaces) that can assist in implementing particular functions and resolving technical problems related to investment app development. For instance:

• Plaid API. It securely links bank accounts with fintech apps, while the Alpaca Stock Trading API manages investment accounts and regulatory complexity.
• E-TRADE API. It can be utilized to manage user account data, retrieve option chains, search for exchanges, get quotes, and manage orders.
• Finbox and Tradier APIs. They provide stock market feeds, stock metrics, and research functionality.
• Other commonly used APIs. They can be used, among other things, for accessing real-time stock quotes, indices, commodities, and currencies. Examples include Alpha Vantage, Bloomberg Market and Financial News, Xignite, Yahoo Finance, and Zirra.

Sure, there are tons of other integrations you may need to conduct in your micro investing app. It depends on your intended functionality.

You can discover in detail what API is and how to integrate it in another blog post by DashDevs.

#8 Designing Your Micro-Investing Platform

Designing a peer-to-peer investing platform requires careful consideration of various factors that can impact the user experience and, ultimately, the success of the platform. A basic process designers follow when creating the visual component of solutions such as microinvesting platforms and apps includes the following:

1. Define user personas: Analyze the characteristics, needs, and behaviors of your target audience in order to build a design that reflects users’ preferences and desires.
2. Map user journeys: Outline the steps users take from onboarding to making their first deposit into an investment account. This helps design a seamless experience that guides users through the platform efficiently.
3. Create a wireframe: Develop a basic sketch that outlines the layout and core functionalities. This visual blueprint helps in understanding the platform’s structure and user flow before diving into detailed design.
4. Design intuitive navigation: Ensure your platform’s navigation is simple and intuitive, allowing users to easily find information, execute transactions, and access support without confusion.
5. Optimize for mobile: Ensure your platform is mobile-friendly, as many users prefer managing their reccuring investments on smartphones. Use responsive design principles to ensure a smooth experience across all devices.
6. Integrate security and privacy by design: Embed security features like two-factor authentication, data encryption, and privacy controls from the start to build user trust and comply with regulations.
7. Conduct user testing: Get feedback from actual users about usability problems and points of pain. Early trials ensure that the platform meets user expectations and raises user satisfaction overall.

#9 Create the Core Application, Test, and Improve

The success of a development process lies in close collaboration with the hired software development company. Often, you start by developing a minimum viable product (MVP) that includes all unique features required for core functionality. This allows you to validate the concept quickly and gather user feedback.

Once the MVP is built, focus on iterative development by gradually adding high-priority features like advanced security measures, gamification elements, and enhanced user interface (UI) and user experience (UX). Throughout this phase, programmers and QA engineers should continuously test, optimize, and refine the app.

Regular testing and improvement cycles are crucial to identifying bugs, enhancing functionality, and ensuring a seamless user experience. As per Agile practices that the DashDevs team utilizes, stages from planning to design, development, and testing are iterative, meaning that there may be several cycles before the app is fully prepared. The development stage is complete when the app is fully functional, polished, and ready for market release, making it available for purchase and download by users.

#10 Launch and Maintain

With the core features refined, tested, and polished, your micro-investing app is ready to make its debut in the market! But remember, launching is just the beginning of a microinvesting product’s lifecycle.

Stay ahead by regularly updating the app with new features, security patches, and performance enhancements. Engage your users with fresh content, tutorials, or gamified challenges to keep them invested—literally and figuratively. Listen to your users, adapt quickly, and keep iterating. With a proactive maintenance strategy, your app won’t just survive — it will thrive in a competitive market, building a loyal user base and a solid reputation.

DashDevs, as a trusted software development service provider with substantial experience with micro investment solutions, has our own tips and strategies for handling such projects. Discover them all in the image below:

Micro-Investing Platforms: Success Stories In the Market

Let’s go through four success stories of microinvesting solutions thriving in the modern fintech market:

INABLR

INABLR is a platform that enables individual investors to access the sovereign bond market through blockchain. The platform divides large bonds into smaller units, lowering the investment threshold. With Inablr, beginning investors and individuals who want easy access to investing can get started with the sovereign bond market, which is hardly achievable otherwise. The functionality of the Inablr platform is totally suitable for large-scale investing as well as micro-investing purposes.

With a team of 15 specialists DashDevs developed the micro-investment platform in less than 6 months. The CEO of INABLR praised DashDevs for their attentiveness, resulting in a fully functional product ready for market challenges.

Key case highlights:

• Developed asset tokenization via blockchain functionality to enable bond splitting
• Ensured compliance with complex regulatory and legal requirements
• Ensured banking system and KYC system connections
• Ensured easy integration with any external fintech solution
• Implemented the latest cybersecurity features

Explore the Inabkr success story

Pi-1

Pi-1 is a modular white-label neobanking platform that operates as per the BaaS model. It embeds traditional banking services and, on top of them, includes microinvestment opportunities as an integrated feature. Pi-1 can be integrated into any fintech or non-fintech product, reinforcing it with a full spectrum of banking and microinvesting capabilities.

DashDevs, in collaboration with a team of 65 external specialists, developed the platform from the ground up scratch in 9 months. We leveraged the integration of GPS (Global Processing Services) card processing and Stripe to create a seamless solution for topping up cards. Additionally, our custom banking accounting system, coupled with our accounting system for client accounts, ensures efficient management of customer accounts and fund balances.

Key case highlights:

• Ensured integration with 30+ vendors
• Ensured high flexibility and scalability for further growth
• Combined best-in-class fintech solution into a single API for B2B distribution
• Included a progressive built-in analytics
• Combined operational data with over 30 other data sources to power-up advanced analytics and machine learning.

Explore the Pi-1 success story

Stash

Stash is a well-known platform for micro-investing that enables users to begin investing with just $5, providing a mix of banking, investing, and educational resources. Stash’s main goal is to assist users in creating customized portfolios by providing fractional shares and allowing them to invest in themes that match their beliefs, like clean energy or tech innovation. The platform places importance on financial literacy through easy-to-understand educational content and investment guidance.

Ever since it was introduced, Stash has drawn in millions of users by offering easy and uncomplicated investing options for regular individuals. The platform’s innovative method of combining banking and micro-investing features has made it a top player in the market, specifically targeting novice investors looking to expand their financial education through gradual investments.

Learn more about Stash

Acorns

Acorns changed micro-investing by adding a “round-up” feature that invests users’ leftover change from daily purchases automatically. This new method enables users to invest passively without requiring significant initial deposits. Acorns provides a varied investment selection overseen by financial professionals according to the individual’s risk preference. It also offers extra features, including retirement accounts (Acorns Later) and a checking account (Acorns Spend), forming a comprehensive financial wellness platform.

Acorns has experienced fast growth, acquiring millions of users and managing billions in assets. The easy-to-use layout and the low threshold for getting started have made it especially appealing to younger generations and inexperienced investors, showing that regular small investments can result in substantial financial gains in the long run.

Learn more about Acorns

Final Take

Micro-investing platforms are transforming investments by making financial growth accessible to everyone and lowering entry barriers. Whether through spare change round-ups, fractional shares, or social investing, these platforms offer various models to suit different investor needs. Building your own micro-investing app is a complex, multi-layered process involving aspects of research, design, development, compliance, and launch. With a thoughtful approach and the right technology partner, you can launch a successful platform.

If you’re looking for a trusted technology partner to handle the development component in your micro-investing app, consider DashDevs as your primary choice. With more than 14 years on the market delivering custom solutions, we can complete any project, regardless of its complexity, with flying colors.

Contact us