Practical experience

Nov 29, 2019
Blog

In the modern era, applications are growing in popularity. This is true for both mobile and web apps. Moreover, applications are preferred not only by ordinary users but also by entire companies. In this article, we are going to consider the advantages of working via your own platform using the example of a company that provides services in the field of financial consulting and asset management.

 

Who needs the application for business?

Everyone. Sooner or later, any successful business matures to the stage when its own application is required. After all, it allows increasing the customer base, automating internal processes, reducing costs, and increasing the company’s profits.

A study by We Are Social says that in order to view information and make online purchases, in more than 52% of cases, customers use phones. In the TOP 10 countries with the most stable mobile Internet, half of the list are Western European countries. According to the forecast of App Annie for 2019, the growth of in-app purchases is 5 times higher than the growth of the global economy as a whole.

Of course, you can develop without your own application, as well as without many useful tools. But in this way, the owner or management robs their company of additional opportunities to optimize processes and increase profits.

For example, let’s take a small company that provides services in the field of financial consulting and client asset management. Initially, it can even be a small family enterprise, which has a circle of regular clients and is gradually accumulating new ones. However, an ambitious company needs to prepare in advance for the fact that the scale of the business will grow. When the customer base grows significantly, MS Excel and Google spreadsheets will not be enough to work with their data. For accounting data, as well as for interacting with customers, special applications will be required. And it is advisable to start developing such programs before the previous tools stop working, and the company begins to lose profits.

What application does a company need?

There are several possible variants. But the most obvious one – a company needs a platform for effective communication of customers and advisors. Besides, for advisors, this platform should become a convenient tool for accounting and data analysis. 

As a result, the company’s customers get the opportunity to invest in any liquid asset, using the signals of consultants. Thanks to an automated solution, one expert can advise many more investors. All this takes place on a convenient platform with an interface that is understandable to all users, even those who are not versed in exchange trading and investment.

How much will the application cost?

In order to provide a realistic estimate of developing and supporting an application, we took the figures for one of the projects created with the participation of Andersen. This is a platform for the interaction between financial advisors and investors, which allows the latter to profitably invest money and control the process of buying and selling assets.

The development of such an application may take 2-3 years. The development cost will be 0.7-1.1 million euros (30 thousand per month). When the application is launched, its support will be carried out by 2 specialists. The monthly maintenance of the platform will cost the company about 13 thousand euros.

How much will a company earn after launching the application?

Within the first year after launch, the number of application downloads will reach 7 thousand. Within the second year, the total number of users can grow up to 25 thousand.

The services of a financial advisor can cost 100-300 euros per hour. Working with an advisor in person, an investor pays on average 1000 euros per month. Commissions for subscribing to trading signals can be 200-300 euros per month.

If out of 7 thousand customers, 5 thousand will pay for the subscription and make transactions themselves based on the advice of consultants, this will bring the company no less than 1,000,000 euros per month.

What is the real benefit of launching the application?

The company operating in the field of financial consulting without its own application is unlikely to have more than 1000 customers. If 70% of them regularly work with a financial advisor and bring in 1,000 euros per month, the company’s permanent income will be 700,000 euros.

Thus, after launching the application, a company will enjoy the following benefits:

  • The company’s revenue in the first year will grow by about 40% (in our example, this is 300 thousand euros).
  • Costs will be reduced: using the application, 10-20 specialists alone will be able to serve tens of thousands of investors. In “manual” mode, one advisor can effectively manage no more than a dozen clients.
  • By having a modern application, the company improves its image and increases the level of loyalty of existing customers.

A company providing financial consulting services is just one of many examples of enterprises that need an application for further development. Development costs, payback periods may vary. However, in 90% of cases, the application developed by Andersen specialists compensates for the costs of its creation and takes companies to a new level of revenue.

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