Over the years, the world has seen so many changes with the help of technology. One such sector to see new reforms with the use of technology is the financial sector. The world is going digital, and the amalgamation of the finance sector with technology is providing customers with new ways of payments and services to make the work of people easier.
With the help of a trustworthy fintech software development company, Businesses are taking advantage of this time to come forward with cost-effective and user-friendly solutions.
Fintech has become an essential part of the present-day world. Many developments challenged traditional financial services, people are enjoying new advancements such as payment apps and contactless payments.
With the developments in fintech, the focus is to enhance the user experience as well as work with the latest technology. Businesses are taking an interest in using fintech software development services to build more feature-rich solutions with great user-interface and ease people’s day-to-day life.
Read this blog to learn about the fintech industry, market stats, and tips for choosing a reliable fintech software development company.
What is Fintech Software Development?
You need to understand “what is financial software development”, before diving into the fintech sector. Financial software development refers to the execution of a new system with the help of Artificial Intelligence, Big Data, Business Intelligence, and Machine Learning for the smooth functioning of finance & management. To provide businesses with better functioning, fintech solutions were developed.
The term fintech is an incorporation of two words finance and technology. Fintech software development is an actual concept for developing, creating, and delivering financial software solutions to uplift the finance sector and makes structural alteration within the finance sector. Due to digitalization and new amendments, fintech solutions have become the requirement of modern times.
Traditional banking needs some changes that can only be brought with the help of fintech solutions. These solutions have solved many complexities time-to-time and become the reason behind the birth of companies such as Venmo and PayPal.
Earlier there was a time when to take out a few thousand, you had to stand outside the bank in a long queue and wait for your turn. Now, with the help of just one tap, you can send your money across the globe.
There is an enormous number of users doing online payments, from paying our bills to sending money to our loved ones, we are choosing online payment methods such as Google Pay, Paytm, E-Wallet, and others. Perhaps, this is the reason why businesses are bringing new fintech software solutions which are helping in the upliftment of the financial sector.
Market Statistics About the Fintech Solutions Market and Its Popularity
You will be surprised to know that according to Statista, Digital payment is likely to be the largest sector in the world with a total operational value reaching $8,488 bn in 2022.
Here is a depiction of different fintech solutions with current exchange rates.
- According to the stats, the Neo banking segment is expected to see an increase of $9,683 billion and is projected to display the growth of 42.2% in 2023.
- The number of users in the digital payment section is likely to increase by 5,480.33 million up to 2027.
- Total transactions of neo banking will see an increase to $8,975 billion by 2027.
With these stats, we believe you got a good idea about the future of the fintech industry. Over the years, an upsurge can be seen in fintech software solutions as companies are coming forward to upthrust the financial sector.
What Types of Fintech Software a Software Development Firm Can Offer You?
Fintech Software Development refers to building new software with the incorporation of technology & finance for the financial sector, which helps in streamlining the finance sector globally. In recent years, the amalgamation of Machine learning & Artificial language has helped to progress the sector from managing risks of finance to online wealth management.
From customer service Chatbots, Blockchain & Cryptocurrency to Robo advisors, there are several developments seen in the automation of the finance sector. The developments are not only limited to these, software development companies have developed many fintech software and have provided us with remarkable functions and features like investment administration, managing payroll, money payment, and many more over the years. Here are some software that are helpful for businesses which provided by fintech software development company.
- Loan Origination Software
- Commercial Loan Software
- Online Banking Software
- Mobile Banking Software
- Insurance CRM Software
- Insurance Agency Software
- Investment Management Software
- Payment Processing Software
- Personal Finance Software
- Financial Risk Management Software
- Financial Fraud Detection Software
- Billing and Payment Software
- Expense Management Software
- Investment Software
- Financial Planning Software
- Insurance software
What types of solutions can provide by fintech software development companies?
Well, after understanding fintech software development & their software’s, there are also many solutions that have made a significant impact in the finance landscape. A survey about the fintech industry stated that digital banking solutions have been used by 65% of Americans by 2022 & even though the adoption rate for fintech solutions increased by 75%.
As an entrepreneur, you should be aware of these solutions which can help your business in seeing potential growth. After the covid-19 pandemic, the acceptance of these solutions by more & more businesses has made opened the gates for more growth & opportunities for the fintech industry & made it a million-dollar company. Here are some solutions which provided by fintech software development firms that have benefited businesses-
- P2P Lending
- Digital Banking
- Money Transfer
- B2B Fintech
- Investment Platforms
How to Choose a Fintech Software Development Company?
New invention and increasing popularity have surely made you interested in the development of fintech solution which helps in the growth of your business. We understand you must be keen to develop a fintech solution for your business, here are some tips to help you choose the right fintech software development company:
1. Perfect Competencies
It is crucial to pick a fintech company based on the tools and technologies it employs. First and foremost, you must ensure that a modern framework is used while building your solution. Secondly, you need to be sure that they have already worked and developed a fintech solution before.
Get to know if they have the desired skills to prepare such a fintech solution demanded by your project. And this is necessary since organizations who hire fintech software developers from any company to create fintech solutions need to make sure it deals with current as well as future solutions using the latest technology.
2. Specialized Developers
There is already so much competition in the fintech industry. To build such a solution that makes you stand out in the market, you need to choose a software development company that has an expert and experienced development team. There are so many companies that promise experienced developers, but the reality is just the opposite. Just to make sure, you need to check client testimonials and their previous work samples to know what they can deliver.
3. Safekeeping User Data
While building a solution, one of the most important factors to keep in mind is security. Recently occurred cyber-attacks and security breaches have made it necessary to build secure Fintech solutions. To stay long in the market, you must have strong security features integrated into your fintech solutions to keep the database of users and card information safe.
So, the company you choose must work with an authoritative security model to build the solution against the safety breach problem in the market. Before choosing any fintech software development firm, you must authenticate their knowledge and expertise about security features.
4. Organization Capability
You need to look out whether the organization you are choosing has suitable and equivalently experienced employees or not. Having a strong team to deliver the project on time is important for any software development company. Otherwise, the delivered solution will be full of errors and severely disordered.
You must choose an experienced company to obtain financial software development services. But make sure they have a proper framework, modern technologies, and adequate and skilled employees like developers, designers, business analysts, and finance experts to guide and update you timely. If you will take a look at their pre-developed solutions, you will get a good perception of their work quality.
5. Risk Alleviation
For developing a successful fintech software solution, you should take help from a company that knows how to build a fintech app with risk assessment tools. The company experts should know how to evaluate, detect, and assess the risk associated with building the app.
While managing the risk associated, they should know to develop a top-notch solution with the help of robust technology within the budget. So, you have to build financial software solutions with a company that understands your project and its requirement to avoid future conflicts.
6. Compliancy with Set Standards and Procedures
Due to an increase in the occurrences of privacy breaches and financial crime, the authorities have upped the bar for compliance and regulatory norms in response to it. It is critical to confirm whether the organization developing the financial software is familiar with new and updated standards and regulatory requirements or not. Look for companies that create financial solutions which are legally sound.
The fintech software development company you will choose must have good knowledge about the legal standards and understanding to protect sensitive data and financial transactions.
7. Comprehensive Study of the Industry and its Essentials
It is important to consider that the company you choose for software development for fintech solutions should have a good and in-depth knowledge of the project they are going to work on. This way, they can provide you with new ideas and tell you about areas for improvement.
Moreover, the software company should be experienced in building solutions according to current trends in the market while considering the industry niche. They should have enough expertise to build a solution with future-ready advanced technology that can be changed according to the requirements of your project.
8. Product Service and Maintenance
For the success of your application and your company’s stability in the market, you need timely maintenance of your app from removing bugs, and technical errors to smooth functioning of the business. The financial software development company you choose, make sure they provide you services for analyzing, modifying, and assessing the existing applications and making the application better. Pick a company that provides after-service and maintenance for your app.
9. Interpersonal Skills
Interpersonal skills are not soft skills anymore, communication is necessary for the success of any project. Before taking services, you need to choose a fintech development company that understands your project, guides you, and communicates with you about the approach and the solution development time-to-time. The hired development team that will be working on your project should solve your project requirement with systematic, cogitative, and innovative ideas to uphold the success of your project.
Fintech services are not limited, with new updates in the finance and banking industry it is improving & taking control of people’s financial lives. There are a variety of services availed for people including investment, financial solutions, insurance facilities, payment facilities, and banking as well as the non-banking sector. The fintech industry has a bright future & likely to grow at a CAGR of 23.58% by 2025.
Artificial intelligence, machine learning, and big data are one of the leading technologies that are taking the fintech industry by storm. To build a solution with the latest technology, you require to hire fintech software developers from an experienced company. So, choosing the right fintech software development company is a must for building a fintech solution that understands your requirement & builds a solution that your user love.
The team of SemiDot Infotech can help you to build reliable, scalable, and cost-effective solutions. We, at SemiDot Infotech, have experience in building such finance solutions which work well works with current and future regulatory standards using the latest technology. You can contact us for any query related to fintech app development cost, features, time, or any other. We are here to provide you with expert assistance.
In order to develop amazing fintech software development with the help of a software development company, you might have some questions in your mind. Get them clear with these FAQs.
- What is Fintech Software Development?
Fintech software development is the development of such solutions which is actually for developing, creating, and delivering solutions associated with the finance sector to improve better financial elements. Overview, new advances are changing the financial and commercial scenario with the help of the latest technology.
- What are tips for choosing a software development company?
To choose a software development company, you have to do thorough research and shortlist companies, check their experiences and expertise, read the testimonials of the clients, and also see if they have skilled developers who work on the latest technology. This way, you can choose the right software company for your project.
- What are the different categories of fintech development?
With the new technology, there is so much development that classified fintech into various categories that include Insurance, Blockchain technology, Billing and payments, Lending, Equity, Personal Financing, Expert management, financial control management, and Money transfer.
- What are the qualities I should look for in an effective software development team?
It is important to look for a skilled and result-oriented software development team for your project. Go for such a company that has an expert team of developers, designers, & more. The experts you are choosing should work on current technology such as Ruby on Rails, Python and as well as on artificial intelligence and machine learning.
- What is the need to outsource a development company?
If you are looking for an experienced company, you have to consider not only domestic but other companies too even if it means outsourcing the development company. Outsourcing your company can help you in building great solutions with the latest technology, more skilled developers & experienced teams within your budget.