It is a known fact that both finance and software have the power to either build or destroy a company. Any major glitch in the software can disintegrate the entire financial system. Having said that, no company can survive without either of the elements, neither finance nor software development.
Recent situations have sped up the adoption of advanced technologies like automation accounting, big data analytics, and AI-powered solutions that have helped organizations in controlling costs and enhancing customer experience. With big data, coming into existence, the data is now being mined to improve the efficiency of financial processes. With Artificial intelligence (AI) integration, meaningful new insights can help in improving credit decisions, financial risk management, and consumer experience.
All this has propelled the market growth of modernizing financial software development services. The global financial technologies market size was valued at $110.57 billion in 2020 and is projected to reach $698.48 billion by 2030, growing at a CAGR of 20.3% from 2021 to 2030. The graphical representation below indicates the technology adoption trends during the said period that includes API, AI, blockchain, RPA, data analytics, and others. It is predicted that data analytics will lead the market in the coming years.
With this growing market, the competitive landscape too grows and it becomes difficult to choose the right financial software system for organizations. Let us start with understanding what is financial software development and what are the common types of Fintech solutions developed for businesses.
What is Financial Software Development? Types of FinTech Software Solutions
Financial software development or Fintech, as the name implies, is the combination of finance and technology. To put it simply, with the help of technology or finance system software, various financial processes are made to deliver services efficiently that lead to enhanced financial management.
Popular Fintech Solutions a Software Development Company Offers
Financial software caters to a plethora of financial services from investment management, payroll management, invoicing, money transactions, and more. Some of the business solutions that have developed over the years are:
Billing and Payment Software
Every company, irrespective of the business domain, cannot work without billing and payment software. Every company has to bill their clients and make payments to their vendors respectively. The software takes care of most of the manual repetitive tasks making the processes swift while eliminating human errors by automating the processes like invoicing, online payments, and more. The software also empowers the management by generating various automated reports providing oversight of the overall financial performance.
Expense Management Software
The expense management software, as the name suggests, manages all the expenses of the company providing you oversight on the detailed expense reports. Automating money transfers enables you to identify cost-saving opportunities for various departments and employees as well. With the help of software, you get control of real-time financial data and important analytics. Automation also leads to integrating multiple parameters to review the expenses before submitting them.
The investment software can help the customer and the decision makers of the organizations to review the critical market data in detail to make an informed investment decision. Visual representation of financial information and AI-driven solutions helps in data management and investment predictions.
Financial Planning Software
Planning finances with the help of software makes the whole process seamless. Based on data analytics, a financial software system helps in better planning of resource allocations leading to better results. Sales strategies can evolve with the help of financial planning software as they provide critical insight into the business operations.
This future-ready solution is the most sought-after fintech solution by most companies. Blockchain technology provides a secure transacting solution while securing the critical financial data of the clients by decentralizing the data. The sales and purchase transactions are made safe and secure with tokenization.
Insurance software has brought a revolution in the way insurance is being made available with complete knowledge. The ease of browsing, comparing, making online payments, and applying for claims has brought a positive shift in the insurance industry.
Becoming Future-Ready with Biggest Fintech Software Development Trends
Pandemic, of course, has hit society in many ways. However, the fintech industry has flourished bringing in positive changes. Let us explore the top trends that have emerged distinctly contributing to the future-ready fintech solutions.
There are multiple categories that fall under the huge umbrella of the term “Alternative Finance”. It is defined as “financial channels and instruments that emerge outside of the traditional financial system (i.e. regulated banks and capital markets)”.
It is because of this solution that SMEs find it easier to secure funding at a lower rate of interest while getting the flexibility of utilizing it the way they want to. Other types of alternative finance are- Asset Finance, Property Finance, Crowdfunding, Stock Finance, and Supply chain finance.
Artificial Intelligence & Machine Learning
The fintech industry is data-rich. Yielding meaningful and valuable insights by processing the humongous available data can be done with AI and ML tools. Processing such data manually is beyond human capabilities. Integration of AI technology and the financial services industry has shown its benefits in risk mitigations, process automation, customer service, and other important functions.
For instance, we automated the banking processes of one of the leading banks in Europe that operates across different national markets in the continent by unlocking the potential of AI. Our diligent efforts led to a reduction in their manual processes by 35% and increase in customer retention rate by 20%.
Integrating regulatory compliance and technology is RegTech. With the use of big data and machine learning technology, it offers data insights and reporting tools. With regulators raising the bar for privacy regulations, security requirements and fraud detection, the concern of money laundering in financial services can be addressed effectively.
It has gained popularity in recent years. This is a decentralized currency where the record of owners and transactions are stored in the blockchain system. With the ease of secure transactions, it offers the option of auto trading. Being decentralized, it is not regulated by governments offering wide acceptability and fair chances of investments across the globe breaking all the boundaries of race, color, or region.
For instance, Appinventiv has developed an application for Asian Bank that allows end users to store, transact, and convert cryptocurrencies into fiat currencies. Our efforts led to 50K+ cryptocurrency transactions for the bank and 250K+ app downloads.
Robotic Process Automation (RPA)
RPA in finance is an effective solution that enables automation thus saving time and cost while improving work efficiency and eliminating errors. Human resources can focus on high-return tasks leaving the monotonous repetitive tasks to software robots.
Almost all banks have digitized their operations offering their customers the option of both mobile and web-based access. However, the digital-only banks have taken the experience to a next level. Convenience, transparency, less wait time, and 24/7 availability are some of the features that are taking them up a notch. As the operations are completely automated with a digital interface and online, the banks save much more on infrastructure costs of the physical branch offices.
Similar to how Neobank is changing the future of banking, Neobrokers is all set to do the same thing to trading revolutionizing retail investments. Digitization and tokenization of traditional assets make it cost-efficient while maintaining transparency.
Factors to Consider when Choosing Fintech Software Development Company
The software developer in the financial sector should be extra cautious during the development process as it will withhold trust, confidential information, and monetary aspects relevant to the customer. Hence it becomes critical to verify and ensure the developers are highly skilled, analytic, adept with coding and testing, and much more as there is no scope for committing errors.
To ensure all of the above, businesses should consider the following factors before choosing the best software development company.
1. Expertise in Software Development for Finance
The most important perimeter to consider is the skill sets of the software development company you want to partner with. It is important to ensure that the company is updated with the latest technologies like Artificial Intelligence, Machine Learning, big data, JAVA, data mining, etc.
As the finance sector is evolving, the partner finance software company should be adept with the current financial situation while being futuristic in their approach and should be analytic to draw concrete conclusions.
While ensuring the optimal skillsets of the partner, make sure that the integration with your existing system too is done smoothly. It is understood that when you hire a financial development company, they must have the capability to develop software specific to your financial business needs.
2. Certified Developers
The company you partner with must have qualified and experienced developers to ensure the development of bug-free software. Equally important is to ensure that the team strength is apt and a dedicated development team is aligned for the project to ensure timely completion of the project without compromising on the quality. Do not forget to ensure that the team surely has one fintech expert.
Ensuring that the dedicated team has expertise in JAVA, .NET, Python, SQL, and so on will be helpful.
3. Company Capacity
Having apt and balanced strength of dedicated members will lead to success while scarcity of resources will lead not only to delayed deliveries but also to software full of bugs or badly structured software.
Ensure that the outsourcing partner has sufficient and dedicated resources like developers, testers, UI/UX designers, finance experts, and so on. Understanding their hiring strategies and recruitment process will provide you with an insight into candidate quality.
4. Security Measures
Security is the first thing that comes to mind when we talk about financial and banking software development. Thus, to hire a financial software application development company, you must ensure that they have excellent security measures in place to ensure data and financial transactions.
Things like firewall or intrusion detection systems are the basic requirements for any fintech solution company. Additionally, the disaster recovery plan also is a must-have for the situations of any financial data breaches.
The financial services software development company will not apprehend from sharing the security measure details as it also proves their authenticity. Automating such measures enhances customer satisfaction, employee productivity, and overall business performance.
5. Risk Mitigation Plan
A successful fintech software development company must know how to make a financial services business resilient and must have a risk management tool. A tool required for identifying, assessing, and evaluating the risk leading to decision-making aimed at minimizing the possible losses.
To successfully mitigate the risk, it is important to understand the profits accompanied by the risk, and the return that can be achieved by managing it while establishing yourself firmly in the market effectively. Ensure all of the above while choosing the financial software development partner to avoid future conflicts.
6. Track Record of Success
Partnering with a financial technology solution company with a strong track record will be beneficial for your project, especially if you are not a financial software expert. Having an assurance of getting things right the first time is critical. Analyzing the case studies of their previous projects will give you a fair idea about their expertise and success rates. Also, knowing their hiring strategy to hire financial software developers will provide you with a fair idea about their credibility.
7. Compliance with Regulations and Standards
With increasing cases of money laundering and financial fraud, the regulators have raised the bar of compliance and regulatory standards. Thus it becomes important to verify that the financial software development company is adept with the updated compliance and regulatory standards. It is a good idea to look for a track record of developing compliant financial solutions in the past.
The finance software company should have expertise in financial security methods, such as encryption and authentication processes to protect financial transactions and critical data.
8. In-Depth Understanding of the Industry and its Specifics
This is a vital factor to consider. For example, the banking software development company should be updated and able to provide you with the current trends in the banking sector so that they can help you identify potential areas of improvement. Additionally, the company should be experienced enough to develop a system that is future-ready and can be tweaked as per the changing scenarios keeping your unique business needs in consideration.
9. Aftersales Service and Maintenance
As we have been reiterating above that the approach taken by the finance software company should be futuristic, it becomes important that they provide the maintenance service with similar attention to detail. Even the smallest software requires proper maintenance and patches to keep it.
It is equally important to ensure that the financial app development company provides aftersales support in maintaining the developed software.
10. Soft Skills
Communication is the key to success. It stands true when we talk about financial software development also. Understanding the requirements, and correctly communicating the approach and the progress are the key factors in ensuring that the project is on the right track.
Gone are the days when finance software developers were considered to be geeky programmers who are good at coding. In the modern and evolving technological world, it is critical for the developer to be highly analytical along with being good at time management, flexibility, innovative thinking, and problem-solving capabilities to be the best. Having an updated knowledge of both the worlds, finance, and technology is vital to ensure the success of the project.
How can Appinventiv be the Best Fit to Develop Your Fintech Solution?
With a successful and proven track record, Appinventiv has partnered with banking, eCommerce, Insuretech, the hotel industry, and many more companies.
The team is not only skilled and experienced but is analytically innovative which has enabled us to deliver numerous financial software development solutions successfully. By opting for our financial software development services, you can rest assured of working with a reliable, dedicated, and trustworthy team.
As mentioned above, case studies are one of the factors that one should consider while choosing a financial software development company. You can refer to our portfolio section to read through our success stories. However, here’s one example of how our efficient financial software development services helped our client achieve success in business.
Combining the power of finance and technology, we developed a robust Fintech solution for Bajaj Finserv that is successfully leading the fintech industry transforming merchant and customer’s financial needs. We successfully implemented the solution by making the buying process easier for the customers and reducing the time of accounting for merchants leading to results in the form of 300+ merchant onboarding and 3 lac+ transactions per day for the client.
We take pride in being one of the fastest-growing software development companies with multiple accolades under our belt. Irrespective of your Fintech business model, Appinventiv can be your partner in the success to develop a robust fintech solution. With a strong knowledge of trends, innovations, and new business models, our team is eager to convert your fintech business idea into a reality. Get in touch!
Q. What should I look for in a software development team?
A. To ensure the success of a software development project, it is crucial that a capable team of experts handles it. Consider the below-mentioned factors while choosing a software development team
- Understanding of business issues
- Engagement in the project
- Technical expertise
- Domain knowledge
- Excellent team coordination
- Good team players
- Effective communication
- Expertise and background knowledge
Q. What is the importance of financial software development?
A. Financial software enables you to transact transparently with security from anywhere and at any time.
- Businesses are able to adapt to the evolving market conditions effectively.
- Enhances sales and service quality
- Provide personalized experience
- Provides freedom with security
- Saves time and costs
Q. What are the basic checkpoints to consider when choosing the best financial software development company?
A. Some of the basics you must ensure before finalizing the outsourcing partner are:
- Their experience in developing financial software development
- References from the clients
- Compliance and regulatory requirements
- If they have a basic module to understand their development cycle
- Delivery schedules
- The methodology that will be used to execute your project
- Company capacity
- Level of fintech solution company’s know-hows.
Q. Why should you outsource fintech software development?
A. There are multiple factors that make it a wise decision to outsource fintech development. It is cheaper, reliable, and faster because of the expertise and experience that an outsourcing company like Appinventiv brings to the table.
While the outsourced partner will take care of the development, you can focus on business development and core business activities.