Embedded Finance hat das Potenzial, den Markt zu revolutionieren, unterschiedliche Dienste zu verbinden und neue Umsatzströme zu schaffen. Erfahren Sie, wie Sie dieses Potenzial für Ihr Produkt nutzen können!

The introduction of mobile banking was a tectonic shift in B2B and B2C financial services. The idea of performing financial operations from smartphones had a colossal impact on business practices and revenue streams. Embedded finance holds the same — if not bigger — potential. The ability to provide financial services from within non-financial products and apps opens immense business opportunities.

Big Tech and small enterprises alike are actively exploring this field. Apple Pay, Google Pay, and various BNPL (Buy Now, Pay Later) platforms are just the tip of the iceberg. Embedded finance can combine disparate products and services into a user-centric ecosystem with great customer experience — while generating uncountable revenue streams that simply were not possible before.

These factors contribute to the stable growth of the embedded finance market. According to Juniper Research, it will grow from [$54 billion globally in 2022](https://www.futuremarketinsights.com/reports/embedded-finance-market) to a whopping $138 billion by 2026. Most of the market will be concentrated in the US, Canada, EU, and China.
![embedded finance market](/uploads/embedded_finance_market_min_809c0842f3.png)
Perfsol has ample expertise in designing, building, and integrating embedded finance solutions for businesses of any scope and across business industries — from [MXNEY.io](https://www.mxney.io/), a one-stop-shop for all financial services for eCommerce, to [Transformify](https://www.transformify.org/) — a global workforce management and remuneration platform working with multiple eWallets and 20+ cryptocurrencies.

This article will briefly overview what embedded finance is, the success enablers it can provide for your business, the challenges you can meet along the implementation journey — and how Perfsol can help address these challenges.  

## What is Embedded Finance?{#what-is-embedded-finance}
Embedded finance can be defined as an integration of traditional financial services (payments, lending, insurance, banking, and more) into traditionally non-financial user experiences (like eCommerce, gaming, food delivery, subscription services like Spotify or fitness clubs, etc.).

As a result, customers gain the ability to pay for a product or service in one click, apply for a micro-loan with BNPL services like [Klarna](https://www.klarna.com/), or automatically insure their car (when [ordering a Tesla](https://www.tesla.com/support/ordering)). And we’ve barely scratched the surface with embedded finance opportunities.

The most common use cases for embedded finance are as follows:

- Payments. One-click checkout with a digital wallet like PayPal or Google Pay is enabled by Open Banking API integration, where a digital wallet holds all the customer’s financial credentials and verification data, so it really takes one click to make a payment.
- Lending. BNPL platforms are actually lenders, as they pay the item cost upfront to the merchant. This allows clients to use the product or service and repay its price in several installments — a service banks have been traditionally providing.
- Investments. Many eCommerce shops offer to automatically round up the purchase, so the customer builds a kind of investment portfolio over time with the platform and can use these funds at the earliest — without actually withdrawing funds from their banking card.
- Insurance. We are so used to electronics vendors offering guarantees with their products that we barely notice it. But this is actually an example of embedded insurance, creating an additional revenue stream for vendors while improving customer experience.
- Banking. Brex virtual corporate cards tied to a single account, debit cards from Wise (which initially was just a money transfer platform), or Uber/Lyft driver banking services — all of these are examples of embedded finance enriching other business verticals.

According to the Bain Capital research on embedded finance effects, various business verticals have different degrees of embedded finance maturity. Still, all of them are working on maximizing the potential of this approach:
![embedded finance maturity](/uploads/embedded_finance_maturity_min_c2b183caae.png)
Source: [Bain Capital](https://www.bain.com/insights/embedded-finance/)

Due to the proliferation of Open Banking APIs and the convenience of the BNPL approach in eCommerce and other domains, embedded finance opens an immense field of possibilities for any business in any industry. Plaid and Accenture survey highlights that 88% of companies reported increased customer engagement after implementing embedded finance in their value chain.
## Success Factors of Embedded Finance{#success-factors-of-embedded-finance}
Benefits like increased customer base, additional revenue streams, cross-selling, and up-selling might seem self-explanatory. But there are several key factors to account for if you want to get the most value from any product with embedded finance.

- Who distributes the offer? Embedded finance only works when it helps streamline the customer journey — so customers, employees, and partners must be exposed to these offers. This is usually done by retailers, eCommerce marketplaces, telecom companies, and other entities.
- Who provides the technology? Some fintech startups should act as an intermediary to help overcome the limitations of traditional technology used by distributors — and actually embed financial offerings into their customer experiences via Open Banking APIs. 
- This is where your company most likely comes in — providing the technological know-how to bridge the gap between distributors and balance sheet providers.
- Who manages the balance sheets? Embedded finance facilitates the money flow, but the money must still come from one banking account to another, which involves regulatory compliance, risk management, fraud prevention, and actual infrastructure for holding the deposits. 
This role is traditionally performed by banks.
![embed financial products-min.png](/uploads/embed_financial_products_min_3ca968a39c.png)
Source: [McKinsey Company](https://www.mckinsey.com/industries/financial-services/our-insights/embedded-finance-who-will-lead-the-next-payments-revolution)

It might seem a pretty straightforward scheme — until you take in the challenges to overcome.
## Challenges of Embedded Finance Implementation{#challenges-of-embedded-finance-implementation}

There are some psychological and technological roadblocks that must be solved for embedded finance to truly flourish. 

### Outdated mindsets
Banking institutions are used to being cornerstones of financing — approving or denying loans, dictating interest rates, and enabling investment. With embedded finances, they lose this role as they become just an infrastructural backbone for a much wider ecosystem and not the key player in it anymore. 

For insurers, the problem is similar: they no longer control the market singlehandedly but rather come as a side service, even though for a much wider range of offers.

Decreasing the importance of a position can be a hard pill to swallow, but not doing so poses a huge risk for incumbents, as more technically savvy fintech startups can partner with other banks and financial institutions. Alternatively, they can build independent technology platforms, which leads us to the second challenge.

### Immature technology
Open Banking APIs, payment APIs, BaaS offers, and BNPL popularity have all grown enough to enable the proliferation of embedded finance. But they are still dwarfed by the scope of resources and infrastructure traditional banks possess. While fintech startups can adapt to changing customer preferences better and innovate faster, they still lag behind banks in terms of infrastructure capacities needed to support embedded finance offerings at scale.

This problem will be solved one way or another, as Oracle predicts the embedded finance market to be worth [$7 trillion by 2033](https://www.fintechfutures.com/2022/04/why-embedded-finance-is-the-next-big-thing/), greatly surpassing the joint evaluation of the world’s 30 biggest banks. But collaboration is much more preferable and easier than competition; otherwise, fintech companies will have to build infrastructure comparable to that of incumbent banks while rendering the existing infrastructure useless.

Therefore, as a technology enabler, a fintech startup must find common ground with banks and distributors while overcoming technological limitations. The key roadblocks on this way are listed below:

- Future-proofing the existing tech. Building payment API connectors or using Open Banking APIs to allow outdated bank infrastructure to interact with the latest tech used by distributors across multiple business verticals.
- Process automation. Every aspect of the customer journey should be transparent, traceable, and repeatable to minimize overhead. Automation is the key to ensuring the scalability of services.
- Quality of the product. Ensuring cohesive interaction of banking infrastructure with eCommerce platforms, travel booking aggregators, logistics engines, and other software solutions can be hard. The urge to use quick and dirty fixes will be great — but such workarounds can seriously deter future product scalability and quality. 

For instance, simply integrating an embedded finance solution with a product front-end can be done in less than 3 months but will yield low revenue opportunities. On the other hand, building a full-stack product integrated with platforms across multiple verticals can take up to 24+ months and entail a significant risk — but will bring 3 times more revenue opportunities. Therefore, taking a middle route by building connectors for existing payment providers like Stripe can yield optimal outcomes.
![thin-stack-hybrid-full-stack](/uploads/thin_stack_hybrid_full_stack_min_e18131de38.png)
Source: [Bain Capital](https://www.bain.com/insights/embedded-finance/)

### Price, Flexibility, Speed
The longer the project takes to deliver and the more features it has, the more it costs. However, the industry is evolving rapidly, so any product development must be aligned with current trends and up-to-date customer preferences to ensure the product is relevant and drives value after release.
### Finding the right developer in-house
Both fintech companies and banks might struggle to attract and retain talent with a sufficient visionary mindset to correctly visualize, design, and implement a reliable, highly performant, and scalable embedded finance solution.
### Partnering with the wrong service provider
The decision to outsource the task to a third-party service provider might be the logical outcome of the previous point. But the choice of such a company can make or break the project — or at least cost a lot of time on the way to successful delivery.
### Deep tech experience in a specific area
One of the key challenges is ensuring the technology partner actually has sufficient expertise across a variety of domains to devise and build a multi-facet solution needed for an embedded finance platform.
### Lack of time
Last but not least is the need to deliver on time — or the product risks falling behind, with more tech-savvy upstarts who entered the field a few months sooner cutting the slice of the market.

As you can see, selecting the right technology partner with sufficient technical background is one of the key decisions enabling successful embedded finance project completion.
## Why Perfsol?
With a solid background in [fintech development](https://perfsol.tech/fintech-software-development), Perfsol is housing 30+ top-quality experts. Our depth and width of business analysis enable us to explore all the possible project implementation strategies and suggest approaches that deliver the most value to our clients. 

We take pride in being named Top Plus developers on Upwork, one of the top B2B Service Companies in Ukraine in 2021 and 2022, and a Top App and Software developer on Goodfirms. 

Having more than 50 fintech projects under our belt, we accumulated a trove of knowledge on the latest fintech trends and developments. And our dedication to quality is what drives us in every project, enabling our clients to deliver maximum value to their customers.
Conclusion
Embedded finance has reached a point where both Big Tech companies and fintech startups can reap its benefits. By weaving traditional financial services into non-financial customer experiences, embedded finance enables much smoother and more streamlined payments, generating additional revenue streams and creating new business models.

However, implementing such solutions correctly requires solving multiple challenges — from overcoming outdated mindsets of banking institutions to selecting the best technology stack and product architecture to support reliable and sustainable growth. The choice of technology provider is paramount to ensure successful project completion.

Perfsol is ready to lend a hand and help you build feature-rich, secure, and scalable embedded finance offerings for your customers. From product design to team extension, software development from scratch, or ongoing maintenance and updates — Perfsol can support you at any stage of the software lifecycle.

[Contact us](https://perfsol.tech/contact) for a free consultation, and let’s see how we can help you provide embedded finance services!  

Embedded finance has the potential to disrupt the market, connect disparate services, and create new revenue streams. Learn how to harness that potential for your product!


- [What is Embedded Finance?](#what-is-embedded-finance)
- [Success Factors of Embedded Finance](#success-factors-of-embedded-finance)
- [Challenges of Embedded Finance Implementation](#challenges-of-embedded-finance-implementation)

Embedded Finance is the Fintech Future

Die Zukunft des Fintech liegt in Embedded Finance

Sie brauchen keine Statistiken oder Forschung, um Ihnen zu sagen, dass das Kabelfernsehen stirbt. Wahrscheinlich erleben Sie seinen langsamen Tod aus erster Hand. Immer mehr Menschen werden zu Cord-Cuttern (Menschen, die ihr Kabelfernsehabonnement gekündigt haben), da das Video-Streaming weiterhin unsere alten TV-Sehgewohnheiten stört. Lesen Sie mehr darüber, was Sie weiterhin tun sollten!

You don’t need statistics or research to tell you that [cable TV is dying](https://www.investopedia.com/articles/personal-finance/062315/5-reasons-cable-tv-industry-dying.asp). You’re most likely witnessing its slow death firsthand. More and more people have become [cord-cutters](https://cordcuttersnews.com/the-death-of-cable-tv-is-near-as-cord-cutting-surges/#:~:text=Now%20more%20Americans%20are%20cord,cable%20TV%20every%20single%20day.) (people who have canceled their cable TV subscriptions) as video streaming continues to disrupt our old TV viewing habits.

Savvy business leaders are quick to turn this trend into an opportunity. Enterprises are not only launching streaming platforms, but they’re also incorporating CTV advertising into their business strategies early on. It’s time to familiarize yourself with these concepts and learn how each can support your business model.

## OTT vs. CTV: What do they mean?{#ott-vs-ctv-what-do-they-mean}

People sometimes [use OTT](https://perfsol.tech/ott-app-development-company) and CTV interchangeably. Although these terms are related, they actually mean different things.

### What is OTT?

Short for “over-the-top,” OTT refers to a method of delivering film and TV content via the Internet, allowing viewers to bypass traditional cable, broadcast, and satellite TV providers. Some of the most popular OTT platforms are Netflix, [Amazon Prime](https://perfsol.tech/fire-tv-app-development), and HBO Max.

OTT content is accessible via mobile devices, personal computers, and connected TVs.

### What is CTV?

A connected TV (CTV) is one of the devices that enables access to OTT content. It’s basically a television that connects to the Internet. Smart TVs are an example of a CTV. You can also turn regular televisions into CTVs by hooking them up to a [set-top box](https://www.haivision.com/glossary/set-top-box/#:~:text=A%20Set%20Top%20Box%20is,satellite%20television%20to%20be%20viewed.), a TV stick, or a gaming console (think Amazon Fire TV Stick, Roku devices, and PlayStation).

### What is the difference between OTT and CTV?

Put simply, OTT is the delivery method for streaming content across devices, while CTV is one of the devices that make this delivery possible. As you can see, they are two different things, but they work together to bring you a convenient video-viewing experience.

Understanding these basic terms will help you understand and appreciate what CTV advertising has to offer.

![difference between OTT and CTV](/uploads/Group_10797_bf8e6ff284.png)

:CallToActionPerson{title="Get a technical consultation" name="Mykola Breslavskyi" position="Fintech Expert" avatar="/uploads/Mykola_photo_f47ab8ad8a.JPG" description="Skilled, experienced fintech expert from Perfsol is ready to answer any questions regarding the design and development of fintech software products. Choose a platform to speak, ask questions, and we'll certainly answer." }

## The growing popularity of CTV advertising{#the-growing-popularity-of-ctv-advertising}

Matthew White, Quantcast Vice President of Sales, EMEA (Europe, Middle East, and Africa regions), likened the promise of [CTV in 2023](https://www.exchangewire.com/blog/2022/12/05/predictions-2023-ctv/) to that of social media in the mid-2000s. In Europe alone, [CTV advertising spending](https://www.statista.com/statistics/1315885/ctv-advertising-growth-europe/) grew by 56% in 2021 and is expected to grow by 35% by the end of 2023. 

Interested in a piece of this pie? Let’s explore further.

### What is CTV advertising?

Connected TV advertising delivers digital ads via Internet-connected television. These ads take the form of display banners, pop-up ads, video commercials, and interactive media.

### How does CTV advertising differ from OTT advertising?

CTV advertising is exclusively delivered via Internet-connected television, while OTT advertising covers all the devices that stream OTT content, including CTVs, smartphones, tablets, laptops, and desktop computers. For instance, the advertisements you see while viewing YouTube videos on your mobile device are OTT ads.

### Just how popular is CTV advertising?

A 2022 survey from [Leichtman Research Group, Inc. (LRG)](https://leichtmanresearch.com/46-of-adults-watch-video-via-a-connected-tv-device-daily/) revealed that of almost two-thousand households in the US with a TV, 87% had at least one CTV, compared to only 69% in 2017 and 38% in 2012. It also showed that 46% of adults watch videos on a CTV daily, an increase from 25% in 2017 to only 4% in 2012. The numbers are bound to increase in the decades to come — the technology is even more popular among young people aged 18-34, with 62% of them streaming videos on a CTV daily.

Hitesh Bhatt, the CTV/OTT Director for PubMatic (EMEA region), sees [major content creators prioritizing direct-to-consumer platforms](https://www.exchangewire.com/blog/2022/12/05/predictions-2023-ctv/) over traditional channels in the long term. This means streaming platforms will attract more viewers and, eventually, a greater proportion of ad spending.

Brands are not blind to these opportunities. The [Connected TV Trends, 2022-23 by AppsFlyer survey](https://www.appsflyer.com/company/newsroom/pr/ctv-survey-report/) revealed some very compelling numbers:

- 98% of brands expect CTV advertising is expected to overtake mobile advertising, with one in four predicting this outcome in the next two to three years.
- 86% of consumers have no problem seeing ads on CTV (they will continue watching the videos), particularly those they find relevant. Half of the viewers in North America even downloaded mobile apps that were advertised on CTV.

By now, you’re probably already convinced that CTV advertising is a growing trend. The next section will seal the deal if you’re still on the fence about whether CTC advertising is for you.

## Benefits of CTV advertising{#benefits-of-ctv-advertising}

Why exactly are brands placing so much faith in CTV advertising? We’ll answer that question by laying out its benefits.

![Benefits of CTV advertising](/uploads/Group_10818_7b0a8c562e.png)

### Reaches viewers where they are

There talks of [the death of traditional TV](https://www.wit-media.com/blog/do-people-really-watch-tv-anymore). People still watch TV, but not like they used to. They no longer rely on major cable and broadcasting companies to deliver their daily dose of news and entertainment. People in the US will be [spending more time streaming video](https://www.insiderintelligence.com/content/digital-video-surpass-tv-us-viewing-time) than watching traditional TV in 2024.

Advertisers need to reach people where they are. And for many, that’s on CTV. As mentioned above, 46% of adults already view daily videos via CTV. Therefore, a big benefit of CTV advertising is reaching people where they consume streaming video.

### Gains access to an extensive inventory

Major players like Netflix, Disney+, Amazon, and YouTube TV are keeping up with the increasing popularity of CTV advertising. This means an extensive array of premium CTV advertising inventory or advertising slots will be out for the taking. Advertisers can easily access this inventory via demand-side platforms (DSPs), a type of software that automates the purchase of ad spaces.

### Creates an omnichannel experience for your audience

Today’s consumers access media using many different platforms and devices. Smart marketers take advantage of this by creating omnichannel experiences that follow their audience across devices. You may have experienced googling a product, then later encountering ads for it while scrolling Facebook on your mobile device, reading emails on your laptop, and streaming YouTube on CTV. Before you know it, you actually purchase an advertised product. Adding CTV advertising to your existing channels increases the chance of making a sale.

Advertising across channels can be a complex process. Fortunately, automated DSs tools can simplify it for you.

### Targets the right audience

It’s not enough that ads get eyeballs; marketers need to be sure they get the right eyeballs on their ads. Fortunately, CTV advertising offers sophisticated audience targeting. This means advertisers no longer have to rely solely on standard geographic and demographic targeting. You can program CTV campaign to target your audience according to any of the following parameters:

- Dayparting (targets people who watch at specific times on specific days of the week).
- Retargeting (targets people who’ve already interacted with your brand).
- Content category (audiences who consume news, lifestyle, or sports).
- Content type (audiences who consume movies, TV shows, or vlogs).

As mentioned above, CTV viewers don’t really find ads disruptive. Safe to say, targeted advertising has a lot to do with this; it shows ads to people most likely to be interested in the advertised product.

### Makes the most out of your budget

Because you're showing your advertisements to targeted audience segments (i.e., people most likely to purchase your product), you’re more likely to see a return on your ad spending. CTV advertising also lets you track audience response and adjust your ad copy and placement accordingly. This greatly reduces wasted impressions.

Gone are the days when TV advertising was too prohibitive, limiting the opportunity only to big players. Thanks to cost-effective CTV advertising, you can expand your business’s reach via television, which is now within the budget of smaller businesses.

### Evaluates your ad campaigns

You need accurate attribution tracking to ensure you’re not wasting ad spend on ineffective campaigns. That is, you need to identify the marketing channels and traffic sources that bring in profits. Fortunately, CTV marketing enables detailed reporting and measurement for key metrics, including purchase attribution, website visits, and brand lift (the ad campaign’s impact on people’s perception of your brand).

### Scales your ad campaigns

Because CTV advertising is cost-effective, you can scale your ad campaigns faster. Budget-friendly ad placement, extensive inventory, and effective reporting enable you to flood target audience segments with ads that double down on your messaging, boost engagement, increase conversions, and boost revenue.

CTV advertising comes with benefits serious business leaders simply shouldn’t miss out on. But it also has its challenges.

## Drawbacks of CTV advertising{#drawbacks-of-ctv-advertising}

![Drawbacks of CTV advertising](/uploads/Group_10818_3897a77b22.png)

The popularity of CTV advertising has not made it immune to challenges. Here are some drawbacks to expect:

- **Fragmented audience**. Users access CTV content using many different gadgets. This complicates decisions about how to reach your audience.
- **Relatively limited targeting**. Although CTV advertising comes with sophisticated audience segmentation, its targeting abilities are still limited compared to other types of digital advertising.
- **Ad-blocking**. You’ll have to contend with ad blockers that make it virtually impossible to reach certain segments of the market.
- **No standardized tracking methods**. Although CTV advertising offers accurate attribution measurement, you might still grapple with inconsistent tracking standards across platforms and devices.
- **Ad fraud**. CTV advertising could expose you to fraudulent practices, such as fake impressions and clicks. You’re especially at risk if you use DSP platforms.
- **Expensive**. Although more affordable than traditional TV, CTV advertising is still quite costly compared to other digital ads.

With the right balance, you can effectively navigate these challenges and fully embrace the benefits of CTV advertising.

CTV advertising is very promising. But don’t just jump right in. You first need to prepare a strategy that answers the following questions:

- Who do I want to reach?
- What am I trying to achieve? Am I aiming for brand awareness or for people to take a specific action? What specific action do I want people to take?
- What change of perspective do I want to happen? 
- How does this CTV campaign fit into my overall marketing strategy?
- What tools do I need to execute this plan?

Your answers to these questions will shape the kind of audience segments, platforms, and content types you choose.

## Conclusion{#conclusion}

OTT and CTV content are fast taking over as more and more people cut the cord. And this increasing popularity brings enormous CTV advertising opportunities that business leaders simply can’t afford to miss. 

Having discussed the distinctions between OTT and CTV and explored key features of [OTT platforms](https://perfsol.tech/ott-platforms-development-support-your-partner-in-streaming-success), the time to act is now. So let experts at [Perfsol](https://perfsol.tech/video-streaming-app-development), a video streaming app development company, help you apply this knowledge to your strategy to successfully launch your streaming service. Contact us today!

You don’t need statistics or research to tell you that cable TV is dying. You’re most likely witnessing its slow death firsthand. More and more people have become cord-cutters (people who have canceled their cable TV subscriptions) as video streaming continues to disrupt our old TV viewing habits. Read more about what you need to do further!

- [OTT vs. CTV: What do they mean?](#ott-vs-ctv-what-do-they-mean)
- [The growing popularity of CTV advertising](#the-growing-popularity-of-ctv-advertising)
- [Benefits of CTV advertising](#benefits-of-ctv-advertising)
- [Drawbacks of CTV advertising](#drawbacks-of-ctv-advertising)
- [Conclusion](#conclusion)

OTT vs. CTV: Understanding the Difference and the Opportunities They Present

OTT vs. CTV: Verstehen des Unterschieds und der Chancen, die sie bieten

Laut einem Bericht von Research and Markets betrug der Umsatz der Gesundheitsdienstleistungsbranche im Jahr 2022 mehr als 7,5 Milliarden US-Dollar. Experten sagen auch voraus, dass bis 2026 das Volumen des globalen Medizinmarktes auf 10,414 Milliarden US-Dollar ansteigen könnte. Lesen Sie mehr über die Entwicklung von Gesundheitssoftware!

According to a report by [Research and Markets](https://www.researchandmarkets.com/reports/5544354/healthcare-services-global-market-report-2022), the revenue of the Healthcare service industry in 2022 was more than $7.5 billion. Experts also predict that by 2026, the volume of the global medical market could increase to $10.414 billion.

This active growth rate is due, among other things, to technological innovations, which are widely implemented in clinics, laboratories, and diagnostic and wellness centers.

At Perfsol, we closely follow the development of the healthcare industry and the impact of new technologies on it. Therefore, in this article, we will consider why healthcare institutions need advanced IT solutions, what trends await us in the future, and how to get innovative and reliable software.

## What Is Clinic Software, and How Does It Work?{#what-is-clinic-software-and-how-does-it-work}

Healthcare software is a digital solution that provides a stable interaction between healthcare entities and consists of interconnected components. These include:

- Hospital Management Systems (HMS);
- ERP;
- CRM;
- knowledge bases; 
- accounting systems; 
- remote patient monitoring (RPM), and more.

A simple example of a hospital software component is an electronic medical record. A doctor records a medical history, examination results, treatment plan, etc. In turn, the patient can access their chart and view the information from a smartphone or computer anytime.

Healthcare system software solutions do more than simplify physician-patient interactions. They also establish connections between the hospital, staff, providers, partners, pharmacies, laboratories, and other institutions.

Let's take a look at the benefits of implementing digital solutions in this industry:

![Healthcare services](/uploads/Group_691_ac608c77cc.png)

- **Automation of routine processes.** The computer will transfer personal data to other systems, send out appointment reminders to patients, auto-fill electronic forms, and create schedules for staff many times faster. The automated system also reduces the risk of human error when handling data.

- **Optimization of work between clinic departments.** For example, a unified system implemented in the clinic and laboratory simplifies the transfer of test results. The software lets you quickly add or update data in a patient's electronic medical record and notify the doctor when test results are ready.

- **Maintaining reports and collecting analytics.** Programs help collect and structure all incoming data in an easy-to-understand format. This feature helps improve patient care and the work environment for employees, as well as the development of effective marketing strategies.

[Quality software](https://perfsol.tech/quality-of-software-development-the-main-factors-secrets-of-success) provides more accurate data for physicians, allowing them to maintain high levels of patient care and improve treatment outcomes.

## Main Stages of Healthcare Software Development{#main-stages-of-healthcare-software-development}

To get a smoothly [running software solution](https://perfsol.tech/fintech-software-development) covering the hospital's business needs, it is important to become familiar with the development process. It will also give a general idea of how to work with the IT team.

Custom healthcare software has the following steps:

![Healthcare app](/uploads/Group_766_06ff9eed5c.png)

- **Gathering project requirements.** At this stage, one gathers information about the systems already implemented in the medical organization. The terms of reference for programmers and designers are formed based on the customer's requirements and wishes for the future product.
- **Prototyping.** A prototype is created, which allows you to test the suitability of the concepts put forward and the feasibility of the designed architecture. It also checks the operability of the technological solutions used.
- **UI/UX design and programming.** This stage of the work includes designing a user-friendly interface and shaping the look and feel. A developer writes code for each component of the system.
- **Testing and refining the software solution.** Most developers use the practice of continuous testing in their work. Each part of the written code is tested and improved, and simultaneously the work with other components is in progress. This approach considerably reduces the time of the product release and favors the creation of high-quality and correctly working software.
- **Deployment and further technical support.** At this stage, the digital solution is prepared for operation and integrated into the IT infrastructure of the medical organization. IT specialists also develop updates to expand the product's functions in accordance with user requests.

While working on the project, the product's specific features, which depend on its type, are considered.

:CallToActionPerson{title="Get a technical consultation" name="Volodymyr Khodonovych" position="Mobile Development Expert" avatar="/uploads/volodymyr_khodonovych_min_4eb4eeb765.jpg" description="Skilled, experienced mobile development expert from Perfsol is ready to answer any questions regarding the design and development of software products. Choose a platform to speak, ask questions, and we'll certainly answer." }

## Types of Apps for Healthcare Facilities{#types-of-apps-for-healthcare-facilities}

Healthcare app is a program designed to simplify doctors' and administrators' jobs and make patient care more personalized.

Depending on the category of users, we divide such apps into several types:

![Healthcare service industry](/uploads/Group_691_a812b8ea60.png)

- **For clinic management and administrators.** An app helps manage finances and data flow and collect customer service information.
- **For doctors.** Apps automate prescriptions and scheduling, as well as help track patient visits and get information from the nursing staff on time.
- **For patients undergoing treatment.** They provide the convenience of healthcare services: quick appointment booking, medical record review, push notifications with reminders about doctor's visits, and access to test results and treatment regimens.
- **For people watching their health.** Designed to help patients live a healthy lifestyle and monitor their diet as recommended by their doctors. 

They also help monitor basic parameters such as pulse, temperature, blood pressure, etc.

Mobile apps for patients are designed to help them keep track of their health, and solutions for managers and staff are needed to increase productivity.

## What Trends Await the Healthcare Software Industry?{#what-trends-await-the-healthcare-software-industry}

The IT solutions market is constantly changing and actively developing. These changes are also reflected in the healthcare service industry, which entails new opportunities for patient care:

![Custom healthcare software](/uploads/Group_767_09d679ce39.png)

- **Telemedicine.** Remote monitoring of patients with the possibility of interactive patient care. Technology has become particularly widespread because of the worldwide pandemic of Covid-19. According to a [McKinsey & Company](https://www.mckinsey.com/industries/healthcare/our-insights/telehealth-a-quarter-trillion-dollar-post-covid-19-reality) study, more than 40% of consumers surveyed plan to continue using telemedicine. Therefore, introducing this technology will help attract more patients who want remote and personalized care.
- **Blockchain.** Technology that increases the security and transparency of data exchanges. It could save millions of dollars by minimizing the risk of leaks of health information and clinic personnel. Interest in blockchain is confirmed by a [BIS Research report](https://www.prnewswire.com/news-releases/global-blockchain-in-healthcare-market-to-reach-561-billion-by-2025-reports-bis-research-680230953.html) that predicts the value of blockchain in healthcare could rise to $5.61 billion by 2025.
- **Artificial Intelligence.** Technology that already allows for more accurate diagnoses and treatment plans. [Statista](https://www.statista.com/statistics/938775/global-healthcare-artificial-intelligence-market-revenue/) said AI generated about $7 billion in revenue for the healthcare service industry in 2021. By comparison, in 2018, revenue reached only $2 billion.
- **Internet of Medical Things (IoMT)**: smart watches, hearing aids, biological patches, and other things help doctors monitor patients in real-time. According to a report by [InsightAce Analytic](https://www.insightaceanalytic.com/report/internet-of-medical-things-market/1559), the IoMT market was valued at $65.72 billion in 2022. Experts also forecast significant compound annual growth of 23.57% from 2023 to 2031. Therefore, the market is expected to reach over $357 billion by the end of 2031.

The introduction of innovative technologies helps to bring the healthcare industry to a new level of development. It has a positive impact on the effectiveness of the diagnosis and treatment of many diseases.

## How Much Does It Cost to Develop Software Solutions for Medical Institutions?{#how-much-does-it-cost-to-develop-software-solutions-for-medical-institutions}

The minimum cost of creating software for hospitals usually starts at $50,000 but can go up to $500,000 or more. Determining the budget at once is difficult because it will depend on many factors.

The cost of Healthcare Software Development is affected by:

- Type of development (cross-platform, native).
- The tech stack required for the development.
- The number of features to be implemented.
- The level of complexity of the project.
- The experience of the hired specialists.
- The deadline for implementing the project and so on.

To calculate an accurate budget, a specialist examines the existing software in the hospital, studies in detail the institution's activities, gets acquainted with the customer's requirements, and assembles a team of IT experts.

## Where to Order the Development of Software for Medical Institutions?{#where-to-order-the-development-of-software-for-medical-institutions}

Medical organization owners who need custom healthcare software can go three ways:

![Healthcare system](/uploads/Group_10803_a950f8f505.png)

- **Get your own development team.** This option is quite costly in terms of time and money. For example, [the average developer's salary](https://www.glassdoor.com/Salaries/software-developer-salary-SRCH_KO0,18.htm) in the United States is about $95,000 yearly. If we add the cost of logistics and organization of workplaces, we get a large sum of money. Not every medical institution can afford it. The hospital owner will need to assemble an in-house team only if there are plans for long and uninterrupted work on improving and scaling software solutions.

- **Hire freelancers.** Finding the right specialists at various freelance sites also takes time and effort. In addition, a digital solution for a hospital requires regular updates. After entering into a freelance partnership, the owner may have to look for specialists to keep the software up and running again in the future.
- **[Hire an outsourcing company](https://perfsol.tech/healthcare-software-development).** This option has several key advantages for business owners:
 - **Save time**. An outsourcing company provides an already cohesive team with the right skills. Thus, IT specialists can immediately start working on the project without wasting time on organizational issues.
- **A smooth communication process**. Such a team already has channels set up for stable communication between itself and with clients. In this case, the customer does not need to spend time and effort to ensure constant communication. In addition, well-established communication has a positive impact on the entire Healthcare Software Development process, as it helps to quickly resolve issues and problems that arise.
- **High development reliability.** By engaging outsourcers, the customer can access the best talents worldwide who work with modern technology. This increases the chances of implementing high-quality and secure software for the clinic.
 - **Favorable terms of cooperation.** Hiring an outside team is more cost-effective for the business than creating an internal IT department. The outsourcer also takes care of selecting performers, organizing workplaces, providing logistics, paying salaries and sick pay, and drawing up a social package.

You can assemble a skilled team of programmers to create an effective and reliable digital product for the clinic by contacting Perfsol, an outsourcing IT company.

Need software that will take your medical facility to the next level? [Contact our manager](https://perfsol.tech/contact) for an in-depth consultation on developing a successful digital solution.

According to a report by Research and Markets, the revenue of the Healthcare service industry in 2022 was more than $7.5 billion. Experts also predict that by 2026, the volume of the global medical market could increase to $10.414 billion. Read more about healthcare software development!

- [What Is Clinic Software, and How Does It Work?](#what-is-clinic-software-and-how-does-it-work)
- [Main Stages of Healthcare Software Development](#main-stages-of-healthcare-software-development)
- [Types of Apps for Healthcare Facilities](#types-of-apps-for-healthcare-facilities)
- [What Trends Await the Healthcare Software Industry?](#what-trends-await-the-healthcare-software-industry)
- [How Much Does It Cost to Develop Software Solutions for Medical Institutions?](#how-much-does-it-cost-to-develop-software-solutions-for-medical-institutions)
- [Where to Order the Development of Software for Medical Institutions?](#where-to-order-the-development-of-software-for-medical-institutions)

Healthcare Software Development: How to Make It Work

Gesundheitssoftware-Entwicklung: Wie man es zum Laufen bringt

Die Fintech- und Finanzbranche nutzt bereits Blockchain. Erfahren Sie, wie Finanzinstitute von der Entwicklung dieser bahnbrechenden Technologie profitieren. Weiterlesen

Blockchain may be the most discussed technology of recent years. A source of income for some and a mystery for others - at first glance, [blockchain](https://perfsol.tech/what-is-a-private-blockchain-and-its-benefits) may seem too abstract to be useful for everyone. In the near future, blockchain could become the engine of economic development. Entire systems, from government to healthcare, from logistics to banking, are being built using the power of this technology. In this article, we will look at blockchain's place in the fintech industry and its benefits to businesses.
## Fintech blockchain market overview{#fintech-blockchain-market-overview}
You can be as skeptical as you want about crypto-assets as an investment tool, but ignoring the opportunities and benefits of blockchain technology is like shooting yourself in the foot. Analysts predict that the global blockchain market will [grow 143 times by 2030](https://www.grandviewresearch.com/press-release/global-blockchain-technology-market) with a total value of $1.5 trillion. Major financial services, including Visa, Mastercard, and PayPal, are beginning to use crypto-assets and allow cryptopayments. The blockchain system was the basis for creating the idea of a new integration of Web 3.0.
:CallToActionPerson{title="Get a technical consultation!" name="Volodymyr Khodonovych" position="Fintech Expert" avatar="/uploads/volodymyr_khodonovych_min_4eb4eeb765.jpg" description="Skilled, experienced fintech expert from Perfsol is ready to answer any questions regarding the advantages of implementing blockchain products. Choose a platform to speak, ask questions and we'll certainly answer." }
Japan's largest bank, Mitsubishi UFJ Financial Group (MUFG), plans to provide financial services via Metaworld as early as 2023. And Poland's most famous bank, PKO Bank Polski, has announced the opening of its first bank branch in the Metaworld.

Thanks to blockchain, peer-to-peer transactions can be made without financial intermediaries such as banks. However, this does not take banks out of the trend. J.P. Morgan announced the use of blockchain technology in its new Confirm solution, designed to reduce the cost of payments between banking institutions worldwide.

So blockchain continues to be an integral part of the development of the fintech market. According to Markets and Markets, the size of the blockchain fintech market is [expected to grow](https://www.marketsandmarkets.com/PressReleases/fintech-blockchain.asp) from $230.0 million in 2017 to $6,228.2 million by 2023.

## Blockchain in fintech: Predictions for 2024{#blockchain-in-fintech}
According to [Meticulous Research](https://www.meticulousresearch.com/product/fintech-blockchain-market-5013), the fintech blockchain technology market is projected to exceed $36.04 billion by 2028, showcasing a remarkable compound annual growth rate of 59.9% from 2021 to 2028. This trend will be a major focal point in 2024, indicating substantial growth and significance in the coming years.

### Increased adoption of stablecoins
Stablecoins, a form of cryptocurrency linked to stable assets, are gaining popularity as payment options among companies like CheapAir, ExpressVPN, Twitch, and Travala.com. Donohoe notes their transition from trading tools to simpler fiat currency conversions by fintech firms, is leading to wider adoption. Now, major players such as Western Union and MoneyGram are using stablecoins for faster cross-border transfers.

### Regulation around DeFi
Decentralized finance (DeFi) integrates blockchain to manage financial transactions without banks, exchanges or brokerages.The UK government is supportive of the development of DeFi, and the FCA has recognised its potential benefits — such as increased financial inclusion and innovation.

### More regulation as the Brexit grace period ends
In 2024, companies under the Temporary Permissions Regime in the UK must obtain full FCA authorization as the grace period for FCA EU licenses ends, leading to a greater emphasis on regulatory compliance overall.

## Fintech Blockchain: what is it?{#fintech-blockchain-what-is-it}
[Fintech](https://perfsol.tech/fintech-software-development) is a term to describe projects where there are two components: financial and technological. The financial part means that the business model of the project is focused on financial services. Financial services, in turn, have seven main areas: payments, deposits and crediting, brokerage and [trading](https://perfsol.tech/stock-trading-app-development), raising capital, asset and investment management, hedging, and insurance.

The technological part, on the other hand, means that the project has three main branches:

- Simplification of obtaining financial services;
- Transformation of processes and business model;
- Optimization of the cost structure.

In turn, a blockchain is a distributed database that contains information about all transactions carried out by system participants. The information is stored as a chain of blocks. Each block contains a certain number of transactions.

According to many people, blockchain has significantly impacted the fintech sector, especially through such developments as asset tokenization and the introduction of digital currencies. Data security and the use of smart contracts are important applications as well.

Does blockchain have all the makings to be a game changer in the established monetary system? Definitely yes. P2P will eliminate the need for third-party processing of transactions, significantly reducing transmission times and providing increased transparency of financial transactions.

## Benefits of blockchain in fintech{#benefits-of-blockchain-in-fintech}
First of all, blockchain in fintech is associated with the crypto industry, where it has become the technological basis for issuing cryptocurrencies. However, blockchain in fintech is much bigger than the crypto industry. Particularly in the fintech industry, the use of blockchain has the following advantages:

### Transparency
All blockchain data is publicly available, meaning anyone can trace the chain of transactions from the beginning of the network's existence.

### Reliability
Data is stored on multiple users' computers. This reduces the risks of hacking and computer crashes. Even if dozens of computers fail at once, no information is compromised.

### Security
The system adds blocks in chronological order and links them by a common hash. Therefore they form an unbreakable chain whose links cannot be deleted or changed. 

### Minimal commissions
Instead of centralized intermediaries such as banks, miners log the transactions. Usually, there are a lot of miners and the competition between them is very high. This keeps the commissions low.
:CallToActionContent{title="Build a Blockchain App in the blink of an eye!" description="Our team has been developing various fintech products for more than six years. Perfsol will be your perfect partner in creating a high-tech blockchain app with our diverse portfolio and relentless focus on the client's needs." }
### UI/UX Design
### Independence
In the blockchain, transactions go through without intermediaries. That is, companies, banks, and governments cannot interfere in the process.
## Top 3 blockchain trends in fintech{#top-3-blockchain-trends-in-fintech} 
The scope of blockchain applications in fintech is truly enormous. Nevertheless, over the past few years, some trends have been of particular interest to audiences.

### Smart contracts
Blockchain technology enables smart contracts. Smart contracts are completely digital contacts whose information is protected by encryption. Their key difference is the automatic control and execution of contract clauses. When the conditions are met, the contract is completed automatically, without any additional actions or legal involvement. Smart contracts allow you to track the entire supply chain, which reduces or completely eliminates the possibility of product counterfeiting or illegal actions with it.

### DeFi
DeFi stands for decentralized finance, which uses a blockchain network to enable customers to access [financial products](https://perfsol.tech/roadmap-to-building-a-great-fintech-product) and services without intermediaries such as central banks and institutions. DeFi is emerging as a better alternative to traditional finances without intermediaries to offer a more trusted, cheaper, and more secure system for transferring monetary assets. 

### Digital currencies
Another area where cryptocurrency affects the traditional banking system is CBDC (Central Bank Digital Currency). Simply put, CBDC is a blockchain-based digital dollar. Unlike the decentralized bitcoin, the CBDC is designed to be under the full control of the national government. Despite the rather questionable experience of Venezuela, which launched its first national cryptocurrency, CBDC Petro, in 2018, many countries continue to develop their national cryptocurrency intensively.

## Top 10 Fintech Companies Using Blockchain Technology{#top-10-fintech-companies-using-blockchain-technology}
[Ripple](https://ripple.com/) operates as a global payment network leveraging blockchain technology to transfer funds worldwide. Well-known international financial institutions such as American Express, BBVA, and BMO utilize Ripple's secure blockchain platform to manage and facilitate payments.

The two largest payment processing networks in the world, [Visa](https://usa.visa.com/solutions/crypto/enterprise-blockchain.html) and [MasterCard](https://www.mastercard.com/global/en/business/issuers/crypto.html) are a great example of blockchain in fintech. Visa and MasterCard are adopting blockchain solutions to make transactions secure, scalable and interoperable.

[Goldman Sachs](https://www.goldmansachs.com/), a leading U.S. investment banking institution, launched an [educational microsite](http://www.goldmansachs.com/our-thinking/pages/blockchain/) highlighting blockchain's potential to simplify global transactions. Goldman Sachs backs [USDC](https://www.circle.com/en/usdc), a stablecoin tied to the U.S. Dollar, offering stability in a volatile crypto market, enabling global fund transfers without concerns about cryptocurrency fluctuations.

[J.P. Morgan](https://www.jpmorgan.com/global) engages in blockchain in fintech, utilizing [Confirm](https://www.jpmorgan.com/onyx/confirm), a blockchain-based account validation app, the bank enables swift verification of beneficiary account details for efficient payment processing. Their blockchain application, Liink, offers peer-to-peer data transfer for financial institutions and corporations, attracting 382 banks due to its adaptable API.

The cryptocurrency exchange platforms such as [Binance](https://www.binance.com/en) (Binance Smartchain), [Coinbase](https://www.coinbase.com/) (Base Blockchain), [OKX](https://www.okx.com/) (OKX chain) and [KuCoin](https://www.kucoin.com/) (KuCoin chain) have developed and currently utilize their respective blockchain networks. Each platform offers  trading, DeFi, token creation, or facilitating blockchain in fintech.

## Cases of Fintech Blockchain{#cases-of-fintech-blockchain} 
### Singapore Exchange Limited
Singapore Exchange Limited, an investment company that provides trading services across Asia, is using fintech blockchain for efficient interbank settlement. The implementation of the technology has solved several problems, including batch processing and manual reconciliation of several thousand financial transactions. 

### J.P. Morgan. 
On April 12, 2021, J.P. Morgan stated that they are leveraging the power of fintech blockchain to enhance money transfers. To reduce the verification time necessary to make major transactions, they are using blockchain technology. 

### Swedish Central Bank 
The Swedish Central Bank has experimented with issuing its own digital currency, known as e-krona, which is based on R3 Corda distributed technology. Sweden's central bank has in fact taken the courageous step of creating a usable cryptocurrency nationwide.

***
Many of the possible fintech blockchain scenarios are still only theoretical. It takes time to start applying them in practice - the development, testing, and patenting of systems sometimes take a very long time. Nevertheless, there are many fintech blockchain cases that have already been successfully implemented in practice. If you start developing your own blockchain fintech solution now, you are guaranteed to occupy a vacant niche and gain a unique competitive advantage.

The Perfsol team is ready to help you achieve your goal. [Contact us](https://perfsol.tech/contact) to get expert advice and discuss cooperation details!

Fintech and finance industry is already utilizing blockchain. Learn how financial institutions benefit from the development of this breakthrough technology. Read more

- [Fintech Blockchain Market Overview](#fintech-blockchain-market-overview)
- [Blockchain in fintech: Predictions for 2024](#blockchain-in-fintech)
- [Fintech Blockchain: What is It?](#fintech-blockchain-what-is-it)
- [Benefits of Blockchain In Fintech](#benefits-of-blockchain-in-fintech)
- [Top 3 Blockchain Trends in Fintech](#top-3-blockchain-trends-in-fintech)
- [Top 10 Fintech Companies Using Blockchain Technology](#top-10-fintech-companies-using-blockchain-technology)
- [Cases of Fintech Blockchain](#cases-of-fintech-blockchain)

Blockchain in Fintech: Advantages of Implementing This Breakthrough Technologies

Blockchain im Fintech-Bereich: Vorteile der Implementierung dieser bahnbrechenden Technologien

Die Entwicklung einer Fintech-App für Ihr Unternehmen kann kosteneffizient sein. Erfahren Sie mehr über die Kosten für die Entwicklung von Fintech und wie Sie sie optimieren können.

The market for [fintech apps](https://perfsol.tech/fintech-mobile-app-development) is expanding, with companies introducing the latest innovations: AI, ecosystems, and paperless services. These sophisticated options make people's lives easier. KPMG reports that fintech investment in the first half of 2021 reached $98 billion. And judging by the news, venture capital funds are not going to slow down. Between classic banks and non-banking startups, global ecosystems, and highly specialized apps, the battle for the consumer continues. In order to win and retain users, it is no longer enough to meet the demands, it is necessary to look into the future and anticipate industry trends. In this article, we will tell you how to make a technologically advanced and user-friendly fintech app, what you need for that, and what trends are popular with developers in this direction right now.
## Review of fintech app development market{#review-of-fintech-app-development-market}
The fintech sector showed some impressive moves in 2023. Looking ahead to 2024 and beyond, the scales are expected to tip even more, according to the stats from various analysts. For example, based on [Boston Consulting Group (BCG)](https://www.bcg.com/publications/2023/future-of-fintech-and-banking) research, fintech revenues could skyrocket six times over by 2030. Currently sitting at around $245 billion, those revenues are projected to hit $1.5 trillion in the next 5-6 years. What's more, the overall share of fintech in the global financial market revenue is set to jump to 7% (from the current 2%).

In 2023, the industry saw a sharp rise in new startup appearances. While America took the lead with the highest number of new fintech startups, Europe, the Middle East, and Africa (EMEA) are swiftly catching up. With this trend in mind, we can expect a continued surge in fintech startups in the coming years. Who knows? [Build a fintech app](https://perfsol.tech/fintech-software-development) and your project might just be the next fintech unicorn!
![fintech-startups.png](/uploads/fintech_startups_f24fe4dacb.png)
:CallToActionPerson{title="Get a technical consultation" name="Volodymyr Khodonovych" position="Fintech Expert" avatar="/uploads/volodymyr_khodonovych_min_4eb4eeb765.jpg" description="Skilled, experienced fintech expert from Perfsol is ready to answer any questions regarding the design and development of fintech software products. Choose a platform to speak, ask questions, and we'll certainly answer." }

## TOP 3 Mistakes that Make Fintech Startups Fail{#top-3-mistakes-that-make-fintech-startups-fail}
Recent stats show that about 90% of new businesses, including those in finance and technology (fintech), could fail. What are the main obstacles that might stop you from succeeding? Take a look at the list below to be prepared for possible challenges and avoid them!

- **Lack of market research.** Building a [fintech app](https://perfsol.tech/how-to-create-a-money-transfer-app), startups often dive headfirst into their ideas without really checking if those ideas match what users actually need or solve their problems. You could end up with a fantastic product, loaded with cool features and sleek design, but it might not be what the market is looking for. Take a moment to dig into your target audience, scope out the competition, and keep an eye on trends. It might take a bit, but it'll give you the right roadmap for what comes next.
- **Failing to plan for scalability and rapid growth.** Startups are all about that ongoing quest for growth. So, when you're sketching out your development strategy, it's key to factor in every little hiccup you might hit while scaling up. Set up a nimble architecture building a fintech app, figure out which team members you need to bring on board for smoother operations, identify processes that can be automated to ease the workload, and zero in on the big-picture aspects of expansion.
- **Ignoring regulations.** Fintech is a specific area, dealing with loads of personal info. So, there are tons of rules, and breaking them can mess up your software big time or even land you in legal trouble. If you're keen on smoothly sailing through your fintech project without getting stuck in legal headaches halfway, it's smart to really dig into the laws that apply to your turf and make sure you're playing by the book. If you're unsure about achieving both technical excellence and legal compliance for your fintech app, reach out to our fintech development team!

Absolutely, this brief list is just the tip of the iceberg. However, addressing these three challenges can go a long way in helping you steer clear of numerous related problems.

## Fintech app development: important features{#fintech-app-development-important-features}
Every fintech app development project seeks to stand out with its unique features. Nevertheless, there are some common trends and technologies that currently have special attention.

![Fintech App Development HTB_1.png](/uploads/Fintech_App_Development_HTB_1_faa5f242ff.png)

### Security
The basis of any fintech app is security. The developer needs to comply with all the requirements of international standards for Visa and Mastercard PCI/DSS, OWASP, and OWASP. At the same time, the application itself should remain clear and user-friendly. The most difficult task is to combine security and usability requirements. The challenge for the development team is to think through the user interface and user behavior scenarios in a way that not only improves the UX but also ensures security and meets all legal requirements.
### AI
The use of artificial intelligence in fintech app development is changing the industry. AI-based technologies have been actively used in such systems and services as customer scoring, business forecasting, customer segmentation, automatic calls, ATM cash forecasts, and analysis of the location of offline outlets.
### Mobile version
No serious service today can afford to have only a web version. All users expect a convenient fintech mobile app with full functionality. For businesses, mobile app users have, on average, 6-7 times better return on service than website users, and about 1.5 times better return on average.
### Personalization of service
Data on transactions and customer requests within the fintech app allow not only to provide the user with charts of their expenses and income but also to prepare personalized offers. Scoring data and information from the bank's CRM are taken for analysis.

### User-friendly interface
For financial services, the fintech app’s interface is becoming the main way to communicate with users. User-friendliness is one of the main competitive advantages in [fintech app development](https://perfsol.tech/fintech-app-development). Developers are trying to polish the UX as much as possible to reduce the number of steps a user needs to take in order to perform the target action. One way to improve the UX is to prepare simple, clear, and easy-to-enter templates and use auto-substitution.

## What do you need to build a fintech app?{#what-do-you-need-to-build-a-fintech-app}

To build a fintech app you need to take into account many various factors - market trends, your potential users’ needs.  Moreover, you should outline the key value of your product, find a reliable team to cover all the tech issues, and create a strong marketing strategy to ensure your product’s popularity. Let’s look at this question in more detail.

![Fintech App Development HTB_2](/uploads/Fintech_App_Development_HTB_2_f9c7d003a5.png)

 ### Choose the type of your fintech app

Fintech industry is very comprehensive, so the first thing you should do before jumping into fintech mobile app development is to decide which type of app you want to deliver to the market. There are many types of fintech app, now we’re going to take a closer look to the most popular ones:
- Loan apps - apps that are aimed at making lender-borrower interactions more effective, reliable and fast. With the help of these apps, the users can manage the loan process to the full extent -  from the applying to loan payments.
- banking apps - this type of apps allow users to get all the banking services via their gadgets. It means that you can track your banking account activity, control your balance, make payments, transfer costs, pay utility bills, book flight/train tickets, etc.
- Insurance apps - help assess insurance risks more accurately, apply for coverage easier and faster.
- Investment apps - thanks to AI and other advanced technologies, these apps can help find you the best options for investment based on your budget, risks, and other important factors.
- Personal finance management apps - with the help of statistics, diagrams, and other user-friendly visualization, you can easily control your daily spendings, get tips and warnings on how you should spend money to stay afloat and grow with your budget, etc.


 ### Find a team to build a fintech app

Based on your budget and needs, you can hire a software development company or freelance fintech app developer. Both options are good, but keep in mind that software development companies usually have more experience and expertise, can provide you with a full package of software development services, and have better project management and customer care. 
Moreover, software development companies can allocate a dedicated team for your project. It means that all the team members dive deep into your project, are focused on your business goals and problems, build a fintech app for you only and can’t be switched to other projects. 

By the way, we recommend you to pay attention to the Ukrainian software development companies because of the most fair price-quality ratio and amazing results they usually deliver. Contact Perfsol - a custom software development company which specializes in fintech app development. We not just create high-quality code but also provide IT consulting, integration with third-party platforms and support on every stage of your project growth. Check out [our fintech cases](https://perfsol.tech/fintech-software-development)!
:CallToActionContent{title="Build a Fintech App in the blink of an eye!" description="Our team has been developing various fintech products for more than six years. Perfsol will be your perfect partner in creating a high-tech loan app with our diverse portfolio and relentless focus on the client's needs." }
In simple terms, Minimum Viable Product (MVP) is a mini-version of your software. It allows you to build a fintech app with a minimal and very basic functionality that still can be used by your target audience. MVP approach is widely used in various industries, as well as in fintech. The core goal of MVP development is to build a fintech app and release to the market as fast as possible, engage first users and analyze their feedback. Based on this, you can test the viability of your idea and whether your product brings a real value to the customers. Also you can define what features are necessary and which ones you should change and continue building your fintech app with the correct approach.

MVP advantages:

- It provides you with a visional clarity as, first of all, you have to focus on your core functionality 
- It’s development requires minimum time and costs, that’s why you can launch it really fast
- It helps build early relationships with customers and gain users loyalty
- It’s very flexible so you can make as many changes as are necessary to deliver the best possible final product
- It increases your chances to engage investors

### Find your investors
Now with MVP on board you can think of finding investors to conduct the full-range product development. There are several options where you can find the best possible investor to build a fintech app, pick the one you like most:
- Fundraising platforms (like [Kickstarter](https://www.kickstarter.com/))
- Private investors (for example, check [AngelList](https://angel.co/))
- Incubators & Accelerators (like [Y Combinator](https://www.ycombinator.com/))

What you should definitely do, regardless of what type of investor you are going to involve to your fintech startup, you should be ready to pitch your product -  to communicate the value of your idea, show the competitiveness of your software and necessity to build a fintech app, make a deep market research and make some forecasts on how you can scale and grow in several months and years.

### How can you evolve your fintech app?

- Keep in the loop of the market changes and trends to stay one step ahead of your competitors
- Investigate your users experience and make your design more convenient and catchy
- Think of the advanced features for your fintech application, for example, for your Premium users
- Use up-to-date technologies: AI, chatbots, voice recognition, blockchain, etc.
- Improve your app security with new technologies and methods
- Build a strong marketing strategy

## Fintech app development stages{#fintech-app-development-stages}
You should follow a strictly tested development workflow in order to start a fintech app development project of high quality and functionality. Let's take a look at the stages of fintech app development.

![Fintech App Development HTB_3.png](/uploads/Fintech_App_Development_HTB_3_d1ec675a44.png)

### IT Consulting
At this fintech app development stage specialists of the company headed by business analyst will listen to your ideas, make research of your needs, and provide you with a plan of further actions.
### UX/UI design
At this fintech app development stage, the logic of the interaction of the app’s elements and their appearance are developed. UX/UI designers ensure that people will feel comfortable and pleasant using the service. This determines how often people will use the app. 
### Development
Direct writing of fintech app’s code by developers. At this fintech app development stage, specialists will build the software’s frontend, backend, and test it in order to avoid bugs.

### Implementation
Technological upgrade should not put your company on pause. During this fintech app development phase, experts ensure that the app is implemented in your business processes in the most cost- and time-efficient manner.

### Support and maintenance
Once the fintech app is released, you need to constantly monitor its performance. In addition, new features and functions are added at this fintech app development stage.

## Fintech app development cost{#fintech-app-development-cost}
The cost of a fintech app development is determined by two factors. The first is the time it takes to develop a fintech app. The second is the cost of specialists’ services per one hour of that time. On average it takes them about **3000 hours** for fintech app development. If the average specialist's rate in the USA or Western Europe is about $90 per hour, then fintech app development will cost you around $200 000. 

 ![Fintech App Development HTB_4.png](/uploads/Fintech_App_Development_HTB_4_7e54c77b72.png)
 
## How to reduce fintech app development cost{#how-to-reduce-fintech-app-development-cost}
There are several ways to reduce the cost. Let’s take a closer look at them.

### Outsourcing
The most effective way to save money on fintech app development is outsourcing. The idea is that you hire a development team in a country where the specialist rates are lower than in yours. This way you can cut the fintech app development cost in half. 

### MVP development 
You can develop a minimum viable product or **MVP**. This is a fintech app that includes only key functionality. With an MVP you can test the fintech app for viability, and then gradually add the rest of the features to it.

### Detailed project requirements
Properly drafted project requirements allow you to understand exactly what will be developed and how much will fintech app development cost. To draw up such requirements, it is highly recommended to find a team of fintech app development experts with consulting services.

When starting modern fintech app development projects, issues of customer centricity and cybersecurity come to the fore. Even the older generation is going online en masse, mobile apps are replacing classic plastic payment cards from everyday life, and financial transactions themselves are becoming more and more seamless and invisible to the consumer. The winner is the one who is the first to offer the user freedom and comfort in dealing with their money: a fast, reliable, and convenient banking app. Ensure this with the help of [Perfsol's](https://perfsol.tech/contact) top-notch development team and get ahead of the curve with a cutting-edge fintech solution.

## Building a Fintech App: Successful Case by Perfsol{#building-a-fintech-app-successful-case-by-perfsol}
MXNEY is the go-to financial app for e-commerce. The project was pretty extensive, so we brought together a crew of tech and business pros: developers, analysts, PMs, designers—you name it. It gathers stats from platforms and shopping systems, controls sales, defines revenues — you name it. Our fintech app is robust and user-friendly, offering seamless card management, tracking of all payment deadlines, and other financial operations. Check out what we've got under the hood:
- Transactions list
- Security regulations: KYC, KYB
- Credit documentation
- Working with Direct debit schemes
- Online wire transfers

Plus, we hooked up integrations with Shopify, Magento, WooCommerce, Prestashop, Shoporama, Smartweb. We even got linked with Aiia Open Banking (Mastercard) and synced up with Facebook Ads Manager, Google Analytics, and Google Ads.

Got a fintech app idea brewing? Let's chat about how to build a fintech app for you and guide your project to success, just like we've done for all our clients!




Building a fintech app for your business can be cost-effective for your business. Read more about fintech development cost and how to optimize it.



- [Review Of Fintech App Development Market](#review-of-fintech-app-development-market)
- [TOP 3 Mistakes that Make Fintech Startups Fail](#top-3-mistakes-that-make-fintech-startups-fail)
- [Fintech App Development: Important Features](#fintech-app-development-important-features)
- [What Do You Need To Build A Fintech App?](#what-do-you-need-to-build-a-fintech-app)
- [Fintech App Development Stages](#fintech-app-development-stages)
- [Fintech App Development Cost](#fintech-app-development-cost)
- [How To Reduce Fintech App Development Cost](#how-to-reduce-fintech-app-development-cost)

How to Develop a Fintech App and How Much Will It Cost?

Wie entwickelt man eine Fintech-App und wie viel kostet es?

Die Entdeckungsphase in der Softwareentwicklung ist ein entscheidender Schritt für erfolgreiche Projekte. Erfahren Sie alles, was Sie über ihre Phasen, Kosten und den gesamten Prozess wissen sollten.

What are the chances of hitting the target if you’re shooting with your eyes shut? About the same as starting a software development project without estimating, researching, and analyzing each aspect first.

Yes, all this research takes time - the time the team could have spent actually developing something. But starting a project without comprehensively analyzing it first is unreasonable and quite dangerous. If little attention is paid to the evaluation, the final cost and timeline may exceed what was planned. Our advice is to start every IT project you care about with the [discovery phase](https://perfsol.tech/discovery-phase). And the good news is, you [don’t have to do it in-house](https://perfsol.tech/can-the-dedicated-team-model-benefit-your-business "Can The Dedicated Team Model Benefit Your Business? Definitely!").

## So… What is the discovery phase?{#what-is-the-discovery-phase} 

Quite often, companies come up with ideas, but they don’t have a clue on how to implement them. It’s even worse when they aren’t sure about their user needs. This is when the discovery phase of a software project is critical. 

The discovery phase is the initial, information-gathering stage of the project when a team of experts identifies the technical requirements and analyzes the business objectives of the project. 

Because the discovery phase impacts the entire [SDLC](https://perfsol.tech/the-tole-of-sdlc-in-making-an-outstanding-product "What is SDLC? Understand the Software Development Life Cycle"), the team of experts usually consists of a business analyst, a designer, and a technical lead. They communicate with the client and the client’s team to learn more about their expectations, preferences, and requirements. Then, they analyze the market and shape the project description to [estimate the development costs and timeline](https://perfsol.tech/software-development-cost-estimation "Cost Estimation Without Requirement Collection: Here’s Why You Shouldn’t Do It").

This approach minimizes the number of changes in the course of development, as the size of the project is defined along with other key factors, like the type of required solutions, functions, and specifications, tools and platforms, time frames and budget.

## Why do you need the discovery phase?{#why-do-you-need-the-discovery-phase}

Simple: the  discovery phase of a software project cuts both the cost and the effort put into implementing an idea, optimizing the development in terms of time and expense. 

 - Overall, the analysis is necessary to:
 - Discover the users’ goals and problems
 - Understand the context of the product
 - Find new ideas for development
 - Understand users' expectations and attitudes about the product

As far as the client is concerned, the discovery phase of a software project helps:

adjust the expected time and development budget to adapt the project to the capabilities of the client
form a closed-loop business process
immediately test assumptions against end-users and receive feedback instantly

All in all, the discovery phase gives the client and the team (in-house or [outsourced](https://perfsol.tech/outsource-software-development  "Is Outsourcing Software Development Better Than Having an In-House Team?") a common understanding of the solution that is going to be developed. But more than that, it forms the bond and trust critical for the later stages of the project.

## TOP 3 AI tools for effective discovery phase of a software project{#top-3-ai-tools-for-effective-discovery-phase-of-a-software-project}

The Discovery Phase is a critical stage in software development, where the foundation for a project is laid. Leveraging AI tools can greatly enhance this phase, providing insights and efficiency. Here are the top AI tools that can significantly contribute to a successful Discovery Phase.

### AI Tool to Streamline Market Research: Stravito
Stravito offers an intuitive platform for gathering and analyzing market data, helping teams to quickly access valuable insights. Stravito's AI algorithms can sift through vast amounts of data, identifying key trends and patterns relevant to the project, making it an essential tool for informed decision-making.

### AI Tool to Gather User Feedback: BetterFeedback
The purpose of product discovery stage is to create a product that alings with users needs. One of the best ways to understand such needs is by getting feedback from them.
BetterFeedback tool can process large volumes of user input, from surveys to social media interactions, and extract meaningful insights. This tool helps in understanding the user's perspective, preferences, and pain points, making it invaluable for tailoring the project to meet user needs.

### AI Tool to Boost Creativity: MidJourney
AI tools are a game-changer for designers as they help them visualize and iterate on ideas more effectively. Midjourney is one of such tools. It assists designers in creating more engaging and effective designs by providing suggestions and alternatives based on current design trends and user preferences. Moreover, MidJourney can help in creating prototypes and layouts that are both innovative and user-friendly.

## Benefits of discovery phase in software projects{#benefits-of-discovery-phase-in-software-projects}
It may seem that the discovery phase of a software project increases the complexity and cost. But in fact, everything becomes cheaper and easier. If you look at discovery phase stages through the customer's eyes, it helps:

- get the customer and the contractor to come to a common understanding of the system to be developed and come to consent that is so important in the next phases of the work;
- clear goals and project requirements help you accurately estimate development time and budget; 
- you get a complete project schedule with milestones, deliverables, and timelines. The Software Requirements Specification (SRS) and layouts developed during the discovery phase can be used to find additional investors;
- communication at this stage will allow you to evaluate the team's work, experience, and approach to the project and build mutual trust;
- put the expected development time and budget in the requirements to tailor the project to the customer's capabilities.

## Stages of a project discovery phase in software development{#discovery-phase-in-software-development}
The discovery phase of a software project is a multi-stage analytical process, which takes one to five weeks, depending on the scope of the project. Initially, the composition of the team. The classic version is the team lead, designer, and architect (technical specialist). Also an obligatory member of the team is a BA (business analyst).

The team is in regular contact with the customer, progressing through the stages of the discovery phase in software development:

- Definition of conceptual directions i.e. project goal, tasks to be solved, functionality, and interface requirements;
- Study of the niche - BA collects information on similar products to simplify, respectively speed up the development process;
- Definition of the target audience and characterization of the end-user. This includes interviews and surveys of the audience the project is aimed at;
- Market analysis as it is important to distinguish the IT project from the analogs already offered by competitors;
- The development of a list of requirements for the product, based on the information collected.

The closest cooperation with the customer is necessary at this stage. The documented result of the business analytics is the Software Architecture Document, created by the architect. The final stage of the Discovery Phase is the calculation of the budget and implementation timeframe. All of the above is also provided to the customer in a document format.

## Discovery phase dream team{#discovery-phase-dream-team}

AI tools undoubtedly revolutionze the discovery phase, but the true foundation for success still rests on the shoulders of a skilled discovery phase team. With a unique blend of creativity, strategic thinking, and technical prowess, these people build the solid groundwork for subsequent development phases.

### Business Analyst
The Business Analyst is instrumental in the Discovery Phase, focusing on the business aspects of the project. Their role involves conducting thorough market analysis, gathering customer insights, and performing predictive analytics. This ensures a deep understanding of the market and helps to align the project with customer needs.

### UI/UX designer 
The UI/UX Designer's role is critical in shaping the user experience and [design of the project](https://perfsol.tech/product-design). They are responsible for creating design prototypes, conducting A/B testing, and analyzing user interaction data. This process is vital in ensuring that the final product is user-centric and intuitive.

### IT Architecture Specialists
IT Architecture Specialists take charge of the project's technical framework. Their expertise is crucial in selecting the appropriate technology stack, designing scalable and secure architecture models, and planning for future growth and changes in technology.

Here are the key outcomes you’ll get from the synergy of these specialists during the Discovery Phase:

**Prototype & Design Concept**: This is a visual and functional representation of the product idea, showcasing the preliminary design and concept.
**Software Requirements Specification (SRS)**: This document provides a comprehensive description of the software functionalities, outlining the technical requirements and specifications.
**Development Roadmap & Estimation**: A stage when a strategic plan is formulated, outlining the development process, timelines, and resource allocation.

## How much does a discovery phase of a software project cost?{#discovery-phase-of-a-software-project-cost}

It is impossible to say exactly how much the discovery phase of software development costs. This is because each project is highly individual and the discovery phase in software development can take either two days or two months. 

Moreover, much depends on the cost of a business analyst and other specialists in each case, as well as the range of services they provide. For a small project, it may take about a week or two to go through discovery phase stages, for a larger project it will take about two months of work.  

If you still need some specific figures, we can tell you the following. The cost of the discovery phase typically takes anywhere from 10% to 45% of the cost of the entire project. Remember the main thing, no matter how much you invest in the future it will pay off and even the high costs of the discovery phase will result in savings in the next phases by clearly understanding the goals and objectives.

## The bottom line{#the-bottom-line}

A thoroughly conducted discovery phase stages are your key to a product the audience will love, developed on time and within budget. For the engineers, the phase gives a clear roadmap, and for the client, it’s a guarantee every effort was made to deliver an outstanding solution. 


Discovery phase in software development is a crucial step for successful projects. Learn everything you should know about its  stages, cost, and the whole process.

- [So… What Is The Discovery Phase?](#what-is-the-discovery-phase)
- [Why Do You Need The Discovery Phase?](#why-do-you-need-the-discovery-phase)
- [TOP 3 AI Tools for Effective Discovery Phase of a Software Project](#top-3-ai-tools-for-effective-discovery-phase-of-a-software-project)
- [Benefits Of Discovery Phase In Software Projects](#benefits-of-discovery-phase-in-software-projects)
- [Stages Of A Project Discovery Phase In Software Development](#discovery-phase-in-software-development)
- [Discovery Phase Dream Team](#discovery-phase-dream-team)
- [How Much Does A Discovery Phase Of A Software Project Cost?](#discovery-phase-of-a-software-project-cost)
- [The Bottom Line?](#the-bottom-line)

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