What Makes the Best Financial Software Development Company & How to Choose It?
April 18, 2023
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According to the Deloitte report, by the end of 2023, the value of the financial technology industry will reach $174 billion. For comparison, in 2017, the figure was only $80 billion. Also, experts predict that in 2024 the industry will collect about $190 billion. Against the background of such active growth, financial software development becomes an integral part of the functioning of successful companies.
Business owners need to know what trends to look out for and how to choose qualified developers to create an effective digital product. In this article, Perfsol experts discussed current fintech technologies and gave recommendations on how to select candidates to make your search for a contracting company easier.
Trends in the Development of Fintech Solutions to Consider
Before looking for a team of IT specialists, it is important to define the goals of fintech software development and the business needs it should cover. Dozens of new technologies are constantly appearing on the market, and traditional solutions are being improved. Among this variety, it's hard to figure out what's right for a particular business. Let's look at the technologies in the fintech industry that are gaining popularity.
Blockchain-based digital solutions
Research And Markets predicts the global blockchain market will reach $68.7 billion by 2027, compared to $4.9 billion in 2021. The reason for this is the increased interest of businesses from various fields in technology, which helps transmit information securely.
Blockchain is a chain of blocks that contains all the necessary data about various transactions. The use of this technology also ensures the secure storage of digital information.
Another essential advantage of blockchain is that you cannot change the records in blocks, so the risk of fraud is minimized. Thus, by using blockchain, financial institutions can increase the transparency of their operations. This, in turn, significantly increases the level of trust from customers.
According to the report by IMARC Group, the global market of open banking services reached more than $21 billion in 2022. Experts also expect the growth of this technology to increase significantly and exceed the mark of $67 billion already by 2028.
Open banking is a technology that operates through a microservice architecture built on open APIs. It gives customers more control, security, and transparency in managing their finances.
In addition, financial institutions can provide partners (FinTech companies, marketplaces, etc.) with access to their infrastructure, which allows them to create new services for consumers. Therefore, open banking for banks and similar organizations is an opportunity to provide more flexible interaction with their customers.
Artificial Intelligence and Machine Learning
AI is not new in the fintech services market. However, its active development and the emergence of new tools, such as ChatGPT, make it necessary to take a new look at this technology. As The Business Research Company's report shows, the size of the global AI market in the fintech sphere was $9.15 billion in 2022, and already in 2023, it reached $11.59 billion.
Digital products based on AI with machine learning help analyze large volumes of data, make recommendations for business development, identify weaknesses in the work of companies, provide 24/7 customer support, and much more. Thus, financial software development allows financial institutions to improve performance while saving time, resources, and budget.
A study by McKinsey & Company showed that profits in 2021 only in the U.S. reached $20 billion. According to experts, the next 3-5 years are expected to grow significantly, and the figure will reach $40 billion.
Embedded finance refers to products and services you can use on different platforms. For example, a user can purchase an item on a marketplace and spread the payment over time. Embedded finance also eliminates the need to switch between apps or web services when managing one's own finances because it is embedded in a single platform.
Fintech software development is a rather long and complex process that requires a professional approach. Therefore, owners of financial institutions need to choose development service providers carefully.
How to Choose a Reliable Financial Software Development Company?
Once you are familiar with the key trends and define the goals of the digital solution, you need to select a team of specialists who can implement the project. Consider the criteria for selecting a financial software development company.
Experience and expertise
When creating systems for financial organizations, the experience and qualifications of IT company employees play a crucial role. It is their skills that determine how reliably and smoothly the created product will work. Since fintech is an actively developing industry, developers must follow trends (artificial intelligence, advanced analytics, blockchain, etc.) and be able to apply them in practice.
Level of security
In the financial industry, where we have to deal with payment data and users' personal information daily, ensuring confidentiality is critical. Therefore, when choosing a fintech solutions development team, one should consider their data protection methods. A reliable company always informs its clients on what security measures they adhere to.
Experienced IT teams usually use end-to-end encryption, firewalls, DLP systems, tokenization, and other security methods.
Number of talents
The quality and the speed of development depend on the number of qualified experts in the team. Outsourcing companies that take on software development work provide a ready pool of talent. This approach closes the need for the owner of a financial institution to independently search for different specialists and organize their work.
We at Perfsol have assembled a team of over 30 skilled developers with the necessary skills to produce reliable fintech solutions.
The licenses, certificates, awards, and so on allow you to verify the professionalism of a financial software development company. For example, ISO 9001 and 27001 certifications confirm that the vendor adheres to the quality management system criteria and information security management system requirements.
Such documents give the customer an understanding of how reliable the company is. Thus, qualified vendors are always ready to provide their customers with information on available licenses and certificates.
Recommendations, cases, and reviews
You can learn a lot about the company from the reviews found on search platforms for software development vendors or specialized sites with reviews from other clients. You can also request a recommendation from partners or acquaintances who have worked with contractors.
You need to look at developer portfolios and cases to get a complete picture. They will give you a better understanding of how cooperation with the chosen company will be structured and in which areas it already has experience.
Need professional financial software development services? Contact our manager for a consultation on creating the best digital solution for your business.
I follow a proactive approach in life to solve simple to complex problems systematically. I fully understand the nexus of people, process, technology, and culture to get the best out of everyone at Perfsol to grow the businesses and deliver a societal impact at the national and global levels.
How can software improve the operation of a financial institution?The software created for this direction is intended to: - automate routine processes; - increase transaction security; - protect sensitive data; - improve and personalize customer service, etc. Thus, the work of a financial institution becomes more reliable and transparent, which increases customer loyalty. Also, introducing software solutions to perform the same tasks helps save time and budget, thereby creating more opportunities for the company's growth.
What are the criteria to pay attention to when choosing a fintech software company?Important criteria in choosing a financial software development company are: - the experience and qualifications of the IT team; - the skills of the specialists and their level of proficiency in the necessary tech stack; - the level of data security when working on the product; - availability of licenses, certificates, and other documents confirming trustworthiness and expertise; - positive feedback, recommendations, and a high rating on online platforms for finding contractors.
What kind of professional team of fintech developers should be?The professionalism of specialists in software development for financial institutions is determined by the following: - mastery of innovative development methods and tools; - provision of IT consulting in the fintech sphere; - knowledge of the situation in the financial market; - understanding of key business processes in finance; - availability of expertise and basic knowledge; - well-functioning communication channels in the team and with the client.