Steps for Selecting the Right FinTech Software Development Company

FinTech is an abbreviation for financial technology and describes software technology that augments, streamlines, digitizes or disrupts traditional financial services. It refers to software, algorithms, and applications that are used on desktop and mobile platforms. The term fintech can include everything from mobile payment apps to complex blockchain networks.

Fintech simplifies financial transactions for consumers as well as businesses making such transactions more accessible and affordable. Fintech companies apply AI, big data, as well as encrypted blockchain technology, to facilitate highly secure transactions & these have completely redefined how companies transfer, store and protect digital currency. The financial technology sector is seeing rising popularity, and for organizations looking to scale their operations, financial software development services are essential.

Why outsource FinTech development?

FinTech development is a difficult and time-consuming process and all compliances and regulatory processes need to be followed. Outsourcing development to professional software development companies is less expensive and more reliable and development can be completed in a contracted time. Other benefits of outsourcing are:-

• Faster time to value conversion.
• Organizations can avail of third-party experience, expertise & access to updated technologies.
• Organizations can focus on their core competencies.

Choosing the right FinTech software development company is essential for any business or organization and some of the points which should be considered are:-

Professional developers - FinTech software development is complex and any company that is chosen for this development must be able to offer industry-specific expertise. They must have skilled developers knowing various programming languages including Java, Python, C++, C#, PHP, Ruby, Javascript, and more. They should also be able to have access to technologies like ML, AI & big data.

Security - Data security is an area of concern for any business and FinTech solutions, and cyber security is one of the biggest concerns. Any partner FinTech development company must have proper security measures in place to ensure the safety of data and financial transactions which can include basic requirements like encryption, authentication, and firewalls with data backup and recovery processes in place.

Staffing - A partner FinTech development company should not have a scarcity of staffing resources. A company having required dedicated staff strength can cope with the software development requirements. Scarcity of staffing can lead to chaos, delays in software releases, bugs, etc. A partner development company should have sufficient staff resources like developers, testers, UI/UX designers, etc.

Risk mitigation - A FinTech software development company should have risk management tools, which are essential for identifying, assessing & evaluating the risks.

Track record - A partner FinTech development company must have a strong and successful track record in developing resilient and error-free software. Before choosing a partner FinTech company, assessing their past development track record is essential.

Soft skills - For the hiring and development company to work transparently and professionally, soft skills can play a very important role. Soft skills can make the interaction between the parties easy and can play an important role in the development process.

Compliance - Financial frauds have led regulators to revise and raise the bar for compliance and regulatory standards. Any FinTech development partner company should be well aware of the compliance and regulatory standards and should have a proven track record in developing software that is compliant with the financial industry standards.

Service and maintenance - After-sale service and maintenance is an essential part of the contract between the hiring organization and the development company. Any development company has to be able to ensure that they can continuously upgrade, serve and provide maintenance for their software.

Understanding of the FinTech industry - Selection of the right kind of development is important. A FinTech development company should have a thorough understanding of the industry and its trends. It should have the necessary experience to ensure that it develops a future-ready product that can be tweaked as needed at any given time.

Eliminating risks in outsourcing FinTech development:

The underlying risks of outsourcing are important for any organization. Some of the steps that can be taken for risk elimination are:-

• Going through a detailed proposal for FinTech development from a partner company.
• Ensuring that the development company has the experience and the staffing capacity to meet project needs.
• Ensuring that necessary control and freedom of working and development create a balance for faster and easier development.
• Detailing steps of development and assigning responsibilities between the hiring and the development company by preparing a detailed scope and timeline of the project.
• Verification that the development company can meet the required quality standards.
• Creating a backup plan for contingencies.

Advantages of FinTech applications:-

• Access to more resources
• Reduced costs
• Increasing market reach
• Financial inclusion
• Convenience
• Loan application

Outsourcing software development to a custom FinTech software development company having a successful and proven track record in developing FinTech applications can enable FinTech organizations to focus on their core competencies. Organizations can look at factors like understanding of business needs, project engagement, technical expertise, domain knowledge, team coordination, communication skills & their expertise and background knowledge before assigning projects to a development firm.