“Fintech is changing the finance sector just like the Internet changed the written press and the music industries. In what is a stagnant sector monopolized by banks, finance is ripe for innovation and fintech is unquestionably the catalyst needed for change.” – Philippe Gelis, CEO of Kantox
People in this age of technological advancement, digitalization, and globalization are increasingly demanding a tailored portfolio of products and services when it comes to their financial and banking needs. Traditional banks with their age-old traditions, legacy, and conventional financial mechanisms leave a lot to be desired when it comes to fine-tuning their products and services to meet the needs of tech-savvy new-age customers. It is the reason traditional banks are increasingly engaging with the reputable software development company and financial technology (Fintech) firms to offer an omnichannel experience to their customers.
Fintech Software Development companies have exploded in popularity owing to a variety of factors. They facilitate the online transfer of money, cryptocurrency trading, electronic payments, etc, which offers benefits such as cost-efficiency, time-saving, quick service, and improved customer retention to name a few. However, as the saying goes that nothing in the world is free, so is the case with fintech. They come with their own fair share of threats, security risks, privacy issues, and uncertainties.
What exactly is Fintech?
Fintech is a term made by the combination of two words “financial” and “technology,”. It is a relatively new concept that is generally applied to any emerging technology that helps startups and traditional financial institutions to deliver services to their customers more conveniently in newer, faster ways.
For instance, you need to check your account balance. In the good old days, you had to walk to your bank’s nearest branch and request the concerned person for your balance. Now the same can be achieved within less than a minute with the help of your smartphone. This will give you a good idea of the impact being made by fintech.
In short, everything from a person’s ability to extract his/her financial records on his smartphone to investing in stocks, mutual funds, and ETFs through an app, all fall within the gambit of Fintech. Fintech, as such, is all about leveraging technology to make financial transactions extremely easy and convenient for end-users.
Fintech software development—the benefits
The Importance of the FinTech Industry
Fintech apps are enjoying widespread popularity and the industry is growing at a rapid pace for the simple reason that it has leveled the financial market for common people by bringing banking and investing tools to their doorsteps. A report by Capgemini reveals that Fintechs have raised 0ver $110 billion in the last ten years or so. Also, it offers a tremendous opportunity for startups to compete on equal footing with large traditional financial institutions and banks. Thanks to Fintech, it’s no longer about the size or legacy, as the focus has completely shifted towards who is the fastest and most responsive in addressing consumers’ concerns and demands, and making banking and investing easy for them in an increasingly digitalized world. More importantly, fintech startups are pairing up with well-established Fintech software development firms to offer niche services to their target audience. The “one size fits all” approach does not work here, which means they need to target a particular financial need and offer solutions at a significantly reduced cost in comparison to traditional financial providers.
As consumers become more knowledgeable and more connected, businesses must partner with Best software development company to develop innovative solutions to old problems.
Fintech software development
Businesses in conjunction with top-level fintech software development firms are developing a variety of fintech software for a variety of purposes to help consumers enjoy more control over their financial decisions and financial outcomes.
Digital Lending and Credit
There are fintech companies that make intelligent use of Big Data and advanced analytics to offer loans to small businesses. Then there are firms that employ peer-to-peer lending to let users lend each other money without any involvement of a traditional financial institution. Lending Club lets users loan each other money (P2P lending) for business ventures without the involvement of a traditional financial institution. There are also fintech that offers free credit reports in lieu of an opportunity to advertise loan services and customized credit cards.
Rising demand for digital banking has led traditional banks to develop mobile apps for easy and convenient online banking. Most of the banking tasks can be easily conducted through these apps which have emerged as a successful low-cost alternative to traditional banking.
Mobile Payments and e-wallets
This fintech software development has taken off in a big way thanks to big names like Amazon and Uber. An overwhelming majority of people under 40 are using mobile apps like Phone Pe to make online payments. As society becomes more digitalized, peer-to-peer services such as Google Pay and Amazon pay have taken the place of traditional payment methods.
What kind of software can a fintech developer deliver?
A well-established fintech software development company will generally have the tools and resources to develop:
- Billing and payment software
- Investment software
- Financial planning software
- Blockchain-based services and solutions
- Expense management software
- Insurance software
How to hire a quality fintech software development firm?
Fintech is mostly driven by technology. And when we talk about technology, we should keep in mind that technology keeps evolving at a rapid pace. A firm offering fintech software development services should have developers with strong knowledge of mobile designing, top-level programming skills, APIs, AI, ML, and Data Science, and strong knowledge of languages like Python and Java.
Important factors to consider when you hire a Fintech developer
• Knowledge of blockchain technology
• Machine Learning knowledge
• Artificial Intelligence knowledge
• Knowledge about Big Data and analytical skills
In short, your requirement related to fintech software development can only be fulfilled by a company fully aware of the intricacies of the system and well-versed with the knowledge of blending technology with finance.
Author Bio. :-Rahul is a Sr. Marketing Executive at Q3 Technologies. He has been constantly writing for technical niches, mostly for the latest IT Services. He loves to spread his knowledge, research, and IT industry insights. His write-ups have been published on multiple acclaimed online platforms.