FinTech - short for financial technology - is big business in today’s day and age. With an ever-increasing volume of transactions taking place online, and with modern business getting increasingly more complicated by the day, sometimes FinTech isn’t just nice to have: it’s a necessity.
When it comes to choosing which FinTech software to use, you have a couple of choices. Some companies, and SMEs, in particular, decide to go with default software that’s designed to cater to as many companies as possible. These usually contain a limited set of features and are difficult to customize, but at the same time, they come in a lot cheaper than developing a piece of bespoke software of your own.
Still, many larger companies with more specific needs are turning to FinTech development to create software that’s designed to solve their problems. Sure, it can be a bit costly up front, but it will also help you to monitor your finances in the long run. Some of the more advanced software can even make proactive suggestions that could help you to save money.
Ultimately, then, FinTech software can pay for itself, but only if you go about it the right way. Luckily, we’ve researched for you by bringing together everything you need to know about choosing a FinTech software development company. Let’s get started.
FinTech Software Development Industries
Before you start looking around for a FinTech software development company, you first need to identify whether it’s a suitable fit for your industry. Different FinTech software development teams tend to focus on different verticals so that they can specialize and take what they learn from one client and apply it to another. Just a few of the most common specialisms include:
This is why companies use financial technology software. Every company in the world needs to bill clients and process payments if they want to make money, and while it’s possible to do that without FinTech software, it can certainly help when you’re processing large numbers of transactions. Payment/billing software will handle invoicing, follow up with people who are yet to pay, and provide useful reports on income and cash flow.
FinTech software can also be used to power and track the transfer of money into, out of and around the business. When you operate huge sums of money and large transaction volumes, it can be difficult to keep a handle on it all. FinTech software makes it easy, allowing you to create automated rules and to exercise greater control over money transfers and remittance.
Digital banks are typically led by technology because they don’t have physical locations and all of their customer interactions are facilitated by the internet. With that in mind, FinTech software is essential to digital banks because without the technology they don’t have any infrastructure. Many pieces of FinTech software also allows you to access your digital bank accounts and to carry out transactions from right within the interface.
It’s no secret that crowdfunding is big business in today’s world, and many of the behemoth brands of the future are getting their start via platforms like Kickstarter and Patreon. It’s less common to see crowdfunding being used by existing big businesses, and so crowdfunding integration isn’t always a necessity. It can often be nice to have, though.
When it comes to making investments, the best decisions are based on data. That’s why so much FinTech software is integrated with investment platforms so that you can see all of your data from a single dashboard. This enables you to make more educated investment decisions and makes it much easier for you to manage a large portfolio of investments.
Blockchain technology is taking the financial industry by storm, and with good reason. It provides a more secure way of tracking transactions and allows the data to be decentralized, which means that no individual financial institution owns the data. Blockchain also supports tokenization and other functionality that can’t be provided by other technologies, which is why financial institutions are turning to blockchain to future-proof their businesses.
Personal finance management
Some of the more lightweight FinTech software packages are designed with personal finance management built in and are targeted at freelancers, sole traders, and SMEs. Others have personal finance management as an optional extra, with the goal of helping employees to manage their personal finances or the finances of their teams. This can come in super useful when it comes to budgeting, expenses and the other monetary transactions that employees make on a daily basis.
Why Outsource FinTech Software Development?
FinTech software development isn’t easy, and few companies are able to build their own internal software development team. Even when they are, it’s more of a commitment than working with a third-party, and you’ll need to keep on paying your developers’ salaries into the future even if they complete the project and don’t have any work to do.
On top of that, the gig economy and the rise of freelancing has meant that there’s more choice than ever before. In the past, we were limited to working with companies in and around our immediate area. Now, we’re able to work with anyone from anywhere in the world, and this ability to outsource brings with it a range of benefits.
For example, outsourcing can be cheaper than hiring an internal team because you can work with companies in countries where the cost of living is lower and you’ll only have to pay for the work they do on your project. And if you fall under any of the use case strategies that we mentioned earlier, you’ll find it easy to hire a FinTech developer that’s suited to your needs.
How to hire a FinTech Software Development Company
Not all FinTech software development companies are created equally, so if you want to get the best value then you need to weigh up the pros and cons of different companies. It depends on what you’re trying to achieve and how the software will help your business goals.
When you’re shortlisting different FinTech custom software development companies, the first and most obvious thing to look at it is how much they charge for their services. Don’t just discount people if they’re on the higher end of the market though, because if you pay peanuts you can expect monkeys. If you cut corners now, it could come back to bite you in the future.
Next up, you need to look at what’s included within the rates so that there are no unexpected surprises later on. As a general rule, you’ll get the best value from a FinTech software development company if you’re paying only for the specific services that you need. For example, if all you need is a payment gateway then there’s no point paying extra for investment functionality.
As for where to find these companies, you could do a lot worse than carrying out a quick Google search. You can also try freelancing websites or even just asking your friends and business partners for recommendations. And of course, it’s also something that we can help you with here at Zfort Group.
Now that you know all the ins and outs of FinTech development and the reasons why you might want to use FinTech software in the first place, the next step is for you to make it a part of your ongoing strategy.
What can you do right now? Well, start from creating a brief for your developers so that they understand your aims and know what the software needs to include. You don’t have to get it the right first time, but it will make a big difference if you’re able to get at least something down on paper.
Just don’t make the mistake of doing anything, because even if you’re not making the most of FinTech software, you can bet that your competitors are. Don’t get left behind. Good luck.
Still, need help wrapping your head around FinTech software development? Contact us at the Zfort Group to seek advice from our talented software and web developers. We help both startups and large enterprises to create FinTech software that makes a real difference to their company’s bottom line. So what are you waiting for? Get in touch with us today!