Fintech is the fastest growing direction of the financial sector that includes retail banking, insurance, payment systems, eCommerce, and many other areas requiring proper Fintech Software. It is approved by Global Fintech Software Market research claiming the Fintech Market to reach a value of $305 billion by 2025.
The word “Fintech” is the combination of “financial technology”. The Fintech emerged in the 21st century as a term that initially meant the stack of technologies used at the back-end systems of financial institutes. According to Investopedia, Fintech describes technological innovations that aim to optimize and automate the processes of delivering and utilizing financial services. Although modern Fintech Software systems are used to work with cryptocurrencies, education, retail banking, nonprofit, investment management, and fundraising, the interest in traditional global banking remains on a significant level.
At TAGSoft we understand how many innovative projects and revolutionizing startups are still to be brought to the world. That’s why we share our 12-year expertise in Fintech Software Development and talk about it.
What should be expected from the Fintech Developers
According to Statista, the Fintech Software Industry can be broken down into 4 main segments: Digital Payments, Personal Finance, Alternative Lending, Alternative Financing. The following diagram represents the relative size of the segments in 2019.
As we can see on the diagram, the Digital Payments segment prevails, Personal Finance obtains 27,5% of the market, Alternative Lending and Financing have the potential to grow their share. People pay more attention to how they manage their finances and the way financial services are delivered to them.
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What should be expected from the Fintech Developers
Let’s say you conducted the market research and came up with the idea of fitting Fintech Software. Most likely, your next step is looking for the right specialists to become your Fintech Developers. However, how do you know if the Fintech Development Company suits you and has what it takes to deliver an excellent product?
Of course, it’s recommended to check basic traits of your potential development partner such as time management, ability to organize the Fintech development process and provide their customer with adequate communication. It might be useful for you to study their cases and testimonials. When this selection stage is done you should pay attention to their ability to deliver essential Fintech Software features.
The purposes of the product determine its properties and therefore the requirements for the Fintech Developers. Bearing in mind the fact that Fintech inquires operating with money we can describe the most common properties your app should be Secure, Fast-processing, Easy-to-use, and Hyper-personalized.
Main apps properties
Secure Fintech Software
There are many vulnerabilities that are frequent to occur in the Fintech Software like data leakages, data storage issues, or weak encryptions. The State Of Application Security Report by Immuniweb claims 98% of Fintech startups to have exploitable errors. It’s fair not only for the USA startups but for worldwide. They can even lead to phishing and hacker attacks which is obviously not acceptable in an industry that has to be 100% secure. So, by making sure your Fintech Software is fraud-resistant you are gaining a competitive advantage.
As a Customer, you should expect your Fintech App Developers to align the product with the relevant regulations and security standards. Given the main information on the app’s ecosystem and users, they should complete the research to determine the constraints (e.g. in the user’s country law). This stage of analysis is important because the outcome delivered here saves time and money that could have been spent on rewriting the code. Imagine you have finished a Fintech Software project and it needs to be reworked to be legal in a certain region. Sounds certainly like a nightmare.
Also, it could be useful for you to ask your Fintech Developers what US and European security standards they plan to follow on this project. For instance, in TAGSoft our Fintech Software Development professionals work with major quality standards like HIPAA, PCI/DSS, GDPR, OWASP, ISO:9001 depending on the project details.
The fast-processing Fintech Software Development
The most known in the world Fintech Software Startups have one characteristic in common: they are designed to challenge traditional financial service providers. That’s why they aim at the underserved client segments or compete in providing the fastest service. The technological change leads to a change in the customers’ expectations: the financial product should be available in a form of a simple application that can be performed in a speedy manner. Literally, they expect your product to be “one-click”.
The main practice of improving your software processing speed is optimizing storage usage. Also, at TAGSoft, we are proficient at developing native applications. It allows our Fintech Developers to deliver apps that use the potential of the OS in the most efficient way. As a result, your Fintech Software works smoothly.
Of course, certain regulations may not allow you to provide a service instantly but the experience of interacting with your app has to be smooth. Your Fintech Software Development process should focus on optimizing data processing solutions so there will be no stops or interruptions.
Easy-to-use Fintech Software
Despite Fintech Software being a trendy thing over the last years, it doesn’t mean the apps are used by the millennials only. Moreover, there are 4 types of Fintech users listed by Investopedia:
- B2B for Banks
- Banks’ business clients
- B2C for small businesses
When creating a B2B Fintech Software, the development team should remember that it will be utilized by the people. So, it will be much easier for you to sell the product if you can streamline your Fintech Developers to design an easy-to-use UI. It will allow you to avoid the risk of creating a system that takes too long to start working with.
Also, we should notice that the majority of the ‘Consumers’ type are millennials. This fact is approved by Investopedia claiming: “The fact is that consumer-oriented Fintech is mostly targeted toward millennials given a huge size and rising earning (and inheritance) potential of that much-talked-about segment.”
That’s being said you should aim for your app to be as easy-to-use as possible because an intuitive and user-friendly UI is highly valued by your customers. They want their web and mobile experiences to be on-demand. So, it’s fair of you to demand rapid, consistent, and seamless UX delivered in your Fintech Software.
What is hyper-personalized Fintech Software?
Another trendy feature in the world of Fintech Software is hyper-personalization. While personalization allows you to complete the customer portrait and work with the client’s path, hyper-personalization means using the data on the customer’s history and his latest activities to get a detailed picture. Then you can make the best offer solving problems of the particular person. For instance, this strategy is being used by the banks more and more because according to Global Consumer Pulse Research 48% of the consumers expect specialized treatment. And this feature is exactly what a Fintech Software Development Company can help you with.
To start collecting the data about your customers and converting it into hyper-personalization you should apply the right tools to your Fintech Software. The modern infrastructure supporting both digital and voice channels is required. The existing cloud-based solutions offer real-time customer journey adaptation, capturing, and analyzing the contextual data and other features. Our Fintech Developers can help you to choose and integrate the right solution or even develop a custom one. For example, we can develop a chatbot to provide your users with one-on-one communication.
- Collect the data on the client’s interactions with your business
- Get detailed knowledge of his needs and wants
- Make a perfect offer
TAGsoft Fintech Software Development Services
We know what is important for our customers, so we brought together a team of solid professionals to provide Fintech Software Development and other Services to help your business grow. Our specialists are experienced in such fields as:
- Artificial Intelligence (AI) including fraud detection, credit scoring, wealth management, and regulatory compliance.
- Big Data and Data Analytics. As a Fintech Software Development Company, we operate with large datasets to explain and predict consumer preferences, spending, and investing habits.
- Robotic Process Automation (RPA). For instance, our Fintech Developers create chatbots for marketing and communication purposes, automation solutions for statistics, and data collection.
- IoT at Fintech. We know how to attach the IoT technologies to Fintech in a variety of roles: debt collecting simplification, capacity management optimization, etc.
At TAGSoft we work with:
- FinTech providers
- Loan and credit service providers
- Wealth management institutions
- Investment and commercial banks
- Mortgage banks
- Exchanges and brokerages
- Financial market data suppliers
- Insurance companies
- Payment processors
Do you still have questions in choosing your
Fintech Development Company?