For a moment in history, most financial activities were a bit of a nightmare to partake in. However, the creation of fintech has greatly simplified things according to Kindgeek. Moreover, seeing as the modern world is filled with it in one form or another, the demand of developers for this technology has increased which means that a fintech software development company is quite the commodity today.
Understanding how such companies run and what they offer can provide great insight into the development field as a whole, showing how multifaceted it is. This vast nature includes several things. Among them are the processes undertaken by standard fintech software development as well as a look at the different examples of the technology. With that out of the way, let’s get into it.
The niche in a nutshell
First, let’s check in detail the fintech space as a whole. You probably noticed that it is beyond lucrative. This is also evident by looking at the over $300 billion the industry is worth as well as thousands of fintech startups worldwide. These numbers are only going to continue on their upward swing, especially with how convenient fintech is.
This technology penetrates several sectors of the financial world and as such, it typically presents itself in several forms. Some of the most common include the following:
- Mobile banking, which allows all activity performed in banks to be carried out remotely;
- The entire crypto sphere has pioneered other technologies such as the blockchain, which makes proper decentralization possible;
- Robo-advisors, which are typically found in the trading or investment management sector and help with the automation of processes;
- Open banking, which incorporates application programming interfaces or APIs to banks, allows additional offers from third parties to be available.
The creation of these types of fintech has only been realized because of the existence of new tech solutions such as cloud computing and blockchain. Artificial intelligence is another solution that is highly sought today by many fintech software development agencies aiming to create appropriate services. With it, things such as biometrics in banking and advisors in wealth management software are made easier.
How development goes
Building any of the above examples of fintech requires one to follow a perfectly laid out process for maximum efficiency. This usually begins with finding the right fintech software development firm to partner up with, often done via outsourcing.
The process of finding such a company begins with you figuring out exactly what is needed out there by the populous, after which you’ll know what product you’ll be putting out. Once the research has been done, the entire process can proceed. This process continues as follows:
Phase 1: Establishing the endgame
The first part of the process is preparation, in which all aspects of the project are decided on earlier. Assuming that you’ve come up with a basic idea, some of these things include the tools that are going to be used, the level of expertise required, and a clear set of demands for the vendor you’re looking to hire.
Phase 2: Figuring out the costs
From the above information, an estimate of the budget can be made. This will also delve into required personnel and any charges you may get. It’s also worth remembering that the different types of fintech tend to be given various prices, which also takes into consideration who is accepting the job.
Phase3: Sifting through the outsourcing options
Once you have your parameters set, you should scour the web for the best developers to provide the desired service. When these matches have been found, narrow it down to a select few of the best options which tend to be established operations that emphasize data security.
Why outsource the work?
While outsourcing is seen as the best way to have fintech built, it’s by no means the only way as many would choose to build things in-house. However, doing things in-house is quite expensive and so many outsource their work for the mere reason that it’s more affordable, which is often enough for interested parties and new startups in the niche.
That said, there’s more to having work outsourced as other benefits include the following:
- It exposes one to a greater pool of talent that stretches far beyond locales, increasing the chances of finding the right professionals and personnel
- Vendors tend to be well established, which means that the product put out is usually of high quality, something that should be verified during your search
- It’s more flexible as far as employment is concerned because there isn’t much of a commitment to them, which can be quite expensive
- It’s more efficient to operate because specific skills can be sought after and found as opposed to training in-house personnel from scratch or seeking out talent, which may prove difficult
Pros and cons
However, it does lack the commitment to a company project that staff working in-house possess. In addition to this, there’s always the risk of data security and a lack of compliance tools on the part of the chosen place you’re outsourcing from. There is also something to be said about the speed at which teams communicate with each other, something that’s much quicker in-house.
There’s always the chance that neither method will be to your liking. If that ends up being the case, you could always choose any of the other ones out there. These include looking for freelancers and practicing staff augmentation.
Final thoughts
With fintech being as much of a mainstay in our world as it is, all aspects of it are going to see an upward motion going forward. This means relevance will grow for everyone involved, from a fintech development company to the outsourced experts as time progresses. As the above has shown, development hinges on a lot of things that should be addressed to get the best possible product for the benefit of end users.
So, if you’re looking to get your quality piece of financial technology built, make sure as many variables are considered. In doing so, the chances of quality work increase. However, if you are willing to avoid all the pitfalls awaiting ahead, turn to a professional like Kindgeek, and rest assured that your project is under control.