Fintech Software Development
There is no doubt that the Financial Tech (fintech) industry has become a crucial component of the global economy. While other industries struggled to stay afloat due to COVID-19, fintech thrived in conditions that accelerated the adoption of new digital payment technologies. Businesses and consumers now rely on digital technology more than ever before.
According to a survey of more than 2000 US citizens by the fintech firm Plaid and polling group The Harris Poll:
- 69 percent of participants considered fintech as a lifeline during COVID-19.
- 59 percent used more fintech apps than before the pandemic to manage money.
- 73 percent viewed fintech solutions as the new norm.
The surge in demand for fintech software development services has generated fierce competition among the players in this industry. Banks, insurance, e-commerce businesses, and other financial institutions are now concentrating on consumer-focused models to offer better financial services for everyone.
Fintech applications such as payment processing, investment and saving tools, digital assistants, and fraud mitigation have made the industry responsible for how most businesses and individuals manage money.
Leading Fintech Industry Trends
Common trends in the fintech industry have accelerated under current market conditions and are expected to continue, which will require new technologies, application integrations, and software development life cycle maintenance services.
Digital-only banks are financial institutions that offer virtual banking services, such as international money transfers, peer-to-peer transfers, cryptocurrency buying options, free transactions, contactless, and many more. The use of digital-only banks has increased due to the added convenience of not needing to physically visit a bank or deal with annoying paperwork.
RPA- Robotic Processing Automation
Despite some vocal opposition to the automation of labor and subsequent reduction in employment, robotic processing automation is here to stay. Many businesses in the finance industry are already using RPA to improve efficiency, reduce errors and cut costs. Financial institutions are currently using RPA digital workers to automate back-end processes such as customer onboarding, credit card, and loan processing, security checks, account maintenance, and closing, and much more. Automation helps digital workers complete the tasks quickly and efficiently, allowing the institution's personnel to improve customer service.
Blockchain has revolutionized the fintech industry by decentralizing financial data. Transactions can now be done quickly and safely. Data is secured end to end, making it inaccessible by unauthorized parties.
Machine Learning and Artificial Intelligence
Banks, e-commerce companies, and other financial institutions worldwide have now started incorporating AI into their operations. AI is expected to help cut costs and mitigate cybercrimes by identifying financial threats and frauds. Machine learning and artificial intelligence can also improve customer experience and satisfaction, tracking and recording all system interactions precisely and accurately.
Reg-Tech or Regulatory Technology serves a management function in the financial industry's regulatory process through technology. Major Reg-Tech capabilities include monitoring, reporting, and compliance, which aid financial institutions in simplifying the compliance process using advanced software. As companies rely more on digital products, they are exposed to increased vulnerabilities such as cyber hacks, money laundering, fraudulent activities, data breaches, and much more. With the help of machine learning, artificial intelligence, and big data technology, Reg-Tech can offer crucial data on money laundering and fraudulent activities to reduce the risk associated with non-compliance.
To adequately adopt these trends, businesses in the fintech industry should rely on custom fintech software solutions that integrate properly with other systems. This can help prevent or minimize the most common industry challenges:
- Data security and privacy issues
- Big data and artificial intelligence integration
- Blockchain integration
- Compliance with government regulations
- Lack of experience in technology and mobile technology
- Growth problems and effective marketing to acquire customers.
- Retention and user experience issues
Custom fintech software development is preferred over the off-the-shelf software as it integrates well with the existing applications and systems, is easier to maintain, allows scalability, and is more secure.
Ensuring seamless application integrations and smooth operations requires not only technical expertise but also knowledge of the industry, regulations, and other factors that make fintech software development extremely specialized. It is then essential to find the right strategic partners in software development and life cycle maintenance.
Fortunately, nearshore software development companies can provide specialized services for fintech with the resources, expertise, and services necessary to solve, escalate and overcome any technological challenge.
KNDCODE offers a wide range of software solutions, including but not limited to:
- Web and Mobile Application Development
- Architecture Design
- Website UX and UI Services
- Big Data and Analytics Solutions
- Cloud Engineering
- Machine Learning and Al
- Third-party Application Integration
- Quality Assurance and Testing
- 24x7 Maintenance and Support
- IoT Solutions
Fintech systems are complex. They require close observation to ensure they are compliant, secure, and up to date. They must also integrate with other applications and offer the best customer experience.
KNDCODE has a broad knowledge of the financial industry and possesses in-depth expertise of several platforms and integrations within finance: SWIFT, NACHA, ISO8583, IFX, Core Banking Platforms, and others.
With over twenty years of IT experience in the financial arena, from design to implementation of multi-tier applications and integration, you can trust that we will provide focused and reliable solutions for even the most complex problems. We have the expertise to provide the best development services while avoiding the usual missteps that are common among newcomers in this mature market.
KNDCODE Always Ahead, Forward, Near.