Increasing competition in the market? Growing challenges while implementing new solutions?
Businesses become more and more digitized and FinTech – a combination of financial services and technology – has been rapidly developing in the last few years. In the past, they were mostly serving early tech adopters, today, FinTech companies are offering more and more professional-grade solutions to
Mainstream consumers and businesses. Intelligent automation, big data, cloud services are only examples of top FinTech innovations. What is FinTech software development, then? How does financial technology affect businesses? Here is everything you need to know about FinTech software.
What is FinTech software and how does it work?
FinTech is a combination of the words finance and technology. It can be described as the evolution of an industry where new technology use-cases are developed with streamlining traditional finance functions in mind. And FinTech software is a wide variety of products and services that utilize technology in the most innovative ways to improve or compete with traditional financial services and help consumers and institutions deliver financial services in newer, faster ways.
Have you already replaced visiting your bank in person to request your balance with pulling out real-time information on your phone? This is the best example of FinTech’s impact. The number of FinTech software companies has already exceeded 25 thousand in 2021.
FinTech software is a term that unites all types of solutions created to enhance the delivery of all kinds of financial services. Simply speaking, these are all systems and
applications built for the financial services industry. Currently, it’s one of the most important technology markets. Decades of the financial services sector relying on physical infrastructure and huge systems built with old technology are over. FinTech software development has already started to transform and boost the financial industry.
FinTech software – requirements
There are some important requirements FinTech software has to meet:
It has to be fully secure as data privacy is one of the most crucial issues of our time.
It has to be compliant with numerous laws and regulations that are standard for the financial services industry.
It has to be usable and pleasant to use.
Is should have support services (service desk) available 24/7 – just like in traditional financial services.
Types of FinTech software
FinTech software means ease of use, convenient access, and better service. It revolutionizes the way people make payments or invest and save money. FinTech uses artificial intelligence, business intelligence, biometrics, and machine learning to make mobile payments, personal finance services, stock trading, crowdfunding, lending, insurance, and blockchain and cryptocurrency services easier and more accessible for both individual customers and businesses. Here are the most popular (and the most promising) types of FinTech software:
Billing and payment software
enables businesses to automate time-consuming and manual operations and minimize human errors. Such financial technology helps customers manage accounts for payment and receiving money. This type of FinTech software also covers expense management software designed to operate, process, and transfer the expenses for the employment process. Digital banking is definitely the most popular type of financial technology software – customers can easily and quickly access their accounts and perform financial operations remotely via a chosen device.
that allows customers to make better investment decisions. Investment software development for FinTech gives customers access to AI-based analytics and investment predictions. Customers can plan their finances easier and more conveniently. They have their detailed financial data gathered in one place. This makes it much easier to plan financial operations.
for a wide variety of smart contracts or issues with ownership. Such FinTech services include mortgages, consolidation loans, credits, etc. Blockchain is decentralized, safe, and fast when it comes to processing payments. It has impressive coverage as it can be leveraged by most companies in the financial services industry.
that provides customers with profitability opportunities or costs and revenues. Insurance software development for FinTech enables individuals and businesses to execute insurance quotes and monitor the current state of their insurance policies.
Business plan software
for both startups and well-established brands. Such FinTech software takes entrepreneurs through the business plan creation process using the step-by-step technique. It simplifies strategizing and provides customers with the easiest way to analyze all the available information.
RegTech (regulatory technology)
helps business owners meet all requirements (laws, legislation acts, local regulations). RegTech FinTech software development companies offer numerous tools for fraud detection and financial risk management.
The famous examples of real-life FinTech companies
For sure, you know PayPal
a financial services industry pioneer. However, there are multiple other companies in the financial services sector that make financial services (e.g. payment services) easier. These are e.g. Stripe (they offer the whole payment stack, even more powerful than PayPal), Coinbase (the biggest cryptocurrency trading platform), or Gusto (a platform that combines payroll and benefit management with innovative HR solutions).
Advantages of using FinTech software
Compared to services offered by traditional financial institutions, FinTech software has multiple advantages that have brought a humongous different way to operate finance businesses. Let’s focus on the most important ones:
among the others, payments move much faster. FinTech software automates and speeds up payments and this is crucial as cash flow is the lifeblood of any business. Traditional financial institutions usually don’t have the same advantage and it would take months for them to deliver the same services speedily.
It’s fully secure
the data is safe and there is no chance it may be seen by unwanted eyes. The risk of operations is slightly reduced. Protective layers like two-factor authentication and biometrics ensure that only valid transactions are made. Customers may be certain that their personal information is secure.
there are FinTech innovations like personalization algorithms. FinTech software provides customers with a personalized experience through AI and big data. Companies can easily offer products and services relevant to their users based on their past purchases or their financial standing.
there are many regulatory acts that ensure robust finances, governance, and risk management. FinTech software is a way to quickly adapt to a rapidly changing environment and stay up to date with laws and regulations.
FinTech is all about making traditional financial processes and operations faster and more efficient. Middlemen are eliminated and most manual, repetitive tasks are automated. Automation offers a higher level of specialization, so the level of service quality is much higher. This leads to lower costs, happier employees, and a much better customer experience. FinTech software companies can be both rapid and agile at the same time.
even if FinTech software development may be quite a big investment to make, it will for sure pay off in the future. FinTech solutions allow businesses to send and receive money from their accounts in different currencies without charging any incurring high conversion fees. Many manual tasks are automated, and most processes are streamlined. FinTech innovations contribute to reducing the overall costs of running a business.
FinTech software development offers the most convenient way of operating a banking or financial business. FinTech software uses high-end technologies to give customers a better and more reliable experience. It streamlines most finance processes and businesses by offering convenience at their fingertips. Customers no longer need to make trips to physical stores or wait days before an online purchase is delivered to their doorsteps. They have access to all the information they need in seconds via mobile devices.
It increases customer engagement and sales opportunities
FinTech software gives you a unique opportunity to reach out to customers even when they are on the go. It’s a way to reduce the gap between your business and competitors. You can provide your customers with new ways of buying and using products and services and perform various functions using their mobile devices. This both adds value to your business and enhances the customer experience.
FinTech development outsourcing – why choose BrainForge IT?
Interested in building your own FinTech software?
Great! However, if you want to build financial tools that make both your and your customers’ lives easier, you should trust a FinTech software development company that has extensive experience in building FinTech products. This is where FinTech development outsourcing comes in. Instead of creating an in-house team of developers and hiring them as full-time employees, your FinTech software development project can be handled by a specialized FinTech software development company on a contract basis. FinTech development outsourcing is a way to:
Reduce the cost of FinTech software development.
E.g. if you’re starting a FinTech company in the US, hiring developers offshore can cut down development expenses by half.
Get access to advanced data analytics
and customer insights which results in increased sales and promotes customer loyalty. Also, you can handle such data more successfully.
Manage time better
when you have the development part covered by a software outsourcing partner, you can focus on running your business and promoting your FinTech solution globally. You can work on the core business that is providing financial services to clients and not developing applications.
Get innovative approaches
incorporating new technologies offered by an external partner can add numerous new ways to develop your business.
Grab the latest technologies
working with companies that specialize in FinTech software development gives you access to the highest level of expertise in the latest solutions. Very often, it is impossible to achieve it with an in-house developer team.
As you can see
FinTech software development outsourcing can be nothing but beneficial. At BrainForge IT, we have created dozens of solutions that have moved our customers’ companies forward. Our experts will help you select the right solution for your software needs. We’ll create or refine applications for you to provide your clients with a world-class customer journey. We deliver payment services and any other kind of FinTech services. We’ll show you how to use technology to create top-notch solutions in the financial services industry. This is why you should consider developing your FinTech software with BrainForge IT:
Our software developers
have years of experience in creating innovative solutions. We have already helped many retail banks, insurance companies, wealth managers, and other FinTech companies develop financial tools so that they can become more competitive, flexible, and agile.
We offer a personalized approach
to meeting your unique digital transformation objectives. We start the collaboration with new customers with a solid analysis of their needs and requirements, then we analyze market trends and the customer’s capabilities. After assessing all operational risks, we are ready to select the proper approach to create your FinTech software. See how we work.
We are up to speed
with the financial regulatory landscape and frameworks. The financial technology we develop is always based on advanced risk analytics. · We are customer-focused and supportive throughout the entire process from the initial design through development and even after implementation. Learn more about BrainForge IT.
We are customer-focused
and supportive throughout the entire process from the initial design through development and even after implementation. Learn more about BrainForge IT.
We use mature technologies
Impact on financial industries – FinTech
FinTech software has been transforming the financial services sector globally. Mobile payment services enable fast and transparent payments and settlements, online loan apps accelerate the lending process, investment applications based on AI recommend suitable portfolios to investors at lower management fees. The business of investing has been transformed, financial institutions and banks that were formerly very high-margin and fee-based are now forced to waive their fees to remain competitive in the market. FinTech companies also created a wide variety of important subcategories – the most rapidly growing are defi, InsureTech, and RegTech.
What impact is FinTech having on e-commerce industries?
FinTech innovations are now used by more and more e-commerce businesses to provide better services to a wider range of customers. They use AI, ML, and big data to optimize operations and improve payment processes. They use API-driven development to integrate with different FinTech products. Finally, they implement automation solutions to reduce the amount of manual work and human error. FinTech business applications are now something that can help you improve the most important business processes. They enhance the competitiveness of companies in the e-commerce sector and improve the quality of customer service. They reduce the number of physical branches and human resources. FinTech’s digital payments in e-commerce have turned to be easier and simpler and digital transactions are easier than ever. There are many better payment options and transactions are more transparent. E-commerce customer services have become automated. Finally, FinTech software allows e-commerce businesses to go global and offer faster delivery methods.
Looking for a reliable partner who will create your FinTech software?
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BrainForge IT Software & Consulting Sp. z o. o. with its headquarter in: 53-125 Wrocław, al. Kasztanowa 3a-5, Poland, VATPL: 8992879435, registered in the Regional Court Wrocław-Fabryczna VI Commercial Division of the National Court Register, registered in the commercial register (KRS) under no. 0000840335, with share capital: 5.000,00 PLN.