The Complete Guide to FinTech Software Development

Projections show that the global FinTech market will reach a size of $556.5 billion by 2030.

FinTech has led to some of the most significant breakthroughs in eCommerce in today’s world. As the benefits and uses continue to grow, we’ll likely see a lot more development in the coming years.

Various risks and challenges come with traditional financial systems, and FinTech software development could be the solution to many of these.

In this guide, we’ll cover everything you need to know about FinTech software development. Keep reading for more.

What Is FinTech Software?

FinTech (financial technology) is a technology that’s designed to digitize, streamline, or supplement traditional financial services. It has various elements such as data analytics, supply chain technology, and financial software. FinTech software has a range of uses such as completing check deposits, bill payments, and money transfers.

It’s often used by businesses to help them manage their finances. Startups can grow as they can use FinTech development tools to create products for other businesses or financial institutions. Some businesses also use it to improve customer service, expand into new markets, and modify internal processes.

Uses of FinTech

FinTech is a fairly broad term. It can relate to various technologies that make financial transactions faster and more streamlined. There has been a lot of development in recent years in blockchain technology, machine learning, and AI (artificial intelligence).

Some of the areas that have made significant use of FinTech software development are:

• Payment apps
• Personal finance
• Investment apps
• P2P lending

While these are the main areas of focus, various other systems also use FinTech. Well known fintech products by finances online. 

FinTech Market Trends

The FinTech sector has grown significantly in recent years due to how cost-effective it is and how useful it is in the financial services industry. The usefulness became even more apparent during the Covid-19 pandemic by providing increased access to financial services.

The main overall advantage of FinTech is that it allows organizations to make profits through advanced technology. Conventional banking methods have proven useful for a long time, but are now becoming outdated.

The Benefits of FinTech Software

FinTech app development is becoming more popular due to the benefits that come with it. Developers can create apps that involve finance and banking practices that are superior to past products. They may allow businesses to process transactions in real time and access various data streams.

Customer Satisfaction

Customer satisfaction is vital for any business. Developments in the FinTech space are changing how people interact with banks and financial institutions.

Such organizations are putting more focus on customer satisfaction, and financial technology is an ideal way to achieve this. Implementing FinTech allows users to navigate economic issues and better manage financial stress.

Target Market

As time goes by, more companies are moving areas of their business online. One of the key reasons for this is that it allows them to reach a much wider audience. As the reach of a company becomes global, it needs to determine who its target audience is so that it can focus on engaging with them.

FinTech software development services make it easier for companies to reach the customers they’re interested in. This ensures their resources are used effectively, and users have sufficient access to whatever they need.

Operational Efficiency

Efficiency and productivity should always be a focus, and there’s always room for improvement. One of the main benefits of FinTech software development tools is that they can allow a business to streamline things so that its entire business operates through a single platform.

This simplifies things and will lower costs as the software can take care of all of the processing once it’s set up. An example of this would be to automate steps that previously required manual interaction – or to even eliminate these steps altogether if possible.

Essential Features of FinTech Software

There are various ways that FinTech software makes things easier and lowers costs. The best FinTech company will make sure several elements are present so that your platform is as effective as possible.

Data Visualization

Everyone likes to save money, and FinTech allows this – but how will your customers know? Data visualization can show users how much they’re saving by choosing you over your competitors.

You can collect and analyze data, then share it with your users. Power BI visualization allows you to create things like dashboards, charts, and reports based on user data. This makes it easy for them to see how much they’re saving at any time. Must have features by Yellow Systems.

Security

Security is vital in any online environment, but even more so when finances are involved. As FinTech deals with things like money transfers, financial transactions, and international payments, it’s essential that everything is kept secure.

Biometric sign-in is a measure you can put in place to help protect people’s accounts. You can also work with third-party companies to implement services like digital identity verification and payment processing.

Personalization

Even when using the same service, all customers have different needs. In the past, it wasn’t viable to tailor things to each user, but FinTech makes it possible. You can cater to the needs of different individuals using things like self-service platforms, digital wallets, and mobile banking apps.

A typical example of this is bill payment systems. Users can enter their details on a site and automatically pay their bills. It will help them get an idea of their monthly expenses so they can budget effectively in the future.

Speed of Service

Speed is another major factor that you want to focus on. Transactions are getting faster, so users have higher expectations. Being able to provide quick services will increase customer satisfaction and they’ll favor your brand.

Mortgage lending, for example, involves various tedious processes. FinTech can automate these tasks and make data-based decisions to save time. Depending on an individual’s credit score and financial profile, they may even be able to get instant credit from certain companies.

6 Steps to Develop FinTech Software

Even with the best FinTech services, there are things you need to figure out before developing FinTech software. Depending on what you want to create, the process will vary. With that being said, there are six basic steps that will almost always be crucial.

1. Choose a Niche

Your niche is what will make you stand out from the competition, so it needs to be something that delivers a unique experience to your customers. It will also determine many of the features that your product will include. Knowing what the wants and needs of your target audience are will help with this.

2. Research the Market

Look into customer demand and preferences so you know what you should be delivering. You also need to research other similar companies. This will show you what they’re doing well and where they’re falling behind so you can do better.

3. Design the Software

The UI (user interface) and UX (user experience) will determine how your product works and how things feel for the user. You can test different mockups to work towards an ideal final design. Focus on being user-friendly – if your platform is difficult to use, people will quickly turn to your competitors.

4. Build Software

With everything designed and planned out, you can start building. This takes a high level of skill and expertise, so hiring an experienced developer may be the best choice. A professional software agency will be able to help you at this stage to ensure everything works how it should and functions smoothly.

5. Beta Test Your FinTech Application

Don’t launch your platform as soon as development is finished, as there could be various issues that you’re not aware of. Beta testing will ensure your app works correctly and you’ll discover any issues that need to be amended. You can then revise things to fine-tune your product ready for an official launch.

6. Deliver the Product

Once you’re confident in your project and everything is ready, you can deliver it to users. It’s worth noting that things don’t end here.

There may still be problems that arise down the line, so you might have to release patches and updates to amend them. On top of this, you might want to add new features via upgrades, or simply make changes to improve your platform.

Successful FinTech Software Development

Developing an application isn’t easy, but hiring a professional FinTech software development company can help. There may also be different segments of your product that require assistance from other third-party companies.

Slick is dedicated to high-quality UI/UX design, so we can help ensure your product is perfect for your users. When it comes to FinTech software development, this is one of the most important elements if you want your product to succeed. Take a look at our services page to find out more about how we can help you create the perfect application.