Custom Fintech Software Development – All You Need to Know

Technological advances are changing our daily lives, and businesses are no exception. Be it E-commerce, education, the banking sector, or the travel industry, custom fintech software development is making headlines, and every business wants a piece of this revolutionary new tech.

Let’s try and understand what it is, what the benefits are, and also look at some real-world Fintech applications.

“The Global Fintech Market is expected to reach a value of $305 Billion by 2025” – PR Newswire

What is Custom Financial Software Development?

Custom fintech software encapsulates all the technologies used in the B2C financial services sector. It helps companies provide seamless, fast, and secure online payment solutions to their customers. If you have ever been involved in sending and receiving money via online payment services like PayPal, you are part of the fintech world too. 

This new technology has completely revolutionized how people make transactions and has business owners spending big bucks on custom fintech software development. 

“The major winners will be financial services companies that embrace technology.” – Alexander Peh, PayPal & Braintree

What is Fintech Software?

Initially, financial custom software development was the backbone of banks and other financial services only. Today, it has grown to a much larger scale, and a plethora of online services (B2C in particular) are benefiting from this latest technology in software development.

The most interesting aspect, however, is that anyone can now buy & sell online, trade stocks, or manage personal finances. It requires a smartphone, an internet connection, and reliable online payment services like PayPal or Google Pay & Voila! You’re good to go.

But why are companies spending fortunes on fintech custom software development? What is all this hype about? It comes down to the state-of-the-art and sophisticated science that makes fintech possible. Here are some technologies that contribute to it.

Artificial Intelligence(AI) & Machine Learning(ML)

From Deepfake to Robotics, AI & ML are making these technologies near perfect, and unsurprisingly, the financial sector is benefiting from these innovations as well. Companies can now perform credit scoring, detect a fraud attempt before it happens, and manage wealth faster & more efficiently.

Big Data & Analytics

They say data is king, and these days, a person’s online information is the most valuable asset for a company. With thousands of terabytes of data generated daily, it becomes rather challenging to process the information without the help of some technological intervention. 

With the help of data analysis software and mathematical algorithms, companies gather large amounts of user data to make effective strategies. This allows the bosses to save time & money, make informed decisions, and literally predict what the next customer is looking for. So, put all your forces into discovering the majestic custom fintech software solutions.

Recommended: 5 THINGS YOU DIDN’T KNOW ABOUT THE FINTECH INDUSTRY

Robotic Process Automation (RPA)

RPA helps in assigning manual and time-consuming tasks to custom financial software and robots. The most common fintech applications of Robotic Process Automation are e-mail marketing, transaction management, and communication via ChatBots.

Blockchain

Another important ingredient of software development for fintech is the use of Blockchain technology. With it, large amounts of online transactions can be made securely and with ease. End-to-end encryption in Blockchain reduces the risk of cyber attacks exponentially. It is also the foundation of cryptocurrencies like Bitcoin.

Therefore, it is safe to say that the Millennials, knowingly or unknowingly, have played a vital role in shaping the Fintech industry. They live and breathe technology and demand the best experience in everything they do. This ever-increasing interest in such innovations is paving the way for custom software for fintech startups to grow rapidly and make people’s lives easier while doing so.

Looks like the sky's the limit for fintech.

If you’re looking for a team of professional eyes & ears to help you make informed financial decisions, InvoZone can help you. It is one of the most credible fintech software development companies and has catapulted the growth of many new businesses around the globe. InvoZone specializes in state-of-the-art AI technology and has helped companies grow their digital presence.  Get in touch with us & let’s do this together.

What is the Custom Fintech App Development Process? 

Adopt the following steps to fintech software development that will help you become a part of the  future:

Define The Niche

When deciding on a niche, weighing the pros and cons of the most and least popular software and the number of competitors in each field is important. Additionally, expanding to global markets that are underdeveloped in bespoke fintech software development may be beneficial, as it will lower the competition and improve the lives of the residents.

With this in mind, it is only possible to make a well-informed decision on the fintech industry by first identifying your target audience. This is a crucial point to take into account.

When discussing the development process, many people envision thousands of lines of code. However, before any programming begins, it is essential to answer several questions, such as:

• Who is the app intended for?
• What needs or wants will the app fulfill for them?
• Why don't they currently use existing solutions?
• What unique and valuable features can you offer?

Consider The Importance of Compliance

Picture a world without proper financial app compliance - a catastrophe of missing data and shifty dealings. Oh, the horror! But fear not, good sir or madam, for compliance is the saving grace in fintech app creation. 

Significantly, financial watchdogs bark loudly, ready to pounce on illegal shenanigans. Privacy laws and protective measures are the strong walls that shield this sacred realm. 

And let us not forget the vigilant safeguarding systems, always on the prowl for any trace of noncompliance. So before you dare to dream of building a fintech app, do seek permission from the financial powers that be. Without it, you may find yourself in hot water, steeped in the broth of a financial faux pas.

Design App’s Features

In this stage, your squad should ponder the essential elements required for your app to function properly. We suggest starting with the most crucial features and incorporating them into your MVP (Minimum Viable Product). Once your MVP starts generating buzz and interest, you can then enhance it with additional, more sophisticated capabilities.

Develop A Team

The search for the perfect fintech builders! In a perfect world, they'd have experience crafting financial apps, wielding a formidable tech stack, and mastering communication tools. But where to find these tech-savvy sages? Fear not, dear adventurer, for there are several routes to take.

First, you could gather a band of tech wizards in-house. You'll be the ringleader, tasked with the arduous process of recruiting, questioning, and verifying each member.

Next, you could venture into the remote realms, outsourcing your development needs to a far-off land of technical talent. This option offers a vast pool of potential partners and the possibility of reduced operating costs. However, communication and management may be a hurdle if you are unfamiliar with this method.

Finally, you could hire a company of dedicated software developers. This choice would bring a host of business analysts, UX/UI designers, front-end and back-end developers, testers, a project manager, and a product owner to the table. Notably, it's the most flexible solution for longer-term software development fintech projects. 

Equally important, a dependable software development company can collect a crack team of vetted professionals from bolstering your existing crew. With InvoZone, you can embark on your fintech journey with a dedicated team at your side in a mere two weeks.

Design An App

Not to mention, user experience design is the backbone of fintech apps. It's crucial to make sure every aspect of the app is valuable to users.

If you want your app to be a financial success, it's essential to cater to all types of users, including both service providers and end customers.

Let's take a money-lending app as an example. There are two parties involved - the loaner and the loanee. You'll attract more customers by creating user-friendly interfaces for different types of users, as Upwork did. Even if your focus is on B2C services, it's wise to keep the possibility of a B2B interface in mind for the future.

Develop an MVP

Before you dive headfirst into the creation process, it's crucial to make sure your potential customers are on board.

Enter the MVP - a stripped-down version of your product with just enough functionality to get by. By utilizing MVP development services, you'll be able to test the waters with your software early on, gathering valuable data to tweak and perfect your app. So, say goodbye to useless features and hello to what your customers truly desire!

Launch the Beta Version

Endless testing may seem like the only path to a successful launch, but there is another way to improve your product before release.

Let me reveal the key to success to you. Straightaway, commence a private Beta test with select backers or potential test groups. By obtaining honest feedback from your customers, you'll be able to refine and perfect your app, smoothing out any rough edges.

Of course, it's paramount to secure any private data. Thus, it's best to have your legal team draw up necessary legal documentation and have testers sign a Non-Disclosure Agreement.

What is the Cost of Fintech Software Development Projects?

The cost of a typical fintech app can range anywhere from a modest $20,000 to a hefty $150,000, depending on several key factors. These factors include the complexity of the app, the type of application, the technology used, and of course, the development team.

As previously mentioned, building an in-house team can be a pricey and time-consuming venture, while outsourcing offers a more cost-effective solution. However, the price of outsourcing will vary depending on the location of the developers.

For instance, developers in the USA command hourly rates from $120 to $150, whereas those in Asia charge a mere $30 or less per hour.

Looking For Custom Fintech Software Development Services?

Step into the future of finance with InvoZone! Our experts have a wealth of experience in providing custom software development services for financial firms and are eager to bring your vision to reality. Give us a ring, and let us work our magic! We'll provide you with a rough estimate of the cost and guide you every step of the way to ensure the success of your project.

Frequently Asked Questions 

What is fintech software development?

Fintech software development refers to the creation of innovative financial technology products and services to meet the evolving needs of the financial industry.

How long does it take to develop a fintech app?

The time it takes to develop a fintech app depends on several factors, including the complexity of the features, the development team, and the technology stack. On average, it can take several months to a year or more to fully develop and launch a fintech app.

However, the exact timeline will vary based on the specific needs and requirements of each project.

What kind of software is used in fintech?

Fintech software typically includes technologies like blockchain, AI, mobile and web development, cloud computing, and payment processing.

What programming language do fintech companies use?

Fintech companies use various programming languages such as Java, Python, Ruby on Rails, C#, and JavaScript. The choice depends on the specific requirements and goals of the project.