The financial technology sector has been rising in popularity as more people adopt tech solutions in various aspects of their businesses. Technologies like e-wallets and “neobanking” have also changed how people approach financial topics. For companies that want to scale, adopting fintech software development solutions is a no-brainer. But the question remains open – whether the fintech software development team should be in-house or whether your company should consider finding a fintech development outsourcing partner. If your team lacks the expertise to develop a fintech app, don’t sweat it. This article discusses the benefits of outsourcing in software development fintech. But first, let’s go through some fintech app development statistics. Standalone or embedded ewallet for your business
Digital wallet platform
The financial technology sector has been rising in popularity as more people adopt tech solutions in various aspects of their businesses. Technologies like e-wallets and “neobanking” have also changed how people approach financial topics.
For companies that want to scale, adopting fintech software development solutions is a no-brainer. But the question remains open – whether the fintech software development team should be in-house or whether your company should consider finding a fintech development outsourcing partner.
If your team lacks the expertise to develop a fintech app, don’t sweat it. This article discusses the benefits of outsourcing in software development fintech.
But first, let’s go through some fintech app development statistics.
Standalone or embedded ewallet for your businessMore details
FinTech app development market overview
According to Statista, the global usage of finance apps has grown during the COVID-19 pandemic, with Japan leading the charge. Projections also estimate the potential value of the financial services market at 26.5 trillion USD in 2022
As of 2019, over 60% of SMEs in China have adopted at least one fintech product development initiative.
Also, countries in the Americas have over 10 000 fintech startups as of Q3 2021, 48 of which are unicorns. Besides, based on current consumer trends, mobile banking (and transactions) will increase by over 28% in 2022.
In the Kingdom of Saudi Arabia, innovation in fintech is supported by the Saudi Arabian Monetary Agency (SAMA), ensuring favorable conditions for startups and entrepreneurs to be competitive on the world arena. This is proven by the adoption by the Saudi government of the UK’s financial service model that will be a factor helping to form the new fintech Saudi.
Market-ready platform for neobanksLearn more
Fintech development outsourcing vs in-house software development
From the figures mentioned above, companies can only stay ahead of the curve by investing in fintech app development. However, the options for your company’s software development initiatives are limited to only three choices:
- an in-house team of fintech developers and tech specialists;
- ready-to-go fintech software from a trusted vendor;
- fintech software outsourcing to a provider that can build customized digital solutions.
Buying your fintech solution from a vendor works only if you have a team of fintech developers to customize the source code. Besides, the hiring process is complex, time-consuming, and expensive.
Alternatively, you can delegate your fintech software development to a dedicated team of in-house developers. But here is the problem with this strategy:
- Hiring a fintech product development team is expensive and stressful.
- You might not have the time and resources to train inexperienced fintech developers.
- Understanding documentation, industry standards, product libraries, and compliance guidelines is a massive, time-consuming challenge.
So, that leaves the option of fintech software outsourcing. But before endorsing this strategy, let’s explore what advantages it may potentially bring to the companies that go for this variant.
Key benefits of outsourcing fintech software development
Developing fintech software is a complicated process that requires years of hands-on experience with payment services to perfect.
Unlike other forms of web and software development, you need specialists with industry-specific expertise for your fintech software development.
Let’s assume that you want to build a white label banking app; only specialized fintech developers can create this product to meet contemporary industry standards.
Even the most skilled software developers will struggle to cope with the rigors of fintech product development because it focuses more on backend development. Your experts need to understand several layers of product security, API endpoint integration, and other industry guidelines.
If your company does not have a team of fintech developers, consider outsourcing the project to industry experts. With their expertise, they will complete your project, factoring in the intricacies of effective fintech software development.
Portfolio showcasing fintech experience
Although expertise is essential, it is not enough when hiring a fintech outsourcing company. Always check out the company’s previous projects on their portfolio. This process helps you see what they have delivered to clients in the past.
For example, if you want to create a digital bank like Revolut, focus on companies with a proven portfolio of digital banking and neobanking projects.
By choosing companies that specialize in a given aspect of fintech, your company stands a higher chance of getting a product that suits your project objectives.
Some fintech projects come with “impossible” deadlines. In these cases, you can opt for ready-to-go finTech software solutions.
However, the drawback to this alternative is that you end up with a generic platform with potential security risks. And even if the issuing company grants you access to the software architecture, you still need a team of experts to modify the backend.
Nevertheless, you can contact the fintech software development company to discuss customizations to pre-built on-premise frameworks.
As it stands, thousands of fintech startups flood the financial market every year. With that in mind, the killer idea you have for a fintech app development might already be in the works.
And what separates your company from potential competitors? Time to market.
If your product misses the launch window, a competitor might capitalize on this opportunity and harm your bottom line.
So, instead of wasting time ironing out interdepartmental conflicts and scaling through bureaucratic red tapes, outsource your project to a fully-fledged fintech software development company.
These fintech app development experts will use agile development philosophy to fulfill your timeframe expectations and keep your product launch timetable on track.
High level of security
According to a CyberEdge report, 86% of institutions suffered at least one cyberattack over the past 18 months. At least 69% of the affected companies experienced disruptions in the regular workflow due to ransomware attacks.
Security is one of the core pillars of fintech software development. An insecure fintech platform is a goldmine for hackers and scammers. And since the potential human cost is high, your company needs a fintech development outsourcing agency with air-tight security.
A reliable fintech software development company preempts these security flaws and mitigates risks in the product’s core architecture.
Besides, they can implement PCI DSS (Payment Card Industry Data Security Standard) and OWASP (Open Web Application Security Project) to meet the financial industry standards.
Data science technologies usage
Someone once said that “data is the new oil,” and this statement remains relevant today. In this age of big data, you need to invest in data science for software development in fintech.
When working on your fintech product, integrate data mining capabilities to gather valuable insights from users. Don’t forget to provide opt-in possibilities to enable users to control the data you collect. From the collected information, you can create predictive models to anticipate market trends and consumer behavior.
And this is where machine learning enters the equation. Every modern fintech software development solution needs machine learning algorithms to automate trading, provide financial advisory services, and analyze massive datasets.
Robust knowledge transfer plan
Before hiring a fintech software development company, ensure that they have a plan to transfer the knowledge base to your software developer fintech team.
Let’s suppose that you outsource your neobank project to a fintech product development agency. You still need to maintain and run the software in-house after launch. Else, your company will experience bottlenecks when working with the software.
So, the outsourcing company should craft a continuity initiative to transfer the codebase, database, admin rights, system documentation, and operational procedure to your team.
One disadvantage of using in-house fintech software development is that the DevOps methodology in place is often “too green” to withstand the rigors of a complicated project.
But when you outsource the project to experienced experts, you mitigate the potential risk factors involved in fintech app development. Some of the common risks in fintech software development include:
- Malware attacks
- Cyber breaches
- Server failure
- Broken authentication
- Buffer overflow
- Broken access control
Quality assurance is one of the first steps in developing a reliable fintech product. By creating a fool-proof testing life cycle, the fintech outsourcing company can detect and crush bugs before the launch stage.
Also, fintech outsourcing agencies provide you with continuous product support while your team gradually gains full control of the product. This continuous custody ensures that the users enjoy the best experience when using your fintech software.
Ready-made software – a software development outsourcing alternative
Fintech software development is a process that involves painstaking attention to detail within a specific timeframe. Although you can hire an in-house team for your fintech project, outsourcing often seems a better option.
However, there’s an alternative way of outsourcing fintech softwarer development. It is using a stable ready-made core software from a reliable vendor that has all the necessary functionality for a product and is perfectly customizable. The idea is, your in-house team can extend and customize the solution after a short period of getting the hang of the source code. It allows to save development costs and accelerate time to market for your product.
SDK.finance retail banking platform source code is available for purchase, which gives you total independence from the vendor. Our 15+ years of experience in fintech products development makes us a proven partner for building the digital bank of the future. Contact us to discuss your payment product requirements and find out how we can help launch it.
Get in touch with SDK.finance team
We are open to talk about how SDK.finance can be useful for your businessContact us
- Fintech – statistics & facts
- Cyberthreat Defense Report 2021
- Alarming Cybersecurity Stats: What You Need To Know For 2021
- How a fintech software development company can take you to the next step
- Planning for Knowledge Transfer in an Outsourcing Project
- 10 Common software security weaknesses
Why choose fintech development outsourcing?
Outsourcing fintech development saves time and money. It also mitigates risks by providing a high level of security. Besides, outsourcing places your products in the hands of seasoned fintech development experts.
What is better - fintech outsourcing or in-house development?
Depending on your needs, both solutions can be beneficial.
However, in case your company lacks the experts able to build a fintech product from the ground up, it will be a winning strategy to outsource this task to a team with a solid background in the niche. This will not only let you launch your product faster, but also will enable your team to focus on what they are proficient at.