eCommerce Application Development: How to Balance Scalability and Performance
Balancing scalability and performance is crucial for successful eCommerce application development, ensuring a resilient and flexible app that meets user demands.
Financial technology, or fintech for short, refers to businesses that “offer financial services to consumers primarily through technology and cloud services, with less emphasis on physical premises. (McKinsey)
With the Internet and technology comes a new era of financial services. Most of us probably have one or two money or mobile banking apps on our phones right now and rarely ever step inside a bank. Such significant changes ask for leaders who can navigate the complexity of fintech and understand the nuances of successful software development are poised for success.
This article offers the ultimate tips for successful fintech software development and what mistakes to avoid. Whether you choose to use fintech software development companies or have experience developing software solutions, this guide is a must-read.
Key Takeaways:
If you are trying to identify what a typical fintech institute looks like, there is no single answer. Fintechs may be banks, growth companies, start-ups, and even non-bank financial institutions. Examples of fintech include:
With this knowledge in mind, no matter what your starting point is, knowing the best fintech software development tips takes you one step closer to success.
The financial industry has long utilized technology in its operations. Legacy codes are the foundation upon which many traditional banks are built. However, many view them to be a hindrance to modern operational efficiency. According to 2018 research by Accenture, nearly four-fifths (79%) of operational leaders at North American banks feel that their bank’s survival will be challenged if they don’t update their technology to innovate faster and more efficiently.
Instead of completely evading or dismissing legacy codes, the best fintech software development companies find ways to leverage them to their advantage. They view the codes as an opportunity for transformation – after all, these codes have once served the business well, so handling them well provides companies with great advantages.
Understanding legacy codes reduces risks and maximizes the value of the existing investments. Here are several ways fintech software development services, or your in-house team, can go about it:
In short, reframing legacy codes is essential for a smooth operation and strategic, incremental modernization.
Fintech used to be unregulated for quite some time, but that has changed. It is now a strictly regulated sector, be it in digital payment solutions, mobile banking solutions, or personalized financial services. Numerous reasons are behind this strict regulation, including:
Specific laws are applied depending on the country or area of your business. However, below are the basic regulations every fintech needs to oblige:
KYC (Know Your Customer)
For decades, companies have implemented Know Your Customer (KYC) processes to verify user identities, safeguard against fraud, and ensure adherence to anti-fraud regulations. These measures are critical for maintaining regulatory compliance and protecting businesses from financial crime.
GDPR (General Data Protection Regulation)
GDPR establishes rules for gathering and using customer’s personal data. As consumers’ awareness of the importance of data privacy continues to grow, the financial industry finds itself at the forefront of data security concerns. The safeguarding of sensitive financial information is crucial.
AMLD Regulations
The Anti-Money Laundering Directive (AMLD) is a set of EU regulations aimed at combating money laundering and terrorist financing by establishing consistent rules across all member states. Each EU country incorporates the AMLD into its legal framework, often aligning it with FATF (Financial Action Task Force) guidelines to prevent criminals from legitimizing illegally obtained funds.
PCI DSS (Payment Card Industry Data Security Standard)
This is a set of guidelines designed to protect payment card transactions and cardholder data from cybersecurity threats and fraud. While not a legal requirement, PCI DSS is often a contractual obligation for businesses that handle payment card information, ensuring they maintain a secure environment for customers.
Above are some of the most crucial regulations. Electronic Money Regulations (EMR), Consumer Protection Laws, Cyber security laws, etc. are among many other rules fintech businesses need to be aware of. Be sure to research the regulations and laws thoroughly right form the beginning of the project.
Security Measures for Fintech Software Solutions
In addition to complying with legal requirements, fintech solutions must implement fundamental security measures. If you partner with a fintech software development company, they will take care of it for you, but it’s best to have an idea of what these security measures are:
Whether you partner with an outsourcing company or utilize the in-house team for custom fintech software development, properly investing in the tech stack can have a significant impact on the development process. Let’s take a look at the key technologies that shape financial technology in the digital world.
Artificial Intelligence and Machine Learning bring multiple benefits to the fintech industry, including high efficiency, automation, and precision. The potential of AI and ML is endless.
Blockchain technology continues to disrupt traditional financial systems, and the emergence of Decentralized Finance (DeFi) has presented opportunities for a more secure, efficient, and transparent financial ecosystem.
The modern finance landscape is complex and demanding. Businesses are slowly transitioning to cloud computing platforms due to their immense capability and benefits.
Regulatory compliance is undergoing a digital transformation with the advent of RegTech, a rapidly evolving field that leverages cutting-edge technologies like blockchain, AI, and natural language processing to enhance compliance efficiency and effectiveness. While still in its early stages, RegTech is gaining traction as a disruptive force in the compliance landscape, with start-ups and established players alike seeking innovative ways to streamline and automate compliance processes.
Fintechs are changing the ways they interact with the physical world with IoT integration. It has the potential to impact almost all aspects of the finance world, from digital payment to digital banking solutions. IoT integration with Fintech helps you:
With the explosive growth of technology and rapid fintech evolution comes high expectations for new services and faster release cycles. This drives the need for continuous improvement and innovative solutions. The implementation of continuous integration and delivery (CI/CD) helps fintech businesses improve the quality of software and speed to market by improving product quality, facilitating integration, automating manual tasks, and reducing response times to issues.
Despite all these benefits, there is still an adoption gap. A 2020 poll by Gitlab revealed that out of 3,650 participants, just 38% said they used CI/CD in their DevOps processes. Hence, to leverage the benefits of CI/CD, including faster feature releases and enhanced flexibility, businesses need to keep the following best practices in mind.
Financial software development should be clear and data-based. This can be done during the planning stage of the software development project. During this stage, key performance indicators (KPI), such as response metrics, defect rate, or delivery rate, will be set. Not only will these data keep the development process goal-focused and unambiguous, but they will also allow the fintech app to thrive. Fintech, after all, thrives on data.
AI, ML, Big data, and data analytics all play a role in facilitating a data-driven approach for fintech software. PayPal and Square are two examples of businesses that successfully utilized data analytics:
Armed with these insider tips, you are ready to embark on an impactful fintech software development journey! While the road ahead may require commitment and investment, rest assured that Orient Software is here to support your vision and alleviate concerns. With nearly two decades of experience in developing financial applications, our team brings expertise in navigating compliance and security and building exceptional user experiences. Reach out to us today, and let’s collaborate to bring your financial software development project to life!
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