What is FinTech Development?

Have you ever heard about FinTech developments? Only a few people know that almost every one of us uses such products every day. What is it and what are they for, we will understand in this article.

FinTech (an acronym for Financial Technology) refers to the use of new technologies and delivery models to complement or compete with traditional financial service delivery processes. An important focus of the fintech industry is the development of safer and more profitable business models to support monetary exchange and other measures of value. FinTech Software Development is a very popular area now.

FinTech business models often focus on mobile clients and services that are typically accessed through software as the service (SaaS) delivery model. By digitizing traditional finance workflows, fintech startups can compete for customers with traditional banks. Applications tend to be narrowly focused and may be subject to less stringent regulatory scrutiny than their banking counterparts due to their limited scope.

The ability of fintech applications to provide customers with secure and convenient money transfers and automated services has disrupted banks’ traditional revenue streams in recent years. Examples of disruptive fintech applications include:

• providing consumers with free credit ratings;
• the ability for merchants to accept online and mobile payments;
• using blockchain to maintain a distributed ledger of digital currency;
• use of near-field communication (NFC) protocols to support contactless mobile payment systems.

Developing software of a certain complexity is usually a slow and costly process. Especially if the application being developed requires financial knowledge that a programmer usually does not have. Therefore, the development of financial applications or financial software in many cases becomes quite a complex and resource-intensive task for an entrepreneur.

The fintech company aims to use technology to offer financial services more efficiently and at a lower cost. The entrepreneur has several options to get this technology:

• Entrust development to a third-party company: The main problem that an entrepreneur faces when entrusting software development is transferring the necessary financial knowledge to properly program an application. This is not a trivial question. A programmer has to master a lot of concepts unknown to him in a very short period, and in many cases, he will begin to develop financial software “blindly”. This often affects the performance and functionality of the application. In financial software of a certain complexity, some factors influence others, and without clear ideas from the very beginning, it is very difficult to achieve a satisfactory result.
• Create your own IT department: in this case, you can train your programmers in finance. Over time, we may be able to get them to understand the processes associated with the financial application (although it will be difficult for them to gain in-depth knowledge of the subject). However, this process is very time-consuming. And the salary of the department with programmers, system specialists, and web designers turns into significant financial investments with uncertain results.
• Contact a financial software and financial applications company: this will eliminate the problem of communication between the financial aspect and the programming aspect. You will tell about your project to someone who understands this sector. Being specialists, they can even give you advice, train your employees, etc. To do this, you can use DevOps consulting and implementation.

Fintech development is something new, complex, and unusual. If you start this journey with the right specialists, then the process will be as easy as possible. Fintech applications make life much easier for many of us. We use Internet banking every day and consider it commonplace, but there is a complex development behind it.