Home Insights & AdviceFive software development challenges in the financial industry

Five software development challenges in the financial industry

by Sponsored Content
13th Dec 21 1:21 pm

These days the financial industry is actively adopting innovative technologies in order to replicate traditional banking and turn all financial services online to make them accessible anytime anywhere. Fintech solutions entail developing online banking, lending, insurance, personal finance applications that provide financial services of the same high quality and data security.

Due to the statistics, the number of fintech companies or traditional banks that adopt fintech solutions continues to grow annually.

The ranges of functions being integrated into digital banking apps are surely huge and depend on the finance establishment specialisation, requirements, and needs of their customers. 

Trends in fintech development

The trends in the fintech industry are constantly changing and it is important to consider all of them in your digital banking solution in order to correspond to the expectation of your customers and keep up with the competitors. 

Cybersecurity

Cybersecurity is the top priority in financial software custom development which needs constant improvements. Fintech solutions should be integrated with the prevention of cybercrime strategy and protecting customer-sensitive data from frauds and leakage. 

DeFi (decentralised finance)

This trend is expected to gain momentum in 2022. DeFi entails providing users with financial services within a fintech solution with no central authority. This trend gives users access to the crypto market meaning they can pay for the services or products with cryptocurrency right from their smartphones.

AI-powered solutions

AI-based chatbots are widely used within financial solutions in order to provide great customer support and eliminate the errors caused by humans. AI is tasked with collecting and analysing information from all internal and external sources to see the performance of daily operations and look for ways of boosting their efficacy.

Banking as a service (BaaS)

BaaS entails the ability to connect the fintech start-up’s to a particular banking establishment through API. It means a traditional bank gives access for the fintech small companies to the financial services and implies subscription-based relationships. 

Challenges in the fintech software development

All in all, fintech software development is the process that requires following official compliances that protect private data. It always has a threat of loss of vital customer or fintech company data as all operations and transactions are processed online. Thus, we have covered the most common challenges in fintech software development and described how to prevent or cope with them if any of them occur during the development process.

Intuitive design

Creating the design for a fintech solution, it is important to consider the customer requirements to make it user-friendly. Despite it being digital banking, it does not mean the design should be complicated, too contemporary, and or suitable only for youth. The design for the fintech solution should be created considering the needs of all customers and the inline banking standards to make all operations accessible, simple, and smooth. Moreover, user feedback is vital to monitor and conduct the design upgrades if the feedback is not satisfying. 

Third-party integration issues

Third-party integration remains one of the main concerns in custom software development of all industries and types. Fintech software solutions are often integrated with payment gateways provided by third parties to provide customers with different ways of online payments. Before integrating the fintech solution with a tool from another provider, it is important to deeply learn the specifics of this tool to find out if it implies smooth integration with your app. 

Data security and compliance

Cybersecurity and compliance with GDPR law are the must-have options customers want to see in the financial software they use. Still, the low percentages of customers tend to trust traditional banking systems more than digital banking solutions. To gain the trust of the customers, they should be sure your fintech app follows data security regulatory standards and protects their private data from spammers and leakage by implementing the latest data protection strategies. 

Cloud-based fintech software

The migration from an on-premise to a cloud-based solution is spreading among different types of custom software solutions, and the fintech industry is not an exception. However, a cloud-based environment is not supposed to be the most secure for digital banking that can lead to private data losses. When choosing a cloud service vendor, it is vital to ensure the efficacy of their security measures to avoid data leakage within your database.

Big data

Big Data technology is tasked with collecting and analysing huge amounts of custom information from various sources like social media, customer databases, etc in order to provide them with an improved customer experience due to their preferences and needs.

How GBKSOFT can help?

For the past 10 years, GBKSOFT software development company has gained trust among our clients as a trusted and reliable fintech software development provider. Our development team focuses on delivering transparency and top-notch development services to the clients sharing their business values, goals, and requirements. There are several successfully built and delivered custom fintech solutions implementing the latest technologies, regulatory compliances, and market trends in the apps. 

Our development flow depends on your needs whether you want to build a fintech solution from scrat6ch or extend the functionality of the existing financial software app:

  • Discovery stage or audit of the existing solution to find out the core specialisation and scope of the project
  • Prototype development and Proof of Concept creation
  • Solution development  – building a custom fintech app from scratch by our outsourcing development team or dedicated team to extend the resources of your in-house development team.

Besides, we created the risk management plan for each software project in order to predict the potential challenges in threats that may occur during your fintech solution development and build the precise plan of how to prevent them or how to cope with them without harm to the development process.

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