While off-the-shelf software may seem like the more cost-effective option, it’s designed to work for as many different companies as possible. So, it tends to offer only a limited set of features and can be difficult to adapt to particular needs. If you have to develop workarounds or add-ons for ready-made applications, they can end up costing you more in the long run.
Benefits of Custom Software Development for Fintech Firms
Partnering with your IT team or custom software developers to develop software specifically designed for your company’s needs, on the other hand, can give you applications that bring a wide range of benefits. Here are the 5 main ones.
Latest Technology
New technologies like blockchain, data analytics, and cloud computing have driven the rapid growth rate in fintech in recent years. But how can your company best take advantage of these innovations? First, you may find it difficult to hire full-time in-house developers due to low unemployment among these professionals and the fact that financial jobs are less desirable than those at big tech firms. You can solve this problem by working with a third-party software development firm to provide your company with the appropriate expert talent for your fintech needs. Using this approach gives you access to skilled experts without the commitment or expense of hiring permanent staff. Your developer can help you create technological solutions based on the latest innovations, including:
Apps to allow investing and payments directly from mobile devices using e-wallets, which are a must-have in today’s market Robo advisers to assist your customers in making good, data-driven asset management decisions. Blockchain technology to streamline processes and better handle authentication in large-scale transactions
Personalization and Customization
Customers want to feel special and understood. So when you figure out what your customers need and want and provide them with it, they’re likely to remain loyal into the future. Customized fintech software can utilize the latest in data analytics methods to examine consumer data and create the tailored services your customers expect. Developers can also use artificial intelligence (AI) technology to create more personalized products to enhance your customers’ experience with platforms like mobile apps, online banking, and loyalty programs.
Enhanced Security
Financial companies store susceptible customer data, including social security numbers, bank and investment account information, and credit cards. These data need secure protection from cyberattacks. In fact, hackers attempt data breaches against financial services firms 300 times more frequently than against other industries. Besides, there are now federal regulations in place through the Financial Industry Regulatory Authority (FINRA) mandating how companies in the financial services industry must secure consumer data. As a result, more companies will be looking for specialists with FINRA licenses to ensure the best possible financial security for their businesses and consumers. Customized fintech software can help with your company’s cybersecurity risk management and mitigation, regulatory compliance, and fraud detection and prevention. Useful innovations include AI technology to identify and minimize fraudulent online activities and biometric technology to help make your financial software products virtually hackproof and more convenient for your customers to access. The risk of cyberattacks may have kept your company away from cloud computing options. However, with the latest data privacy protection improvements, you can now safely utilize cloud computing and reduce your need for physical infrastructure like in-house servers.
Improved Efficiency
Customized fintech software can improve your company’s efficiency in numerous ways:
AI-assisted chatbot programs can handle customer inquiries quickly and accurately, even outside regular business hours, giving them on-demand service. Cloud computing allows your company to reduce its infrastructure expenses, resulting in a more streamlined and cost-efficient operation. Developers address user design, quality assurance, and data privacy features during a custom project, so you won’t need to spend time addressing those issues after the product is completed. Robotic Process Automation (RPA) can maximize your operational efficiency by allowing investment robots to perform repetitive tasks like data entry and scheduled asset rebalancing, freeing up your in-house providers to focus on more specialized and strategic activities.
Scalability
Scalability, the ability to grow and adapt to changing needs and demands, is an important factor to consider. As your company grows, your software must be able to grow with you quickly and easily. When it can’t, you’re likely to encounter performance problems and negative customer experiences. When you choose custom fintech software, developers can build it to allow for future growth or service expansion, including user increases or more data storage. In addition, they can utilize scalable technologies right from the start, so you get products that will handle both your current and future needs. Using the same software for a longer time enables you to save money over the long term. It’s also faster to add new features than to start over with a new software program, allowing you to offer new or expanded services as soon as possible.
In Summary
Don’t try to force your company’s unique needs into standard fintech software products. Instead, by partnering with developers to design customized software tailored to your demands, you’ll get the latest in technological innovations to provide your customers with a secure and personalized experience. At the same time, you’ll increase your efficiency and position your company for future growth.
