The global FinTech market is expected to grow at a CAGR of 23.58% from 2021 to 2025. FinTech is transforming how companies deal with finances. Today, digital payments and e-wallets are the norms for banks, financial institutions, and e-commerce providers. FinTech app development services, therefore, take over the financial industry.
While cashless transactions are relatively popular, peer-to-peer lending and Buy Now Pay Later options are the progressive trends in FinTech. Custom software development companies now offer financial services that simplify transactions between people and enable institutions to create a wider audience base.
What is Custom Software Development for FinTech?
Custom software development services focus on fulfilling a specific customer need. A global custom software development company designs products for a specific enterprise, even for a particular department.
Today, digital payment mechanisms, invoicing systems, and P2P lending products are key contributors to custom software in FinTech. However, enterprises and startups are exploring FinTech as technologies like Blockchain and Cryptocurrency come into action.
Smart contracts are a popular FinTech solution these days. Using Blockchain, companies are utilizing smart contracts to decentralize their transactions. Custom software is better than off-the-shelf because it allows enterprises to make modifications as per their requirements.
The high transactional value in FinTech is proof that the industry is flourishing. Consumers find tremendous value in digital finance as it is convenient and flexible. That's why more and more custom software focuses on digital payments, P2P, and personal finance.
Read More: Customized Software: What is it, Types, and Examples
Let us see why software solutions companies prefer custom software for FinTech rather than utilizing existing off-the-shelf software.
6 Reasons Custom FinTech App Development Solutions are on The Rise
71% of consumers currently leverage the services of FinTech companies for digital payments. Full-cycle custom software development companies build more than payment solutions - they implement solutions for digital banking, loan inspection & approval, cryptocurrency exchanges, and more.
Custom enterprise software to solutions makes sense if companies want to solve specific problems without the limitations of the off-the-shelf software.
Here are 6 reasons custom software development services are a great way to go for a FinTech app development company -
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App Personalization
- Enterprises can easily achieve personalization with custom FinTech software. For example, through data analytics, companies can identify their spending pattern and minimize their costs.
- Similarly, they can offer personalization to users by providing suggestions based on the user history. The largest custom software development companies are using AI and Machine Learning to deliver personalized products in digital banking, insurance, and loyalty programs.
- Enterprises can also modify the app as per the need. They can change the design, add features, and implement upgrades that are not possible in the off-the-shelf software.
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Scalable Solutions
- Almost every off-the-shelf software has a limit on users. Companies providing FinTech app development services often focus on scalability since the beginning. IF there's a digital wallet, enterprises would want more and more people to use it.
- Off-the-shelf software is not scalable, while custom software can easily be scaled. Developers can work on the system and scale the solution without any performance issues.
- Often, off-the-shelf software charges for additional resources. In custom software, companies won't have to worry about paying extra everytime they scale.
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Better Security
- FinTech apps store a lot of confidential data. Third-party software may have security loopholes that enterprises may not know about. Working with custom software ensures that the company knows about all the security measures.
- Since there is no surety about what security off-the-shelf software offers, it doesn't make sense to deploy them. Credit card details, customer details, etc. might be stored in the third-party software, and the company won't even know it.
- By using advanced tech like Machine Learning in custom software, the top custom software development companies can not only integrate better security, they can identify threats before anything happens.
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Efficient Applications
- Off-the-shelf software comes with general features but lacks advanced ones. It makes the company processes inefficient. Custom software development companies focus on making the business operations efficient through the FinTech application.
- They can easily install chatbots to quickly resolve common customer queries, deploy apps on the cloud to save infrastructure expenses, and address concerns related to privacy with ease.
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Robotic Process Automation can easily take over the task of data entry and scheduled invoicing. It simplifies the entire process of financial management for the organization.
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User Convenience
- Custom software is highly convenient for consumers. For example, digital banking products enable customers to open bank accounts, take loans, make deposits - all through a Smartphone application.
- In enterprises, custom software is tailored to meet specific requirements. The accounts department can use the FinTech solution to generate invoices rather than going through a manual process of invoicing.
- Similarly, enterprises can streamline their financial processes through an application and achieve higher efficiency. There are certain limitations in off-the-shelf software that are easily overcome by custom solutions.
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Stay Relevant
- FinTech is essential for enterprises, banks, and financial institutions to stay relevant. As more and more startups join the FinTech landscape, these enterprises need FinTech transformation to match consumer expectations.
- For example, Blockchain is becoming a prominent technology for smart contracts and transactions. Data analytics ensures that users get the best out of their preferences. Robo advisors are increasing as users want quick investment advice.
- It is important to get custom software that integrates such features. Cashless transactions and branchless banking are now clear paths in the future. Therefore, to stay relevant, enterprise transformation into FinTech is crucial.
Click here: How To Use Python for FinTech Applications
Wrapping Up
We have discussed the 6 top reasons why FinTech app development services are important for today's enterprises and startups. Software solutions companies are progressively offering FinTech services to ensure that enterprises stay on top of their game. To surpass the limitations of off-the-shelf software, custom development is key. Enterprises need to explore the FinTech space and identify what they need to win in the industry.
If you are looking for any type of custom FinTech software development, then BoTree Technologies can assist you. We have a team of 80+ developers who have worked with global clients and created high-quality solutions.
Contact us today for a FREE CONSULTATION.
