ben brown

January 13, 2023

Business

6 Ways BNPL Can Scale With Custom Software

ben brown

January 13, 2023

Business

Have you ever found yourself in a tight spot, needing to make a purchase but not having the funds available to pay for it upfront? This is a common situation for consumers globally, especially in today's world.

These situations are uncomfortable and inconvenient, to say the least, but they are the kind of problems that FinTechs work tirelessly to solve. It’s reached a point where the solution is there but innovation is needed for it to consistently adapt.

As we’ve discussed here before, BNPL is one of the biggest advancements we’ve seen in FinTech to date. To jog your memory, buy now, pay later (BNPL) services allow you to make purchases and pay for them incrementally rather than upfront.

These services have gained traction in recent years with increasing demand which has made the market highly competitive. To reap the rewards of this market, BNPL providers need to differentiate themselves and innovate, and the use of custom software is one of the best ways for them to do that.

What is Custom Software?

Many may not know exactly what it means for businesses to use custom software and if that’s the case, then we need to cover that first. Custom software is software tailored to the needs and goals of any organization.

For BNPL providers (or any financial service provider), custom software can perform in ways that simplify and optimize operations, such as handling the processing and installing of payments (just one example).

Custom software solutions can also allow BNPL providers to offer unique and innovative features that set them apart from their competitors (essential). For example, a provider could use custom software to create a rewards program or to offer personalized payment plans based on a customer's specific financial circumstances.

How is it Built?

This all sounds great and useful, but we want to know what makes this possible. So now we’re going to go over some of the coding languages commonly used specifically for creating BNPL services:

JavaScript: JavaScript is always going to be on the list when it comes to your best options for programming, especially in the financial industry. It’s well-suited for BNPL applications because it can be used to create a dynamic, interactive UI and to process payments on the front end of a web application.

Python: Just like Java, Python is a regular popular choice and is one of the most versatile and powerful programming languages best used for data analysis and machine learning. A few specific features that BNPL companies can use Python for include fraud detection, credit risk analysis, and other data-intensive tasks.

SQL: SQL (Structured Query Language) is a domain-specific programming language used for managing and querying relational databases. Simply put: SQL is a powerful and efficient way to handle the storage, retrieval and manipulation of data, especially when it comes to transactional data in BNPL companies. Using SQL, BNPL companies can access and process user data such as their purchase history, order status and payment history to name a few.

Choosing the right programming languages especially when it comes to the automation and streamlining of tasks involving complex data is essential. It not only ensures that the software is optimized for performance and scalability but also supplies the tools and capabilities needed to handle the requirements of business operations.

How It Changes The Customer Experience

When it comes to financial technology in general, a secure infrastructure is foundational to delivering a seamless user experience. If someone has chosen your platform to make their lives easier, you not only want to but need to offer the best possible platform to build that credibility that keeps them coming back. Here are some ways that software allows this to happen:

Checking Out: Custom software enables BNPL providers to provide an easy checkout experience, with low-friction and simplified checkout forms, which make it more convenient for customers when they shop. Additionally, custom software enhances the security of these payments.

Easy-to-use Mobile App: BNPL providers that use software to create a mobile app make it convenient for their users to make purchases and manage their accounts from anywhere. In the United States alone, it is said that 1 in 3 consumers prefer mobile over any other mode of shopping.

Rewards Program: We briefly mentioned it earlier, but you should know that custom software can enable BNPL providers to create a rewards program. How this program works will depend on the business's vision but it can certainly make the BNPL experience more appealing and add value for customers.

The Takeaway

Using custom software has become pivotal for BNPL providers to stay competitive in this market, which is expected to grow at a rate of over 70% annually. By tailoring software to the organization's specific goals, BNPL providers can stand out by offering unique, innovative features. But like we always say, this starts with analyzing your business and what the vision is for it long term. Everything after that is best situated by consulting with a professional team once you’re ready to take action and implement.

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

ben brown

January 9, 2023

Business

How Big Companies Can Benefit From Outsourcing Software Development

ben brown

January 9, 2023

Business

Long days, longer nights, headaches for breakfast, and no sign of relief. This is the ugly sight of taking on a new project without proper guidance. We’ve all been in this position at one point or another. Whether it’s shown up in your personal or professional life (or both) will dictate your understanding of just how necessary guidance is.

In the land of technology, being underprepared when taking on a software development project can lead to stress and wasted time. And what’s even scarier here is that this is something that, when done improperly, will hurt your company's wallet. For this reason, companies outsource.

Outsourcing software development is a cost-effective and efficient way to bring new products and features to market, especially for large enterprises. By partnering with a third-party software development company, a large enterprise can tap into a pool of talent and resources that would otherwise remain out of reach.

4 Ways This is Made Possible

Time-to-market: Outsourcing software development can help a large enterprise bring new products and features to market faster. The software development company can handle the development process, freeing up the enterprise to focus its energy on other tasks.

Cost: Compared to scouting and recruiting in-house developers, outsourcing software development can be far more cost-effective, especially if your enterprise is located in an area with a high cost of living. By outsourcing, an organization now has access to an array of talent and can offer competitive pricing.

Access to specialized talent: Many software development companies are going to have a team of developers with a wide range of specialized skills and expertise. This can be especially useful for a large enterprise that needs to develop a complex software solution, implement new technology that they’re unsure how to materialize, or if they simply need proper guidance.

Flexibility: Outsourcing software development allows a large enterprise to be flexible and scale its development efforts up or down as needed. This can be especially useful for companies with fluctuating demand or those that need to quickly respond to changes in the market.

Entities Who Outsource

We could sit here and dish out every little detail of why outsourcing development will help you and your business, but why not just show you? Some large enterprises that have benefited from outsourcing software development include IBM, which outsourced the development of its Watson artificial intelligence platform, and General Electric, which outsourced the development of its Predix industrial internet of things platform. Other familiar names include:

Google
Apple
Oracle
Amazon
Facebook

This list is undoubtedly just the tip of the iceberg, but it gives you a sense of how the biggest and most successful companies use outsourcing as a resource to remain the best at what they do. It’s a competitive market, especially in the digital realm where the demand for skilled talent is high and lucrative for businesses.

How It Can Be Applied

Getting started when it comes to a new software development project is more often than not the hardest part. Commonly, this is simply because the project has been overthought or there is still a level of uncertainty. When this is the case, it requires company leadership to resort back to the basics which include:

Defining the goals of the new system
A comprehensive evaluation of all options for outsourcing providers
Outlining and communicating expectations
Tracking progress

Outsourcing can provide many benefits, but to reap the rewards, these are the kinds of operating procedures that need to be in place. Again, like anything in business, for this to work, it requires leadership to be aligned with the goals of the project.

The Takeaway

There are no shortcuts to success in business— or anything for that matter, even in a world where resources are abundant. There is only hard work that can solve the problems of an organization. To prioritize quality in all aspects, you may have to leave certain things up to others to ensure it gets done right and that your business can focus its efforts where it counts.

Written By Ben Brown

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ben brown

December 23, 2022

Business

What is Digital-Only Banking and What Does it Mean For Businesses?

ben brown

December 23, 2022

Business

The types of changes we’re seeing in financial technology daily are crucial for businesses to pay attention to. New trends in FinTech will influence the changes that occur in businesses of all sizes, especially when it comes to the customer experience. One of the bigger transformations we’ve seen recently is the shift to digital-only banking. Now, let’s be clear that digital-only banking is not limited to sending that E-Transfer to your friends and family.

The concept of digital banking refers to the use of digital technologies, such as the internet and mobile apps, to access and manage financial services and products. On the other hand, digital-only banking (also known as online banking or internet banking) refers to a type of banking that is solely conducted through digital channels and does not have a location for you to visit.

What’s in it for consumers?

Customers of a digital-only bank can perform all of their banking activities online or through a mobile app, including checking account balances, paying bills, transferring money, and managing their finances. Banks that are digital-only often offer competitive interest rates and lower fees compared to traditional banks, since they do not have the overhead costs associated with maintaining physical branches.

Some examples of digital-only banks include Ally Bank, Chime, and Capital One 360. These banks offer a range of products and services, including checking and savings accounts, credit cards, and investment options, all of which can be accessed and managed online or through a mobile app.

Risks

We have to keep in mind that while digital-only banking has become increasingly popular in recent years, it is not without its drawbacks. Many customers may prefer the convenience of visiting a branch for in-person service or to deposit physical checks, for example. Additionally, digital-only banks may not offer the same level of customer service or support as traditional banks, and there may be risks associated with conducting these transactions online.

How can they be resolved?

Despite these drawbacks, the shift towards digital-only banking is likely to continue, as more and more consumers become comfortable with using digital technologies to manage their finances. Businesses that can adapt to this trend and offer digital services will be setting themselves up for success long term. But why is that?

Trends

Companies embracing the hottest trends are certain to gain attention from consumers in today's market. In addition to digital-only banking, some of the biggest trends in FinTech include artificial intelligence and machine learning which improve financial services and products, along with the growth of mobile payments and the previous rise of cryptocurrency.

Artificial intelligence and machine learning are consistently being used to analyze financial data and make predictions about market trends, as well as automate tasks such as fraud detection and risk assessment.

What’s interesting is that mobile payments, which allow consumers to make payments using their smartphones, are becoming more popular as a convenient and secure alternative to traditional methods of payment. Additionally, cryptocurrency, which is an asset that uses cryptography (solving codes) for secure transactions, is another area that gained a significant following in recent years. While cryptocurrency may have lost its glowing reputation, mobile payments are still important to watch for, even with the crypto dip.

The Takeaway

The FinTech industry is constantly evolving and businesses need to be aware of these changes to stay competitive. Digital-only banking, which allows consumers to access and manage their financial services and products through digital channels, is one of the major trends in FinTech. While it offers competitive interest rates and lower fees compared to traditional banks, it may not provide the same level of customer service or support and there may be risks associated with conducting financial transactions online.

However, the shift towards digital-only banking is likely to continue as more consumers become comfortable with using digital technologies to manage their finances. Businesses need to stay up-to-date on these trends and adapt to them to succeed in the future.

Written By Ben Brown

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