5 FinTech Services That Rely on Custom Software Development

FinTech companies depend on high-functioning software that not only differentiates their platform from traditional financial institutions but also ensures a great overall experience for users. When done properly, the ultimate goal is to be able to consistently revise and innovate to build a platform that’s solid all around for users.

Imagine a World With Poor Quality Software

When it comes to the role software development plays in delivering FinTech services, this is an area that truly requires full attention. Think about it like this: a software system is like the foundation of a building; to support anything built on top, there needs to be a solid base. When it comes to the software foundation of FinTech service providers, a poorly built or unkept system can lead to several problems including:

• Glitches

• Poor user experience

• Cybersecurity breaches

• System downtime

• Integration issues

What’s at Stake

The list certainly runs much longer, but this gives you a glimpse into the kind of obstacles that appear down the road with poor quality or unkept software. Globally, the FinTech market is currently worth well over $165 billion. If we wanted to narrow this down to financial services in just the United States, then we’re looking at a market worth around $4 trillion, which accounts for about 7.4% of the country's GDP.

Financial services aren’t just big in North America— this is a global market with an audience of a little under 4 billion people. These services are sought after for more than just their convenience; they are necessities that people depend on which means that performance optimization is a race with no finish line for businesses. 

How to Pair FinTechs and Custom Software 

The demand for FinTech services is present and rampant which means that if we want to look at how custom software development enhances system performance, we have to first look at the services that depend on it:

1) Mobile Payments:

This is one of the most common services in the industry and for good reason. Take for instance that Apple Pay (48 million users), Venmo (75 million users), Google Pay (150 million users), and PayPal (377 million users) are some of the most notable providers that just about anyone would be able to recognize. 

Mobile payment speaks for itself in terms of its value as it eliminates the need for physical payment methods and makes it easier for everyone to operate on the go. Additionally, these services can interconnect across multiple devices, and the more that aspect of the service grows, the more competitive this market will become.

To deliver this seamless experience that users are so drawn to, there needs to be a solid software infrastructure in place that is frequently updated to implement new features and adjust to the demand from the market.

2) Investment Platforms:

Many FinTechs offer investment platforms that allow users to manage and track their investments online. These platforms commonly use custom software to provide real-time updates on things like investment performance as well as offer personalized recommendations based on the user's risk tolerance and financial goals.

In this area, some of the most notable providers are Questrade and Robinhood, though most banks offer their own version of this service.

3) Personal Finance Management:

FinTechs who do really well in the market are the ones who create custom software that helps users track their spending, create budgets, and save money. These tools often use artificial intelligence and machine learning algorithms to categorize transactions and provide insights into the user's financial habits.

4) Lending:

Fintech lending platforms should be a focus when it comes to maximizing the use of custom software in the financial service industry. These services use systems to perform tasks such as streamlining the loan application and approval process.

This software can also analyze a potential borrower's credit history, income, and other financial factors to determine their eligibility and the terms of the loan. Super technical stuff that would be a headache to research and input manually is why they turn to custom software integration. 

5) Digital Banking:

This is pretty much standard practice for banks in 2023 and rightfully so. The introduction of digital banking changed the industry forever. You’re now able to access your bank account on almost any device, make payments, and even open new accounts from just about anywhere.

Custom software development goes hand in hand with the creation and customization of digital banking services. Beyond creating an ideal user experience, it tackles the most important asset when it comes to FinTech services: security. With these features combined and maximized, institutions will find themselves in a very competitive space with digital banking. 

What’s Next?

The future of using custom software to enhance the experience of FinTech services for users is certainly a bright one. For instance, the innovation we’re seeing through AI and ML as well as blockchain technology suggests that the peak of this technology is yet to be discovered. 

For FinTech startups looking to start their digital transformation journey through custom software, the best piece of advice would be to recognize what aspect of the industry you’re getting into and identify how you differentiate from competitors. With this knowledge, you’ll be able to avoid making mistakes and bad investments in systems and instead be able to dedicate all your energy towards your niche.

Written By Ben Brown

—

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.

6 Fundamentals When Developing an App in Finance

In most businesses, executive teams will look at the big picture for their company and make decisions/implement procedures that they believe are in its long-term best interest. These decisions are often reactive, influenced by the actions of others such as competitors and leaders in their industry.

The financial sector is no different in this aspect; businesses are in an incredibly competitive industry that focuses solely on the big picture of financial services. With influence from so many outside sources, including newly emerging FinTechs, it can certainly make financial institutions feel anxious to get their vision for digital solutions out to market as fast as possible.

It’s completely acceptable to think like this, however, there are certain nonnegotiables when it comes to strategizing. For example, finding a solution to any problem in an organization first requires leaders to put their egos aside and admit there’s a problem. 

Barriers to Success in an Organization

Let's say that a company is seeing a decline in revenue, and the organization's leaders are struggling to identify the root cause of the problem. Even after multiple meetings and brainstorming sessions, they are unable to reach a consensus on what needs to be done.

We see here that it may be necessary for the executive team to set aside their egos and admit they don't have all the answers. It may also involve bringing in outside consultants so they can get an unbiased perspective and help them identify areas for improvement. 

This is in contrast to finding something to pin the blame on for revenue loss and going with a reactive solution without totally understanding the underlying issues. Often, technology can get caught in the middle of these situations and “quick solutions” are implemented without adequate reason.

App development is notorious for running into this kind of trouble because organizations tend to overthink (and underthink, in some cases) the kind of experience and features their users want. Developing an app starts with a grand vision and then leads into logistics in terms of how it will function, what features it will have, and how it will be marketed. This is where the executive team needs to be open to feedback and willing to pivot their strategy based on user feedback and market trends.

What Needs to Happen

When it comes to developing an app in the financial industry, the first step is to recognize who will be using the platform and how they will be using it. For example, in the United States, around two-thirds of the population use digital banking regularly because of its simplicity and accessibility. In that case, US-based institutions should base their solutions around an easy-to-navigate platform that can be accessed on mobile and desktop devices seamlessly. 

Recognizing that this example is very general, let’s get more in-depth with some of the fundamentals for financial app development:

Security: 

We need to cover this first because ultimately security is non-negotiable for financial platforms. 

Typically, two-factor authentication is recommended any time personal information is stored on a platform as well as encryption and additional measures that ensure the safety and privacy of user information.

User Centricity: 

As we’ve mentioned, focusing on the user who is managing their finances using your application will give you the upper hand in identifying the features needed to make the app successful. Research has shown that taking a User-Centered Design (UCD) approach often leads to an increase in ROI as well as overall competitiveness in the industry.

Core Banking System Integration:

A core banking system helps banks keep track of their money and transactions. Whenever someone deposits or withdraws money from a bank account, the system notes it and keeps track of the account balance. Taking this into consideration, when an app is developed for a financial institution, they need to ensure the database can sync up with the system.

Scalability: 

When a company builds an app, it’s never because they solely want their current number of customers to just have another outlet; they want to expand their reach. Growing the platform is a major focus for financial institutions and it’s why they strategize using digital app development. 

For this reason, the application needs to consistently go through innovation as the expansion occurs to accommodate new users and ensure quality performance.

Choosing The Right Tech Stack:

Choosing the right tech stack is crucial for financial app development as it not only affects functionality and scalability, but also the overall security of the application. Your tech stack includes all the programming languages, frameworks, and tools used to build the app. 

It's important then to choose a stack that aligns with the goals and requirements of the app, as well as the skills and expertise of the development team. Some popular tech stacks for financial app development include Java, Python, Ruby on Rails, and Node.js. 

Simple UX Design:

An app that's easy to use and navigate is crucial for financial app development to ensure a positive user experience. Specifically, it's important to have a clear layout and a consistent design throughout the application. 

Simplicity is key here and having too many features or too complex of a design can overwhelm users and deter them from using the app. A user-friendly design will not only help with customer retention but ultimately attract new users to the platform.

The Takeaway

Producing the best possible product when it comes to app development requires that teams take a “never done” approach. This means constantly analyzing, finding room for improvement, and making those improvements. Of course, it must also be noted that with a successful application comes the need for a more complex IT infrastructure that can accommodate all functions as well the user base. When developing systems gets overwhelming, team augmentation is an excellent solution.

Written By Ben Brown

—

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.

Where Do Cross-Platform App Frameworks Stand in 2021?

What Have Apps Come to Today?

According to a survey by Flurry, people expend almost 90 percent of their phone time on smartphone applications relative to web surfing. Apps are quickly becoming an increasingly important part of our everyday lives. In which phones have become an accessory that has made a huge impact in our culture today. We get our news, shopping options, and ability to connect with others using our devices, and it is the mobile applications that make it possible to do all this stuff.

So What Makes A Great App?

A quick glance at the app store list of best-performing applications will show the answer to this question! There are some startling parallels between these applications, and that is what we will be looking into in this blog! We can take a look at some tactics and strategies some may need to adapt to when the app is designed, for success from day one. Here are some popular applications!

Top 10 Successful Apps on The App Store  

1.  Gmail

2.  Fortnite 

3.  PUBG Mobile

4.  Snapchat

5.  Youtube

6.  Messenger

7.  Bitmoji

8.  Google Maps

9.  Instagram

10. Facebook

1. Problem Solving 

Classify the needs of the customers and move towards making their lives simpler. Let them think they can't survive without your app, and you're going to create something special. By doing an in-depth analysis you can come up with something completely unique and creative!

2. Creativity and Uniqueness 

Give your consumers money for the time they spend in your app and they're going to be faithful to you. What do you need to offer? Is it fun, utility, or convenience? You should also make sure that you do an extensive analysis of the proposals you have and ensure that the finished result you get does what you plan to do.

3. Android and iOS “Think for all” 

Today, there are two popular smartphone networks in the world. By leaving out one forum, you are effectively locking out almost half of your future user base. Begin the cross-platform application development system as early as possible in the design process. Using this would spare you the hassle that comes with trying to create two separate versions of applications on separate platforms.

4. Core Features

Enable the app to concentrate on only one thing and do it incredibly well. Don't jam features on top of each other that aren't appropriate. This can just distract from the users' experience and is the quickest way to fail. Plus, if you concentrate all of your energy on a single target, you'll be able to give your users just what they want and know you did your best. Choose an action and boost your success at it.

5. Sophisticatedly, Simple!

Keep the app quick and tidy, as less is better in this situation. Make the app as effective as possible by having the fewest number of technical difficulties. Your customers can use your app more effectively if the app is not cluttered and impossible to comprehend. Render the actions that a customer would do in your app predictable and repeatable. 

6. Updates

You must be able to adapt, iterate, and launch increasingly newer, improved versions of the app in response to the users' desires and demands. Users need to know that you are actively working to make their life better if you want to be successful. Maintenance, growth, and upgrades are all part of the process. Your app should be current and improving at all times. Feedback shows you what you need to hear!

For more information or questions regarding creating an app, contact us today!