We talk a lot about software development in the financial world, and for good reason— this is a hot-button topic that needs attention. Financial services are data intensive and heavily rely on the analysis and interpretation of that data. This can include (but is not limited to) interest rates, stocks, income/cash flow statements, and balance sheets.
It can be a lot to take in when looking at how IT brings innovation to an organization; in this article, we’re going to break it down simply. We will look at why software engineering is so important in the financial industry and some examples of what businesses should look out for to ensure they have the best possible team leading their digital transformation journey.
Every financial firm will have its unique requirements, the software is just there to help keep everything functioning seamlessly. Development teams working for financial service providers need to be aware of this, by recognizing the unique requirements of the industry and remembering they are there to provide solutions…
Why would we say that? Software developers know what to do for FinTech companies right?
Software development for financial firms is high pressure since the business is naturally extremely high pressure, which means that there’s just about no room for error in any utilized IT systems.
When errors do arise it can be extremely detrimental, in the United States alone, faults from IT systems take out $150 billion from the economy annually.
This is intimidating for both software developers and the companies who invest in their services, but it is why reliability, credibility, and transparency are such important aspects when it comes to choosing a software development team.
The Best Software Engineering in Finance Looks Like…
Finance and banking are among the top 5 industries demanding software engineers according to industry reports, with entry-level salaries starting at over $110,000. In addition, more than 95% of financial companies deem it “critical” to have solid software engineers in order to sustain the company long-term.
The job of a software engineer is strictly to examine, make predictions, and come up with comprehensive software solutions based on the variables they’ve examined. As a software engineer working for a financial service provider, the projects in scope may include:
Technology integration (Such as Blockchain or Crypto)
**If you don’t recognize some of the topics, check out our previous blogs on them**
When a financial service provider hires a software development team, they’re not looking for someone to put a bandaid on their current processes, they want innovative solutions and digital transformation to make their services stand out in the most competitive market in the world.
Digital transformation, like anything else in running a business, will look different for everyone.
However, with experienced software engineers, you can find the future that looks exactly like the vision of success you’ve always wanted. This may include (but again, is certainly not limited to):
Cloud computing: This is one of the most prevalent trends in software development as a whole for its ability to store and access data. For a banking/finance company, this is everything to their users and it leads us to the next point.
Mobile Banking Services: Let’s not forget, two-thirds of the American population alone use mobile banking for their day-to-day needs. In 2023, mobile banking is a nonnegotiable for young consumers especially, which tells you everything you need to know about where the industry is headed.
AI: By now, Artificial Intelligence has entered normal dialogue though it’s caught some people by surprise. For the financial industry, it’s brought many great benefits when it comes to:
Repetitive task automation
Minimizing errors
Aiding in the decision-making process
Cybersecurity: The major threats financial firms have to consider when implementing software systems in 2023 include:
2,200 - The estimated number of attempted cyberattacks each day.
$9.4 million - The average loss financial firms saw from ransomware attacks in 2022.
Cybersecurity is a necessity in an age where FinTech service providers are at the pinnacle of banking. Companies need to protect their assets and data which is why when software programmers today build systems to protect service providers, they must remember they can mitigate a breach before it is attempted.
Each of these aspects leads to a well-rounded platform that users will feel comfortable relying on. More than that, it’s something that can be sustained long-term which makes it better for companies who want to scale their operation.
Where Custom Software Makes Scaling Easy
When you invest in custom software, it’s not a temporary fix— rather, it’s a foundation being implemented that when it continuously undergoes innovation can take a company from a startup to a large-scale enterprise.
For instance, a custom mobile app could help a FinTech startup grow its user base by reaching new users, while customized cybersecurity measures can protect against potential threats as the company scales. It’s the little things like this that make a big difference long term.
The Takeaway
Software engineering is where the majority of the heavy lifting happens since execution is based on the analysis done during this time. To maximize the results a company sees from software development, prioritizing the planning stage is a crucial step. Lay everything out on the table; current pain points, long-term goals, market research, etc. Putting this in the hands of the right software development team will guarantee the best possible outcome.
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.
