In the financial services industry, it’s essential to concentrate on technology in parallel with the core operations because even a minor glitch in the software may significantly impact the entire financial system.
The adoption of innovative technologies such as automation accounting, big data analytics, and AI-powered banking and finance solutions has recently increased. These technological advancements have helped BFSI organisations to effectively manage costs and elevate the customer experience. From the report of Allied Market Research, the worldwide financial technologies market size was valued at $110.57 billion in 2020 and is forecasted to reach $698.48 billion by 2030, growing at a CAGR of 20.3% in 10 years.
With this quick-growing market, many banks and financial institutions are searching for trusted financial software development teams to help them tackle the shortage of IT talents and improve organisation technology systems.
What is Financial Software Development?
Financial Software Development typically refers to creating software applications specifically designed to address the needs and requirements of the BFSI industry. Some banking and financial software solutions include Banking Apps, BFSI platforms, Insurance Software, e-Wallet, Trading Platforms, Wealth Management Services, etc.
Concentrating on financial technology will help businesses streamline financial processes, improve accuracy and efficiency, enhance data security, and meet market requirements. With tech innovations in financial software engineering, your business goals can be achieved quicker.
Key Considerations to Find the Right Financial Dedicated Software Development Team
When it comes to financial software development, it’s crucial to partner with a dedicated IT service provider with a strong understanding of financial concepts and industry-specific requirements. As the financial sector is highly regulated, software must be built with security at the forefront. This entails incorporating advanced technologies commonly used in the financial industry, such as data encryption, financial APIs, real-time data processing, and seamless integration with financial data sources. However, only some software development corporations have sufficient domain knowledge and experience to handle financial software projects successfully.
Thus, when searching for a financial software development team, you’ll need to consider the following factors:
1. Domain knowledge and expertise in financial software development
An experienced software development team is often familiar with the complexities of financial processes, data structures, and integration requirements, allowing them to develop robust and reliable software solutions. Moreover, the right IT service providers will have sufficient knowledge to consult and develop appropriate strategies, which include product roadmap, team engagement models, technology stack and solutions tailored to your specific business requirements.
It’s also essential to consider financial software engineering corporations that commitment to innovation and staying ahead of industry trends. Thus, they can provide insights into financial products and helps define potential areas for improvement in your system. These innovative solutions can streamline processes, automate manual tasks, and improve operational efficiency for financial institutions.
2. Strong track record of successful financial software projects
In the financial industry, getting things right the first time can be challenging. Therefore, businesses should check the dedicated software development team’s proven track record to ensure they can help you deliver the IT project on time and within budget.
Several key factors typically characterise a strong track record:
- Client satisfaction: You can check the IT services provider’s feedback and testimonials on some B2B review platforms such as Goodfirms, Clutch, Extract.co, etc. to understand how they handle financial projects and the ways they communicate and collaborate with clients.
- References and case studies: The best practice here is engaging with the dedicated software development team that can provide references from previous financial software projects and showcase case studies highlighting their successful implementations. This provides evidence of their capabilities and achievements in the financial software development space.
3. Compliance with industry regulations and standards
In the financial services sector, banks, financial institutions, credit unions, insurance companies, and brokers need to comply with industry-specific government regulations to ensure a well-functioning and trustworthy financial system. Thus, an IT partner that possesses in-depth knowledge about your country-based legal agreement is well-versed in developing tailored solutions that align with industry best practices and compliance standards. For instance, Open Banking is the first sector of Consumer Data Rights (CDR). Thus, when developing mobile apps, Australian banks need to consider the Australian Competition and Consumer Commission (ACCC) to protect sensitive user information and maintain data security.
4. Top-notch security measures implemented
Additionally, since the BFSI industry handles sensitive and confidential information, it has become a vulnerable target of cybercrimes. Therefore, investing in data security is of paramount importance to minimise the risks of information leaks. Collaborating with a skilled IT service provider specialising in fintech security ensures the development of secure software equipped with features such as data encryption, secure authentication, and protection against fraud.
The dedicated software development team should also have a disaster recovery plan in case of any financial data breaches and share their security measures with you to mitigate risks and ensure the confidentiality and integrity of sensitive information.
Questions to Ask Your Financial Software Development Team
1. What experience do you have with developing financial software?
This is an old but gold question to determine if the financial software development team has experience in developing scalable solutions that can adapt to evolving business needs and emerging technologies.
Since there is a lot of regulation in the financial sector, it is advisable to engage a software developer with a proven track record of delivering successful financial solutions. For instance, if you’re in need of building a mobile financial app to digitalise the business and connect with more clients, it’s worth considering looking for an IT partner that has skills and experience in developing mobile banking applications or financial modules such as mobile payments, credit cards management, etc.
2. How do you ensure compliance with industry regulations and data security standards?
You can inquire about their processes and practices for maintaining compliance, handling sensitive data, and implementing security measures. If a financial software development team lacks experts in financial regulation, it can potentially result in regulatory issues and hinder the expected ROI. Additionally, your partnered software development team must prioritise product development security and ensure the absence of any potential leaks of customer financial data.
3. What methodologies, development practices, and communication methods do you follow?
Understanding the IT service provider’s approach to software development, project management, and quality assurance to identify whether they are aligned with your current implementation, helping ensure seamless onboarding and knowledge transfer process.
Moreover, businesses should discuss how the development team collaborates with clients and other stakeholders. Ask about their communication channels, frequency of updates, and mechanisms for gathering feedback. Clear and effective communication is crucial for project success and maintaining a solid working relationship.
4. What kind of testing and quality assurance processes will you put in place?
Testing and quality assurance play vital roles in the development of financial software. It is crucial to thoroughly test the software to ensure its functionality and accuracy without any errors.
Moreover, the financial data processed by the software must maintain a high level of quality. It is essential to engage a financial software development team that possesses expertise in various types of testing, including functional, performance, and security testing. They should be able to present a well-defined quality assurance plan right from the outset of the financial software development process.
5. How do you handle scalability and future-proofing of the software?
As your financial software project can scale up or receive an unpredicted number of users simultaneously, it’s essential to determine if the team has experience in developing scalable solutions that can adapt to evolving business needs and emerging technologies. You can inquire about their ability to handle increasing user loads, more extensive data volumes, and growing transaction volumes without compromising performance. Understanding their scalability strategies will help assess their capability to support your business’s growth.
Get Ready to Find the Right Financial Dedicated Software Development Partner
Selecting the right financial software development partner requires careful consideration of several vital factors. It is crucial to prioritise domain knowledge and expertise in financial software development to ensure compliance with regulations and industry-specific requirements.
KMS Solutions demonstrates a strong track record of successful financial software projects, showcasing its ability to deliver reliable and high-quality solutions. Our proven experience in developing scalable and future-proof software for BFSi enterprises such as ACB, ANZ, Discovermarket, Axi, etc. has emphasised our ability to adapt to evolving business needs and emerging technologies, keeping our clients ahead of the curve.
Contact us for your financial software project!
