A Minimum Viable Product (MVP) should embody a streamlined version of a product, integrating only the essential features necessary to address users’ core needs and deliver immediate value, all while keeping development costs low. MVP development marks a pivotal moment for many startups, necessitating meticulous planning and execution.
Nevertheless, banks and financial institutions frequently encounter pitfalls during this critical phase due to the complexity of their software and applications. In this article, our specialists at KMS Solutions explore some common mistakes in financial services MVP development that every organisation can avoid to ensure a smoother path to success.
Examples of Financial Services Minimum Viable Products (MVPs)
- Mobile Banking App: Launch with core functionalities like account balance checks, basic money transfers, and bill payments, before expanding into more complex features such as investment services or loan applications.
- Investment and Trading Platform: A platform that allows users to buy and sell financial instruments effectively and track their investment portfolios. Ensuring the user-friendly interface and integrating the online payment gateways – a simplified version that only handles basic transactions between buyers and sellers and supports a limited number of payment methods.
- Insurance App: A basic online form that provides users with quick insurance quotes based on minimal input, testing the demand for an automated, self-service insurance portal.
- Peer-to-Peer (P2P) Lending Platform: Start with a basic platform allowing users to lend and borrow small amounts, focusing on user verification and loan repayment tracking to validate the business model.
Common Financial Services MVP Development Mistakes
Going Beyond the ‘MVP’
Many BFSI companies believe customers will only appreciate and accept a ‘perfect’ product, often leading to teams overbuilding the MVP, which should ideally feature just enough to validate the core business idea, not mirror the final product. In their eagerness to impress and captivate their target audience, some businesses include an extensive range of features and invest in high-end designs from the outset, depleting resources, slowing time to market, and leaving little room for future enhancements based on user feedback.
Therefore, our strategy here is when deciding on an financial services MVP’s essential features, you should conduct a thorough analysis of the MVP’s objectives alongside customer needs to pinpoint the essential features that align directly with the goals.
Moreover, each feature under consideration should undergo a detailed evaluation to determine its specific benefits in relation to the set goals and user expectations, helping avoid incorporating unnecessary features at the MVP stage.
Failing to Appoint the Right Team for MVP Development in Banks & Financial Services
When you lack the necessary technical expertise to effectively develop, launch, and support your MVP, securing a technology partner with the requisite skills becomes critical to your project’s success.
Banks and financial institutions often fall into two primary traps when assembling their development team:
- Opting for the Cheapest Option: Choosing the least expensive team may seem financially prudent, but it can jeopardise the very foundation of your business and product. Investing in quality ensures the initial development stages set the stage for future scalability and functionality.
- Avoiding a Full-Service Team: Another frequent error is hiring a team that lacks the comprehensive skills necessary for robust MVP development. An effective team should include skilled designers, developers, testers, and project managers.
If the team lacks expertise and capacity, it can lead to several issues, such as:
- Delayed Release: In the BFSI industry, MVP development requires a fast-paced and agile approach. An underqualified team is more likely to miss crucial deadlines, slowing down the development process and missing key market opportunities.
- Inadequate Feedback Analysis: The success of an MVP heavily relies on the team’s ability to iterate based on user feedback. An inexperienced team may fail to properly analyse and act on feedback, hindering the MVP’s evolution.
A proficient team that is priced effectively often provides invaluable insights throughout the MVP development process. They act not just as developers but also as consultants who contribute significantly to the technological and strategic aspects of the product.
If you don’t have the budget or capacity to hire these team members in-house, you can always consider a flexible arrangement with an outsourcing development company.
Sacrificing Privacy & Security in Favour of Early Release
When striving for rapid market entry with your MVP, don’t compromise on security and privacy. Neglecting privacy and security measures in the rush to launch can have dire consequences. Beyond the clear moral and ethical implications, such oversights can jeopardise the entire product and potentially lead to the downfall of your startup.
Be sure to:
- Conduct a Security Audit: Before launch, performing a thorough security audit to identify and mitigate potential vulnerabilities.
- Implement Essential Security Measures: At a minimum, incorporate basic security features such as data encryption, secure authentication mechanisms, and protection against common threats like SQL injection and cross-site scripting (XSS).
- Privacy by Design: Integrate privacy considerations from the outset of your MVP development. This involves data minimisation, user transparency about their data use, and ensuring that privacy settings are user-friendly and accessible.
- Regularly Update Security Protocols: As your MVP evolves, regularly update and enhance your security measures to address new threats and vulnerabilities.
- Educate Your Team: Ensure that all team members understand the importance of security and privacy and are knowledgeable about best practices.
Ensuring that your MVP is secure and respects user privacy is not just about ethical responsibility—it’s also about building trust and credibility with your early adopters. This foundational trust is crucial for your product’s and your company’s long-term success.
Our Approach to Delivering High-Quality MVP Software in Banking and Finance
At KMS Solutions, we follow a proven yet flexible methodology to support your organisation in MVP software development:
Ideation & Strategy Development
Our journey begins with a comprehensive analysis of your business environment, enabling us to capture core insights. We then strategically select and prioritise financial services MVP features, design the system architecture, and assemble a specialised development team tailored to your project’s needs. Undertaking this preparation ensures the MVP framework is both robust and aligned with your strategic objectives.
Rapid Prototyping & Proof of Concept
We employ rapid prototyping with an early look at functionality, or validating innovative technology ideas. These tools refine the product based on initial impressions and real-world utility.
MVP Deployment & Enhancement
Depending on the project’s requirements, we launch the MVP directly into the production environment or through a series of testing and staging phases to ensure robustness. Post-launch, we engage in a continuous loop of feedback collection and analysis. This critical evaluation helps ensure the MVP not only meets initial market expectations but is also refined for enhanced performance and user satisfaction.
Adhering to this structured approach ensures the delivery of a market-ready MVP primed for further development and success. If you would like to learn more, speak with our specialists at KMS Solutions today.
