How Can Custom Software Development Solutions Benefit Fintech?
TL;DR: Driven by the value partnerships provide the fintech sector, this blog outlines a few of the most common challenges and pain points that fintech companies and their respective leadership can solve together with customer software development partners. The article includes a quick state of the fintech market, fintech trends and innovations, and the practical benefits of custom software development solutions to scale fintech businesses.
From neobanks to cloud computing, blockchain, and artificial intelligence (AI) implementations all the way to innovative business launch acceleration measures, digital transformations are crucial nowadays for a competitive edge that can make all the difference in fintech and elsewhere. That’s also the precise intersection where custom software development can bring about an undeniable and long list of benefits for fintech companies. While providing tailored solutions to meet a business’ specific needs can help any company in any sector nowadays, fintech companies can especially profit from custom software development solutions in today’s highly competitive global and localized markets. Fintech companies serving business-to-business (B2B), especially, “have ample room to disrupt, as small to mid-sized enterprises (SMEs) worldwide have an estimated $5 trillion in annual unmet credit needs,” states the latest global fintech report for 2023.
Over this blog article, I’ll be outlining the key challenges fintech companies face today by analyzing their main pain points and providing a list of benefits that fintech companies can seize by building strong partnerships with software development companies.
Quick State of the Fintech Market in 2023 and Beyond
2022 was a challenging year in finance, but it certainly didn’t kill fintech, nor is it expected to hurt it beyond recall moving forward. Quite on the contrary, this year’s early May fintech report cited above has got everyone talking about the industry reaching “$1.5 trillion in annual revenue by 2030, constituting almost 25% of all banking valuations worldwide.”
In case you missed it, the sector “currently holds a 2% share of the $12.5 trillion in global financial services revenue.” While Asia Pacific is looking like the next great location for market share, the North American fintech market is next on the global list and expected to “remain a critical hub for innovation.” Tied to this, the sector already knows it’s only growing stronger in collaboration.
Building Strong Business Partnerships is Key in Fintech
Today, speaking of digital financial ecosystems is already synonymous with a worldwide movement. If there’s anything driving products and services at the moment in this field, it has to be partnerships. Payment integrations and financial service offers are only coming about through co-creation and partnered distribution for those technological companies already seizing their best advantage in this field. Fintech is certainly an industry in which strong business partnerships are the ones making a difference.
Especially for those fintech startups looking for investments this year, partnering with companies that can help grow a product offer within legal limits can be crucial in securing much-needed support.
Big Tech in Finance: Fintech Trends and Innovations
The latest advancements in fintech include new technologies, software, and applications that can help financial institutions streamline their processes, reduce costs, and improve the customer experience. Amongst those, we can find Forbes’ top list of trends to watch out for in 2023, which include “AI and machine learning, blockchain, digital banking and mobile payments, cybersecurity and fraud prevention, and open banking and API integration.”
Now that I’m collaborating at a company that’s focused on Latin American tech talent, I’d like to include a bit of the latest info on fintech in at least one country in this region as well. We’ve written about Chile, Uruguay, and Costa Rica in the past. Let’s just say that for fintech, Brazil is migrating more and more towards a tokenized economy. That includes the agricultural sector, which, tied to the food sector and in accordance with the United States Department of Agriculture’s Economic Research Service, “accounts for 29 percent of the country’s GDP, valued at $1.8 trillion in 2021. ” Just to add to that thought, agriculture “employs 15.1 million people in rural establishments” in this country, which is “equivalent to 15 percent of the labor force, according to Brazil’s latest agricultural census.”
With so many cards to play across the globe and in specific regions, contemplating diverse industries and niche opportunities, it’s only natural for decision-makers at fintech companies at this point, including CTOs, CEOs, and other senior executives, to simply be faced with a dire need to address the industry’s most common pain points and challenges in technology-related decisions. Having experts in the Latin American region by anyone’s side can only help fintech companies navigate the myriad of business opportunities spanning across the globe right now.
Of course, many more considerations are also possible. The latest banking applications fintech can produce, for example, can no longer be an area of hesitation for companies looking to get a piece of the fintech pie. Here’s how custom software development companies can ease the challenging path for fintech companies.
How Custom Software Development Benefits Fintech Companies: Challenges and Solutions
Key challenges fintech companies are facing today have a lot to do with data security, regulatory compliance, and customer privacy. Part of having the latest innovations bring financial services closer to online platforms and transactions has to do with an immediate demand for cloud computing, industry-leading knowledge & management of big data, and an improved user experience with on-demand banking systems, just to name a few examples.
Custom software development solutions can help fintech companies stay competitive in their transition from brick-and-mortar banking and legacy systems to the immediacy and speed that web-based and online platforms have to offer consumers around the world.
Related Read: The Benefits of Working with an IT Staff Augmentation Company
In this sense, RegTech, known as the management of regulatory processes in the financial industry as led by technology, is no small concern. Its volatile nature, tied to profound legal implications, especially when operating in financially challenging environments, makes RegTech an area of considerable need for attention for anyone in fintech.
In the meantime, big tech in finance has long provided banks with state-of-the-art technologies at competitive pricing. To beat this scenario, fintech companies need to work on unique solutions to global problems. A software development partner who has been in the staffing business for over a decade, like Nearsure, for example, can only boost plentiful customized benefits.
Nearsure’s Expertise Helping Financial Clients
Beyond just answering one specific need for our clients, our true area of expertise lies in staffing ideal tech teams that can build, plan, develop, and provide key support in specific ways. We work hard to ultimately deliver new solutions at a quick pace for long-term clients with whom we hold relationships of value.
In building solutions for payment service providers, for instance, Nearsure’s expertise includes supporting a payment service provider (PSP) with their global operations and clients as big as Amazon, Sony, Spotify, and many more. Our tech-savvy teams have supported the integration of diverse technologies as much as they’ve worked on back-office tools. In this scenario, doing so has been particularly useful for transaction handling. Whether tied to legacy systems or the latest technologies, our tech teams and leadership are ready to handle whatever comes their way.
From Java micro-services to Angular.js work, we’ve supported constant technology upgrades and the use of varied databases, such as MySQL, along with Liquibase scripts, APIs, front-end, and browser support. Characterized by flexibility, we know most business tech setups are considerably specific, and some may get tricky!
Our teams can follow scripts, provide ideas and solutions to unique problems, and continue with much-needed maintenance and knowledge-related tasks, especially when our clients’ internal teams are simply unable to take over or incapable of continuing development as expected for whatever reason.
The above is crucial for our partners to achieve their business objectives and excel at them. For that, we focus on fast scaling, quick ramp-up times, working smart, and being agile in a world that needs fast responses, key technological choices, and speedier times to market.
How to Choose the Best Business Partner in a Sea of Custom Software Development Companies?
In a world full of custom software development solutions, talent retention must be a main point of consideration for any fintech company trying to decide whether to build a strong partnership with any service provider.
Staff augmentation and nearshore outsourcing companies such as Nearsure are heavily present in this and many other industries to take the burden off talent-related processes. From a strong network of candidates, which, in our case, includes over 20,000 of the best multilingual professionals in Latin America, to actual hiring, technical vetting, and recruiting to long-term talent retention, we furthermore focus and specialize in providing the required resources, environment, culture, tools, and support to assist our team members with true employee engagement, their long-term satisfaction, a career path for growth, and, moreover, an uncompromising sense of 100% remote work-life balance.
Related Read: Top 7 Benefits of Latin America Outsourcing
So, prototype your next app, launch your most valuable product earlier, and/or scale quicker as you build and launch your next fintech product. From mobile wallets to differentiated card systems and lines of credit, partnering with a nearshore outsourcing provider can ease the streamlining of financial operations, improve fraud monitoring, and simplify processes to enhance the user experience. Yet, it can furthermore innovate how cloud banking is done and how companies are better able to penetrate new markets or launch innovative, industry-changing products and services. Overall, it can also guarantee data and infrastructure security, which is desperately needed to stay afloat in a heavily competitive industry.
Now’s the Perfect Time to Build Great Fintech Partnerships
If any part of you is thinking it might be too late to hop on the fintech boat in 2023, just remember that, according to the latest BCG report we cited, “Today, almost 80% of adults in the world are still either underbanked or unbanked,” leaving great opportunity for fintech companies and nearshore outsourcing partners to come together to serve this wide sector of our global population. Fintech isn’t going anywhere, but increased growth from here to 2030 is what the latest projections are saying.
Are you ready to get started? Contact us any time.