How to Choose a Financial Software Development Company?
Updated: Mar 10
Growing Impact of Financial Software Solutions
The COVID-19 pandemic provided a unique opportunity for the fintech industry. It fast-tracked a shift from traditional banking services predominance to the abundant digitalization of financial services. This year is likely to be just as momentous, with digital banking no longer considered just a financial lifeline but a way of life. With that comes countless opportunities to introduce customers to a much broader universe of virtual financial services and the limitless revenue-generating potential these create.
With customers likely to become increasingly familiar with what the industry has to offer - and more sophisticated in their product and service preferences - digital financial services providers will have to continually up their game if they want to build and sustain a growing and loyal customer base.
So expect ongoing digital innovation and evolution to be the order of the day during the years to come. Staying abreast of customer needs and preferences, fintech companies will need to rely on financial software companies that can keep pace with the industry and build the robust, but agile, digital banking products required.
Why Partner with a Software Development Agency?
Fintech companies have three options to get the software for their solutions:
build an in-house team of software developers and tech specialists;
buy software off the shelf from a trusted vendor;
partner with a specialist fintech technology provider that can build customized digital software solutions.
There are several reasons why hiring a financial software development company is the way to go. Among these are they have all the experience and expertise to build, maintain and adapt the technology that underpins any digital banking solution.
Regulatory compliance. At a time when regulatory requirements are getting ever more onerous and ensuring the business is equipped to deal with these is potentially very costly. Specialized financial services compliant software companies have the knowhow and software capabilities to ensure the necessary compliance, security and data protection are incorporated into any digital financial services offering.
Internal procedures are in place. These software developers have already put in place the internal procedures needed to ensure the smooth functioning of a fintech solution and have certifications to confirm their expertise. Open Source financial software developers are also familiar with the ever-changing fintech landscape and can effectively perform integrations.
Pre-built frameworks. Any fintech client coming on board will have access to pre-built frameworks that allow the business to get their digital offering up and running in no time.
Advisory and consulting. The software company can also provide advisory services that will enable the fintech business to maintain its lead in a highly competitive industry where reliability, innovation and customer satisfaction are non-negotiable for success.
How to Choose the Best Software Developer?
Finding a mobile banking solutions partner is no easy task because there are thousands of software development companies out there. From low-cost providers to boutique agencies, it’s understandable if you don’t know where to start.
When considering a software development partner to bring to life a digital financial services solution, considering the following factors will get you closer to finding the right partner that will serve you well in the long term:
The company should have proven expertise in developing the solutions you want to create. You can determine this by finding out how many years they have been on the market, reading reviews and checking out their portfolio of work. If you find a potential partner that ticks all of your boxes, you will end up working with a trusted company that will guide you towards creating a phenomenal all-around digital banking solution rather than just doing the coding for it.
The financial software company should have both fintech and banking expertise. You will be able to find out if that is the case if you go through their portfolio of work. Ideally, the company should have worked on projects that are similar to the one you are building. You will find case studies of work a software company has done on the website but there may be other projects that have not been shared with the public so don’t hesitate to ask them if they have more case studies.
The finance industry has specific regulations and best practices that companies need to meet and thus it is crucial that find a reliable vendor that understands them because they will help you avoid making costly mistakes.
The software company should have similar professional ethics and values, such as commitments to transparency, quality and to name but a few. Off this foundation, the software developer and their customers will be better able to understand each other's needs and collaborate on those in the most effective way.
Communication and service quality is often the most important contributors to building a successful partnership. By choosing a provider that cares about you, the project is likely to stay on an even keel and you can feel safe and secure during the development of the fintech solution you are creating. You’ll understand whether you can rely on these by the speed of answers and the effectiveness of communication from the outset.
Another critical factor to consider is whether a software developer provides ongoing software support and maintenance as part of their service.
Nowadays the tech stack needs to be robust, innovative and easily adaptable.
Banking and financial services providers need to meet high-security standards. Thus, the software development company should be well versed in existing and upcoming compliance standards and in a position to build a technology infrastructure that is state-of-the-art secure for users.
A neo-bank is nothing without the right technology infrastructure. Thus, choosing the best software vendor for the job is mission-critical as it will influence how users feel about the product and whether it will meet their evolving needs over time.
Getting that right will determine the overall and long term success of the project. Velmie builds tailored Fintech software solutions for banks, credit unions, neobanks and payments companies. With 12 years of expertise in development and 100% focus on financial technology, we are able to guide you through the journey to your perfect product.