There is no doubt that since their advent, mobile applications have been at the heart of most business transactions and numerous other payments done over the internet. We no longer waste time standing in long queues to transact at physical banks. In addition, unlike other conventional financial services, FinTech generally offers lower fees.
But did you know that developing a banking application comes with multiple issues? The compelling market may make it seem simple to build software for financial services and FinTech, especially with the modern trends. But that’s only sometimes the case.
Challenges that Come with Developing Software for the FinTech Industry
As discussed above, several challenges come into the picture regarding software development for financial services and FinTech.
The following are the main challenges software developers and other stakeholders face when developing software for technologies like computer programs to support or enable banking and financial services.
- Ensuring Data Security of the Highest Quality
Ensuring excellent data security is the first challenge of developing software for the FinTech industry. FinTech programmers consider this a big problem because they must develop secure and user-friendly products. Unlike conventional brick-and-mortar financial institutions that use bulletproof windows and doors to protect valuable assets, the security of digital financial products keeps getting complicated.
- Compliance With Regulations for FinTech Software
The FinTech industry keeps facing the software regulatory compliance challenge. You must consider multiple regulatory bodies to develop and deploy a financial software system.
The business strategy, software, technology, etc., must comply with government policies, depending on the business’ geographical location. Non-compliance means severe penalties.
- Lengthy Development Periods
Another challenge likely to manifest along the way in developing qualitative financial applications for businesses and banks is the lengthy development period. Did you know that software development for FinTech can take several months or sometimes years to complete?
This may not work well with FinTech firms looking forward to adapting to changing market conditions as quickly as possible. The same applies to FinTech companies constantly pressured to release new features and products on time.
- High Cost
Compared to established organizations, start-up companies are often faced with the challenge of the high cost of FinTech software development. Some factors contributing to high software development costs include the need for costly software and hardware and specialized skills and experience. And that’s without forgetting the need for a high-security level.
- Scarcity of Technical Expertise
The lack of technical expertise among software engineers and developers can be challenging for organizations looking to keep up with modern technologies and trends. With enough technical expertise, businesses can avoid software development delays, increased development costs, missed opportunities, and more.
Benefits of U.S Businesses Working with Nearshore Software Development Companies
Do you own a business in the United States of America? The following are the top reasons to consider nearshoring when looking for a qualified, experienced, and reliable software development team.
- Less cultural and language barrier
- New value levels
- Shared time zone
- Potential savings on tax
- Lower cost and no hidden costs
Conclusion
As one of the fastest-growing areas for venture capitalists, FinTech applications offer the convenience and lower fees that customers want. With the needs of FinTech consumers changing every day, FinTech software developers are under constant pressure to make more secure, reliable, and user-friendly products.
Knowing the above challenges goes a long way toward avoiding them or dealing with them successfully.
