Custom Software in the Financial Services Industry

custom software development

The financial services industry is going through a transformation – one that is driving companies to modernize their business processes.

Around 70% of bank executives believe that FinTech will have an impact on digital wallets and mobile payments globally. 

Digitization is now important because customers are online. From banks to insurance companies, every financial institution has customers who prefer digital services over physical transactions.

Why is this important? Because 73% of Americans have accepted that FinTech is a part of the “new normal” after the pandemic. And financial companies, startups, and institutions are starting to figure out ways on how to target these customers.

Read more: 6 Reasons Custom Software is Great for the FinTech Industry

What is the Need for Custom Software? 

Financial custom software development focuses on tailor-made solutions in the industry. It could be for digital banking, online insurance portals, digital wallets, etc. 

Today, financial software solutions ensure companies have access to the online customer and deliver a smooth user experience. The end result is to improve business outcomes by going digital and serving where customers are available.

Customers have high expectations from custom FinTech solutions. The advent of payment through QR code, even pay by tap, has led customers to prefer digital transactions. 

So why should companies consider custom financial software development services? Here are a few reasons why they need it:

  1. Business-centric Digitization:
    • A custom financial software has the best interest of the business in mind. Every financial institution or company has different requirements. They can’t use a singular off-the-shelf product.
    • For example, if a company wants a digital payment solution that pays through biometrics, then custom software is important. They can add and remove the features as and when needed.
    • A custom financial development software is the company’s personal asset. It provides returns over a period of time for fulfilling the specific customer needs.
  2. Secure Digital Finance:
    • Financial institutions and companies have highly confidential data that requires the utmost security. They need to provide robust protection if they are to enter the digital finance market.
    • The best financial software development companies will add a number of layers of security. They will implement cybersecurity programs and features that will protect the privacy of the user’s data.
    • However, the security features should never be a hindrance to customer engagement. They should be simple yet effective, complying with the international data protection norms.
  3. Focus on Customer Experience:
    • A custom finance solution for your finance firm ensures that customers get the best experience. The company can deliver convenient FinTech solutions at speed and provide a seamless experience at multiple touchpoints.
    • Through digital software for finance, customers are much closer to the company than ever before. They can avail services without ever visiting the branch. Therefore, the experience should be a priority.
    • Customers are more trusting of a custom software solution that has the brand name of the known company. An off-the-shelf software may comprise risks that custom FinTech solutions can help overcome.
  4. Easy Scalability:
    • What should a company do when its customer base grows? Scalability becomes easier with a custom software solution. The best way to reduce performance issues when customers use the app is to build custom software.
    • Scalability means a lot of people will start using the financial app. It will bring in more sensitive and confidential data, which the company must manage properly. Security vulnerabilities will have their way.
    • Custom financial software development services ensure scalability is simple. By hiring a custom software developer, any digital finance app becomes scalable to a greater extent.
  5. Timely Support & Maintenance:
    • Bug fixes and error resolution needs to be immediate with financial software. If several customers face the same problem in making digital payments, then there is a bug that needs attention.
    • Off-the-shelf is pre-built, and there’s nothing much the company can do about it. A custom financial software enables the company to quickly fix the bug and resolve customer queries when they arise.
    • The software development company you hire to develop custom solutions for your financial offerings will provide 24×7 support and maintenance for the app. The team of developers will work on new releases and upgrades to provide a seamless user experience.

Read more: Have you heard the New-Age Story of FinTech yet?

What is an Example of Customized Software?

There are thousands of examples of custom FinTech software that is changing the digital finance industry. 

Venmo is a great example of customized software in the FinTech industry. The app allows users to send and receive money. It is a great app for students and small businesses that transact digitally.

It is a peer-to-peer type of mobile app, which allows users to send and receive payments directly, without the intervention of any third-party intermediary, except Venmo. 

The money comes into the Venmo wallet, which needs to be transferred to the user’s bank account before the customer actually possesses it. Similar apps include Paypal and Google Pay.

What are the Different Types of FinTech Software?

With the increasing modernization, the move towards FinTech is eminent. But digital finance is a limitless category. There are hundreds of advancements in the financial services industry.

Some of the different types of FinTech software include –

  1. Mobile Payments:

    The most common type of solutions, digital payments, are made through wallets or a third-party provider. Google Pay is a prime example of a digital payment solution. Most e-wallets and digital currencies facilitate such payments.
  2. Digital Banking:

    Banks develop custom software for finance to help customers transact digitally with the bank. They can check account details, loan status and transfer money to different bank accounts.
  3. Online Lending:

    There are two types of digital lending – peer-to-peer lending and digital loans. Peer-to-peer enables customers to take loans from other people. Digital loans are given by financial institutions to simplify the loan procedure.
  4. Digital Investment:

    Stock trading apps enable customers to invest in different stocks and trade. Apart from that, there are investment management apps that allow customers to manage their portfolio and multiply the ROI.
  5. Personal Finance:

    Highly popular among the younger generation, personal finance apps simplify managing the day-to-day finance and budget. It allows users to see their spending patterns and be more thoughtful about their money.

Read more: Top Reasons to Use Custom App Development Services for Your Business?

Bottom Line

Digital finance is the need of the hour. Customers are more inclined to deal with institutions and companies that provide FinTech solutions. It is a convenient way to deal with the company and access its products.

It is imperative that companies tackle the challenges that come with custom financial software and digitize it without compromising sensitive customer data.

The digital finance industry will grow as a result of the pandemic. Companies must prepare to reach their digital users through custom FinTech solutions.

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