An Absolute Guide on Financial Software Development

Financial software development guide
App Development Guides

An Absolute Guide on Financial Software Development

Last Updated on November 20, 2023

In recent times a revolution due to digitalization has been observed in every business field. Financial Software development has emerged as one of the finest results of this revolution. 

If you are planning to pursue a career in the financial industry then you need to know about Financial Software completely. This article will discuss several aspects of Financial Software development like what it is, the role of a developer, types of software, and several other things. 

What Is Financial Software Development?

Financial Software Development is the process of implementing numerous systems in a business process or in daily life for the improvement and automation of all digital financial services and transactions. 

The development of Financial Software is basically for the betterment of the banking activities like mobile payment, mobile banking, trading, and even exchanging cryptocurrencies. 

The Financial Software Demand Is Set To Increase
  • Business Wire predicts that the global personal Financial Software market will reach $1.58 billion value in 2027 at a CAGR of 5.59%
  • Globe News Wire reports that the global Fintech-as-a-Service market will grow to $681.6 billion by 2028 at a CAGR of 16.9%
  • Reports from The Brainy Insights show that the Financial Software market will reach $936.51 billion in the 2022-2030 cycle at a CAGR of 26.2%

What Is the Role Of A Developer In Financial Software Development?

The role of a developer in Financial Software development can vary as per client demands. But in general, there are some regular tasks and responsibilities for a developer in Financial Software development-

  • Identifying Requirements- A Financial Software developer needs to work with the management and other departments as well in order to understand the end-user requirements for the Financial Software.
  • Designing- A Financial Software developer is required to work on the algorithms to decide the functions of the Fintech Software.
  • Testing- A Financial Software developer is also required to test the software he has developed. After the development of each program, he needs to test them in order to confirm the Financial Software is bug-free.
  • Assessing Feedback- A Fintech Software developer must assess the end-user feedback to identify the areas for improvement.
  • Update- As a Financial Software developer it will be his responsibility to mitigate all the issues or improve Fintech Software’s performance through updates.

Types of Financial software

Popular Categories Of Financial Software

  • Online Banking- Online Banking is a popular category of Financial Software offering benefits like improved security, worldwide access, very limited paperwork, and easy tracking of payments.
  • Insurtech- This category refers to insurance apps. A business can enhance their customer experience, reduce cost, engage customers across the channels, limit their systemic waste and protect consumer data through an Insurtech app.
  • P2P Lending- P2P lending category of the Fintech app is gaining customer preference at a rapid pace. A business can gain the advantages like- extra opportunities in revenue generation via fines, the data is self-verified by users so minimal chances of wrong input, and target a larger audience base.
  • Digital Wallet- Globally preferred Financial Software category is Digital Wallet. A business can obtain a global promotion, better security standards for consumer data, options in business, and revenue models, and gain more by influencing people’s spending habits.
  • Investment- Investment software is high in demand. One can develop an Investment app in different models based on the end-users. 
  • Cryptocurrency- Cryptocurrency is one of the most trending categories due to the recent surge in cryptocurrencies. One can have a global audience base and wider scope for revenue generation.

Essential Features Of A Financial Software

  • Secure Authentication- Authentication is one of the most essential aspects of any category of Financial Software. The main way to protect your users from fraud and scams is to implement multi-factor authentication. 

Email, phone numbers, OTP, fingerprint, or face recognition are some of the best strategies for multi-factor authentication.

  • Category-Oriented Functions- This is a crucial area to focus on if you are planning to develop Fintech Software. You must have to include functions that are suitable for the category of your Fintech application. 

For personal wealth management, you must have a dashboard, multiple accounts linking options, and expense and income history. But in the P2P lending app, you must have a credit score for the borrowers, loan market, repayment, and other different functions.

  • Payments- It is a common feature of every Financial Software category. Every user of any category of Fintech Software will prefer the flexibility to make real-time payments. You can include a QR code scan for payment, payment through account details, or any other methods as well.
  • Dashboard- Every software that is data-driven must have a feature to track and manage the systems. A dashboard within your Financial Software can inform the users about their spending, income, market data, and scheduled payments as well.
  • Push Notification- Push notifications can serve as a customer experience improvement tool. Push notifications can be used to alert the users about their credit or debit, change in rates, offers, or even update on their loan application status.

Common Stages In Financial Software Development Process

The development process in each category of Financial Software can be different but all the processes have a common division of stages. 

  • Assessing Requirements- It is essential to analyze the business requirements of clients related to their planned Financial Software. It will help in identifying the correct category, feature sets, technologies to be implemented, and the capability of the application. 
  • Design- The next stage is UI/UX design. The ideal intent in the design stage is to make the Software as easy as possible for end-users to access. 
  • MVP Development- Once the design is ready the client must confirm it. As soon as the design is confirmed the features, technology implementation, and integration of security measures are done. 
  • Launch- Once the MVP is developed the developing party must launch the app on the client-given platform after testing its reliability, compatibility, and functionality. 
  • Maintenance- The last stage is maintenance. It is essential to ensure the Financial Software stays completely updated, bugs-free, and completely secured.

Latest Financial Software Technologies

Emerging Technologies In Financial Software Development

Technologies are always the way to bring new air to software development. There are some next-gen emerging technologies that are making their presence felt in Financial Software development-

  • AI- AI is a technology that can change the course of a business process completely. This technology is extremely useful in data-driven businesses. Finance is a sector that is heavily dependent on data. 

AI contributes in multiple ways to improve the capability of Financial Software. The technology helps in developing tailored products for customers and automating transactions, including Robo-advisors and KYC processing.

The technology can also play an important role for Financial Software in fraud detection, faster claiming, and even in assessing customers’ lending capabilities.

  • Blockchain- Blockchain is one of the revolutionary technologies in Financial Software development. The technology can contribute to faster transactions, crypto lending, helping the software make digital identity, and even creating new models for funding.
  • Cloud Computing- Cloud Computing brought revolutionary changes in Fintech Software development. Financial Software with this technology sets businesses free from data center management, and IT infrastructure and even helps in creating new business models. 

The technology will not only help them create new businesses but also in promoting and enhance customer response time as well as scalability. 

What Is The Cost Of Developing A Financial Software?

The cost of developing any software heavily depends on the factors like- features, technologies, types of the app, the number of developers required, the developer situated in which country, and the total time required for the development. 

But with our experience, we can say that developing Financial Software can cost you $30,000 to $500,000

Here is a table for more details about the cost of developing Financial Software-

Type Of The Financial Software Minimum Cost Of Development
Banking App $165,000
Investment App $55,000
P2P Lending App $10,000
Insurtech $55,000
Digital Wallet $45,000
Cryptocurrency $25,000

Regulation That A Financial Software Must Follow

Regulations are critical to be followed no matter which category of Financial Software you are planning to develop. 

  • GDPR- This is the most common data protection regulation in the EU. The regulation dictates how businesses will collect, assess and keep the users’ data. A business can be charged a heavy fine if found not following the regulation.
  • CCPA- It is quite similar to the GDPR act. In this act, a user is given more control over the personal data that a business collects from them.
  • KYC- It is one of the most essential regulations that Financial Software must be compliant with. Every bank and financial service provider follows this so it is essential for your software to oblige it as well. The aim of the regulation is to verify the users.
  • GLBA- This act needs businesses that offer financial services to explain their data-sharing practices to customers and ensure the protection of those data.
  • FCRA- This act regulates the way financial services offering businesses collect, use and share user information in consumer reports.

On-Going Trends In Financial Software You Must Know

  • Biometric Security- Biometric technology is one of the best possible security measures in Financial Software. It helps in simplifying account access, safe transactions and even replacing passwords as the authenticator before payments.
    • Smart Contracts- Smart contracts although a very new concept but offers a huge range of benefits like improved security, enhanced efficiency, and better transparency. 
    • Virtual Cards- Virtual cards are one of the most revolutionary steps in Financial Software development. The cards are based on VISA or Mastercard which let people avail online transactions. These are basically virtual versions of physical cards.
  • Open Banking- Open banking lets banks integrate third-party APIs into their own platform. Due to this users can share their financial information with third parties in exchange for new services. 
  • Gamification- Financial service offering businesses have started to follow the gamification trend. With several in-app games, businesses gain data related to customer habits in spending.

How to select your financial software development partner

Guide For Selecting Your Financial Software Development Partner

Financial Software is one of the riskiest investments so you need to select your development partner critically. Here presenting you the consideration you need to focus on while selecting your Fintech Software development partner-

  • Define Your Objectives- The first step is to identify and define your own objectives. You need to be sure and completely clear in mind about your goals.
  • Do Your Research- Technology implementation has led many financial organizations to create advanced solutions. But in the pre-development phase, anyone can feel lost.

You can look if the company you are about to choose has any experience in developing Fintech Software. If yes, then check their portfolio. Also, Look for reputed clients.

  • Check Their Fintech Portfolio- In order to assess the experience of a development company you need to check their portfolio. It will help you in understanding which categories of apps they have developed till now.
  • Go Through The Reviews- Reviews can help you in analyzing the service quality of a development company. You can gain so many details about their service through the reviews.
  • Product Security- You must ensure that your data will be safe with a Financial Software development company. So you must assure that they have the best standard of security protocols.
  • Advanced Process- A development process decides if your app will match your desires or not. If you prefer a Fintech Software development company you need to verify if they have an advanced development process or not, and do they update the clients after each phase of the development.
  • Price Quote- Before consulting a Financial Software development company you must go through their price quote and be sure that they do offer their services or not as per your budget.
  • Consult- Once all the above-mentioned considerations are evaluated and reflect a positive signal you can consult the Financial Software development company.

Challenges You Might Face In Financial Software Development

  • Finding A Gap- As we all know, the best product is that which addresses a problem or issue or fills the gap in a process. But in Financial Software identifying a gap can be a real challenge for you.

OyeLabs can help you by appointing several experts in assessing your business and the market you serve. We also suggest the most profitable segments of the industry to our clients. 

  • Selecting The Features- Identifying a problem can be tough but once you identify the issue planning a solution can be more difficult. Deciding on the features to test your MVP in the market can be challenging. 

At OyeLabs we decide the features for your app by comparing them against the gaps we discover. In this way, we can include all the essential features in your Financial Software.

  • App Security- In today’s time cyber attacks are threatening every application in the market. So, Financial Software that directly deals with money needs extra security. But deciding the best security standards can be difficult. 

OyeLabs have highly skilled and experienced developing teams. Our developers follow the best possible measures to implement the best security methods in your app.

  • Compliances- There are many compliances in the world that Financial Software needs to follow. So it becomes difficult to keep all your app features and functions compliant with the regulations.

OyeLabs follow a client-oriented development approach that ensures the developed software is compliant with all the key regulations. 

We also do not have any practices in our development process that triggers any legal trouble for your Software.

  • Technologies- Emerging technologies like AI, Blockchain, and Cloud Computing require proper integration in your app if you are including them. The proper integration can be the real challenge you might face in developing Fintech Software.

OyeLabs have the luxury of highly skilled and experienced developers who are extremely familiar with new-age technologies like AI, Cloud Computing, and Blockchain. They can integrate the technologies in your Fintech Software in a perfect manner.

Wrapping Up

Financial Software is becoming one of the most demanded apps in recent times. The ultimate benefits of each category of Fintech Software offer a whole range of benefits. 

If you are planning on developing Financial Software you must be sure of the category you want. As each category serves a different range of needs. 

A category-specific feature set can offer your Financial Software the desired exposure among the audience. In this article, we have presented the cycle of the development process in a step-by-step guide. 

There are emerging technologies like- AI, Blockchain, and Cloud Computing that are paving the way for future revolutions in the Financial Software industry. It is about time that a new category is discovered with these latest technologies.

You need to develop your software compliant with all the worldwide regulations of the industry. No legal trouble will ensure the brand image of your Fintech Software.

Despite all these brief discussions you can still face challenges in your Financial Software development hustle. OyeLabs is always available for you. We always stay active in helping you throughout the development process of your Financial Software.

Contact us now to discuss your idea.

Frequently Asked Questions (FAQs)
Que. Which categories of Financial Software will be more profitable?

Ans. Online banking, P2P lending, and digital wallets are most preferred by users. Although if you target a specific audience as per your existing business you can still generate handsome revenue.

 Que. Name some of the best Online Banking apps.

Ans. Capital One, Ally, BMO, Varo Bank, Regions Bank, and Chime are some of the best Online Banking apps.

Que. How long does it take to develop Financial Software?

Ans.As the cost required time for development can vary. The needed time depends on the category of your app and its complexity. A developing team can produce simple Financial Software in four weeks. While for complicated software they may need four months as well.

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