Why Custom Fintech Software Development has Become So Important?

The demand for innovative financial solutions has continued to grow at a staggering rate. This growth in demand is fueled by the financial services industry’s growth, as both well-established companies and new startups seek to make the most of Fintech. 

The global Fintech market is set to grow at an annual rate of more than 23% between 2021 and 2025. E-wallets and digital payments have become the standard for banks, ecommerce service providers, and financial institutions, making Fintech so much more important for companies. This is where the demand for custom Fintech software has grown dramatically.

So, what makes custom software development so important for Fintech? Found out the answer in this guide.

Addressing Compliance Requirements

The Fintech ecosystem is in its early form and still quite complex. Custom software development enables the creation of comprehensive Fintech applications based on the latest technologies. This helps address industry compliance requirements and regulations typical to the otherwise highly-regulated financial-technology sector.

Enhanced Efficiency

A custom application has a greater impact on improving operational efficiency. Such software helps automate certain tasks that may already be done manually. 

• It helps free up valuable resources and time that can be spent on other key areas of your business.
• It can also help lower the risk of human error, further reducing or eliminating costly mistakes.

Embracing Emerging Technologies

Another advantage of custom software development is that it allows you to embrace emerging technologies and provide innovative solutions. This enables the users to maintain their competitive edge in an ever-changing Fintech market. Instances of such technologies are as follows:

• Machine learning
• Artificial intelligence
• Analytics
• Big data
• Blockchain
• IoT

Better Security

Security and financial data go hand in hand and there is no room for any lags in this regard. Foolproof security measures are a must-have because all types of financial institutions handle sensitive information on a daily basis.

Custom software development plays a critical role in answering the unique security needs typical to financial institutions. Besides, these security features also address industry compliance requirements. Custom application development allows the creation of security measures customized to address your software’s unique vulnerabilities.

Some of the key security areas that can get addressed include:

• Encryption
• Authentication
• Automated security audits
• Rapid response measures for security threats

Better Scalability

Financial institutions can experience growth or contraction over time. A custom application makes it easier to scale functionality as the business needs to adapt to its ever-changing needs.

On the other hand, off-the-shelf applications are designed for fixed parameters. Making changes to such software can be an expensive process or customization may not be possible at all. With custom software development, you can start by determining your business’ long-term needs before developing the application around those needs.

Enhanced Customer Experience

Custom application development also contributes to improving customer experience. This is important considering that the modern financial services customer has more options and has become more demanding. Roonyx’s custom Fintech application development solutions have helped financial institutions meet such demands by offering a more user-friendly and personalized experience.

Custom application development allows the creation and addition of innovative features whenever required. This helps deliver a more unique experience as compared to using standard software. 

Competitive Edge

The financial industry is undergoing constant disruption through the introduction of new technologies. This means that you have to continuously innovate to maintain your competitive edge. Investing in custom software development is an effective step towards moving away from your competition. 

You can have new features and functionality added to your applications to maintain your competitive edge. Such software can also enable you to keep up with the latest industry developments and trends.

There are many more ways custom Fintech software development can help your business. A custom application is tailor-made to your business needs. This makes it seamless to integrate with your existing applications and tools. Additional benefits include ease of maintenance, cost-effectiveness, and greater control over intellectual property rights. 

The Fintech industry is growing at an unprecedented rate. New services and technologies keep getting added every now and then. All this development has significantly increased the importance of custom software development in this field.