Fintech Software Outsourcing: Why Companies Choose to Outsource Their Fintech Software Development

Published October 12, 2022, updated November 18, 2022
by Jeffery Thompson
13 min read
Software Development
Fintech Software Outsourcing

Market Data Forecast predicts the global fintech market to reach $324 billion by 2026. From this prediction, it is safe to say that fintech is here to stay.

Big companies in the financial industry are seeking financial technology software outsourcing services. They do this so they can continue to adopt new technologies.

Why do companies in the financial sector outsource their fintech app development? There are many reasons, but they all boil down to cost savings.

Hiring an in-house development team can be costly. You are going to spend many hours interviewing candidates. Onboarding the successful ones will also take time.

Outsourcing financial software development will help you a lot. You can focus on what’s most important for your business. That is making money!

But first things first.

What Is Fintech Software?

What is Fintech Software

Fintech software is the name for the technology that powers financial services.

It includes mobile tools like mobile banking applications and web portals. Fintech software helps banks and other financial institutions interact with their customers.

You can use fintech software for almost everything financial. From processing payments to managing transactions between different parties, they are useful. Financial companies use them for fraud detection and artificial intelligence-based customer service chatbots.

Examples of Fintech Apps

Payment Applications

These are the apps that make payments easier.

Examples: PayPal, Wise, Venmo, Zelle

Robo Advisors

These are the apps that allow you to buy and sell stocks, ETFs, and cryptocurrency.

Example: Robinhood

Personal Finance Applications

These are the apps that let you manage your finances in one place.

Examples: YNAB, Mint

Lending Platforms

These are the platforms that lend loans to small business owners.

Examples: Upstart, Prosper

Cryptocurrency Apps

This includes crypto wallets, cryptocurrency exchanges, and payment processing apps.

What Is Fintech Development Outsourcing?

What is Fintech Development Outsourcing?

It is hiring a third-party company to build your fintech software solutions. It will save you tons of money compared to building them in-house.

A fintech software development company can outsource globally. But it is important to note that this does not mean that they have to go overseas.

There are different onshore fintech development companies that specialize in software development outsourcing. You can contact them and let them do the heavy lifting for you.

Why Outsource Fintech Software Development: Benefits of Partnering With Specialized Fintech Software Companies

Why Outsource Fintech Software Development

You have a lot of reasons to outsource your fintech app development. You might be able to get a better price, or you may need help with certain aspects of the project. Either way, outsourcing companies can help you get the job done faster.

Here are some great reasons why you should choose financial software outsourcing:

Time

You are busy running your business. Spending time on development projects is going to make things harder for you. You need to focus on what matters most—your customers!

Outsourcing gives you the opportunity to focus on more pressing business matters. You can let a talented development team take care of the technicalities for you.

Knowledge and Skillset

You may have been putting off learning how to code because it sounds difficult or confusing. Outsourcing makes it seem easy! It’s easy because the software development company will do all the hard work for you. They can even teach you how to build some amazing apps together with them!

Experience

When it comes down to it, there are plenty of fintech developers out there. They can learn new languages and frameworks in no time at all. But the problem is that they usually don’t know how to build things that people want.

When you outsource, you can get a talented team. They already have experience building successful products in the fintech industry. As a result, you will have someone who knows what it takes to make them successful. They’ve been there before, so they’ll know what works and what doesn’t.

Focus

There’s nothing worse than having a brilliant idea for a new product but not knowing how to make it happen. When you outsource, you can let someone else take care of the development. This way, you can focus on everything else that needs doing to turn your idea into reality.

Benefits of Outsourcing Fintech Software Development

benefits of outsourcing fintech software development

Outsourcing fintech software development can be a great idea for financial technology companies. This is especially true for those who don’t have the internal resources to do it on their own.

Here are some of the main advantages of outsourcing fintech software development.

Reduces Operational Costs

Outsourcing can reduce the cost of operating a fintech software development company. You can also focus on other aspects of your business through outsourcing. You can do this while getting top fintech software delivered to you at a lower cost.

An expert team can finish the job faster, which saves you time and money. You can also be sure to get quality software at a lower price than if you had developed it in-house.

Global Talent

Outsourcing allows you access to a diverse array of talent from around the world. You can choose from a variety of locations and cultures when selecting your team.

You also have access to individuals who speak different languages. This means that any communication issues can be overcome with translation services.

Quality Software

You want software solutions that work for your business. You want it to be well-designed, easy to use, and secure. Outsourcing can help you focus on what makes your business unique. You don’t need to worry about whether the app will work or look good on a phone screen.

Data Management

Businesses collect so much data every day. It’s easy for it all to get lost in translation—or worse: lost altogether. An outsourced team will manage all your data. You can rest assured knowing that your information is being kept safe and secure.

Enable Business Owners to Focus on the Business

There are so many different priorities competing for your time. It can be difficult to focus on what matters most: driving growth. Our digital transformation strategies give you access to all the technology you need. We will also give you time back so you can focus on growing your business – not just managing it!

Avoid Unnecessary Recruitment

Finally, by outsourcing fintech development, businesses avoid having to hire new employees. Hiring and recruitment are tasks that are both time-consuming and expensive.

List of Services Fintech Software Development Companies Provide

When it comes to fintech software development services, there are a lot of options.

In this section, we’ll look at the most common types of fintech development services. We’ll also discuss how they can help you keep up in the age of digital transformation.

Mobile App Development for Financial Institutions

Mobile App Development for Financial Institutions

This is one of the most popular types of fintech software development services. Mobile apps make it easier for customers to do business with you.

Mobile banking apps help in enhancing customer experience. Your customers can check balances and transfer funds using their smartphones or tablets. They can also use them for depositing checks or making payments through an ATM.

Custom Software App Development

Custom Software App Development

Another type is a custom fintech app. Custom apps are perfect if you have needs that aren’t met by off-the-shelf solutions. Need an app that integrates with several other systems? Custom app development is the answer.

Business Analysis Software

Business Analysis Software

This type of software uses machine learning. It helps companies analyze their financial data. Also, it determines if the company is making enough money.

This type of app finds which areas are profitable and which are not. It will help you decide whether it’s worth keeping those unprofitable areas open or not.

Robotic Process Automation or RPA

Robotic Process Automation

According to Gartner, RPA is a tool that allows its users to set up more than one script. Through machine learning, the scripts will then mimic specific tasks.

Fintech developers in a software house may set up RPA when they build your company’s website. Top fintech companies use RPA to automate query responses. RPA also automates invoice creation, data collection, and even investment tracking!

Since RPA automates everything, your business process will be more efficient.

Digital Banking Systems

Digital Banking Systems

Payment systems involve a wide range of technologies and processes. A payment system can be anything from a mobile app that allows users to make payments with their phones.

It can also be secure online banking websites that allow people to manage their finances. Payment systems can also be ATMs in convenience stores.

DevOps

DevOps

The most common type of service for fintech companies, DevOps, is also the most versatile. This type of service helps you get your product or website in front of customers as fast as possible.

You’ll have access to a team of expert fintech developers. They will help you integrate your product with other apps. Developers will manage the software and hardware infrastructure for scalability. They will also provide support for your customers and employees.

Cloud Computing

Cloud Computing

Cloud computing is great for small and medium-sized businesses. This is because it allows them to pay only for what they need. You can rent servers and storage space when you need it. You won’t need to buy large amounts of equipment upfront.

This makes it easier on small companies’ budgets. You can still have access to powerful technology tools like AI, IoT, blockchain, etc.

Fintech Software Development Companies: How To Choose the Right Technology Partner

How to Choose Fintech Software Development Company

Choosing a fintech development outsourcing company is an important decision. You want to make sure that you pick a technology partner committed to your success.

Your partner company should share your vision for the future of your business. Deciding which fintech development company to choose? Here are some factors you need to consider:

Expertise

Fintech app development is a new industry, and many companies are starting to enter the space. You want to make sure that the developers you choose have the expertise in working in fintech. A good way to do this is by asking for their client list and checking out their portfolio of previous work.

Years of Experience

The longer a company has been in business, the more likely it is that they have developed a good reputation. An older company has records for quality digital transformation services.

A company’s longevity also shows that they are in good standing with its clients and partners. This can give you some peace of mind when working with them on your project.

Industry Specialization

It’s important to choose a company that specializes in the industry you are working in.

For example, you are building a cryptocurrency project. Choose to work with a company with cryptocurrency experience.

Building an app for enterprise businesses? Look for a firm that specializes in IT development for large companies.

References

It’s important to ask for references from past clients. This will give you an idea of how the company operates and what its quality of work is like. It will also allow you to see if they are capable of meeting your expectations.

Past Projects

This question will help you determine if the company is capable of working on your project. If they have experience building similar projects, then this is good news.

Project Vision

It’s important to understand how the development team plans on achieving your goals. This will give you insight into whether they are capable of executing your plans.

Comparison: Fintech Development Outsourcing vs. In-House Fintech Software Development Company

Choosing between in-house development and outsourcing is not an easy one. It requires a lot of research, planning, and analysis to understand the pros and cons of both options.

Fintech Development Outsourcing

Outsourcing is a system where you let another company handle software engineering. Fintech companies may choose to outsource their software development. They do outsourcing so they can have access to a talented team of developers and designers.

Through outsourcing, they have the freedom to choose those who specialize in fintech.

This can be an effective strategy for companies that are starting out. It is also helpful for those looking for a new approach to software development.

In-House Software Development

In-house app development is when a company chooses to develop its own software. In this case, the company will hire employees with experience in coding or design. The employees will then work together to create the application.

This approach has advantages and disadvantages when compared with outsourcing.

It gives financial companies more control. They will oversee the quality and direction of their product. The drawback is that it requires more time and money upfront. In-house development also needs ongoing maintenance costs after launch.

Is It Better to Outsource or Hire In-House Developers?

Outsourcing is a more cost-effective option. You can hire a talented team of experts from overseas to do the job for you. And you can have it at a much lower price than hiring someone in your city or country.

Outsourcing allows fintech app companies to focus on their core business. They will not need to think about web development issues.

Fintech Software Outsourcing FAQs

What Is the Future of Fintech?

Fintech is here to stay. As we’ve seen, it’s not about making money. Fintech is about the whole process of financial transactions. The setting up of an account to manage finances and pay bills is all related to fintech.

Digital transformation continues to improve. This means that we’ll see more and more uses for fintech solutions in our daily lives.

What Does a Fintech Software Developer Do?

Fintech software developers work on applications that help people manage their finances better. Fintech apps help customers make better decisions about how they spend their money.

Fintech app developers work with banks, credit unions, and fintech software companies. They also work with businesses that offer services to financial consumers.

Conclusion

There are many factors why financial institutions choose fintech app development outsourcing. One of the top reasons is the time and money they will save. Outsourcing also helps them to focus on scaling their business.

Fintech Software Development Outsourcing Services at BIT Studios

BIT Studios offers Fintech software outsourcing services. We work with companies that want to keep up with the latest tech in their respective industries.

We have decades of experience in software development. This proves our passion for helping companies to go digital.

Contact us today and let us know how we can help!

Jeff eats and breathes technology. His undying passion for software development inspired him to establish BIT Studios, a reputable custom software development company that caters to SMEs and Fortune 5...
Originally published October 12, 2022, updated November 18, 2022

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