Fintech software development opportunities in the IT sector

 

Today’s Financial corporations often rely on cutting-edge technologies to create sophisticated Fintech systems and streamline operations. People consistently deal with virtual payments and transactions every now and then. Hence, it is critical to maintaining reliability and security over the customers’ data.

Technology innovation has brought a drastic change in the Finance industry, propelling it in a new direction. Interactions with banking systems have become considerably speedier in this digital age. Facts reveal that about 77% of financial companies have adopted innovations such as Blockchain, IoT, Big data, AI, and ML to unleash their business potential.

In this blog, we will uncover various Fintech software development opportunities in the IT sector.

Blockchain technology

“Fintech software development has never been more important than it is today with the rapid evolution of financial technology. We feel that the early movers will use blockchain tech to gain an advantage over late adapters in this space. Blockchain tech offers many benefits including transparency, security, and efficiency while also reducing operational costs significantly.

On the insurance and banking side, many of these technologies are merging. In my opinion, the best opportunity for fintech software development is using the tremendous amount of consumer data available to better underwrite individual insurance risk. Add the transparency of the blockchain to this software and I truly feel this would move mountains.”

- Jimmy McMillan, Owner of Heart Life Insurance

Read More: The most recommended financial management software for Fintech businesses

Digital banking

"With their new and user-oriented perspective, digital banks are sweeping over the banking industry. According to The Guardian, the number of people using mobile banking in the UK is anticipated to surpass the number of people using traditional banks by 2021. Traditional banks are often associated with a large list of rules and restrictions, sluggish service, and irritation for many individuals. Users increasingly prefer vendors that can deliver rapid and easy service in our fast-paced environment. Digital banks have filled this need by introducing a totally user-oriented approach to the business and responding quickly to consumers' demands and expectations.

The days of spending a whole day in line, carrying a large stack of paperwork, and dealing with bank employees are long gone. To open a bank account nowadays, all you need is your phone and some identification. It will take you no more than 15 minutes to complete the procedure, plus an extra week for your actual card to be issued and mailed. AI and machine learning are important components of offering such a seamless service because they ensure that each client receives tailored help and has access to customer care 24 hours a day, 7 days a week. Fintech applications also make it simple to move money between accounts and monitor your finances.”

- Bram Jansen, Chief Editor of vpnAlert

Payment gateways

"It's difficult to come across a commercial product that doesn't need charging. As a result, payment processing firms are responsible for all of our internet purchases. After we click the order button, the process that appears to be taking place only between two parties—the vendor and the buyer—is frequently joined by a third party: payment processing firms. For a safe and seamless checkout procedure, most e-stores and online service providers rely significantly on payment gateways. It's critical to provide complete security on these platforms since they can easily be utilized for money laundering. Such businesses deal with highly sensitive and confidential user data, which is why establishing a trustworthy brand using cutting-edge encryption technology is essential if they want to attract consumers.

There are currently numerous major competitors in the industry, including PayPal, Stripe, Amazon Pay, and a few more. At least one of these has almost certainly come across your path previously. PayPal, for example, accounts for more than half of the market share in this sector. If you have a product that requires the deployment of a payment processor, you may check into Stripe Connect, Chargebee, or Braintree, which are all currently available. As existing successful players actively monitor and comply with finance-related government rules, integrating a well-established service will take care of the essential regulatory and legal compliances. Furthermore, such platforms often have anti-fraud mechanisms in place, ensuring that your goods and transactions are secure.”

- Neil Shaw, Founder & CEO of Lottery Sambad

“For a secure and seamless checkout experience, most e-stores and online service providers rely largely on payment gateways. It's difficult to come across a commercial product that doesn't require charging. As a result, payment processing businesses are responsible for all of our internet purchases. It's critical to provide complete security on these platforms because they can easily be utilized for money laundering. As a result, I believe this is an area of software development that is viable.”

- Cindy Corpis, CEO of SearchPeopleFree.net

P2P lending

"We've all experienced the bureaucratic nightmare that is applying for a loan with a typical bank. Even if you have a strong credit history, getting your request accepted might take weeks or even months. This procedure is considerably more difficult to handle for those who do not have a stable income. Banks might easily reject your loan application due to your low credit history or young age. P2P firms developed more accessible and practical alternatives when banks failed to satisfy the demands of some potential clientele. P2P lending applications provide forums for borrowers and lenders to directly negotiate terms without the influence of banks or regulators.

Statistics suggest that younger individuals favor this category, with over half of P2P lending app users in Europe being between the ages of 22 and 37. Another significant benefit of borrowing money through fintech applications is that, because of increased competition among lenders, interest rates are typically lower than those offered by banks. Plaid API is a valuable tool for those working on the creation of a product in this industry. This solution can assist you in providing a seamless underwriting procedure. It will collect all essential data from a borrower and then determine the total amount of money that may be securely supplied to this individual without putting the lender in danger.”

- Chris Nddie, Co-Owner & Marketing Director of ClothingRIC

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Robotic advisors

"New wealth management tools are assisting young investors in efficiently allocating their assets and developing their portfolios without the need for human involvement. Your personalized advice is based on the data you submit in a questionnaire, which includes your investment objectives, financial possibilities, and risk tolerance. With the assistance of these digital platforms, financial advisory services that were once prohibitively expensive are now becoming more accessible. This industry also offers several chances to recruit new customers and increase market share. It's because the entrance hurdle for Roboq-advisers ($5,000) is far lower than for human advisors ($100,000 to $200,000).

Financial robotic advisers' major goal is to make investing more accessible, cheap, and hassle-free. They have the potential to be used not only for personal wealth management but also for business decision-making. Because most of the recommendations are made up entirely of ETFs, the full potential of these technologies has yet to be realized. What if investors want to take it a step further? For example, CI Direct Investing offers two distinct portfolios with varying prices to its consumers. The first will use a portfolio of low-risk ETFs, while the second will use mutual funds as well, but with a greater interest rate.”

- Lauren Cook-McKay, Director of Marketing & Content at Divorce Answers

Personal finance

"It's easier than it's ever been to keep track of your own money. We can now track our spending, plan our budgets, manage our savings, and do a lot more with our money thanks to new applications. Treat them like personal assistants who do all of the time-consuming but important financial duties. You may no longer be concerned about exceeding a balance using solutions that connect to your cards and digital wallets. Apps like You Need A Budget can help you keep track of your finances. It will assist you in not just managing urgent requirements, such as staying under your monthly budget, but also in planning future spending and saving for long-term goals. Importantly, the thorough and easy-to-understand spreadsheets produced by these technologies help consumers make better financial decisions.

Insurtech is another area of personal finance that has grown significantly in recent years. Startup funding increased from $300 million in 2013 to $6.37 billion in 2019, the highest amount ever recorded in this sector. The technologically sophisticated entrants who are delivering effective services at a quicker rate are reshaping a sector that was once quite traditional.”

- Jennifer Carter, Crypto Analyst at Credit Donkey

Innovative technologies

“OPPORTUNITIES:

Experts in the relatively new tech-based areas of AI and Blockchain technology also provide a wealth of knowledge that can be applied to a variety of areas of a Fintech company's operations, including fraud detection, user identification validation, cybersecurity, data automation, cloud-based services, and technical support. As can be seen, the options are vast, and the potential is much greater, making software development in the Fintech sector a very appealing and rewarding career option. Financial companies have long relied heavily on Java programming technologies. Matlab Gurus is a quantitative financial programming language used by developers in Fintech organizations to construct user interfaces, generate and implement algorithms, visualize data functions, and form matrix manipulations.”

- Ethan Howell, Co-Owner of Florida Environmental

Conclusion

Information Technology has completely transformed traditional procedures and created wide opportunities for the FinTech industry. Digital innovation and emerging technologies have helped financial businesses with superior systems and streamlined operations. In this blog, we have explored various Fintech software development opportunities in the IT sector. This helps you comprehend the role of software development in the Finance industry.