The financial industry is going through a major revolution. Though financial services have been traditionally slower than other sectors when adopting new technologies, the emergence of numerous startups has changed the landscape entirely, forcing large companies to adapt and modernize their offerings. This resulted in a massive digitization process for all financial institutions, from banks to insurance companies – and everything in between.
At the core of this transformation, there’s custom software – digital solutions that are tailor-made for financial providers looking to streamline their workflows, benefit their customers, improve business results, and remain competitive. Custom software provides them with all that in a myriad of ways – but how? Let’s take a look at the five reasons why financial service providers need to look for a custom software development partner ASAP.
1. Access To The Latest Technologies
I’ve already mentioned it in the introduction, so I might as well address it first and get it out of the way. Working with a custom software development partner, you can rest assured that you’ll access the latest technologies for your fintech solutions. And there are plenty for you to pick from! There are AI-algorithms to help you with your data-driven strategies and cloud computing platforms to streamline your workflow. There’s even blockchain, the technology that many say will revolutionize financial services for good.
Naturally, you can get all of those technologies with off-the-shelf solutions. But with a custom software development team, you’ll leverage them for maximum advantage. That’s because the development team will look for ways to align those technologies best to meet your specific business goals. With an off-the-shelf alternative, you’d be forced to make your goals fit with what they offer, and the fit wouldn’t be as tight as with a custom solution.
2. Increased Security
The financial sector is one of the most cyber-attacked in the US. It’s not that surprising, as the potential rewards for a successful attack can be massive. That’s why all financial services providers need to put security at the top of their priority list. And, in that, there’s no better ally than a specialized custom software development team.
How come? Boxed software is available for anyone that pays for it, which means that malicious actors can dispose of it to dissect it and analyze its vulnerabilities. Any gaps in its protection depend on the software vendor and its update strategy. Thus, you are exposed and dependent on a third party. With a dedicated development team, you’ll get a personalized solution that only you can access, and that can be updated as frequently as you need.
3. Ensured Compliance
The world of financial services handles highly sensitive information that needs to be protected in its multiple touchpoints. The whole financial system has many security aspects that need to be taken care of, from data storage to authentication, authorization, and transaction processing. A series of organizations and institutions highly regulate those complex processes on a local, national, and even international level. All financial institutions must comply with those regulations to ensure customer protection and avoid costly fines.
Now, off-the-shelf software complies with the critical requirements to comply with those regulations, but you can never be sure that it complies with all the rules that apply to your particular case. By working with a custom software development team, you can work closely to ensure that all the inner workings of your personalized solution comply with all the regulations applicable to your organization.
4. High Scalability And Easy Maintenance
Most financial services providers aim to serve the most customers possible and give them the best possible experience. That’s why they should think about custom software development for their digital solution needs. There are two reasons for that. The first is that you’ll build a highly scalable solution from scratch, providing solid foundations for your expected growth without significant performance issues. The second is that you won’t have to pay for additional capacity (as you would with a boxed alternative or a subscription to a paid platform).
On the other hand, a good custom software developer will establish a long-standing relationship with you that extends beyond the product’s launch. This means that you’ll have a seasoned partner that can help you with maintenance and support when you need it (instead of what you’d get with boxed software, which mainly depends on update cycles defined by the development company responsible for the product).
5. Personalized Customer Experience
The financial sector is getting more and more crowded by the minute, so the best bet for companies to stand out is to provide hyper-personalized services that translate into superior experiences. Naturally, this has the most impact on the financial services per se, but you shouldn’t overlook the software involved in that experience. Given that your clients will interact with your digital systems, it’s always best to personalize them.
That’s why you need custom development teams by your side rather than going with a boxed solution. With the off-the-shelf alternative, you’ll get minimal possibilities of customization, which means that you’ll have to go with the features, workflow, and overall feel designed by someone else. With custom software, you’ll define everything and anything in your software and even adjust as you go, depending on the feedback you get from your customers. That right there is a successful personalized customer experience that keeps people engaged.
Custom Software Development and Fintech: A Long-Standing Partnership
I’ve mentioned this in passing, but it bears repeating – a custom software development team can become a valuable partner for any financial institution. That’s because that kind of company does more than just creating a digital solution: it can help with the development of digital-driven strategy, foster a digital transformation in your organization, provide consulting services, increase your overall efficiency, help you develop your digital infrastructure, and even lower your costs.
All that potential is better leveraged if you establish a long-standing partnership with that provider. The software company can get to know you better as the relationship moves forward and give you better recommendations for your digital journey. That’s essential for this transformative moment in the sector, which is why you should consider custom software development and the value it can bring for your financial company.
