The Ultimate Guide On What You Need To Consider Before Building a Fintech Product

Updated on Dec 18th, 2023

Fintech software development

Finance is one of the oldest industries in addition to law and medicine, and the newest one to have an impact on technology. Technology has changed the way we do everything- from networking, education to shopping, and even hospitality. Now, this culture has also stepped into the finance sector. It has simplified the way people interact with traditional institutions in the finance sector. Fintech is quite popular among young entrepreneurs who wish to maximize the usability of financial products by making them user-friendly.

Fintech software development comes from a combination of finance and technology. But this coupling is not that easy, and even if you design a feature full financial product, it doesn’t guarantee the success of the product.

What is Fintech?

Fintech Software Development Companies
Fintech is a combination of two words- Finance and Technology. It is an industry that encompasses all types of technology in financial services right from businesses to consumers. Basically, it describes an organization that provides financial services through technology like the internet, software, cloud services and much more

Some basic examples of Fintech include Crowdfunding Platforms, Blockchain, Cryptocurrency, Mobile Payments, Insurance, Stock Trading apps, budgeting apps and much more.

Today, we will discuss the relevant factors one must take into consideration before developing a fintech product. 

What are the factors you must consider before building a Fintech Product?

1. Target Country

2. Development team

3. Right Technology

4. Third-party Integrations

5. Not just for end consumers

6. Hire a Product Owner

7. Security

8. Personalized Experience

9. Intuitive Interface

  • Target Country- Regulations for Fintech in that Country and How Fintech Product Meets those Compliance Needs.

Fintech is developed to substitute traditional financial organizations by delivering better ways of engaging people in finance-related activities. All of the institutions, and services except the cryptocurrencies are government regulated. Therefore, it is quite strenuous to launch a new method of coordinating financial services. Before building a fintech product, the first and foremost thing one needs to do is to study the laws of the targeted country. This is going to aid in complying with the existing protocols of a particular financial sector which, in return, minimize the losses. Else, one may face resistance from the government, and that may even result in some fines or even forbiddance to do business in fintech.

For reducing the severity of situation, the following countries have launched a framework or regulatory sandbox that will test the financial products under the supervision of government:

    • United Kingdom
    • United Arab Emirates
    • Malaysia
    • Australia
    • Netherlands
    • Singapore
    • HongKong
    • Canada
  • Development team- Find One with Experience and Expertise!

“To design an excellent product, find people who are experienced in building it”- easier said than done. Fintech industry is full of financial jargon, and most of the software engineers are unaware of it. So before initiating the process of fintech app development, ensure that you have some finance-literate in your team. Developers are usually unfamiliar with financial terminology, this implies they require additional time to get into the specifications of fintech product. Hence, it is of uttermost importance to hire a person who knows the industry well. While recruiting for Fintech, lookout for people who are experienced in other fields like security, insurance, NGO and do pay attention to soft skills as well.

One can hire an offshore development partner or team holding experience in Fintech development as an alternative. An outsourcing partner is going to have more access to extensive talent pools. The partner knows how to implement recruiting techniques innovatively to find perfect staff for your project.

  • Right Technology- Consider the Right Technology Matrix with Security at Prime Importance

“Some products never reach the market since it is not the right time for them”, as pointed out by Don Norman in The Design of Everyday Things. To make it in the perfect time, one needs to ensure the kind of technology they are going to avail in product development. The time of product release is very much depended on the flexibility of product. The chances are that you are not entirely aware of all the technologies used for creating a fintech service. For that, we would recommend you to hire professionals for making that choice.

This selection is based on different factors such as business objectives, technical restrictions and the required time for development. A well-thought decision can minimize the risk of project halting in case the governing bodies launch some new law to adhere.

As per 2018 Developer Skills Report, the topmost programming language for Fintech product development is Python which is followed by Java, C++, and C#. The Python language meets the flexibility requirements and facilitates the addition of new product features. In case you fail to choose the techno stack for product development, hire Fintech development consultants to do the job for you.

  • Third-party Integrations- Look for Your Partners

A game-changing fintech product development does not exclude its dependency on the already established financial organizations and their regulations. Fintech is designed for improvising the user experience, and it requires numerous third-party integrations. And by integration, we mean, support channels, APIs and other such tools needed for implementing the desired solution.

For instance, mobile banking software which is used for booking air tickets has to be integrated with the ticket service. Same goes with mortgages, online shopping and even insurances.

It is quite essential to give a thought to all the third party services your product needs to be integrated with. And make sure these integrations are smooth and seamless as possible.

  • Not just for end consumers- Make it Friendly for the Service Providers

As a traditional financial system, there are always two parties (loan giver and loan taker, insurer and insured, etc.) in the Fintech solutions also. The technology needs to suit both the end customer and service provider equally. For this very reason, many fintech software offers varying functionality to the users, depending on their roles.

For instance, Airbnb works one way for travellers and another way for hosts. This is how many financial startups comprise both b2c and b2b segments that are working with third parties and end customers simultaneously.

Therefore, your fintech product must provide both roles and proper functionality.

  • Hire a Product Owner- And Make Sure You Communicate with Them

Fintech is the product of two fields named Finance and Technology. And it is essential to hire a product owner for the successful launch of a product that is easy to use and adheres to state’s laws. There could be many pitfalls that your startup may fall into. A product owner is going to be responsible for following all the regulations that are implemented by government bodies. Also, the product owner manages the complete fintech software development process. A product owner must possess the following qualities- curiosity, vision and the ability to say “No”.

So if your organization lacks the right person, make sure to hire someone who has the skills to oversee development, interact with the project team daily, and make research-based decisions.

  • Security

One can not be too cautious in the matters of money. Fintech solutions operate with the customer’s financial data that is too sensitive information. In the case of security breaches, the consequences in such cases may be dire. Your whole fintech app development team should be dedicated to protect your customers’ information. There should be certain security policies that your development team must adhere to. Also, it is essential to consider the country regulations while determining the service architecture. Decide the data protection controls( firewalls, encryption, authentication and much more), and do whatever you can to avoid security loopholes.

  • Personalized Experience

In this AI-driven world, all the solutions need to provide personalized user experiences as much as possible. But, the Fintech solutions have to cross the extra mile in order to attract and sustain users. Advanced technologies like AR, VR, Machine learning, Artificial Intelligence makes this personalization unique. Your Fintech solution contains machine learning algorithms that will explore users behaviour and give person based value propositions. Developing an AI-based voice assistant for your Fintech solution will take your products’ UX to another level.

  • Intuitive Interface- To Deliver the Right Look and Feel

Excellent user experience is expected out of every tech solution, and Fintech products are no exception. Remember, top-notch user experience, and great designing adds value to your product. This value addition may go up to the point that the customer opts for your application instead of your competitors’. Plan for the design in advance and ensure that your solution is not only functional but has also surpassed an engaging interface. An excellent Fintech solution must cater to the customer and service provider; it needs to provide a convenient interface and robust functionality on both the ends.

Fintech App Development

Final Words 

A fintech product development is a journey in which you may encounter many pitfalls. Hopefully, this article will help you avoid the major ones at least. Upon considering the above-said factors, one may not encounter the unpleasant surprises that may have come otherwise. Hire an experienced team who possess a perfect balance of hard and soft skills, necessary for product development. Also, a product owner, is of paramount importance, as he/she will be responsible for adhering to government regulations.

At last, we will say that a Fintech product development is a challenging task, but we can ensure that by adhering to the guidelines mentioned above, you can have a smooth journey. For more information, contact Matellio. Till then, Happy Reading!

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