To ensure long-term success, companies need to address these challenges, so let’s have a look at the four key obstacles faced during financial software development.
In the last five years, modern advances have drastically changed how people engage with their finances; therefore Fintech companies have to face constant challenges due to the new trends, legislations and customer behaviors despite being a relatively young instrument, it still faces several difficulties and issues ahead of itself.
To ensure long-term success, companies need to address these challenges, so let’s have a look at the four key obstacles faced during financial software development:
1- Data security
Only in Latin America, the use of financial technology has doubled in size in the last three years, accompanied by massive Fintech investments. However, such an improvement can be followed by unintended consequences, the biggest of which are new security concerns. Cybercrime is on the rise, with new attacks occurring every 39 seconds, according to the University of North Georgia. And unfortunately, Fintech companies are one of the hackers’ most common targets.
Thus, there is always this question of risk in relation to fintech’s application security and data privacy. Information protection is becoming increasingly crucial.
2- Keeping up with modern technologies
Based on a 2019 Gartner CIO survey, more than 50% of financial services CIOs believe that most businesses will operate via digital channels, and technological initiatives will generate more revenue and value, which highlights the importance of Fintech trends in the future. However, it goes hand in hand with the need for constant development to catch up and the fear of ending up obsolete eventually. Important decisions are to be made based on forecasts like this, accompanied by constant training and research.
3- Reduce costs
FinTech’s should reconsider their income and expense strategies, as well as adapt or extend their resources. To cope with the economic downturn, many businesses are using cost-cutting tactics such as employee reductions and wage cutbacks. If the business takes up, there are many necessary changes that need to be applied within itself. Nonetheless, it does not always have to be the case as the solutions can be a professional away without having to compromise your employees, and still providing results in the finances solving the core problem.
4- Innovation and competition
According to Business Insider, 63% of European consumers abandoned their digital banking app onboarding process in 2020. This 25% increase compared to 2019 is well attributed to consumers moving to digital solutions as a result of the pandemic, but online banking technology is still struggling to meet their expectations.
Financial institutions that use the latest business technologies, particularly cloud applications, have a significant advantage in the digital transformation race: they can innovate faster. With no system hardware limiting flexibility, cloud technologies allow systems to evolve along with your business.
Technologies like cloud clusters, big data and machine learning offer significant benefits for organizations looking to resolve these problems.
Software-as-a-service and platform-as-a-service cloud computing allows companies to simplify and standardize their IT infrastructure. This way, they benefit from the flexibility and scalability while using the technology, therefore reducing costs in the long term.
Cuemby CCP enables you to target all four of the former issues and more, as it gives your business a single platform that automates the distribution of cloud resources, pipeline, and performance management. It has built-in governance and security with DevSecOps in mind, and traceability and observability to help with FinOps.
That’s why relying on professional help is a strategic move to enhance risk management and smooth development. You can take advantage of this new technology if you choose the right partner for your fintech needs.