How To Effectively Outsource A Fintech App Development Company?

Advances in financial technologies have changed the way we transact and it is certainly shaping the future of businesses too. Every industry wants a piece of this revolutionary tech to ease the consumer and generate revenue at the same time. However, finding the right fintech app development company to maximize business growth is easier said than done.

How Fintech Is Shaping The Future Of Banking And Other Financial Services?

Life-changing innovations such as AI, ML, and IoT are turning every industry they touch into gold and it is a catalyst for growth for the fintech industry too. These disruptive innovations are altering the industry’s daily-state-of-affairs and rendering conventional approaches obsolete.

In the pursuit of effective service delivery to consumers and maximizing profits, banks and other financial bodies are investing heavily in custom fintech software development.

AI-driven fintech applications and process automation have also made it easier to detect fraud and performing background checks before lending loans. Thus allowing banks and insurance companies to make informed decisions and lowering the risk of financial loss.

Fintech app development is the golden egg for investors and it is helping companies in a force majeure event as well. While many other businesses had to shut down, the fintech market reported rapid growth amid the COVID-19 crisis. Peoples’ preference for online services and paperless payments were the major reasons behind the industry’s growth during the pandemic.

The fintech sector is still an infant but even in this short period, it is set to become a $25 trillion industry. Fintech statistics also suggest that the number of fintech startups globally amounted to a decent 20,925. So if you are a startup or an established business looking to invest in it, now is the time!

Now the question arises, what does it take to develop a fintech software? And most importantly, how to create a profitable fintech application for your business? Hopefully, by the end of this blog, you will be able to hire fintech developers. So let’s dive into it.

How To Find The Right Fintech App Development Company For Your Business?

When you type in “how to outsource a fintech app development company?” in Google’s search engine, you come across a plethora of web and mobile app development companies and it gets rather challenging to choose one from this vast pool of information.

What separates a good software company from an average one is its ability to implement the following crucial aspects. So let’s discuss each of them briefly.

Focus On Agile Development

According to McKinsey & Company, over 93% of businesses that opted for Agile development in the pre-COVID era were more successful than those who were relying on conventional ways.

In a nutshell, the incorporation of agile model into the application creation process allows companies to get more work done in less time. The system is home to various tools that developers can use to ensure swift service delivery and enhance consumer satisfaction.

In contrast to the traditional, waterfall software development, where changes to one aspect influence the entire process hierarchy, agile methodologies can prevent unwanted delays and meet the requirements. Some key characteristics of this model are:

• Modifiable Planning

• Swift Product Development With Compromising Quality

• Flexibility

• Consistent Improvements

Your desired fintech application development company should be well-versed in this method. This will save you valuable time and finances in both the short and long-term.

Fintech Company’s Portfolio

As discussed earlier, creating a fintech application is quite complicated. Mostly, because it holds user’s sensitive financial & personal information, and securing it should be the utmost priority.

This raises the need to hire software developers, who possess the experience & technological prowess to deal with challenges. So how do you outsource the right fintech app development company?

Well, an agency with a subpar market reputation will not suffice here. What you need to look for is the developer’s work history. Contact them via email and ask them about some of their previous projects and try to extract as much information as possible on whether they’ve met deadlines for past projects and their relationship with the clients.

If the apps they have built are available online, use them thoroughly to figure out the software quality. The best way, however, is to look for online reviews. According to a survey, 93% of consumers refer to online ratings & reviews before buying a product/service.

Put special emphasis on choosing the right app development company. Failure here can prove devastating for your business in the future.

App Security

Since fintech apps deal with financial information, they are a haven for hackers. The developers need to implement state-of-the-art security technologies to ensure web and mobile app security. Some important topics for discussion could be:

• Hack-proof coding
• Reliable backend development
• Implementation of industry-standard encryption policies
• GDPR compliant work ethics

People are now more aware of data breaches and the resulting consequences. The fintech developer should not only focus on great UI/UX design development but also provide users a safe & secure environment. This is probably the most important aspect and success here will ensure a strong business-customer bond.

Hiring Models

A good fintech app development company should consider clients of all sizes. Not every business has million-dollar budgets to hire software development companies.

Your desired company should offer you different hiring models, based on your requirements. Some of the most common outsourcing models are:

Fixed Gig

In it, clients are aware of their needs and are interested in the development of some specific app features or integrations. In a Fixed Gig, costs are based on milestones. For instance, 30% upfront payment & 70% payment at the time of app delivery.

Resource Augmentation/ Dedicated Resource

Here companies can hire a fintech app developer, an Elixir developer, outsource ReactJS development, or hire any particular expert from the app development company.

Hire Multiple Teams Or The Entire Software Company

Clients can outsource the services of the software development company to look after all aspects of their various projects. It includes initial consultation, development, QA testing, and maintenance.

The billing here is subject to pre-decided terms and conditions based on the nature and amount of expertise required.

At the end of the day, it’s all about catering to your business needs. Don’t just blindly follow the list of the best fintech app development companies, choose the one that’s best for you.