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Overall, the global market for Fintech Software is said to be at $48.2 billion in 2023 and is expected to reach $71.0 bn by 2030.
Seeing such a growing market, one can believe that developing fintech software is a great move to enhance business.
But, that means more and more competition as well.
It is believed to meet the demand, you need to work with innovation and cutting-edge technologies such as Artificial Intelligence, and this is why business owners are proceeding towards Fintech development outsourcing.
But the question is………
One of the most important questions that as an investor you need answer to is if outsourcing to fintech development is a great idea for you or not.
Well, if you look at the flexibility, customization, and scalability elements, then, it might be great to outsource a fintech app.
Besides, if you want to create a fintech app under the guidance of top experts, and access specialized skills on a budget, it is a great option.
It allows you to tap into a wider pool at potentially lower costs, enabling faster project completion and increased flexibility depending on your specific needs.
However, it’s important to carefully evaluate the potential downsides like communication challenges a potential quality control issues before deciding to outsource.
If you can overcome such things by establishing a proper communication challenge, then we don’t see any issue with Outsourcing fintech software development.
Still wondering why outsources Fintech Development?
Well, maybe we can help with the answer by showing you the benefits of how outsourcing boosts your fintech journey.
Planning to save some chunks on fintech app development costs? Well, then outsource your fintech project.
There, we said it!
By leveraging lower labor rates in different regions and only paying for the services needed you can save a lot.
It is better than instead of maintaining a full-time development team in terms of cost.
Getting an in-house team may not be the best idea if you are a fintech startup planning to be on a budget.
One can gain access to expert developers with specific knowledge in areas like Blockchain, AI, and even complex systems, which might be difficult to find locally.
Scalability becomes a huge issue when your traffic is increasing but your app isn’t able to handle it.
Easily scale your development team up or down based on project needs without the overhead of hiring and managing in-house staff.
The fintech market is really competitive, so it’s important to market your idea fast in the market, or else someone else might do it.
As per research, companies have reported saving 30%-40% of the platform development projects.
You can reduce time to market by utilizing an external team; companies can accelerate product development and launch new financial solutions quickly.
Moderating risks is key for the long-term stability of your app.
Outsourcing providers often have expertise in navigating complex regulatory compliance issues within the Fintech Industry.
Now, we understand how taking the help of a fintech app development company can be of help!
Let’s get to know about those factors to consider before opting for financial technology development services.
Before taking such a huge decision, it’s important to understand the key factors included are crucial for making informed decisions.
This section includes the essential thoughts in the outsourcing process.
Take a look at some of the factors to consider:
When outsourcing fintech development, ensure the company possesses specialized knowledge in financial technologies including blockchain, payment gateways, data encryption & regulatory compliance.
Evaluate their previous work in the fintech section, understanding their ability to build secure, scalable, and innovative solutions.
Fintech development is highly regulated across regions due to the sensitive nature of financial transactions.
Ensure the outsourced team understands industry-specific regulations such as GDPR, PSD2, KYC, and AML, which affect product development.
They should be experienced in ensuring software adheres to relevant legal requirements and build solutions that mitigate compliance risks, ensuring your platform meets international standards while safeguarding user financial data.
Data Security is a top priority in fintech, as the software will handle sensitive financial information.
Verify that the outsourcing partner has experience implementing robust security measures like encryption, two-factor authentication, & secure payment processing.
Ensure you follow best practices in cybersecurity, including vulnerability assessments, to protect against data breaches.
Fintech platforms often experience rapid growth, so the outsourced team must develop scalable solutions that can handle increased traffic, transactions, and volume.
Assess the vendor’s ability to build flexible systems that can evolve with changing market demands and customer needs.
This includes ensuring the architecture supports easy updates, additions, and integration to accommodate new features, financial products, and evolving industry standards.
Fintech solutions often need to integrate with legacy banking systems, APIs, and third-party services.
Before outsourcing, confirm that the vendor has experience integrating such systems smoothly and securely.
The outsourcing team should be familiar with various financial APIs, payment processors, and reporting tools, ensuring seamless connectivity between your FinTech platform and external services while avoiding disruptions in service or security vulnerabilities.
Effective Communication and collaboration are important for fintech development, especially when the outsourcing partner is in a different time zone.
Ensure the vendor has reliable communication channels, clear project management processes, and can provide regular updates.
Establish overlapping working hours, set up scheduled meetings, and ensure that all team members are aligned on expectations, timelines, and progress tracking for smooth and efficient project delivery.
Evaluate the overall cost of outsourcing fintech development and compare it to in-house development.
Consider both short-term development costs and long-term maintenance and support expenses.
A lower initial cost could be appealing, but ensure the outsourcing vendor provides a transparent pricing model.
Factor in additional costs such as post-launch updates, security audits, or ongoing compliance adjustments to ensure the solutions remain financially viable over time.
The need for fintech outsourcing is there so that you can work with innovation. It allow you to leverage emerging trends from AI to much more.
Besides, you can leverage expert guidance to stay ahead of the curve. With that, you can deliver extraordinary user experience and also open vast oppurtunities for fintech business.
