The financial services sector has experienced a dramatic shift in recent years, with the emergence of a number of start-up companies driving the need for established firms to modernise and update their products and services. This has led to a period of digitalisation for the entire financial sector, including banks and insurance companies, in order to remain competitive in the market. Consequently, the financial sector has seen a dramatic transformation, with the adoption of new technologies and developments that have revolutionised the landscape.
The digital revolution is being powered by custom software, offering financial service providers the ability to streamline their operations, provide an improved service to their customers, boost their business results, and stay ahead of their competitors. How can custom software achieve this? Here are five reasons why banks and other financial institutions should consider engaging a software development partner now:
Use of Cutting-Edge Technology
Having outlined the importance of harnessing the potential of a bespoke software development company to ensure your financial solutions remain cutting edge, I will now explain the advantages of such a move. AI-algorithms and cloud computing platforms can prove invaluable in the implementation of data-driven strategies, while blockchain technology is forecast to revolutionise the financial services industry. As such, opting for a bespoke software development company opens up a world of possibilities.
All of these technologies are, of course, readily available for purchase. However, if you want to get the most out of them, you should consider working with a bespoke software development team. This is because the team working on your project can actively identify opportunities to better match these technologies to your individual business goals. If you opt for an off-the-shelf option, you may have to modify your objectives to fit the technology, which may not provide the same level of satisfaction as a customised solution.
The banking industry in the United States is often one of the most common targets of cybercrime, which is unsurprising considering the high stakes an attack could bring. Therefore, it is essential that banks and other financial institutions prioritise safety. A dedicated bespoke software development team is the best way to ensure success in this endeavour.
It is clear to see why this is occurring; due to the fact that software that comes in a box is available to anyone who is willing to pay for it, it is easy for malicious actors to acquire the software and exploit any vulnerabilities after discovering them. The policy of the software’s maker regarding updates and patches will decide how much they can do to address security flaws. Therefore, you are putting yourself at risk, and having to depend on third parties. If you employ your own development team, you can guarantee that your software solution will be exclusively tailored to your organisation, and will be kept up to date with regular updates.
Assurance of Conformity
The financial services sector deals with extremely sensitive data that must be protected across all points of contact. To ensure the security of the financial system, a wide range of measures must be implemented, including data storage, authentication, authorization, and transaction processing. Such intricate procedures are heavily regulated by a complex network of both local, national and international regulatory authorities. Financial organisations that fail to comply with these regulations will be subject to severe penalties, in order to protect their customers and stakeholders.
Whilst commercially available software will usually meet the fundamental standards required to comply with applicable laws, it is impossible to guarantee that it will meet the specific requirements of your organisation. Therefore, it is recommended that businesses collaborate closely with a bespoke software development team to ensure their individual solution adheres to all relevant regulations.
It’s very scalable and simple to keep up.
Financial service companies often make it their mission to provide the highest possible quality of service to as many customers as possible. Therefore, businesses should consider investing in bespoke software solutions tailored to their individual digital requirements. This is for two main reasons. Firstly, it enables companies to create a solution that is highly scalable, allowing for future growth without compromising on speed. Secondly, there are no additional costs incurred when expanding storage space (as opposed to purchasing a traditional software package or subscribing to a paid platform).
Working with a reputable bespoke software developer gives you access to a sustained partnership that will extend far beyond the initial launch of the software. This means that you can rely on experienced support whenever necessary, in contrast to the limited support and updates available with pre-packaged software.
Enhanced Customer Satisfaction
As competition in the financial services industry continues to grow, companies must find ways to differentiate themselves and stand out from the competition. One effective way of doing this is to ensure that customers have a unique experience when engaging with their services, and this is especially pertinent for financial services. However, businesses should not overlook the importance of the software powering this experience, as this is where customers will interact with your services. It is therefore essential for organisations to develop software that caters to the individual needs of each user, in order to make their digital systems as unique and effective as possible.
It is for this reason that we would recommend working with a dedicated development team, rather than opting for a pre-packaged solution. With ready-made options, you are limited to the features, processes and overall feel that has been created by someone else. However, when you choose bespoke software, you can customise almost every aspect of it, and even make changes according to user feedback. This is an excellent way to ensure that your clients receive a tailored experience that keeps them engaged.
The Fintech Industry and Custom Software Development Have Been Working Together for Years.
Despite having already mentioned this, it bears repeating that a bespoke software development team could be a highly valuable resource to any bank or credit union. Such a firm can not only develop a digital product, but can also assist in the development of a digitally oriented strategy, stimulate digital transformation in the organisation, offer advisory services, enhance productivity, contribute to the growth of digital infrastructure and reduce costs.
It is essential to consider the advantages of customised software development for your financial organisation when taking into account the rapidly changing environment. Establishing a long-term partnership with a service provider is the only way to maximise all of the potential that comes with this opportunity. As your relationship develops, the software company will be able to understand your business needs more effectively and will be better equipped to give you suitable advice on your digital journey.