Software Development in the Financial Sector: What’s It Like?

There are millions of software developers across North America. Because of the global pandemic, many people decided to join their ranks. Besides, with increased competition comes a higher demand for experienced professionals.

This is especially true for financial institutions. They implement a number of programs and systems to streamline operations and save billions of dollars every year. That’s why institutions look for the best financial software development services. However, to choose the right company delivering such services, one should understand some peculiarities of software development in the financial sector. Let’s take a look at what this process entails.

Working With Data

Being able to work with vast volumes of data is one of the most important skills in this field. Programmers have to analyze information and use it to come up with optimal software solutions. Since financial firms have high business dynamics, programmers are expected to keep up with them.

Aside from completing tasks on time, devs have to constantly up their game. They need knowledge and experience with different types of technology. This tech will be used in designing, creating, and releasing software solutions.

Software engineers who work in financial corporations have to know how corporations operate. They should understand the challenges corporations face and be able to offer effective solutions. 

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Keeping Information Secure

The financial sector is under constant threat from hackers. They use all sorts of tactics to scam the companies out of personal information, credit card data, and money. This can result in reputational damage and disruption of systems for days or even weeks. Some of the common tactics include the following:

  • denial-of-service attacks;
  • malware;
  • phishing and business email fraud;
  • ransomware.

Software development for financial services involves keeping all the systems safe and operational. Hackers will work to get through the defenses. Thus, company solutions for exploits and breaches are a must.

Some companies are used to hiring in-house developers, but there are alternative solutions. For example, Develux is one of the firms offering financial software development services for banks, insurance companies, investment entities, funds, and trusts. With their help, financial institutions can get all the necessary tools. It’s faster and more efficient than going through a long hiring process.

Updating Old Systems

Financial institutions have legacy systems working at the core of their business software. This is the case with most long-established industries. With time, they grow old and outdated. This process can make software vulnerable and incompatible with new products. That’s why companies hire developers to modernize these systems.

There is no easy solution to this problem. Large financial institutions can’t alter their architecture over a weekend. Software developers have to understand that. They have to come up with solutions that can work with the architecture on the premises and in the cloud.

Working With Cloud

Financial institutions often run their software from company servers. But technological progress moves all industries towards modernization. That’s why companies begin to switch from legacy systems to modern solutions. They include

  • cloud services;
  • containers;
  • Kubernetes;
  • microservices.

Yet, switching to new technology is not so easy. Transferring the company infrastructure can take from two to five years. There is no denying that the cloud is the way of the future. But the financial sector still relies on legacy technology. Transferring everything to unstable modern systems is a high-risk operation.

Knowing about these technologies and being able to upgrade existing infrastructure is vital for programmers involved in software development for financial services.\

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Fixing Bugs

Programmers have to be able to fix bugs as soon as they appear. Working in the financial industry puts even more pressure on them. One error can cost companies millions of dollars, if not utter bankruptcy. There is a high level of risk management and compliance required. That’s why software development companies should be able to withstand the extra stress.

This task is even harder because developers have to work with different solutions. The situation makes bug fixing a laborious and expensive process. Repairing errors in critical applications with complex architectures is costly. Companies spend about $300 million each year on this process. That’s why devs should have exceptional bug-fixing skills.

Using Various Technologies

To keep data safe and systems free of bugs, devs in the financial sector use various types of technology. Professionals from a financial software development company will be utilizing them during all stages of the development process. As time goes by, they might have to learn how to incorporate new tech into their daily activities.

Devs will use this knowledge and skills to keep all the financial systems up and running. It’s the software developer’s job to make sure that they are responsive and can work under heavy pressure. If everything works well, it attracts new clients. This helps the company beat its competition.

Now you know which aspects should be taken into account when you look for fintech software developers. It’s time to find out how exactly outsourcing software development can benefit your organization.

Reasons for Outsourcing Fintech Software Development

Dealing With Experts

When you rely on in-house personnel only, you are almost always limited by their capabilities and scope of competencies. After all, your employees might not have the diverse experience of working on different projects.

On the other hand, a company that specializes in software development for financial institutions can boast a highly qualified team. They already know the algorithm, have enough experience, employ effective approaches, and work well together. So, you do not have to worry about organizational details and allocation of duties. The extent of your involvement in the project monitoring is up to you.

Faster Delivery

This benefit is closely related to the previous one. Since you outsource software development to professionals with proven expertise, you get a high-quality product tailored to your business needs. 

The expert team will do their best to meet and even exceed your expectations. Financial software development companies clarify all the peculiarities at the planning stage to minimize possible adjustments on further stages.

Moreover, they’re interested in maintaining their reputation. Thus, such firms are 100% focused on the project and deadlines. They know how to streamline their operations to achieve their goals faster without compromising quality.

Cost-Effectiveness

At first sight, it seems that outsourcing software development costs a fortune, especially when it comes to fintech. Yet, if you dig deeper, you will find that sticking with in-house developers might entail spending much more. 

Just think about everything you need to get the project up and running:

  • human resources to manage operations;
  • modern equipment and tools to minimize human error;
  • software licensing to make sure everything works smoothly;
  • getting external help if something goes wrong at any stage of development, etc. 

When you outsource software development services, you don’t need to worry about the mentioned items - it’s not your responsibility anymore. The company you hire adheres to the set budget, and you can avoid extra spending. So, you save both time and money. 

Final Thoughts

Before hiring someone to develop software for the financial sector, you should keep in mind a few aspects.

  1. Developers should be well-versed in the area and be able to manage big data.
  2. Security should be their top priority.
  3. They should understand the importance of upgrades and using the latest technology.
  4. They should be ready to notice and fix bugs efficiently.

Outsourcing software development is always a good decision as you will deal with experts, get the project done faster, and save costs. Just make sure you find a professional team that is familiar with the challenges of the financial sphere.

Outsourcing software development is always a good decision as you will deal with experts, get the project done faster, and save costs. Just make sure you find a professional team that is familiar with the challenges of the financial sphere.