Emorphis Technologies
What is FinTech? In a more humorous tone, it is a successful marriage between traditional and young technology. In general term, it is an innovative business which offers financial services to the customers via FinTech software solution. Such is their impact that millions of people across the globe can’t live without online financial transactions and are looking towards FinTech companies to come out with unique solutions
There are various aspects which come under FinTech app development and include (but not limited to):
Ø Payment Processing
Ø Online Banking Services
Ø Invoice & Billing Software
Ø Tracking & Management of Personal Finance
Ø Digital Insurance for Insurers
Ø Services of stock trading
Ø And many more
So, FinTech companies are the future and here to stay with the boom in cryptocurrencies and rise of digital assets manifold. What's more, experts are predicting that investment in global FinTech funding is going to reach $100 billion in the coming years.
It begs a question: How finest ideas in successful FinTech startups blossom? The answer is following the strategic market plan which in turn is derived by the right marketing techniques. Keep this thing in mind that there are no secret formula to leverage the power of marketing in the world of FinTech application development.
Thereafter having a lengthy discussion with specialists, rules have been framed keeping in mind key principles of FinTech development that are tested and successful.
I. Must-Follow GDPR concerning Security & Compliance
For all the FinTech app development companies, there is no place for compromise in terms of security of the given app. With the implementation of GDPR for offering strict security to the personal data, the topic has got even hotter! Furthermore, non-compliance with the given law is the biggest mistake that the organization shall commit as it will prove them to be too costly.
Just from the commencement of the project, the user’s privacy must be taken into account. As per the experts, the FinTech app developer has to take the consent of the users to proceed with their details and secure information and if they violate the rule, they have to pay a hefty fine.
Thus, to follow the steps in developing an innovative FinTech app in accordance with GDPR, certain key security and compliance rules must be taken into account such as:
Ø Selection of tools to detect and eliminate Open Web Application Security Project (OWASP) vulnerabilities with automatic start code analysis sooner to prevent affection of security risks in the app
Ø Strict following of information security policies related to storing the password and other sensitive user info, effective utilization of multi-factor authentication and ensuring proper handling and securing of data with PCI compliant hosting provider
Ø Proper financial monitoring by integrating with 3rd parties so to block malicious contents and organizations which are in blacklists
Ø Prevention of illegal financial activities by unauthorized users by establishing a secure identity of customers via blockchain-based KYC and reduce forgery and identity duplication
Ø Successful utilization of machine learning such as GAN to detect and report fraud behavior and thus enhance the results for the benefit of the customers
II. Key API Design Guidelines for Successful FinTech Development
API design is another aspect that is essential for the proper development of the FinTech app. Several operations are part of an effective FinTech transaction and proceeds through various external and internal apps connected via APIs. Besides, a guarantee must be there for fruitful completion of all the transactions. To make it happen, the developer should follow the following rules of API design:
Ø Make API call idempotent so that there is a guarantee that there is no occurrence of a side-effect if there is a failure of API call on the side of the API server
Ø Create an API call with a specific ID to prevent the passing of online payment transaction more than once after recovery of the failed server
Ø Designing of API shall be such that there is not the exposure of technical details present in it even in the accidental case so that the online intruders will get less chance to see the data and use it against you
Ø There should be a generation of unique ID for distributed architecture which will help to detect a failure at a certain stage and start afresh
III. Scalability in Software Platform is Need of the FinTech Development
Scalability and FinTech development go hand in hand and do you know why? As everyone knows that the traditional financial institution is built on a platform with a good customer base and they meet the loads they should expect. On the other hand, most of the FinTech grow as a startup and dies off within a year. So for their survival, they need to mature and scale up immediately. If they don’t do it, they will find it difficult to cope up with rising costs and other factors.
To have a smooth transition from a humble beginning to a great leap, many FinTech companies have opted for microservices architecture. Why this architecture? It is because it meets the specific business needs efficiently: they can be built from the beginning, can convert monolith finance to microservices and back with ease.
Nevertheless, microservices are also affected by some challenges which can be overcome by following some set of rules such as:
Ø Defining the responsible areas for microservices by covering each service with one functionality at a time and then gradually add new microservices to replace the monolithic code
Ø Opt for automation testing coverage which will be helpful in the prevention of defects while refactoring as it will minimize the number of bugs and help you to release your app in the market within the given time
Ø Ensuring fault-tolerant design of microservices using some hi-tech tools such as Hystrix in the given distributed architecture
Ø Automatic deployment, monitoring and logging of microservices
IV. Must-have Rules for Specific Domain Expertise among Developers
For an efficient FinTech app development, it is prudent for the developers of a reputed FinTech app development company to have a specific knowledge about FinTech operations. What does it include? It comes with legal and compliance aspects, knowledge about the financial and banking background, and different types of FinTech operations.
After having a detailed discussion with notable FinTech experts, certain rules have been outlined which will help in developing specific domain expertise:
Ø Special attention must be given for the maintenance of financial ledger which is written on ACID databases so that there is a valid guarantee to the customers even during the event of power failures or errors
Ø A given consideration must be there for the legal side of FinTech as licenses are important for FinTech startups for operating in different regions
Ø For different FinTech, there should be the presence of specific domain experts to avoid professional clashes during the development of the app
After going through some of the important rules, it is time to find out some of the latest trends which will shape the future of the FinTech industry and help it to upgrade itself and secure a better position in the coming years.
A. Major Transformation in Banking & Payment Service Providers
With the emergence of FinTech, the online payment system has undergone a significant transformation and has changed the working system of the financial enterprises to a greater extent. It has advanced to such an extent that the boundary between disconnected industrial sectors have become somewhat blurred.
Furthermore, research conducted by Forbes has stated that there have been significant riles in the global private industry and the payment is the single largest benefactor. Payment footprint has expanded to a greater extent thanks to mobile messengers and P2P models and has made the payment and online transaction just a single step away much to the delight of the users.
What’s more, the new and innovative players have taken the financial market from the traditional one and have made the working of people easier than ever before. Notable FinTech experts have forecast that by 2025, the FinTech adoption rate will reach 52% and will be possible because of next-generation payment methods, besides discarding credit card industries.
B. 5G Internet will Define Speed for Efficient Functioning of FinTech Apps
There has been a watershed moment in the world of finance since the commencement of the year 2020. Do you know what it is? The answer is the arrival of 5G wireless technology in the market which has resulted in the sharp rise of data transfer speed. Furthermore, it will ensure a more stable connection, zero latency, and instant online transactions with no waiting time.
How it will benefit FinTech apps? As all know that the present financial operations are conducted online, so the implementation of 5G internet will not only improve the quality of the service but also offer fast user experience at lightning speed and thus connect millions of devices at a lower cost.
There is one notable example of how 5G technology will help the FinTech industry. It is in the form of 'remote teller' which helps customers to get personalized attention via video session without getting alloyed in finding the nearest banking branch. Likewise, it will be available wherever a 5G network exists and on any device either smartphone or personalized ATMs.
C. Digital Transformation has made FinTech Available for Forking Apps in Given Time
The cashless or mobile payment system has skyrocketed recently and has provided good results more to the delight of players involved in financial industries. Various traditional financial institutions such as banks and other PSPs are adjusting to the new trends so as to offer the best product-market for their customers.
Moreover, the new software app has made all the procedures such as software infrastructure, development process, testing, elasticity, and many others a lot more easily than ever before. Furthermore, the availability of APIs and software libraries has made the FinTech experts to serve their clients with the best user experience.
D. Millennials will Become Major Target among FinTech Startups
In today's corporate work culture, the millennials (from 23-40 age-groups) constitute the single largest workforce. Furthermore, it is this age-group which has been found to be least educated with respect to financial management in their life and also is more prone to any financial crisis.
Many financial experts have shared their view that-"FinTech who fail to cater to the needs of the millennials will struggle to survive in the tough world of the financial industry." So to win their support, FinTech must leverage their services to help millennials to control their finances and also alongside offer them financial education to win their faith.
For any FinTech startup, they are the most important target group as they will be able to serve well to these new and younger customers and will yield rich dividends in customer loyalty, not to forget their enhanced revenue.
Wrapping Up
From the given article, one thing FinTech startups want to convey to their customers is- “Welcome to a cashless world.” The traditional financial sector has been paving the way for FinTech startups and is also changing the way people will interact with their money.
Besides, millions of new users (especially millennials) are looking for new financial services that adhere to the latest technologies and cater to their financial needs well. So, following the above-given rules and designing FinTech app development as per the latest trends; a financial enterprise will surely create their niche in the financial world.
Originally published at- https://emorphistechnologies.blogspot.com/2020/05/fintech-app-development-must-follow.html
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