Technology is changing the way businesses operate and deliver products to consumers in many sectors. IT helps the financial sector develop and improve through the introduction of modern and advanced software.
In this article, we will look at the main trends concerning the cooperation of information technology and finance, and pay special attention to software development.
Banking and financial services is a huge and complex branch of business dealing with vast amounts of money and data. It requires high levels of security as it serves different types of customers, from students to global corporations.
How do financial businesses manage all these tasks and operations, and what is the role of IT services in this area? What are the trends in this area?
Fintech Software Development Trends of 2021
Digital and mobile services in various fields are already an integral part of their lives. Almost everyone today has a smartphone and almost everyone uses mobile banking services. So the development of banking mobile apps and software is currently in high demand.
Banking software solutions provide many benefits to customers, as well as enhance the customer experience through numerous features. These functions are made possible and accessible by the development of information technology.
The development of mobile and web applications in the financial industry offers useful and effective solutions to consumers, as well as to banks and their employees.
The development of financial software aimed at the B2C audience is an integral part of the work of any bank and financial company to ensure a positive customer experience and customer retention.
Similarly, ERP, BPA, and CRM systems are used in almost every area of business.
Next, we’ll discuss the top 5 trends in software development for the financial sector.
1. The use of cloud services
Cloud services allow you to perform processes over the Internet without having to download and install the software. Cloud service providers have been especially popular in recent years among various industries, including banking and financial services.
Why are they so useful and widely used? There are several reasons.
They eliminate the need to own dedicated software and hardware, increase workflow flexibility and speed, and simplify the automation of business processes. All these improvements allow companies to save time, money, human and other resources. And also increase the reliability of the system in the event of errors and failures, providing easy system recovery.
It is for these reasons that enterprise often turns to financial software companies. Businesses want to be stable and prosperous. Software development companies help manage risk and solve a variety of operational problems.
2. The need for ever-higher levels of security
Along with the progressive and developing field of IT, the probability of cyberattacks is also increasing. So, banks are constantly exposed to the risk of hacking. Thus, they need to improve their levels of digital security.
As a result, financial companies actively invest in their protection through the use of reliable and proven technologies that guarantee the safety of their customers’ finances and data.
There are various solutions (including mobile/web app development) for this problem in the financial sector. For example, systems that detect the slightest sign of fraud are already on the market.
3. Advanced analytics
Just like cloud services, analytics software is used in many areas, including banking and finance. The difference between advanced and traditional analytics is the ability of advanced analytics to make predictions about results and events based on available data. Thus, advanced analytics can collect and process big data, optimize operations, simplify decision-making.
The implementation of location-based services (LBS) will help to obtain even more data for analysis and subsequent use. This will lead to greater operational efficiency, improved workflow speed, and a better customer experience.
4. Services for customers
As mentioned above, information technology also brings benefits to individuals and businesses alike. Mobile banking is especially popular because mobile technology has become an integral part of our lives.
Over the past few years, we have become accustomed to getting quick access to the mobile services we need, including banking.
Mobile banking improves the customer experience, simplifies payment and transaction processes, saves time. That’s why most banks have their own mobile apps for their customers.
5. The Internet of Things and biometrics
The Internet of Things is changing not only construction, healthcare, and education, but also banking and finance.
Installing sensors in banking halls will improve the process of collecting customer information, analyzing it, and processing statistics. Beacons will help you in your marketing and advertising campaigns. They are able to facilitate the navigation of visitors and employees in buildings.
Biometric technologies are an alternative to passwords and PIN codes. If the latter can be hacked, then Beacons allow you to increase the security level during authorization.
The development of software specific to the financial sector helps to improve the productivity of the company, increase the level of security and improve and automate the workflow. To achieve these goals, it is important to follow trends and keep up with the times.