Finance Software Development: All You Need to Know in 2023

In recent years, the finance sector has wholeheartedly embraced the rapid technological advancements and chosen to efficiently adapt to these changes. Not too long ago, cryptocurrencies and e-payments were the “next big thing”. In the present day, there is so much more to focus on. Many sub-sectors of finance are now moving towards digitalisation, causing a rise in demand for top-notch finance software development.

In this article, we will talk about some of the key branches of finance and how they are upgrading to the latest technology, and what things one needs to take care of when developing financial software systems.

The Growing Need for Software Development in Key Areas of Finance

While the adaptation of FinTech software has been benefitting the finance sector as a whole, each industry within this sector has specific needs and requirements that need to be met. Thus, specially customised software may have to be developed for each of these industries.

Lending

As online and mobile banking has gained traction, so has digital lending. It is one of the key sub-sectors of the financial industry that is starting to utilise custom financial product development services for efficient loan management.

On one hand, lenders wish to market their services to wider audiences by providing a better experience to their clients. At the same time, they need to automate, optimise, and have more control over their internal operations.

One of GoodCore’s clients, GC Business Finance, decided to stay ahead of the pandemic and approached us for the development of an online loan origination portal. With our expert finance software developers’ finesse, the portal took the shape of a web application. Businesses based in the Greater Manchester area can now apply for loans via GCBF’s web portal. The app has a form with a document management section where applicants enter their complete details and attach all relevant files, and the system automatically checks their credit score and initial eligibility against a set of preloaded conditions. The GCBF admin (loan managers and administrators) can use the backend portal to view all pending applications and approve/reject them on the basis of the data received via the form. Those businesses whose applications are granted can easily repay their loans over time via the payment portal that is part of this web app.

Banking

Modern banking software development is all about making day-to-day banking operations accessible to as many people as possible, at all times, no matter where they are.

Gone are the days when one had to visit their respective bank branch for the most insignificant affairs. This shift was further accelerated due to the ongoing COVID-19 pandemic. Today, banking industry software has almost completely eliminated the need for in-person visits to the branch. Nowadays, financial organisations heavily rely on web-based financial software as well as mobile banking apps that allow customers to perform a multitude of functions via their computers and mobile phones.

Customers can perform a wide range of banking activities, such as account management, local and international funds transfer, remittance management, bill payment, and much more, from anywhere at all – even the comfort of their homes. This means traditional banks have achieved 24×7 availability and a certain level of automation that has made operations much more efficient.

Taking online banking one step further, banks are now moving towards more advanced technologies such as artificially intelligent chatbots and biometrics (fingerprint, voice, and face recognition) in order to make operations more secure and efficient and improve the customer experience.

Furthermore, banks now use top-of-the-line banking software, such as those listed below, to efficiently and swiftly manage and/or automate internal operations.

• Management accounting software
• Administrative management software
• Document management software
• Financial reporting tools
• Customer relationship management (CRM) systems

These software solutions help provide banks with a consolidated view of their operations where all daily financial activities are always in sync.

RegTech (Regulatory Technology)

In an industry as fragile as finance, it is extremely important to make sure that all financial organisations adhere to particular standardised rules and regulations. Certain local and international bodies – regulatory authorities – have been granted the power to do that.

One such Malaysian regulatory authority, the Securities Commission, approached us for the development of a digital platform that would enforce compliance with local regulations for unlisted investment products launched in the capital market. The aim of this capital markets software was to automate the process, minimise the human error factor, and achieve higher efficiency during the compliance process. The system we developed has been preloaded with an elaborate set of industry standards and programmed to perform lots of complex financial calculations.

All financial organisations must also rely on digital solutions that meet regulatory requirements in order to follow the rules and stay safe and out of trouble. There are some special features and characteristics that regulatory-compliant software may need:

• Data security and privacy checks
• Fraud detection and management system
• Risk assessment, analysis, and management
• Audit trails
• Reporting tools
• Real-time financial tracking and insights
• Compliance task management

Every FinTech software solution that we develop places high importance on all applicable financial regulations that the client may need to follow.

Insurance

Insurance providers, like most other financial organisations, are also shifting to digital platforms. The goal of insurance companies is to make insurance accessible to potential customers.

In order to understand better what kind of software insurance companies can benefit from, let’s talk about a project GoodCore Software did for Stonestep, an insurtech firm based in Switzerland.

GoodCore built a mobile app for Stonestep to boost sales and make the customer registration process easier. Stonestep realised the need for a mobile application that would facilitate their sales agents. The app serves as a platform that allows Stonestep to register verified sales agents for the company. The agents log into the app and conduct all their sales operations within the app. The app contains product presentations outlining Stonestep’s insurance offerings in such a way that agents can effectively communicate them to potential clients. A successful pitch leads the agent to the customer registration screen, a simple form that collects the required client information and sends it to the central database. There are reporting tools available within the app. It also has a rewards and points section which allows Stonestep administrators to monitor agents’ performances and award bonuses accordingly.

The Stonestep app only covers some of the functionality that insurance companies might want in an app. Insurance software can have several modules dedicated to, for instance, document management, workflow management, claims, billing, and payment management. The latest apps make use of technologies such as IoT and artificial intelligence for improved risk management along with better customer experience.

Characteristics of the Ideal Finance Software Development Product

Now that we know about some of the various much-needed types of financial services software, let’s discuss the ingredients that make up the perfect financial app.

High Performance & Scalability

Considering the rate at which some sectors of the finance industry are growing, the latest financial apps must be able to adapt and cater to an ever-increasing number of users. Many financial technology providers have employees and/or clients all over the world. That is why it is critical for finance apps to prove their reliability and performance. Even with greater loads, their performance should not be hindered. Speed is also an important factor to consider since many financial transactions are highly time-critical and need immediate responses.

Accessibility & Ease of Use

Apart from efficient performance and load management, the growing user base also suggests that there is a need to focus on making the software as easy as possible for users to navigate. While some types of financial software might be fairly simple and straightforward to use, others can be quite complex. The real challenge is to make the complex behind-the-scenes financial operations seem effortless for end-users. A clear-cut, smooth and intuitive user interface is one way to achieve that goal.

Security

Almost all types of financial transactions are highly sensitive in nature. There is often an exchange of money involved. Therefore, it is imperative that all financial systems provide maximum privacy and complete security to all parties involved. These systems must be safe from external breaches and threats in order to prevent data leaks. They should also be stable, with no unexpected crashes in-between transactions, so that no critical data is lost. In case of a crash, appropriate measures must be put in place so that any major losses can be avoided.

Latest Technologies

In order to meet the three goals that we have discussed above, a professional finance software development provider must know how to work with a variety of technologies that cater specifically to organisations working in the financial industry. More often than not, some well-known development tools, languages, and technologies may have to be used in conjunction with external integrations of a purely financial nature. Therefore, it is important that the finance software development partner you choose possesses thorough knowledge of both aspects of FinTech.

Typical Finance Software Development Process

Like any other software application, finance software development also takes the typical software development life cycle (SDLC) route.

First, the software provider will discuss with you what type of application you want to create. All the features that are to be part of the app will be listed in the software requirements specification (SRS).

Next comes the design phase, where, with your feedback and in line with the pre-decided requirements, the app’s user interface and overall outlook will be drawn up. Depending on the level of detail you want to see, you can ask your financial software development services provider to show you either low- or high-fidelity wireframes (blueprints). These wireframes will be translated into a basic prototype or skeleton app. The UI and UI designers can also help you out with the branding activities, such as logo and theme design, for your app if needed.

The development will begin once the prototype has been approved. The finance software developers will either build upon the prototype or start coding from scratch. The code that is written for your application will make it fully functional, enabling it to perform all the actions that it is intended for.

Throughout the development process, the app is thoroughly tested using various techniques to make sure it meets industry benchmarks. Every aspect, from intuitiveness and design to functionality and security will be tested to ensure smooth running.

Once the app is free of bugs and approved for release, the final launch will take place and the app will be made available to end users.

Custom finance software development companies often offer application support and/or training services after launch. You can also choose a maintenance package if you want your offering to stay up-to-date with the latest technologies or want any revisions in the future.

GoodCore’s Bespoke Finance Software Development Services

Ever since its establishment in 2005, GoodCore Software has been working with organisations belonging to the finance industry, along with many others, building impeccable software solutions specially customised to meet the unique requirements of each client.

Our expert finance software developers are highly experienced in the FinTech industry, having expertly handled multiple projects and taken them to successful completion and launch. With their hard work, they have helped our clients – located all over the world! – achieve business efficiency, boost ROI, and improve customer satisfaction. We’ve perfected the recipe for fully secure, profitable and user-friendly tailor-made financial technology solutions!