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Why is custom software development crucial for the financial industry?


Published on: 09 Nov 2020

By Rahul Jain

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Custom software development is a powerful vehicle for driving innovation, which the financial industry craves.

With fintech leading the way into a new digital era for financial institutions, the industry already experiences a significant shift in multiple areas. Whether it’s business operations, customer experience, or even regulations, both startups and incumbent organizations are looking toward technology to either disrupt the financial landscape or replace legacy systems and become more agile.

It didn’t come as a surprise that customers’ expectations about their digital interaction with a brand have echoed into the financial industry. No one can cut corners when dealing with a customer who is already used to a convenient, personalized, and real-time experience.

To win, keep, and engage such a customer, a financial institution needs a set of versatile capabilities to meet the rigid nature of financial regulations while remaining customer-centric.

Whether it’s for the banking sector, investment, or insurance companies, financial custom software applications can successfully manage to both addresses a company’s unique needs and match customers’ high expectations. Custom application has the advantage of adapting to the organization’s requirements and not the other way around. It is especially important in the financial landscape, where progress is often slowed down by rigid legacy systems, poorly equipped for scalability.

So, what is it that makes custom software development pivotal for the financial industry? Why should your organization build a financial application from scratch rather than choosing a ready-made solution?

  • A custom software application is built around your business  

The financial industry is one of the most regulated and demanding markets. Businesses that operate in this landscape have particular needs that hardly ever fit into an off-the-shelf solution.

A custom software application addresses your organization’s particular challenges and has your company’s best interest at heart. Whether it’s a finance mobile app or a payment solution, custom software development allows you to include the features that matter to your organization and your customers and exclude the redundant ones.

The financial market dynamics often pressures businesses to adapt quickly. It isn’t easy to do that with an off the shelf application, as it leaves little room for customization. Also, you depend on the provider’s development strategy, which may or may not cover your requirements.

So, it becomes crucial to wire your company with the right capabilities to successfully implement your business strategy while being responsive to your customer base and market advancements.

  • It grants you higher security control of your financial application data

As digital is becoming a new norm in the financial industry, the cyber-security concerns have grown exponentially.

Financial players such as banks, insurance companies, or credit card companies are dealing with private and sensitive data which require highly-secure protocols that can ensure robust protection.

With a custom application, you have control over the level of security your product requires so that your customer’s data isn’t easily compromised along with your company’s reputation.

In this day and age, customers tend to lose their confidence in a jiffy. The smallest mistake or performance issue can make them second-think trusting a company. And in the financial industry, mistakes related to data vulnerabilities can cost both the organization and clients a lot.

Financial data is continuously subject to security threats, so financial institutions need to be aware of cyber-crimes and implement security programs that prevent them. Financial software development ensures your security requirements are adjusted to your needs and offer the proper protection to your customer’s data.

While you want the financial data safeguarded, you also need to maintain a customer-centric experience that doesn’t jeopardize customer engagement. It is often challenging for financial institutions to find a balance between the two. And this is one more reason to consider financial application development because it allows you to create an appealing digital tool for your clients that is also data safety conscious.

  • You get time-sensitive maintenance and support for a custom application

Immediately addressing errors is, without a doubt, one of the most important aspects of a successful software application in the financial space.

When a customer needs to make a real-time payment or transaction and encounters a bug, they expect the issue to be solved almost instantaneously. With an off-the-shelf application, you cannot provide such speed and responsiveness because you depend on scheduled maintenance tasks or on support processes that are slow and complex.

On the other hand, custom software allows you to quickly respond to system errors and ensure the customer has a seamless experience while your company doesn’t encounter significant losses.

If you’re partnering with an outsourcing company, you can get access to a 24/7 support team that will ensure that the application runs smoothly and promptly addresses any malfunction.

  • Financial software development facilitates the integration of new technologies

Building a competitive advantage in the financial space is not an easy endeavor. With so many fintech startups emerging, it becomes a challenge to find a way to differentiate your organization.

But, differentiation often arises from a company’s ability to respond to customer demands and market changes. And it is only possible if the software’s architecture allows you to be as flexible and agile as you would want.

When you build an application from the ground-up, you design it with scalability in mind. You may start with one or two functionalities. Further on, a custom application allows you to add new features and integrate 3rd party services that benefit and enhance your app’s performance.

For example, more and more financial institutions look into integrating Artificial Intelligence applications. They use it to get more insights into customer behavior, offer a more engaging customer experience, and even prevent fraud.

With custom-made financial software, you’ll be able to capitalize on such opportunities. It has the right infrastructure that can support rapid growth and ultimately scale your business.

  • Custom software development values the customer experience

When it comes to customer experience, a finance mobile app is no different from any other application users engage with. They expect convenience, speed, real-time everything, and a seamless experience across multiple touch-points.

Financial institutions still have a long way to go about customer interaction. Factors such as regulations, legacy systems, or cyber-security make it hard for financial organizations to fully adopt digital transformation, as there are still many challenges to overcome.

While some customers are completely comfortable doing their money management online, others still rely on face-to-face interactions to gain a sense of trust and security.

Either way, customers still end-up performing some of their financial transactions online. So, whether you’re aiming to gain more of their trust or you’re planning to offer a complete financial digital experience, your organization looks to technology to find ways to achieve these goals. While a bespoke application can cover some of your customer needs, a custom developed application can be much more comprehensive in approaching the customer experience.

From the early stages of financial software development, you get to build a customer-centric application. Whether it’s how you think the UI and UX, the customer feedback you receive, or the data that emerges from in-app customer behavior, your application is always customer-aware. And this is what makes it easy for your organization to intelligently and adequately handle any market challenge that comes your way. Ultimately, custom software becomes a natural extension of your business, which can effectively help you identify new revenue streams and launch marketing initiatives that boost your bottom line.

The financial industry is subject to game-changing innovation. It’s not isolated progress. Technological advancements are shared across multiple industries, and they profoundly affect the way organizations approach business operations and the way they design the customer experience.

To become a customer’s top choice, a financial institution needs to wire the organization with digital capabilities to keep up with the market’s dynamics and lead it. Whether you’re thinking about adopting Cloud to increase data protection, build a more engaging customer platform, or simplifying business operations, a custom developed application provides you the flexibility and a technological backbone that can adapt to your organization’s growth.

Rahul Jain Rahul Jain