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How to Outsource FinTech Software Development the Right Way

Fintech technologies are on the pick of popularity. As a result, fintech app development is evolving rapidly to make the lives of users more comfortable and facilitate financial activities.

Over the past two years, the number of fintech app downloads has increased by 75%, and this number reached 3.4 billion in 2018. In the nearest future, 36% of all smartphone users are expected to use payment apps. 

No wonder that over the past ten years, the investments in the fintech field have increased to $18 billion, and this figure is expected to keep growing. Respectively, fintech apps promise to become even more powerful, personalized, and, what’s most important, secure for both companies and users. Every modern fintech company is interested in application development and looks for the most effective ways and approaches. 

Why to Outsource Your Fintech Software Development? 

A lot of expertise and dedication are required to create an outstanding fintech app with great functionality and a high level of security. Not all businesses can hire an in-house software development team to build an application. Thus, more and more Western companies opt for outsourcing their fintech software development to get well-operating and user-friendly apps. Here are the main reasons why outsourcing can be the best solution for your company: 

  • Cost arbitrage

For small businesses and startups, it’s crucial to find a balance between quality and expenditure. Hiring an in-house team of developers usually is very expensive and time-consuming. However, if you outsource a software development team, you can get real experts for an affordable cost.

The outsourcing team of professionals allows starting with the app development right away. Moreover, you won’t have to spend a budget on recruitment, training new employees, and paying for vacation as well. Outsourcing allows you to cut expenses significantly, save on operational costs, and, at the same time, achieve your goals, and get the tasks done fast and effectively.

  • Access to a large Fintech talent pool 

The talent shortage has also been an issue for companies looking for experts in different fields, and outsourcing became the solution to this problem. It’s not always possible to find the right professionals around the corner to work on your tasks. Outsourcing gives you access to experts from all over the world to make the best choice and hire accomplished developers to tackle your project challenges. 

You can find developers with necessary skill sets, and they can start working on your fintech app right away. Access to a larger talent pool opens new horizons and stronger possibilities in terms of implementing technical aspects and the latest approaches. Instead of managing an extensive talent search and development, you can concentrate on productive workflow and strategic planning. 

  • Focus on business

Outsourcing your software development routine allows you to save time and effort and dedicate your attention to resolving core business problems and workflow optimization. You don’t have to worry about hiring, training a team, and establishing effective communication. 

An outsourced development team can take care of the whole software development process, and you will be just supervising the process. Having more time for strategic planning and other business activities will be more beneficial for the company. 

  • Enhanced security

Fintech industry is the one that requires extra attention in terms of security as customers entrust companies with their data. Local developers might lack knowledge on how to ensure a proper security level. Data breaches, cyber-attacks, and other security-related issues can cost way too much. 

For preventing data leaks and protecting customers’ private information, it’s recommended to hire a professional team of developers that has proven experience with building secure software.

How to Make the Most of Your Fintech Software Outsourcing? 

The benefits of outsourcing fintech software development are undeniable. However, there are many outsourcing companies on the market, so that it be a real challenge to find a reliable and experienced one. 

It is essential to cooperate with a credible outsourcing company that provides real IT experts to assist in achieving software development goals. The following tips will help you to make the right choice and get the most of your outsourcing experience: 

  • Find a reliable partner with relevant experience

The main task is to channel your efforts to find a reliable outsourcing partner with a proven track record, solid client database, and feedback. Make sure to narrow down your search by clearly defining your needs, requirements, and preferences, as well as development time and budget. Thus, you will be able to choose the most reliable, trustworthy contractor to work on your fintech software development.

  • Choose the right engagement model

It’s important to choose the outsourcing model that fits your project needs. There are two engagement models on the market, namely staff augmentation and a fully managed project. 

The first one means hiring an in-house or remote team of dedicated developers only for the time of software development activities. At the same time, you will be fully responsible for quality assurance, development process management, and result assessment. Another option is going for the managed services, meaning you will delegate not just development but also full control of the project to the outsourced development team. 

  • Risk assessment

Before you delegate your software development tasks, you should assess all potential risks related to your fintech software. Take into consideration such possibilities as financial loss, disclosure of sensitive information, operational risks, violation of regulatory compliance, reputation damage. In addition, determine the security environment of your application and vulnerable resources. 

Defining these aspects as ones that should be fully covered is mandatory in an outsourcing contract. Moreover, SLA defines the organization’s security requirements and objectives. 

  • Security standards compliance

To ensure the highest level of information security, make sure your outsourcing partner is ready to comply with all your security standards. Otherwise, the company should offer you a better alternative. 

While selecting an outsourcing company, make sure you check ISO 27001 certification that provides the specification for an information security management system according to international standards. Also, it’s recommended to review the security policies and protocols of the selected company to establish the needed level of trust.

  • Non-disclosure agreement (NDA)

Signing this agreement is obligatory for effective outsourcing collaboration. NDA is aimed at protecting your business idea and other product-related details. 

NDA includes agreement duration, protected information listing, contract termination details, fines, etc. It also enables you to prevent your outsourcing team from working for your competitors or create a similar product.

  • Passive security techniques

Sensitive data encryption is the most effective and appropriate security technique for the fintech industry that you should adopt, too. In case you want to encrypt confidential information such as social security numbers, credit card numbers, ID details, you can use public-key cryptography.

Digital watermarking and fingerprinting are other great techniques that allow managing sensitive data effectively. Although these approached can’t entirely prevent potential data leaks, it will be easier to establish the leak source and address the issue. The highest security level of your fintech app is guaranteed if you implement both passive and active security methods. 

To Wrap It Up

With the enormous competition level in the fintech industry, it’s paramount to provide the best user experience in combination with application efficiency and security to stand out from other products. For building a tremendous secure fintech application, it’s necessary to work with a team of the most accomplished professionals that will help you with this challenging task. 

Hiring an in-house team is costly and time-consuming, while a collaboration with freelancers might provide you with unsatisfactory results. Software development outsourcing is the best solution in terms of quality and cost. This approach can help you not just save money and time but also build a great application with the help of a talented development team.

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