Fintech Market, or Financial Technology Market, has accelerated globally in the past few years. The global fintech market was estimated at $110.59 billion in 2020 and is expected to grow at 20.5% CAGR, reaching $699.50 billion by 2030.
As per a study by BCG, the number of fintech startups has doubled in the past 2 years. There are over 26,000 fintech startups worldwide. The increasing business has created a high demand for fintech software development companies.
Are you a business looking to outsource fintech software development?
Look no further. We have curated this blog with all the relevant information to help you find the right fintech software development company.
But before we begin, let us start with the basics.
Recommended Read: Top 10 Fintech Software Development Companies
What is Fintech Software Development Outsourcing?
Fintech development outsourcing is when a fintech company hires an IT outsourcing partner to digitize financial services to simplify end users' access via the Internet or mobile apps—creating digital solutions to improve processing speed, accuracy, and transparency while reducing costs to enhance customer experience.
This brings us to our next question-
Why do fintech companies outsource software development?
Fintech companies outsource software development to work with financial technology experts who can speed up the fintech product development process. These fintech software development companies are well versed in tech-stack and financial market compliance for building reliable and secure fintech apps.
The increasing competition in the fintech industry has made it a necessary business strategy to build your finance software solution and bring it to market in the shortest possible time. Achieving this by hiring an in-house team is next to impossible, but if the same is done by outsourcing fintech software development, the results can be excellent.
So, to build efficient fintech solutions, working with a trusted outsourcing partner capable of providing extensive fintech software development services is a must to survive the competition.
Let us now explore the businesses that stand to gain maximum benefits from fintech software development.
Who needs fintech software development outsourcing?
Whether it's fintech startups planning to build fintech apps or established financial companies introducing new solutions, fintech product development outsourcing is a service that every business in the fintech industry can use to scale.
Due to the changing policies by the Federal bodies, financial technology companies must be on their toes to keep the products updated and compliant. Having a fintech software development partner can give a competitive advantage to financial companies trying to stay ahead of the curve.
Benefits Of Outsourcing Fintech Software Development
The fintech industry is constantly evolving, and so must its players. By outsourcing fintech software development, a business can gain the following benefits.
1. Speed-to-market
One of the most significant advantages of software development outsourcing in the fintech sector is its development speed. By allocating a certified team of tech experts with extensive experience in building fintech solutions, outsourcing companies help speed up the development process.
2. Cost efficiency
Outsourcing fintech projects can save you big bucks. You can outsource your projects to countries with lower-cost living costs to reduce your fintech solution's development cost. By outsourcing fintech software development, you save on hiring and training costs of resources. Besides, outsourcing also helps you save infrastructure and overhead expenses incurred while working with an in-house team.
3. Access to Experts
At a time when the world is suffering a tech talent crunch, finding the right experts in your geography to build your fintech solution can be difficult and expensive. Thankfully fintech companies have outsourcing services at their disposal to counter the challenge of resource crunch.
Outsourcing companies can help you find experienced fintech developers with expertise in different technologies like artificial intelligence(AI), machine learning(ML), blockchain, robotic process automation, etc., to enable seamless app development.
4. On-demand Scaling
Unlike in-house teams, where adding new resources to scale projects can take weeks and months, outsourcing providers can help businesses scale quickly by deploying more software developers from their pre-existing talent pool on the fintech project.
So when financial firms work with an outsourcing provider, they get a truly agile and flexible development team on their project.
Recommended Read: A Detailed Guide to Fitness App Development Solution
5. Access to Innovative Technologies
The tech world is ever-evolving, and the financial sector must stay updated with changing industry trends. Outsourcing providers are often at the forefront of technological innovation; thus, outsourcing helps fintech businesses access emerging technologies to bring better solutions to their customers.
6. Bringing the Focus Back on Business
When a finance company outsources its fintech project, whether software development or business processes, they free up internal resources. Doing this empowers them to focus more on productivity, business growth, and enhancing customer engagement.
After assessing the benefits of outsourcing, one can say that outsourcing improves the bottom line and drives innovation, assisting businesse