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5 Reasons Why Financial Service Providers Need Custom Software Development

Published on: July 31, 2023 | By : Mohammad Suhel
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The financial industry is undergoing a massive transformation. Though financial services have typically been slower to adopt new technologies than other industries, the rise of several startups has completely transformed the scene, compelling established corporations to adapt and modernise their offerings. As a result, all financial institutions, from banks to insurance firms - and everything in between - have undergone immense digitalisation. 

Custom software - digital solutions designed particularly for financial institutions wanting to optimise operations, benefit their clients, improve business results, and stay innovative - is at the heart of this transition. All of this is provided by custom software in a variety of ways - but how? Let's look at five reasons why financial services companies should look for a custom software development partner as soon as possible.

  1. Access To The Latest Technologies

I already mentioned it at the beginning of the article, so I might as well address it now and get it out of the way. Working with a custom software development provider ensures that you have access to the most up-to-date technologies for your finance solutions. And there are plenty to choose from! AI algorithms can assist you with your data-driven initiatives, and cloud computing platforms can help you streamline your workflow. There's even blockchain, which many believe will completely transform financial services.

Naturally, all of those technologies are available as off-the-shelf solutions. However, with a custom software development team, you will be able to take full benefit of them. Because the development team will explore ways to best align those technologies to fulfill your specific business objectives. You'd be obliged to make your goals fit with what they give with an off-the-shelf solution, and the fit wouldn't be as tight as with a customised approach.

  1. Increased Security

The financial sector is one of the most at risk of cyber-attacks in the United States. It's not unexpected, given the large potential benefits of a successful attack. As a result, all financial service providers must prioritise security above all else. And there is no better ally in this than a professional custom software development team. 

Why is this so? Because custom software is available to anybody who pays for it, criminals can use it to dissect and analyse its weaknesses. Any holes in its security are determined by the software vendor and its update policy. As a result, you are vulnerable and reliant on a third party. You'll get a customised solution that only you can access and that can be updated as frequently as you require with a dedicated development team.

  1. Ensured Compliance

The financial services industry deals with highly sensitive information that must be protected at all points of contact. Many security components of the financial system must be addressed, from data storage through authentication, authorisation, and transaction processing. On a local, national, and even international scale, a number of organisations and agencies strictly govern those intricate operations. To safeguard customers and prevent costly fines, all financial institutions must follow these standards.

Third-party software meets the critical requirements for compliance with those standards, but you can never be certain that it meets all of the rules that apply to your specific case. You can work closely with a customised software development team to ensure that all of the inner workings of your specific solution match with all of the regulations that apply to your organisation.

  1.  Easy Maintenance And High Scalability

Most financial service providers strive to serve as many consumers as possible while providing the best possible experience. That is why they should consider custom software development for their digital solution requirements. That is due to two factors. The first is that you will create a highly scalable solution from the ground up, laying the groundwork for your anticipated expansion while avoiding severe performance difficulties. The second benefit is that you will not have to pay for additional capacity (as you would with a boxed alternative or a paid platform subscription).

A good custom software developer, on the other hand, will establish a long-term connection with you that goes beyond the product's launch. This means you'll have a seasoned partner to assist you with maintenance and support as needed (as opposed to packaged software, which is mostly dependent on update cycles set up by the development company responsible for the product).

  1. Personalized Customer Experience 

The financial market is becoming more crowded by the minute, so the only way for businesses to differentiate themselves is to provide hyper-personalized services that convert into great experiences. Naturally, this has the greatest impact on financial services in general, but don't forget the software involved in that experience. Given that your clients will connect with your digital systems, customisation is always recommended.

That is why, rather than using a pre-packaged solution, you should work with custom development teams. You will have limited customization options with the off-the-shelf option, which means you will have to accept the features, workflow, and overall feel designed by someone else. With custom software, you can design everything and everything in your software and even alter it as you go based on client feedback. That is a successful personalised client experience that keeps customers interested. 

Custom Software Development and Fintech: A Long-Term Relationship

I mentioned it briefly before, but it bears repeating: a custom software development team may be a valued partner for any financial institution. That's because such a company can help with the development of a digital-driven strategy, foster a digital transformation in your organisation, provide consulting services, increase your overall efficiency, assist you in developing your digital infrastructure, and even lower your costs.

All of that potential is best realised if you form a long-term engagement with that provider. As the connection progresses, the software provider can come to know you better and make better recommendations for your digital journey. That is critical for this transformative period in the industry, which is why you should think about custom software development and the value it may bring to your financial firm. So, are you looking for a custom software development company, IBR Infotech is here to help you in your digital journey.

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