Digitization has touched almost every industry in recent years, as companies have found true value in technology. They have been able to streamline processes, reduce costs and increase the productivity of their teams with the implementation of digital solutions. And the financial industry has been able to deeply reap the benefits of this digitization.
Undoubtedly, the emergence of Covid-19 accelerated the implementation of technologies and solutions that companies were considering applying in a period of 2 to 5 years. The pandemic was a catalyst and caused the mass digitization of thousands of companies in the finance area, such as banks, for example.
“COVID has accelerated digital transformation in many industries, accelerating the number of digital or digitally enabled products in company portfolios in approximately seven years. A similar digital rise has been seen within financial services”, they pointed out in an article by the University of Bath, in the United Kingdom.
In fact, traditional banking has sometimes felt threatened by technology and fintech: according to an article in Fintech Magazine, 88% of banks are worried about losing profits due to the advance of fintech. One way to counteract this concern would be to start including technologies in banking processes, with digital solutions that meet the needs of financial institutions and customer demands.
Software development and digitization in the financial industry can determine the success or failure of your strategies. In a reality that is totally digitized, no financial company can remain in the past, implementing actions and processes that are not in line with what users currently need.
Many business operations, both internal and external, can be improved thanks to software development. It is also possible to enhance the workflow of the financial institution's teams, while offering more personalized and rapid customer service, which has an impact on their satisfaction with the service provided.
Among the most notorious benefits of digitization in the financial industry are:
Digital solutions in the financial industry also provide several strategic benefits, which are in favor of business growth, such as:
In the past, the customer information of any financial institution was recorded in thousands of folders, stored in obsolete files. Or in very cumbersome databases to review and consult. Digitization in this industry has allowed access to information in real time, which is very important when making strategic decisions for the business. You don't want to make decisions based on wrong information, as this can mean the failure of the plan you have in mind.
As it is sensitive and confidential information, many financial institutions feel safe when storing their clients' data physically, on servers and physical hard drives that remain within the company's facilities. But today, in this digital world, it is less and less productive to stay working in an office, between four walls.
Online and remote work is becoming more normalized in all industries, which is why many companies have chosen to move all their customer data to the cloud, protected with the highest security standards offered by the cloud environment. This type of digital solutions provides a lot of flexibility to financial institutions since now, from anywhere, a CFO can consult any data in the cloud, without having to be physically in the office.
Usually, companies tend to have several systems to manage various areas, without them communicating with each other. This, over time, slows down operations and access to information, which deteriorates the productivity and service that financial institutions can offer to customers.
Today there are software integration technologies that allow all platforms to communicate with each other, allowing teams to quickly access the data they need. In addition, with digital solutions in the cloud, access to information is also expanded.
According to a report published on the Unblu portal, at least 35% of global bank executives have reported successes and progress with the digital solutions they have implemented, especially those related to purchasing decisions.
In addition, at least 71% of US users use online banking services every month, indicates data published by Forrester, which shows a need for digital services by customers of financial institutions.
That is why we will talk to you below about the necessary requirements for software development in the financial industry, so that you can start the digital transformation of your company.
Before even thinking about developing software for your financial company, you must first define what the needs of the business are. Where there are failures, where there are opportunities for improvement, what can be automated.
Once the business needs are clear, you can proceed to evaluate the type of software that can help cover them. For example, if you want to improve customer service, you can implement CRM software. Or if there is disorganization in the handling of the documents, a document management software can be implemented. Only by having the requirements clear is it possible to develop the correct digital solution.
It is essential that the development team is very clear about the workflow and the structure of the processes that are executed in the company, in order to create the correct algorithms that will guarantee the proper functioning of the platform that they are going to develop.
It is about evaluating the technical resources that the project needs, analyzing the cost/benefit of the investment, to determine if it is viable or not. The duration of each of the project stages and post-development needs, such as maintenance, support and update services, are also discussed.
You must take into account factors such as:
Do you need experts in financial software development? At Rootstack, we have +10 years of experience supporting companies in their digital transformation. Contact us!