Requirements for software development in the financial industry

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.

Benefits of digitalization of the financial industry

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:

• Reduction of operating costs
• Response times are reduced
• The relationship between the financial institution and the end customer is improved
• Increases profitability, as digitization broadens the reach of the institution

Digital solutions in the financial industry also provide several strategic benefits, which are in favor of business growth, such as:

Access to information in real time

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.

Flexibility

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.

Integration of all company systems

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.

What good financial software should achieve

• Optimizes planning and reporting
• Improve customer service
• Automate routine tasks that take a lot of time
• Increase communication channels with customers
• Promotes integrations with other software and platforms
• By streamlining and automating certain operations, it minimizes the risks due to human errors

Requirements for software development in the financial industry

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.

Definition of needs

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.

Choose the type of software to develop

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.

Algorithm creation

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.

Feasibility analysis

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.

How to choose a good technology partner

You must take into account factors such as:

• The company's expertise in the type of financial software you want to build
• The knowledge and technical tools that the company manages
• The software development cost structure must be very clear, so that you are clear about where the total cost of the service comes from
• The geographic location of the service provider is important, try to make it close to your time zone so that the work flows better

Reasons to bet on digitization in the financial industry

• Do you remember the last time you used cash? No? Well there you have a reason why you should start investing in software development and digital solutions for your financial company. Users are increasingly using electronic money and electronic payment services, so they need optimal financial platforms that respond to their consumption habits.
  In the case of banks, there are many possibilities for business expansion. The classic thing is to have a web page where users can make their operations. But they can also offer innovative services in a mobile app, offer the virtual wallet service, among other solutions.
  By offering more digital services, the number of customers going to bank branches decreases. Thanks to this, the staff of financial institutions can spend that valuable time on strategic tasks, which they previously invested in routine tasks serving the public for operations that could perfectly be digitized.

Types of software that can benefit companies in the financial industry

• Software for administrative management

• Document Management Software

• Software to manage customer service in a more agile and optimal way

• Software for the management of financial operations and transactions

Do you need experts in financial software development? At Rootstack, we have +10 years of experience supporting companies in their digital transformation. Contact us!

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