In most businesses, executive teams will look at the big picture for their company and make decisions/implement procedures that they believe are in its long-term best interest. These decisions are often reactive, influenced by the actions of others such as competitors and leaders in their industry.
The financial sector is no different in this aspect; businesses are in an incredibly competitive industry that focuses solely on the big picture of financial services. With influence from so many outside sources, including newly emerging FinTechs, it can certainly make financial institutions feel anxious to get their vision for digital solutions out to market as fast as possible.
It’s completely acceptable to think like this, however, there are certain nonnegotiables when it comes to strategizing. For example, finding a solution to any problem in an organization first requires leaders to put their egos aside and admit there’s a problem.
Barriers to Success in an Organization
Let's say that a company is seeing a decline in revenue, and the organization's leaders are struggling to identify the root cause of the problem. Even after multiple meetings and brainstorming sessions, they are unable to reach a consensus on what needs to be done.
We see here that it may be necessary for the executive team to set aside their egos and admit they don't have all the answers. It may also involve bringing in outside consultants so they can get an unbiased perspective and help them identify areas for improvement.
This is in contrast to finding something to pin the blame on for revenue loss and going with a reactive solution without totally understanding the underlying issues. Often, technology can get caught in the middle of these situations and “quick solutions” are implemented without adequate reason.
App development is notorious for running into this kind of trouble because organizations tend to overthink (and underthink, in some cases) the kind of experience and features their users want. Developing an app starts with a grand vision and then leads into logistics in terms of how it will function, what features it will have, and how it will be marketed. This is where the executive team needs to be open to feedback and willing to pivot their strategy based on user feedback and market trends.
What Needs to Happen
When it comes to developing an app in the financial industry, the first step is to recognize who will be using the platform and how they will be using it. For example, in the United States, around two-thirds of the population use digital banking regularly because of its simplicity and accessibility. In that case, US-based institutions should base their solutions around an easy-to-navigate platform that can be accessed on mobile and desktop devices seamlessly.
Recognizing that this example is very general, let’s get more in-depth with some of the fundamentals for financial app development:
Security:
We need to cover this first because ultimately security is non-negotiable for financial platforms.
Typically, two-factor authentication is recommended any time personal information is stored on a platform as well as encryption and additional measures that ensure the safety and privacy of user information.
User Centricity:
As we’ve mentioned, focusing on the user who is managing their finances using your application will give you the upper hand in identifying the features needed to make the app successful. Research has shown that taking a User-Centered Design (UCD) approach often leads to an increase in ROI as well as overall competitiveness in the industry.
Core Banking System Integration:
A core banking system helps banks keep track of their money and transactions. Whenever someone deposits or withdraws money from a bank account, the system notes it and keeps track of the account balance. Taking this into consideration, when an app is developed for a financial institution, they need to ensure the database can sync up with the system.
Scalability:
When a company builds an app, it’s never because they solely want their current number of customers to just have another outlet; they want to expand their reach. Growing the platform is a major focus for financial institutions and it’s why they strategize using digital app development.
For this reason, the application needs to consistently go through innovation as the expansion occurs to accommodate new users and ensure quality performance.
Choosing The Right Tech Stack:
Choosing the right tech stack is crucial for financial app development as it not only affects functionality and scalability, but also the overall security of the application. Your tech stack includes all the programming languages, frameworks, and tools used to build the app.
It's important then to choose a stack that aligns with the goals and requirements of the app, as well as the skills and expertise of the development team. Some popular tech stacks for financial app development include Java, Python, Ruby on Rails, and Node.js.
Simple UX Design:
An app that's easy to use and navigate is crucial for financial app development to ensure a positive user experience. Specifically, it's important to have a clear layout and a consistent design throughout the application.
Simplicity is key here and having too many features or too complex of a design can overwhelm users and deter them from using the app. A user-friendly design will not only help with customer retention but ultimately attract new users to the platform.
The Takeaway
Producing the best possible product when it comes to app development requires that teams take a “never done” approach. This means constantly analyzing, finding room for improvement, and making those improvements. Of course, it must also be noted that with a successful application comes the need for a more complex IT infrastructure that can accommodate all functions as well the user base. When developing systems gets overwhelming, team augmentation is an excellent solution.
Written By Ben Brown
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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.
Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.
