Digital transformation

How Does Custom Financial Software Development Work?

Successful Custom Financial Software Development: Solving The Equation

During the era of the galloping digital revolution, it’s not easy to stay afloat for any business. This is especially true for the financial industry. Now, financial institutions have to accelerate themselves on the way of digitization. 

The core of digital transformation is custom financial software development. It is used for streamlining workflow, enhancing customer experience, improving business results and remaining competitive. If a financial company wants to succeed, it is necessary to integrate future-proof software solutions into their strategy. 

This article is aimed at revealing the main stages of software development for the financial industry and discovering the role of financial services software developers in it. Read on.

What is financial software development? Vendor’s perspective

Financial software development is the process of the creation of software to satisfy any needs of a financial institution. This is achieved through leveraging such advanced technologies as Artificial Intelligence (AI), Machine Learning (ML), and Big Data for increasing productivity and automating financial processes.

Financial planning software development is focusing on automation, assistance, and storing financial data of different nature from personal to business. Financial software enhances the storage, improves the analysis, streamlines processing and management of financial processes, transactions, and records.

The main fields of financial software application are listed in the image below, though the areas are far more versatile. 

Financial software developer. Range of responsibilities

As this IT area is closely connected with the financial market, a software development specialist is going to meet the challenges of dealing with large data sets, distributed and high-speed systems, complex mathematical models, highly parallel processing, and security demands.

Financial software application development implies interactive graphical user interfaces (GUIs) building to ensure convenient huge data sets visualization and quick price complex trades within seconds.

Though financial software developer’s responsibilities may vary from project to project, in general, financial software custom development is meaning the fulfillment of the following tasks:

  • Identification of financial software requirements: cooperation with management and other departments for identification of end-user requirements and specifications for financial software solutions. 
  • Creation of algorithms: working and modification of the algorithms directly to ensure that the applications and programs are functioning correctly. 
  • Performing new programs and apps testing: once financial software solutions have been developed, a thorough testing should be performed for identification and troubleshooting the found bugs.
  • Supporting and troubleshooting: finding and troubleshooting any issues, making improvements, and providing end-user support.
  • User feedback: assessment of end-user feedback for making necessary improvements and changes in the implemented financial software solutions.

“Must have” developer’s skills

To perform the functions effectively, every financial software developer has to possess certain skills needed to get a position within the industry, such as:

  • Basic and advanced computer skills.
  • Profound and advanced knowledge of at least one programming language.
  • Self-development skills for being up-to-date with emerging trends.
  • Mathematical mindset and understanding of basic and advanced mathematical equations.
  • Acute attention to details for overlooking elements in software development.
  • Experience in coding.

How to develop financial software. Tips and steps

Though every project of financial software development has its peculiarities depending on features and tools implemented in a solution, there are certain common stages of the development process. 

The main stages of the development process are represented in the image below.

financial software development stages

Planning. The stage embraces the period before developing a solution. The team creates a development strategy and collects relevant data for compiling specifications of the future project and writing a detailed business plan. 

Analyses. At this stage, the team gathers and analyses business requirements and finds the ways of their realization in a solution. The set of functions and tools and technological stack are discussed as well.

Design. At the designing stage, the elements of the financial solution interface are created according to the approved visual style.

Implementation. The development team builds an application using the most suitable technological stack to ensure that the financial software application reveals its full potential and has cross-platform support for providing services to the customers.

Testing and integration. Quality Assurance engineers check if the solution complies with the business requirements, troubleshoot the technical specifications, write test documentation, perform manual and automated testing for minimization of bugs.

Maintenance. After the product has been tested, the project is transferred to the client for further deployment. After the solution release, the team of financial software developers continues participating in the life of the application by providing support, and fixing the bugs if they occur.

The silver lining of financial software solutions

While deciding whether it is worth investing in this type of financial digital technology or not, it’s necessary to clearly see how financial software solutions can benefit your business and keep it on track towards success and growth.

Security

With the rise of the number of cybersecurity breaches worldwide, keeping crucial customer information secured became a vital condition of any financial institution. Such confidential data—social security numbers, bank accounts, credit, and debit card information—need sophisticated high-end protection.

Modern financial software solutions not only keep that information secure but detect fraudulent activity and maintain the company’s cybersecurity risk management at the highest possible level.

Personalization

By leveraging the latest genuine methods of data analysis, financial custom software is capable of collecting and examining consumer data to create individually tailored services. 

Nowadays, financial software development companies are using top-notch technologies such as AI and ML to make customers more personalized product offerings to enhance customer experience and retention.

Improve sales and services

The term finances is strongly associated with purchase and sales management. Implementation of financial software solutions really enables transaction management from wherever and whenever you want by making financial operations and services highly accessible. Therefore, financial solutions do lead to better sales. 

Cost and time saving

The initial investment in financial software development seems extremely high. But in the long run, it leads to overall cost-effectiveness and time-saving due to streamlining workflow and automation of processes. Apart from this, financial software eliminates the probability of losses because of human errors.

Transparency

Financial software tools help understand how all the departments cooperate, impacting the overall organization’s financial health. Digital software solutions give clear data for increasing clarity of business processes and operations and reducing financial complexity. This clarity reduces the probability of fraud as well. 

Due to the capability of financial software to give better transparency and more accurate reporting, the likelihood of fraud is minimized. The implementation of financial software solutions significantly decreases the probability of financial losses, theft, and mismanaging funds.

Better strategic planning and analysis

The ability to analyze data and make accurate predictions is crucial for making effective corporate planning. Financial software solutions create the foundation for successful business strategic planning by giving financial executives to forecast upcoming events, build and assess “what if” scenarios, find new business opportunities, and analyze potential ways for using future vital market trends and internal events to their advantage.

Financial management software – guard yourself digitally

Long-term business success depends on lots of factors, but thorough and mindful financial management is among the crucial ones. To manage finance effectively and safely, an up-to-date top-notch solution is needed for enabling effective handling of financial matters and having all financial aspects of the business under strict supervision and control.

By leveraging the latest genuine technologies, financial institutions can improve budgeting and reduce record redundancies, make more precise forecasts and better planning, have thorough and precise expenses management, and ensure accurate audits, efficient and detailed tracking of funds. All that will definitely enhance financial efficiency and make all the internal processes smooth and seamless.

FAQ

What is financial software development?

Financial software development is the process of developing specialized digital solutions for any financial body for automating, assisting, and storing financial information.

What does a financial software developer do?

A financial software developer is someone who develops, modifies, and updates software programs for the finance and banking industry. They work with a variety of different businesses to develop anything from financial education software to debit/credit cards. 

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