Challenges in Fintech App Development and How to Overcome Them
When starting a new business, it is important to focus on the problems we are solving and the long-term opportunities it offers. That will be significant in sustaining it. However, apart from the opportunities, it is also essential to understand the challenges one might face. Preparing for problems well in advance can prove to be a game-changer, especially in a highly competitive industry like Fintech.
If you want to build one of the finest fintech software solutions in the world, you must be aware of the challenges you might face. And we won’t just help you understand these challenges, we’ll also offer a solution to you. Read on!
What are the Challenges in Fintech (and How to Overcome Them)
The challenges in Fintech arise due to the sensitive and confidential nature of information, multiple and simultaneous financial transactions, the complicated nature of the app, and the notion among users that these apps are difficult to use.
In this section, we focus on all these points in detail and offer ways that you can use to solve them.
1. Security Concerns
What is the first thing that comes to your mind when you decide to use a Fintech app or software? No doubt, it is about security. Now, would you use a financial app that is at risk of losing your data to hackers? Of course not. And the same would apply to your app too.
How to Overcome This
With the help of a financial software development company, you can put robust security measures in place for your fintech app. These measures are, but not limited to -
● Real-time Notifications
● Biometric Identification
● Data Encryption
● Two-Factor Authentication
In fact, we have created a comprehensive blog regarding Data Security in Fintech App Development and the tools you can use to improve it. You can click here to read it.
2. Integrating AI and Big Data
Artificial intelligence and big data have had a significant impact on many businesses. We all feel its influence, be it recommendation systems like Netflix or personalized feeds of social media platforms. The power of big data and AI is immeasurable. You can use this power to your advantage and your users’ convenience in the fintech industry too.
How to Overcome This
Using machine learning to teach AI can help integrate it with big data. But to do that, you’ll need a ton of data, and that might pose a problem. However, you can train your machine learning system on smaller amounts of data using a single learning model with the help of custom fintech app development in New York.
Our developers followed a similar approach when they created an accelerated machine-learning model to calculate insurance costs for a client. You can read the case study by clicking here.
3. Third-Party API Integration
Most fintech companies rely on third-party APIs. Functional testing of internal APIs and proper error handling for external ones are therefore essential for the smooth functioning of the app. In case there is any glitch in the functioning of the APIs, the result could be disastrous.
How to Overcome This
Thorough testing is the answer to this challenge. You might need to replicate APIs and run test suites while making sure that the dummy data is accurate and relevant.
4. Low Accuracy
This is the worst nightmare of any fintech solutions company since accuracy is what users expect from the app. typically, accurate data processing is difficult for fintech apps. It frequently communicates with a multitude of external APIs and microservices correctly and efficiently. It becomes tougher while using internal microservices.
How to Overcome This
The clear-cut answer to this challenge is using Artificial Intelligence and Machine Learning. The accuracy of the data depends on how the system analyses and drives from it. Machine learning performs real-time analysis of enormous datasets through algorithms. Lending companies can quickly and simultaneously identify and make accurate decisions based on multiple data points. Utilizing such disruptive technology has many advantages, including quicker KYC, rapid credit score generation, faster fraud detection, better risk management, and lower costs.
5. Complicated UI/UX
The majority of people associate fintech software with complicated and challenging designs. There are still many people who are not that mobile savvy. For them, using a fintech app could turn out to be an intimidating experience. Also, some companies make the mistake of making the interface of the app beautiful while compromising the ability to navigate. This is a huge turn off for users.
How to Overcome This
Striking a balance between an eye-pleasing interface and users’ ability to navigate within the app is what makes or breaks an app. If you partner with a fintech software company in New York, they will be able to make your app’s visual elements neat and pleasing to the eye. That will make users’ experience with it enjoyable. Elegant visuals shouldn’t disrupt user interaction or draw too much attention.
6. Lack of Expertise
Some banks or financial institutions in the Fintech sector lack suitable or usable mobile banking services. The majority of users require an easy-to-use platform, like an app, for their financial needs. With them, you can do everything quickly and conveniently like checking balances, sending quick payments, transferring money, creating accounts, and investing.
How to Overcome This
The easiest and most appropriate way to solve this problem is to hire outsourced fintech developers. You will not only have access to a wide pool of talent but the cost will also be much lower than building an in-house team. There are many experienced companies that offer a wide range of services. Overall, it is a win-win situation for everyone.
Why Narola
Narola Infotech is a Fintech software development company with over 17 years of experience. Not just that, our Fintech clients have appreciated the digital products we have delivered and have complimented our approach to work. You can check out what they have to say by clicking here.
If you think we are the fit to work on your project, feel free to connect with our experts.
