With a projected CAGR of more than 25%, the fintech industry is as lucrative as it can get for new business opportunities. Research indicates a staggering compounded annual growth rate of 25.18% over the next 5 years. The global population has also highly adopted fintech systems across a few categories like money transfer and payments, investing, budgeting and planning, and much more.
With these areas now dominated by modern fintech technology, there are a bunch of use cases across which fintech adoption will see an exponential rise over the next 5 years. Insurance, borrowing, and pear-to-pear lending are some of the categories, which are on the verge of being dominated by fintech platforms.
Right now, developing a fintech platform is not enough; you should be planning to develop a fintech platform in the best possible way to get the best possible outcome ensuring the 10X strength of your platform over other players in the market.
Let us consider all the major ways in which you can get your fintech platform developed and talk about the pros and cons:
1. Building an in-house team
Building an in-house team might have been a great idea when fintech was an emerging industry. The story is different now. Even if we let aside the increment in the fixed cost, there are a lot of other defiance for the success of building an in-house team for developing a fintech platform.
To talk about a few, the first challenge you will face is hiring the right candidates that too very quickly. An average hiring round to onboard an experienced IT professional spans anywhere between 30-60 days. You cannot stand the competition with this pace when they are rolling out new updates every week on their platform.
Not to mention that if you are not from an IT background, it will be very difficult to get the work done from an in-house team and bank on them for accountability with respect to the performance and timeline of the platform. Thus it will not be a great idea to build an in-house team to build your fintech platform now.
2. Building a remote team
This has been in fashion post-pandemic. Remote teams are great, you can get the cost benefits due to currency conversions. Your company can be running 24 x 7 if the remote team is building strategically.
Even so, this option is great if you are building a team to accomplish a service business. Maybe IT support or some other back office operations. For the development of software, for a fintech platform, building a remote team is not recommendable due to multiple reasons.
One of the major drawbacks of building a remote team is the threat of security breaches. Working on a fintech project translates to handling a lot of sensitive information. Having a developer working in some country a few thousand miles away from your place of business can be dangerous to the security standards of your fintech application.
Parallel to this, there is always a possibility of any member absconding at any moment leaving you out to hang dry.
3. Outsourcing to an IT company (Probably the best option)
Cost-effectiveness, security, expert professionals, transparency, and peace of mind are few from a long list of benefits you avail yourself when you choose to outsource fintech platform development to an IT company.
Now, it does not mean that you can outsource to any IT company and expect the best outcomes. You will have to select the outsourcing partner very preciously considering the factors like their market presence, the relevance of expertise, security standards, certifications, location of the business, and more.
To give you an example, we as MSBC Group have been delivering technology solutions for almost 2 decades now. MSBC Group has a specialty in delivering custom software solutions for the fintech industry as well. We are also ISO 27001:2013 and ISO 9001:2015 certified for data security and quality management respectively. Feel free to know more about our company.
If you are convinced about outsourcing the development for your next fintech project, feel free to contact us any time.
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