Financial services providers are looking for new tools and technologies that can help improve the speed and efficiency of operations while offering improved customer experience.
Besides, the fast-growing pace of information technology has led these financial services institutions to leverage banking digitalization.
One of the most common ways to transform the financial services industry is through financial services software development.
A report by Allied Market Research estimates that the global market for financial services software will reach $282.71 Billion by 2031 at a CAGR of 9.2%.
So, in this blog, we will cover everything related to financial services software, making it easier to develop one for your business.
What is Financial Services Software?
Financial services software is an umbrella term that describes a broad range of software solutions designed for financial institutions to help them manage their daily operations efficiently.
The financial services software deals with everything, including but not limited to accounts receivable and payables, spreadsheets, accounting and monetary transactions, financial planning, payrolls, issuing credit cards, notary services, transferring money, and portfolio management.
Read: Latest Banking Trends for 2023
Besides increasing operational efficiency, financial services software helps deliver exceptional customer experiences, drive growth, and build loyalty by providing personalized offers and real-time payment processing.
Simply put, financial services software revolves around personalized experience, cost-effectiveness, speed, security, and convenience to help a financial business create endless capabilities and opportunities.
Benefits of Financial Services Software
There are a plethora of benefits when it comes to developing software solutions. However, here we will discuss a few key benefits businesses can gain through financial services software.
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Adaptability: It allows financial businesses to easily adapt to changing marketing needs in real time.
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Accuracy: By automating financial operational processes, the financial services software can reduce the risk of errors leading to higher data accuracy and better process efficiency.
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Decision-Making: It also enhances the data analysis process to help financial businesses to make informed decisions based on valuable insights.
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Scalability: Developing a customized software solution for your financial business enables higher scalability, as the tools and technologies used are based on your unique requirements, which helps in avoiding any performance bottlenecks.
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Security: Financial industry is the most targeted sector for cyber attacks. Therefore, developers build financial services software that complies with regulatory requirements as well as includes additional security to protect both company’s and customer’s sensitive data, making the app as secure as possible.
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Personalization: Customers in today’s digital world want personalized experiences. The financial services software helps you achieve this by adding user-friendly features and easy-to-understand interfaces, 24/7 customer support, customized offers, etc.
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Types of Financial Services Software Solutions
To help you out, we have enlisted the 7 major software solutions for the financial industry below.
- Retail Banking Software
- Payment Gateways
- Insurance Software
- Wealth Management Software
- Lending Software
- Crowdfunding Software
- Trading Software
Before investing in software development, it is important to understand the types of financial services software that you can go for based on your unique needs.
Retail Banking Software
Also known as Core Banking Software, it is enterprise software used by the banking industry to manage and record customers’ transactions.
Payment Gateways
It acts as an interface between the customer’s bank and the seller’s website that processes the transaction made using a credit card, debit card, PayPal, or other wallets and payment applications.
Insurance Software
It is designed and developed to allow insurance agencies, brokers, and carriers to manage their daily operations efficiently.
While the admin side of the insurance software operations includes team management, claim tracking, regulation complying, issuing policies, and policy updates.
The client side allows users to perform simple tasks like applying for insurance, checking eligibility, checking policy information, filling out forms, etc.
Wealth Management Software
It is developed to help wealth managers to track, organize, and analyze clients’ investments. Some of the features that wealth management systems come with are client reporting, portfolio modeling, and risk analysis which help in gaining competitive insights into the financial performance of clients.
Lending Software
It refers to the software built to streamline and automate lending processes. By implementing tools such as credit analysis, risk assessment, document management, payment processing, and reporting, lending software makes loan processing more efficient.
Crowdfunding Software
It is designed to assist organizations as well as individuals to raise funds from others through the Internet. The crowdfunding software provides a central hub that allows project creators to share their ideas to gain support from potential investors.
It also comes with features such as payment processing systems, campaign management tools, analytics dashboards, and social media sharing for providing access to a large number of potential investors and quickly achieving fundraising goals.
Trading Software
The electronic trading platform/software is designed to assist traders and investors in opening, closing, managing, and analyzing financial products like options, currencies, futures, funds, currencies, stocks, etc. over the Internet.
Cost of Developing Financial Services Software
When determining whether to invest in Financial Services Software development, the most common yet important question that comes to our mind is: how much would it cost?
Although we cannot give you an exact answer as there are multiple factors affecting the development cost, looking from an approximate point of view, developing financial services software can cost anywhere from $90,000 to $650,000.
Read: Financial Software Development Cost
The factors that affect the development cost are the complexity, tech stack, outsourced developer region, software architecture, tools, third-party integrations, etc.
Also, if you want to know the exact cost of developing financial software for your organization then get in touch with our experts, share your requirements, get a customized pricing quote, and hire experienced developers.
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FAQs
What is Financial Software Solutions?
Financial services software revolves around personalized experience, cost-effectiveness, speed, security, and convenience to help a financial business create endless capabilities and opportunities.
What are the benefits of using financial services software?
Adaptability, Accuracy, Decision-Making, Scalability, Security, Cost-Effectiveness, and Personalization are some of the major benefits that come with using financial services software.
How do I choose the right financial services software solution for my business?
To choose the right software solution for your financial services institution, you need to:
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Consider your requirements and tech stack to implement
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Choose between cloud, on-premise, or hybrid architectures
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Pay attention to add-on/third-party features
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Hire developers with relevant experience
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Consult about the right financial software solution with the project manager
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Develop, Test, Debug, Launch, and Maintain the software