Must-haves when Choosing Fintech Software

Fintech is the biggest disruptor of financial services that has become more of a necessity in the global business world. With an increase of customers awareness and adoption of fintech services, more and more companies emerge. This is exactly why the question is no longer about fintech changing the financial industry, but where and how to find a reliable fintech software provider.

The key to finding a reliable software provider for your fintech business comes down to five questions. Let’s take a look at everything you need to know to evaluate your potential software partner.

Functionality

Does your software company provide you with everything you need to launch and manage your fintech business? A modular architecture means that the software not only supports the necessary functionalities, but also your business as a whole. From onboarding and AML/KYC procedures to opening of current accounts and issuing of co-branding cards, money transfers, payment processing, and internet/mobile banking, you are only one step away from a ready-to-use fintech system. Fintech functionality is not only about What, but also Who – who are you connected with? Ready-made gateways with banks, acquirers, card providers, SMS providers, and SWIFT/SEPA are the core of a fintech system.

But how to meet progressing PSD2 demands and embrace Open Banking? It is important that your software company has adopted a flexible architecture and provided you with open API to connect your fintech platform to different banks or third-party providers without a hitch.

Flexibility

Have you ever thought about the future of your fintech platform? Legislation, technologies, the business and fintech environment might change over time. When choosing fintech software, make sure it can support your needs today and in the foreseeable future. Fintech solutions should be modular to expand functionality anywhere and at any time with minimum investment. In other words, it is great if you can stack your fintech platform like Lego blocks and modify the existing interface and your own personal cabinet, following the changes in your business model or technologies.

Your fintech system shouldn’t be a mass-produced solution but customized to meet your specific project and business needs. You should easily be able to make changes in business processes and operations in real time without programming knowledge or complicated installation. The system must be user-friendly and easy to operate. For example, the process of changing customer onboarding and the AML procedure must be just 2-3 clicks away. Otherwise, you will be overwhelmed by a high number of invoices from your software provider.

Security

Security is one of the top priorities in the modern world. This especially goes to the financial industry in the era of the open bank revolution. The PSD2 standard has already came into real force from 14 September, 2019 and an extra layer of security for customer authentication is must-have for financial services powered by companies other than banks.

Your new solution must comply with Payment Services Directives (PSD2) and personal data processing principles (GDPR) to provide stronger and more reliable customer identification. Prior to making a decision, make sure to find out more about the customer authentication solution your software provider uses.

Credibility

Is your software provider experienced and trustworthy? Before moving on to the next step to receive a license of financial services, the system needs to be approved. In this stage, regulators examine the software partner’s reputation. As it turns out, the company’s experience and flawless reputation is an important factor to start a fintech business. Because you will receive a license only when your system is accepted by regulators.

With so many Fintech software providers on the market, real clients and projects are the best advocates. So, speak with existing customers and make sure that your fintech solution provider is a trusted partner.

Consultancy services

If you are a first starter in this business, you need to find an expert partner to work through some of those fintech offers and identify solutions which suits you the best.

Solutions for small and big Fintech companies differ. For example, companies with a small number of transactions should connect a Software-as-a-Service (SaaS) solution, whereas bigger fintech companies will more likely implement a more complicated in-house platform.

That’s why you need a provider with extensive fintech expertise and business acumen in the fintech arena – the expert, who advises you the best solution that suits your needs. It is not only about the solutions. A fast and pleasant experience is just as important as the solution that will make you to stick around.