A Complete Guide: How to Outsource Fintech Apps?

By Elita TorresBusiness, Entrepreneur

FinTech companies are proliferating. Consumers want digital finance at their fingertips. Therefore, FinTech app development is taking center stage.

FinTech solutions require a smooth UI and personalization. Today, there are several competitors in a singular category. How do companies differentiate? They need to stand out of the box.

FinTech application development is evolving. More and more applications are moving beyond just being digital wallets – they are acting as a one-stop payment portal. From booking movie tickets to paying electricity bills – FinTech apps can do everything. 

Types of FinTech Applications

Before considering FinTech application development, let’s look at the different types of FinTech apps. Hiring the best FinTech app developers depends on what type of application the client wants.

FinTech app development services are in demand for various applications. A couple of FinTech apps include – 

  • Digital Banking:
    • Digital banking involves cashless payments, speeding up transactions, and eliminating the hassle of visiting a bank branch. Everything is available online for users.
  • Investment Apps:
    • Applications for mutual funds, investing in stocks, etc., are multiplying. People can invest in digital gold as well and take benefits later on.
  • Personal Finance Apps:
    • These apps enable personal financial management. Many enterprises outsource FinTech development for personal finance apps.
  • Cryptocurrency Exchanges:
    • Blockchain is delivering tremendous results. Cryptocurrency exchanges enable people to buy cryptocurrencies and transact online.
  • Digital Payments: 
    • Applications like PayTM are great examples of digital payments apps. It allows users to have a digital wallet, pay through UPI, pay for utilities, booking, shopping services, and even take loans and insurance.

Creating an application determines how to outsource FinTech and banking solutions. But how does outsourcing work? Let’s find out.

FinTech App Development Outsourcing Models

There are different models to look at when clients want to outsource FinTech development. These models provide perspectives on how to outsource to a FinTech app development company.

Model 1 – Location-Based Outsourcing:

The outsourcing model focuses on location as a parameter. There are two types of location-based outsourcing.

An enterprise can outsource FinTech consulting to a local vendor. A development agency in the local area provides more accessibility and the opportunity to work with the company on a regular basis. Developers can easily work on-site.

Often, enterprises cannot find good resources nearby. There are hundreds of FinTech app development companies in countries outside the project origin country. India, the Philippines, Vietnam, and Poland are a couple of countries that provide FinTech development resources.

Model 2 – Co-operation-type Outsourcing:

In this model, enterprises can FinTech app development companies in India enter an agreement. They will either provide a project-based team or a dedicated development team.

A dedicated team works solely for the enterprise. It is like an extended IT team for the company. A project-based team works on specific requirements of the project.

Companies can choose one or both models. They can hire a dedicated team from outside the country. Generally, it is affordable and offers much better resources. They get access to FinTech app developers with higher experience and skills. Therefore, outsourcing to a location outside the origin country makes sense.

How to Outsource FinTech App Development

There are a couple of things that enterprises need to consider while hiring an enterprise software development company for FinTech solutions. There is no definite procedure for hiring a FinTech partner. 

The following points provide the guidelines on how enterprises can hire a company for FinTech app development solutions – 

  1. Find Sources to Outsource:
    • There are multiple places where enterprises can find Fintech development partners. Start looking at online portals. Clutch, GoodFirms, and Techreviewer have a list of FinTech development companies. Linkedin, Glassdoor, Toptal, Upwork, etc., will also provide an overview of companies to hire.
    • Getting references is a good idea. Ask around in the industry for a trusted FinTech software development company. Generally, FinTech professionals have contacts to outsource FinTech.
  2. Conduct a Background Check:
    • Before finalizing, do a thorough background check on multiple companies. It includes looking at portfolios and previous FinTech services examples. Going through their development practices also provides a good idea about the company. 
    • Understand the number of FinTech developers that the company has. Enterprises should always check and interview the team that will be working on their project. They need to have the right experience and expertise.
  3. Learn about Data and Compliance:
    • When you select a company to outsource FinTech business, conduct a data and compliance check. The company should comply with GDPR and other standards. Data protection must be of the utmost priority. Maintaining confidentiality is critical at all times in the process.
    • Enterprises should always check security measures. They must study how the company complies with different rules and regulations. Hiring a FinTech partner means hiring someone who will enter into the financial side of the business. Therefore, ensuring that data protection is paramount will help in the long run.
  4. Signing the NDA:
    • One of the most important parts of the process is signing the NDA. Enterprises must ensure that the NDA is carefully thought out. It should include all the details. From the cost of the project, a team of developers, and time is taken to the maintenance – everything should be a part of the NDA.
    • An NDA saves the company from any legal issues that may arise. While it is rare, they can still take place. NDA is critical because it outlays everything that both parties agree upon. Therefore, it will eliminate any confusion and mishaps.
  5. Establish Communication and Culture:
    • Enterprises outsource FinTech companies and then think their job is done. However, the job now begins. They need to develop communication and culture. Transparency, project updates, progress measurement tools, etc., become a part of this step.  
    • Building a culture with the outsourcing team can be challenging. However, it is essential. The team must understand the working style of the enterprise. It will help them align with the goals of the project in a much better manner.

Conclusion

FinTech application development is in huge demand. As companies move towards digital finance, the right partners are necessary for developing solutions. The above article highlights the types of FinTech apps, different models of outsourcing, and how to find the right FinTech app development company.