What is banking software for the Fintech industry? It’s a mean for communication between a bank and a user. It serves for improving the workflow inside the company and its branches, for easy investment policies and providing the services that solve users’ needs.
Here are three major requirements for the banking software:
- Powerful - no delays, mistakes or crashes
- Cross-platform - it can be used on any platform on any device
- Secure - no access to the data by third parties
What are the trends in the development of banking software for the next few years?
- A bigger number of communication channels: mobile applications, web apps, digital assistants, and much more
- A shift to digital solutions: buying services and solutions don’t require face-to-face communication with bank workers
- Artificial intelligence: machine learning and cognitive computing will grow revenue of the banks
- Digital-only banks: no branches, no offices and no extra cost on their maintenance
- Software development: improved code quality and stack choice for processing massive blocks of data
How much does the banking industry pay for software development?
Banks invest in developing software billions of dollars. Here’s what we have now and what experts expect to see in the nearest few years (in bln):
- 2018: $261.1
- 2019: $272.6
- 2020: $284.5
- 2021: $296.5
Why do we expect to see an increase in spendings on IT solutions? Trends require banks to become more digital to meet all the requirements and expectations of the clients. We can admit that this is not the cost growth but efficient investment.
There are two ways to invest money in software development. The first option is creating an in-house team that will take care of the full development cycle and maintenance of the products. In this case, we can take average employees salaries to calculate the sum of yearly investments.
If we take the US, an average yearly income of a software developer if $100,000. There’s a need to have a team with the project manager and a team that will cope with each step of the software development cycle. There are a few disadvantages here:
- You have to pay salaries even if there are no projects being developed at the moment
- You have to hire a full team even for a tiny project
Another option is outsourcing the development of banking products. What you have here is a team that acts out as an in-house team with the difference that they are located outside the office. Depending on the project, it can be developed in a month or a few months. You have a fixed price for the project that is divided into milestones.
The cost of the project depends on the number of hours that the team spends on work and its complexity in general. The sum may vary from tens to hundreds of thousands of dollars per project.
There may be a few disadvantages:
- The difference in time zones - you may need to communicate early in the morning or late in the evening
- Choosing the wrong vendor - it’s important to check the reliability of the software development service provider
Item banking test development software - How to benefit from using it?
In simple words, item banking is a database. We can consider a spreadsheet to be good software for storing some specific items. And we can find a lot of software solutions that are developed specifically for item banking. Items are sometimes called as questions. However, items are not limited only to this category. You may find problem solutions or other content types that are different from direct questions.
A goal of item banking now and we expect it to be a trend for the next few years - excellent assessment of every component. We should see building reliable and executable test forms. There are automated solutions that help reduce such tasks as manual content management and creation of new tests.
Here are the key reasons to choose automated solutions for item test banking:
- Reusable items. Software solutions let banks make all the items reusable. It’s good to make an assessment of the item performance available not only within one test but within multiple tests.
- Items history. There's a need to store the history of items. And this storage should be easy to access from different devices.
- Items sorting. All the items will be divided into categories depending on the content type, categorization method, etc.
- Items tracking. All the changes are detected and revised. It’s good to have an opportunity to compare similar items to assess their performance.
- Metadata storing. This information may comprise the author name, date of creation or updates, content type, and other parameters.
We’re sure that item banking will remain to be a major aspect of building and supporting quality assessment. Assessment will become more reliable, valid and executable thanks to the well-structured test development lifecycle.
E-banking software development: marketing aspects for increasing revenue
It’s impossible to imagine any retail bank without online banking software. Banks can offer their services round the clock for all the clients in any part of the world. Custom solutions give banks a chance to fully satisfy the needs and requirements of their clients.
The latest trend in the banking niche is digital-only banking. Banks exist in an online world without ground branches. Clients use their mobile devices, watches or any other IoT gadgets. Banks get closer to their clients and it’s much easier to forecast revenue with the e-banking software.
SMS banking software development
There’s no need for the clients to own a smartphone to get the most from SMS banking features. Most banks provide their clients with the opportunities to pay bills, enable or disable some services and so on. Everything that is required is a short message.
With SMS software solutions, banks can offer the following features:
- Recharging. You can replenish your mobile phone account or any prepaid service. It’s available round the clock.
- Paying postpaid bills. One message is enough to get the job finished.
- Access to information. A client can request any information about transactions or personal account with an SMS.
SMS banking software development requires a thorough approach to make the final product robust and user-friendly. There shouldn’t be complicated commands or lines for the clients. Simplicity is the key to success here.
Merchant banking software development
Merchant banks differ from retail banks as they are more similar to investment banks. Merchant banks provide their services to businesses and not individuals. Merchant banking software is used for collecting information, processing it and storing. It can be a portfolio, information about funds or accounts, history of trades and so on.
It’s good to have a software solution that will help banks track transactions and get accurate reports on every portfolio. The user-friendly interface of the software should comprise various charts, analytics and other blocks of data. Everything should be easy to access and perceive in real time.
There should be a high level of security to prevent any data leakage. The work of security solutions shouldn’t make the overall workflow slower or influence it anyhow. Bank employees should have limited access to the information depending on their position in the enterprise and the tasks they need to solve.
Software development to investment banking
Fintech industry and investment banking niche are not overloaded with a big number of software solutions for automating everyday processes. What we have now is a pack of services or cloud solutions that solve very specific tasks. What banks require is a single solution that will comprise improving the workflow inside the company and the quality of services that are provided.
Most of the banks provide complex transactions and deal with huge enterprises where there’s a need to process big blocks of data in no time. The less human work is required the more revenue an investment bank can gain. Online access to any piece of information that is updated in real time lets the enterprise show a better market performance.
What Technologies Are Used to Build Banking Software?
Technology drives the change in every sector of the economy. We can see the birth of a new framework or language every three or four years. A huge number of tools, libraries, languages, frameworks and different other solutions may make the choice of the stack a hard one. Here are three major technologies that can be used for developing banking software.
Why choose Java SE banking software development kit (SDK)?
Java has a long history and a big number of experts that can build a reliable and robust banking application. One of Java advantages is a big number Junior to Senior developers.
Another advantage of Java is its features of portability and compatibility. So, if you are developing a solution that will run only on a particular Java, you will ensure that the application will run on all subsequent versions of Java without any changes.
Hence, Java is a cross-platform software language and does not undergo major changes with new releases. Therefore, the language supports online banking applications and is quite popular among the banking industry. It’s portable and compatible with other versions of Java. It’s a good variant for building cross-platform solutions and it doesn’t have any serious changes with new releases.
Why choose Python for banking software development?
Python is often chosen to be the major programming language for building banking software. It has appropriate math syntax and provides flexibility in a matter of mathematical tasks. Python is often used for ATM software and improving payment processing routine.
It’s multipurpose and cross-platform. It means that it’s good for low-level operations and high-level analytics tasks. Python is a number-one choice for real-time analytics. It allows building solutions that collect, process and store data together with displaying all the points on demand.
Why choose Ruby for banking software development?
When it comes to security issues, ruby is the number-one language to use for crafting banking software. There are a lot of security issues that are built in and implemented by default. There’s a need for developers to be aware of these features and get the most from them when coding.
Ruby on Rails is a web framework that provides users with a fast and robust banking service. It can be used for small and huge projects. It’s good to hire only experienced Ruby developers for large projects as there’s a need to have experience with maintaining high code quality.
Stages of online banking software development lifecycle
How is an application for the banking sector developed? Building a project for banks is a great challenge as the quality of the final release will influence the bank revenue in the future. Here are the major stages in the banking software development lifecycle:
- Business analysis. All banks seem to have the same tasks and operations but there’s a need to define what is required for a specific enterprise. There’s an analysis of what is happening at the moment and what has to be improved.
- Planning work. It’s time to define the goals, deadlines and milestones. It’s also time for choosing the number of coders and the amount of time that is required for performing the tasks.
- Delivering MVP. This version of a project will let you fully test all the operations and transactions that will happen in real life. It’s time to make any updates if something seems to work a wrong way.
- End-to-end development. It’s a situation where you delegate the task of building a new project from the very start to the very finish line.
Where we use agile software development in banking
We have developed various projects for banks and we have come to using the agile methodology for making the process time and cost efficient. We present ourselves not just as an outsourcing company for solving some tasks. We don’t just sell hours of work performed by our team members.
Agile approach for building banking software allows us to deliver solutions that will let each company and enterprise reach their business goals. We have a list of technologies that are interchangeable. We don’t stick to some specific tools or frameworks and this gives complete freedom to find or even create the best solutions for our clients.
Banking software matters. Quality of this software matters. Choosing a software development vendor should be thorough to make sure there are enough certified developers and the choice of the stack is wide enough. Here at Diceus were proud of delivering only high-quality services for banks. Contact us to find out more details of how we can help you solve your business needs.