Fintech or financial technology has transformed the world of the finance industry by emerging as an alternative to traditional banking. It is a new way to manage money and handle monetary transactions smartly. Many finance companies are adopting this technology to get a competitive edge. Some incorporate fintech into their existing processes or develop a fintech app from scratch. Getting a new fintech software product from top software development companies is challenging. Like other industries, you also need to choose the right tech stack for fintech products. Read here more about the best programming language for fintech to penetrate the market and get a viable fintech product.
Fintech Market Overview and Tech Scenario
Before you choose the right platform/tech stack for FinTech, it will be sensible to look at the fintech market around. The evolution of fintech has left traditional banking behind in the race. Thanks to a host of technologies for putting fintech on the front foot. Emerging technologies like AI, RPA, IoT, big data, and cloud computing are set to give FinTech a significant boost to players looking for online banking apps, mobile wallets, mobile banking, and payment systems.
According to a global data and business intelligence platform, the total transaction value in the digital payments market is expected to touch USD 11.55 tn by the end of 2024. What’s more? This transaction value is predicted to record an annual growth rate of 9.52%, translating into a forecasted value of USD 16.62 tn by 2028. Owing to mobile internet use, the pace of fintech adoption and local investment in fintech is going up. Credibility, agility, uniqueness, safety, data handling, and flexibility of the technology are critical for a fintech software development company.
Tech Stack for Fintech App Development in 2024
Some of the most popular products in fintech are crypto-currency, digital currency, blockchain technology, smart contracts, InsurTech, RegTec, stock-trading apps, mobile payments, crowdfunding platforms, open banking, and RPA. According to HackerRank, the technology hiring platform, the top six influential coding languages prevailed in the fintech sector, including Python, Java, C++, C#, C, and Ruby on Rails. When it comes to picking up the right tech stack for mobile app development, you need to analyze some pros and cons of available technology stacks. Additionally, when it comes to making an informed decision, the choice of coding language for a fintech app depends on the project’s technical needs.
1. Python
Java and C++ are the two most popular languages for making software and apps in the finance industry. On the other hand, Python has emerged as the preferred development language for fintech products. Python renders 50% more opportunities than traditional languages. Python is the most dynamic programming language preferred by startups, and it brings great value to the fintech sector. Python’s simplicity and robust modeling capabilities make it the first choice for financial companies. Zopa, Robinhood, Affirm, Venmo, Figo, Stripe, and Qonto are some successful fintech apps developed with Python. The following are some of the prime reasons why Python is ideal for mobile development. These include:
- Big data supported
- Easy-to-read code
- High compatibility
- High-standard library
- Speedy response
- Test-driven development
Python is extremely popular among developers due to code transparency and the occurrence of fewer bugs during app development. Python is simple and transparent. That is why it ensures a shorter time to market. Writing code in Python takes no time. When Python and Django technology shake hands, it results in the faster and safer release of completed components and MVPs as per users’ needs. With open-source libraries, fintech Python developers do not need to create separate components from scratch. Find numerous fintech app development companies help you create a safe and functional fintech app using modern app programming languages like Python.
2. Java
Java has attained huge popularity so far as one of the most preferred programming languages for the Fintech industry. The finance industry has to handle a massive amount of data every day and Java fits their bill perfectly. This coding language is extensively used by some successful fintech business models as well as popular banks for:
- Electronic trading platforms
- Retail and corporate banking portals
- Assets and wealth management
- Customer-facing applications
The main reason Java is one of the best choices for Fintech is that it helps in seamless web application development for banking and financial institutions. In short, Java is a trending technology that provides financial organizations with quicker, scalable, and highly efficient fintech solutions, contributing extensively to the ongoing fintech revolution.
Know the Difference: Python Vs Java for App Development
3. Ruby
Ruby on Rails is an innovative web development technology that helps software developers focus on the important features and logic of the fintech application. RoR plays a key role in expediting the app development process and releasing the MVP faster. RoR boosts the productivity of web developers by freeing them from the exhaustive coding process, especially when they are building a fintech app for payment.
The best part of Ruby on Rails is that it is used by a few prominent fintech applications and has worked wonders in:
- Payments
- B2B lending
- Insurance
- Equity-based crowdfunding
RoR is well-suited for startups because it has:
- Wads of built-in security mechanisms
- Time and cost-efficient traits
- High performance delivering ability
- High speed and stability qualities
4. C++
The fintech industry calls on C++ programming language when speed is the most instrumental thing to focus on. It is highly useful when it comes to achieving maximum efficiency and code reusability. What else? C++ is highly suitable for fintech custom software solutions involving:
- Advanced computations
- Various operations
- Quantitative finance and analytics
The aforesaid coding language is heavily used in the fintech industry owing to its ability to handle complicated business applications, given that it runs efficiently and has a firm hand over memory usage. However, one thing you must know from the perspective of a banking software solution is that although C++ is widely used, it doesn’t ensure full security and is a bit complicated in nature.
5. C
C has been part of fintech development for a long time. It is always the top pick for:
- Point of Sale devices
- Point of Sale console systems
- Cash register terminals
The biggest reason for C being preferred so much is that it turns out to be useful for developing web apps and is portable as well. C compilers are capable of optimizing the code for faster execution. Another advantage of relying on C language is that it has several off-the-shelf third-party solutions and as per top app development companies it is highly appropriate for:
- Embedded systems
- Billing software
- Databases
- Advanced scientific systems
- Bank management terminals
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Top Fintech App Development Trends to Watch Out in 2024
If you noticed, wads of fintech startups are incorporating these days, resulting in increased competition in the market. Therefore, it is necessary for you to adopt the banking tech trends in order to stand apart from the competition. For this, you will have to work hard to make space in the fintech niche and excel in the same. Apart from that, when brainstorming fintech app ideas for startups, you must focus on integrating innovative methods for:
- Money transfer
- Payments
- Investments
- Budgeting and financial planning
To make your fintech business a success and provide your prospective customers with customized solutions that would offer significant value to them, it is advisable to learn the top fintech trends gaining ground in 2024. Here are some of the best fintech trends that will change the approach to fintech development in 2024.
1: Fintech as a Service(FaaS)
It is intelligent software engineering services, where the API of a financial application is seamlessly incorporated into another fintech system, like a bank or credit union. Doing this reaps several benefits, such as:
- Greater convenience
- Higher security
- More personalized services
- Optimal customer experiences
2: Artificial Intelligence
Nowadays, financial establishments are improving their AI solution strategies to drive down banking operational costs by 22% by the end of 2030. With the rise of GenAI in banking, institutions are enhancing personalized customer experiences, fraud detection, and decision-making processes. In addition to chatbots and other customer service systems, AI is ready to tackle cybercrime as well as financial threats in 2024.
3: Blockchain
The impact of blockchain in fintech is such that once you implement this revolutionary technology, it will be a breeze to transform fintech through quicker, cheaper, and more efficient blockchain solutions. This will lead to greater transparency and improved traceability down the line.
4: Digital Payments
In this era of digital transactions, the payment industry is experiencing a technological shift from mission-critical services to containerized architectures on the cloud in order to achieve:
- High scalability
- Zero downtime
- Cost-effectiveness
5: Serverless
The best thing about this technology is that it minimizes structural and operational costs and lets you pay only for the required services. Due to this, Serverless has emerged as a suitable choice for fintech app development for every business.
6: Cryptocurrency
One of the valuable investments of 2024, cryptocurrency is preferred for its minimal transaction fees for online exchange of funds, fast and instant payments, and most importantly, enhanced security that will make a significant contribution to the global economy.
7: Security
Migration to the cloud provides several opportunities for security purposes. For instance, some promising technologies, like Machine Learning are tapped for securing fintech custom software solutions on the cloud with multiple automated threat detection systems. And the most pleasing news is that it doesn’t compel you to break the bank too.
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The Rundown
As a startup, choosing a specific tech stack for fintech development is extremely important. Plan out what kind of product or service your organization aims to deliver. Whether you are focusing on building a digital-only banking app or a payment app for your target users.
The tech stack for fintech that you will choose must meet all the fintech project requirements and the goal of your startup. The technologies and frameworks that you learned above come in handy to serve a specific purpose, which is why it is necessary to define your project scope, goal, and requirements quite clearly. In case you need help to develop your desired fintech application suiting your targeted customers’ needs and preferences, it makes sense to get in touch with Binmile.
Frequently Asked Questions
Fintech, short for financial technology, refers to innovative technological solutions and platforms that aim to improve and automate the delivery of financial services. These technologies encompass a wide range of applications, including online banking, mobile payment apps, robo-advisors, blockchain, and peer-to-peer lending platforms.
Fintech technology is transforming the financial landscape by driving innovation, enhancing competition, and improving access to financial services globally. As fintech continues to evolve, it is expected to:
- Disrupt Traditional Banking: Fintech startups are challenging traditional banking models by offering alternative solutions that are more accessible, efficient, and customer-centric.
- Promote Financial Inclusion: Fintech has the potential to expand financial access and inclusion by providing services to underserved populations, including those in remote areas or without access to traditional banking infrastructure.
- Drive Digital Transformation: Fintech is driving the digital transformation of financial services, accelerating the shift towards digital payments, online banking, and automated investment solutions.
- Enable Innovation: Fintech fosters a culture of innovation and entrepreneurship, encouraging the development of new technologies and business models that address evolving consumer needs and market demands.
Fintech product development refers to the process of conceptualizing, designing, and bringing innovative financial technology solutions to market. It involves identifying market needs, leveraging technology advancements, and designing user-friendly interfaces to create products that improve financial services, streamline processes, and enhance user experiences.
The key stages of fintech product development typically include:
- Ideation and Research: Conducting market research, identifying user needs, and conceptualizing ideas for innovative fintech solutions.
- Prototyping and Design: Creating wireframes, prototypes, and mockups to visualize the product’s functionality, features, and user interface design.
- Development and Testing: Building the product using agile development methodologies, coding, and integrating necessary functionalities while continuously testing for bugs, errors, and usability issues.
- Deployment and Launch: Releasing the product to market, deploying it to production environments, and implementing marketing and promotional strategies to attract users.
- Iterative Improvement: Gathering user feedback, analyzing data, and iteratively improving the product based on user insights, market trends, and evolving needs.
