The development of any software product is a crucial phase that determines whether it will succeed or fail. To mitigate as many risks as possible, detect issues in the early stages or prevent them, you need to make sure you’ve done your best during the preparation stage. This post shares some best practices and the most critical steps to starting a FinTech development project.
Steps to Start a FinTech Development Project
When you understand that there’s a critical need for a software solution in your FinTech company, first of all, you’ll need to make sure that the development is inevitable.
Step 1. Make sure you Need to Initiate the Development
The thing is, there are a lot of FinTech software solutions you can rent (SaaS) or buy
(white label). The development from scratch is definitely much more expensive, time, and effort consuming than opting for a SaaS solution or a white label one.
When you choose a SaaS solution, you get it via a subscription. You can use it for as long as you need or as long as it meets your business needs. When you stop paying a subscription fee, you can no longer use it. In a nutshell, you rent this software.
When you opt for a white-label solution, you buy a set of pre-built features aimed to cover your business needs. Once you buy it, you get a source code and do anything you want with this software piece.
These options are great if you need a solution ASAP. Yet, have some significant limitations. SaaS may lack some crucial features for your business and provide little or no customization and branding options. White label solutions may have been created a long time ago, meaning you may get legacy code that is difficult to develop further.
If you are intended to Financial software development from scratch, please proceed to the next step.
Step 2. Perform an in-depth Research
To create a FinTech product that will meet your business needs and all the expectations of your end-users, you’ll need to spend some time researching the market and your users. This way, you’ll avoid one of the main reasons 70% of all startups fail ‒ no market need. Here are the main types of research you need to perform:
Persona research. Persona is an aggregated image of your ideal client. It should include such information as gender, age, location, main needs, and pain points of your end-users. With this information in hand, you can better understand what your users want to get in your FinTech product. In some cases, it’s very difficult to create a persona. Especially if the product is for the mass market. In these cases, you can use a job-to-be-done approach.
This approach aims at figuring out the main “jobs” for using your product. Both techniques will help you to narrow down your focus on the crucial features of your FinTech product.
Competitor research. When you know exactly what your product should do, you can proceed to the competitors’ research. Thus, you’ll understand how your product should do it. The competitors’ research is aimed at demonstrating how other companies meet the needs of your target market. With this data, you can figure out how to do it better. One of the greatest (and easiest) tools to analyze your competitors’ offers is to perform a SWOT analysis of each of them. This simple table visually shows all the soft spots of your rivals’ offers to develop a product that adds more value to your audience.
Comprehensive analysis of your product. When you know what your product should do and how it has to do it, you only need to figure out if there is a way to do it better. During this phase, you need to analyze your business operation in and out. You can create a lean canvas for these purposes. A lean canvas can be used as a roadmap to help you find a better way to operate your business.
Step 3. Choose a Suitable Development Team
To successfully create your project, you need to find a software development company to rely on. Let’s take a look at the options you have here:
In-house development team. When hiring an in-house development team, you get better control of the product development process. You can participate in the recruiting process and choose people who share your company’s values. On the other hand, an in-house team costs more (due to a number of legal issues and office expenses). Besides, such an approach isn’t very suitable for short-term FinTech development projects.
Outsourcing team. When hiring an outsourcing software development team, you save time on onboarding and setting up an efficient workflow. This option may be cheaper and is more suitable for short term projects.
A team of freelancers. If you need only a few specialists, but you aren’t ready to hire them in-house and full time, you can create a team of freelancers. The significant advantage of this approach is that you can find real stars for a reasonable price. As for disadvantages, such a team is difficult to manage, especially if all the specialists are located in different time zones.
Bespoke software development is more time, money, and effort consuming than using existing solutions. Nevertheless, this is the only way to build a unique product that will match your needs.