As digital technology evolves, it has penetrated and transformed every industry, including finance. One aspect of technological advancement that has played a significant role in reshaping the finance sector is software development which has given rise to a whole new sector – the fintech industry.
Without software development, some of the benefits and the advances experienced in the finance sector could be nothing but a dream. This guide takes an in-depth look at the role played by software developers in reshaping and realigning the finance sector in recent years.
Development of high-quality apps
The finance sector is very sensitive. Any flaws in the systems and operations can be costly. It is required that any app used in the industry have the best security setting to ensure safety. This calls for thorough QA testing before the apps are put to use.
Until recently, much of QA testing was manual and dependent on the expertise of QA experts and engineers. This meant the possibility of errors going unnoticed and the high costs of quality control.
But thanks to development tools such as codeless test automation, fintech software developers can ensure the quality of their products is upheld, leading to increased uptake and incorporation of software in the finance sector.
Shift to online banking
The most significant transformation occasioned by software development in the finance sector is the shift from traditional brick-and-mortar banking to online banking. An excellent example of an entirely online-based bank is Tangerine.
These online-based banks promise to solve the frustrations faced by many people while using traditional banks. Some of these frustrations include layers of confusing bureaucracy and unrealistic interest rates. As these banks gain popularity with attractive offers, customer shifting is inevitable, forcing changes in existing banking models.
Mobile banking, AI, and ML
Mobile banking has been a great equalizer in the banking sector. It has brought banking into the hands of the consumer. With banking apps rapidly evolving and incorporating AI and machine learning, mobile banking can only get better with time.
Additionally, AI and ML have seen a complete transformation of the customer service approach. The development of AI and ML-based chatbots has enabled banks and financial institutions to better serve their customers at reduced costs as it reduces the need for expensive human customer service.
AI is a major disruptor in the financial sector. A notable disruption is the introduction of Robo advisors. Robo advisors are AI-based advisors that are rapidly stepping in to replace human advisors in the financial sector.
They offer users investment ideas and plans based on algorithms and are a great way of reducing operating costs for service providers while ensuring the best possible services for consumers. While some consumers still prefer human interaction when seeking financial advice, Robo advisors continue to take the industry by storm and are worth watching out for.
Changes to security
Technology integration into finance brought with it the question of security. However, security solution also lies within technology. Software development has, over the years, helped the financial sector make significant strides in enhancing cybersecurity.
Traditional security measures like passwords are being phased out and replaced with biometric and voice recognition, meaning that the chances of criminal infiltration into the systems are highly reduced. However, there is always a criminal element working on ways to get around every new security measure. This calls for regular updating of system security features to ensure that its cybersecurity is upheld.
It is evident that software development will continuously reshape and transform the finance sector. However, the full extent of software developers’ contribution in reshaping the sector can only be revealed with time, and there is no end in sight.