Fintech Development Outsourcing - Advantages, Process & Cost

The businesses operating in the fintech industry require a futuristic and tech-savvy solution that can scale up their business growth. Having an innovative fintech app will help your business in getting a wider customer base.

While developing the fintech app, you have two options: hire an in-house team and get the fintech app designed by them. Hiring an in-house team can be costly, and you have to incur additional costs, including hiring costs, training, acquisition costs, etc. This might cause a delay in the fintech app development process.

The second option can be outsourcing the fintech app development task to an expert company. This blog will discuss the benefits, processes, and costs involved in outsourcing the fintech development. 

Types Of Outsourcing Model 

While outsourcing your fintech development, you have multiple oppositions. All these options can be categorized into different models, which are explained  below:

 Location-Based

This outsourcing model is very common and easy to understand. In this model, outsourcing is done in a specific location. The location of the fintech development company is a top priority. There are three ways in which location-based outsourcing is done:

• Local Outsourcing

In this, the outsourcing will be done to the company which is operating in the same country where your business is situated. In this, you will get local expertise. But on the other hand, the development cost will be higher if the company operates in developed countries.

• Offshore Outsourcing

In this type of outsourcing, the development company to whom you have outsourced the fintech development task is situated in any other country. You can get the development done at less cost in this type of outsourcing.

Also Read: Minimum Viable Product Software Development For Startups

Cooperation Type

This outsourcing model deals with a relationship between the outsourced software agency and a startup in the FinTech market. On the basis of it, outsourcing can be divided into below mentioned types:

• Dedicated Team

In this, the fintech company to whom you have outsourced the task will recruit a dedicated team for the completion of the task. The team would either work at their location or your company's location. This will get a customized fintech app development experience.

• Project-Based

In the outsourcing model, the company will be assigned a task by the fintech business owner, and they have to complete it with predetermined specifications either by using their existing team or by recruiting a new team.

How Can Outsourcing Fintech Development Task Be Helpful For Your Business?

Are you planning to outsource your business fintech development tasks? Well, you have made a good decision. Below mentioned certain ways in which fintech software outsourcing

 can prove to be beneficial for your business:

Cost-Effectiveness

Outsourcing your fintech development to an external company will be beneficial for your business in many ways. You can get the fintech app developed at a very less cost. By outsourcing the fintech development task, you need not incur any expenses on hiring the development staff, offering training, and retaining employees. All you need to do is to search for an experienced fintech app development company. This will help in making your business profitable and reduce the operational expenses of your business.

Higher Efficiency

Operational efficiency is very much needed by a fintech company in order to remain competitive in the market. The company you choose for getting the fintech development done has a great expertise in developing innovative fintech apps. They are aware of the latest development technologies and tools. You can use their efficiency to develop tech-savvy and innovative fintech platforms that can take your business to a higher growth level. You can get the benefits like reduced TTM (Time to Market) and desired features in the fintech app.

Improved User Experience

Providing your customers with an enhanced user experience will help in enhancing your business customer base and improve customer retention. A well-developed fintech app can help you achieve this dream. Outsourcing this task to an expert company can help in enhancing the experience of the users. The company has full knowledge of user-friendly features that can make the fintech app more user-centric. They will add the necessary features to the app that will help it become more popular amongst customers.

Competitive Edge

There are a lot of fintech businesses operating in the market. Getting a competitive edge will help your business bear the widespread competition level prevailing in the market. Outsourcing the fintech app development task to an external development company will help you attain a good market position and sustain the market competition. They will add innovative features to the fintech app that will make your app better than the competitor’s apps. Also, they will take care of the functioning of the app.

Fasten The Development Process

If you plan to get the fintech app development done, hiring an in-house team can cause a delay in the development process. You need to hire the development team and offer them training. To increase the pace of the fintech app development, you should outsource the fintech development to an expert company. They will complete the task in very less time, and you can launch your app in the market in a very less time.

Gain Access To World-Class Resources

Sometimes your business cannot access advanced resources and technologies while developing a fintech app for the business due to a lack of resources. Outsourcing this task to an expert company allows you to access multiple resources and advanced technologies.

Also Read: Custom Software Development Company

How To Identify The Right Outsourcing Development Company?

Are you planning to hire an expert company that can design the fintech app for you? Well, here is a step-by-step method to find an expert fintech development for your business:

Identify Your Goals And Requirements

When you plan to hire a fintech development service provider, you first need to check your business requirements. Check the expectations you have from the company and how they can help your fintech business reach higher heights.

After identifying your business requirements, the next thing you need to do is to identify the goals of your business.-This will help you make the best choice and get the best results in terms of business growth and success.

Start With Your Research

Once you have identified your goals and objectives, the next thing you need to do is to start your research for the fintech companies. Make sure you invest an ample amount of time in this step. Check the companies available nearby your location. Make use of the correct keywords during your research, as this will help you get the best results. Explore more and more options during your research for the fintech development companies.

Check The Company Portfolio And Experience Level

After shortlisting the available fintech development company options, you need to check the company’s portfolio and experience level. Make sure the company has a good amount of experience in developing fintech apps and platforms. Also, don't forget to check the portfolio of the company. Which depicts the projects they have worked on. This will help you understand the company in a better manner. Also, check the market image of the fintech development company.

Discuss Cost And Development Time With The Fintech Development Company 

After finalizing the fintech development company, you wish to choose for your business. The next thing you need to do is have a discussion with the company regarding the development cost you have to pay them to develop the fintech app. Don't forget to ask them about the hidden cost involved in the fintech platform development. Along with the development cost, you need to ask them how long it will take to develop the fintech app. Ask them the deadline by when the platform could be launched.

Close The Deal

After discussing each and every aspect of the fintech development, you need to close the deal. During deal closure During this process, ensure you have checked everything carefully and thoroughly. Also, collect all the relevant information about the development company. If you have any questions in your mind, you must ask them before the deal closes. Complete all the documentation and get everything in writing during the finalization of the deal.

Cost Of Outsourcing Fintech Development

After knowing the process of searching for an experienced fintech development company, another question that would come to your mind is what is the cost of outsourcing fintech development? Given below is the approximate cost  of the outsourcing as per the location of the company

This is not the exact cost. The cost may vary as per the type of app, features added, and other factors. Given below are certain factors on which the cost of outsourcing fintech development depends:

Features Added 

The features added to the fintech development have a direct impact on the cost of the app development. The more advanced features it will have, the higher the platform's cost. Also, the number of features in the app impacts its overall cost. Choose the app features carefully, and advanced features will make the fintech app more popular in the market.

Tech Stack Used

The tech stack used in the development of a fintech app is an important factor in determining the overall cost of the app. The more advanced technology used for fintech development, the higher the development cost you have to pay. To get an enhanced user experience, the app must have advanced technologies in its development.

Type Of Fintech App

This is an important factor you need to consider while developing the fintech app. The type of fintech app you want the company to develop will determine the development cost charged by them. Let us understand this with an example: The banking & finance app development would cost you more as compared to an e-commerce fintech app.

Location Of The Development Company

The location of the development company also impacts the cost of fintech app development. The companies which are operating in the developed nations will charge a higher development cost from you. At the same time, companies that are operating in developing nations can develop the fintech app with exclusive features at a low price.

Customizations Added To The App

The customization added to the platform will also impact the overall development cost of the platform. If you opt for an already designed fintech app with no or very few customizations, then the development cost will be less. If you choose a whitepaper fintech app development and add more customizations to it, the development cost would increase.

How Risingmax Can Contribute To Your Business Journey

Do you wish to kickstart your fintech journey with a futuristic fintech platform? Well, outsource the fintech development to RisingMax Inc. We will help your business reach new heights with our customized and futuristic fintech app development solutions. Here are a few reasons why you should choose us:

Domain Expertise

We have a team of dedicated experts who hold great domain expertise. We possess a good level of knowledge in developing fintech apps. We have successfully designed numerous fintech apps for businesses globally.

Result Driven Approach

Our aim is to provide your business with fast and unbelievable results with the help of our customized software solutions. We follow a result-result approach for software development.

Rigorous Testing

To make sure our solutions are functioning well and do not have errors or bugs in them, we undertake rigorous level testing at multiple levels.

Transparent Pricing Policy

We believe in disclosing everything to our customers beforehand. Our cost structure is completely transparent and does not have any kind of hidden cost involved in it. This makes us a reliable and trustworthy fintech development company for your business.

Summing Up

Outsourcing the fintech app development to an external company will help your business become a; leading fintech company. You can avail benefits from the expertise of the company. Make sure you find a reliable and trustworthy company that can understand your company’s requirements and help you fulfill your goals.