FinTech, or financial technology, has become a desirable substitute for traditional banking. It has altered how we manage money and the financial services sector. As a result, many businesses are integrating FinTech into their current procedures. Others are starting brand-new FinTech businesses.
However, starting a new business requires careful planning and preparation, especially if it is tied to a developing market like FinTech. Therefore, when choosing your firm’s core features and tech stack, it’s critical to consider the essential market requirements, financial trends, and – most significantly – the widely adopted and trustworthy technologies and software.
FinTech companies often use specific databases, frameworks, and programming languages to create new products or services. And we’ll show you the most well-liked tech stacks these Startups use.
Let’s get to it!
Best Technologies for FinTech Software Development
Many businesses look forward to using the best technology stack for FinTech application development but always face difficulties in choosing the ideal one. The tech stack will differ depending on the requirements of each project.
A few technologies have recently gained popularity in FinTech because of their features, applicability, and diversity. We will draw attention to the technology many FinTech software development companies and their customers use.
Programming languages
FinTech products must be scalable and secure since they are complicated. The technical success of FinTech apps depends heavily on the programming language used. The primary programming languages that are rapidly gaining traction in the FinTech industry are listed below:
Python
Python is regarded as the best option for the financial sector. Python has been widely used in the hedge fund and investment banking sectors. Many banks use it to address platform pricing, trade management, and risk management issues.
Python also solves most financial industry complications when dealing with analytics, rules, compliance, and data because it has many supporting libraries.
Python is gaining popularity due to its simpler syntax and faster programming than other traditional languages. Because the FinTech sector frequently demands precise and rigorous data, employing programming languages with low error rates is critical.
Java
Java, one of the first and most popular programming languages, provides the top FinTech app developers with remarkable development skills. The Java Virtual Machine brings in great scalability and makes the cross-platform FinTech product development much more flexible.
Java offers the highest levels of data protection in terms of security for FinTech products. It contains runtime restrictions in addition to a strong security manager. It provides safe options for developing chatbots, trading and investing, detecting fraud, and using mobile wallets.
Ruby
The straightforward, interactive, and dynamic programming language Ruby made development for FinTech firms easier. It helps develop digital payment applications, e-wallets, asset management solutions, and financial dashboards.
When it first became popular, businesses used to seek out FinTech developers that were fluent in Ruby alone.
A team of Ruby developers works for companies that provide FinTech app development services. The simplicity, which boosts the development of FinTech products, is the most significant benefit.
Frameworks
Frameworks are the foundation for all applications, whether created for the web or mobile FinTech applications. Though programming languages are crucial for developing code, frameworks offer the environment and structure needed to build an application.
The four popular frameworks for FinTech solutions are listed below.
ReactJS
ReactJS is a well-known JavaScript library that makes it easier to create stunning user interfaces.
ReactJS is simple to use. One of the many advantages of ReactJS contributing to its increasing popularity is its capacity to implement Virtual DOM by writing the code and modifying the application’s appearance while utilizing the DOM.
Like all other industries, the FinTech sector largely relies on its clients. Customers prefer a user-friendly interface, and a secure and responsive system when using a FinTech-related application, such as a bank’s app or an app for trading cryptocurrencies.
While businesses in every industry have their methods for identifying the key areas to improve for greater customer satisfaction and engagement, ReactJS is the preferred choice for FinTech firms.
Django
Python-based Django is the framework used for FinTech app development services. The framework provides a fantastic user experience and the ability to create sophisticated FinTech solutions. One of the most popular commission-free stock trading apps, Robinhood, employs Django as part of its technology stack.
Django provides packages like the Django REST API to simplify developing applications. To integrate AI and ML in FinTech applications, the platform also offers analysis, numerical calculation, and scientific computing capabilities.
Ruby on Rails
For speedy MVP development, Ruby on Rails is the preferred framework. When used with the top software development business, the framework shortens development time by 25% to 40%.
Companies require a solution that can provide them with the best speed, flexibility, and scalability due to the fierce competition in the FinTech industry. These three benefits are all present in Ruby on Rails.
Spring
Unique features are available in the Java-based framework Spring to build FinTech applications. Spring offers a reliable authorization and authentication system, vital for FinTech products.
Providing ready-to-use components reduces complex project needs. Spring is a popular framework for developing FinTech since it is updated frequently. The platform enables scalable application development, ensuring that FinTech businesses remain competitive.
Databases
Security should be considered while evaluating databases, businesses also want good performance. Thus, for FinTech solutions, database selection is essential.
The top 3 databases used by FinTech applications are listed below:
PostgreSQL
For FinTech applications, it is the most used database. It offers transparent data encryption and masking for improved protection of sensitive data in FinTech apps.
It is exceptionally analytically robust and supports a wide range of programming languages. Numerous FinTech firms use PostgreSQL, including Revoult, Robinhood, and N26.
MongoDB
MongoDB is the critical component needed to build a highly scalable application. It responds to queries quickly and superbly. And doesn’t require a schema because of its schema-less nature.
The database creates document-based models and stores data in formats like Binary JSON. It advertises itself as a viable database for FinTech products by providing faster database access.
MySQL
MySQL is another well-liked database that businesses utilize. Having cross-platform capability, it is a high-performance database. The database’s sophisticated algorithms make it highly secure. For FinTech applications, its organized format makes data storage easier. MySQL provides businesses with rigorous data security protections.
Conclusion
With long-term perspectives and limitless prospects, FinTech is a fast-developing and beautiful area of the financial sector. For this reason, many financial companies try to incorporate technology into their daily operations or launch their FinTech venture.
Many technologies are used for FinTech applications. However, some are more appropriate than others. We comprehend the need to discuss the technologies above because they are some of the most widely used by businesses worldwide. However, the needs of your project will determine which technology to choose.