Fintech genius Michael Zetser says that there is no doubt that fintech has transformed into a fast-paced industry and software development has proven to be a crucial element in its growth and innovation. Therefore, any business that wants to unlock excellence in this dynamic landscape has to partner with the right software development company. There are a bunch of trendy catchphrases rife in the fintech space currently and they are dazzling and confusing in equal measure.

But, knowing these catchphrases is not enough for businesses to keep up with the advancements and innovations in the fintech sector. They need experts to assist them and this is where a fintech software company can prove to be instrumental. Nonetheless, this does not mean that you settle for any company. Michael Zetser says that you need to prioritize certain things to choose the right company.

  • A strategic approach

Strategic thinking is a must for selecting a fintech software company, which means that you should consider the long-term implications. You have to evaluate their true capabilities and not just rely on the surface-level promises they make. This means you have to ask lots of questions, do your due diligence and also scrutinize their track record. You also need to ensure that the fintech software development company aligns with your long-term objectives.

  • The different form of fintech

There are a number of subcategories within the broad fintech market and each comes with its unique features. Thus, when you have to choose a fintech software development firm, you need to ensure they have the expertise in the specific subcategory relevant to you. Some of the subcategories include wealth tech, which is aimed at helping people in managing their investments and wealth.

Secondly, there is regulatory technology, known as regtech, which is focused on helping companies in the fintech sector in complying with complex finanical regulations. Web3 is another subcategory that is focused on developing a more open and decentralized internet. One of the most popular subcategory is crypto and it also has a subset in the form of decentralized finance (DeFi).

These different subcategories need different technical expertise and skills and Michael Zetser recommends that you should select a fintech software development company specializing in the one you are working to get the best results.

  • Don’t let the buzzwords fool you

Falling for the buzzwords that the fintech software company throws at you instead of evaluating them properly is a big mistake. You should focus on assessing how the offerings of the company align with your technical requirements, needs and long-term vision. You need to have tangible evidence of the expertise and capabilities of the company you are considering. It is not enough for them to use big buzzwords to draw your attention. They also need to have a deep understanding of the opportunities and challenges that arise at different stages of development.

  • Security and compliance

Compliance and security are vital pillars of the entire fintech industry because of sensitive transactions, financial data as well as regulatory requirements that are involved. Therefore, robust compliance adherence and security measures are required and they should be your priority when you choose a fintech software development company. A reputable company would be able to demonstrate an in-depth understanding of the regulatory environment and their previous projects will also reflect a proven track record of compliance.

Their compliance game also needs to be top-notch, with regular security audits, access controls, encryption protocols and other security measures for protecting all sensitive financial data. The fintech software development firm should comply with industry standards and regulations, such as PCI-DSS and GDPR, amongst others. According to Michael Zetser, you should not compromise on compliance and security because a breach in either can lead to severe consequences, such as reputational damage, legal repercussions and financial losses.

  • Core expertise and competencies

Whether you can have a well-designed fintech app at the end of the day depends on the expertise and capabilities of the fintech software development company you choose. It is not just about what the company claims to offer, but actually about what they can actually deliver. You need to do thorough research, ask questions and look at evidence to assess the competence and expertise of the company.

You need to look into the technologies the software development company specializes in and evaluate their level of expertise related to those technologies. Have they worked on any previous fintech projects? If they have, you need to take a look at their performance. You also need to take their methodologies and processes into account to ensure a smooth fintech software development process. They need to communicate with you and should also have complete and proper understanding of your goals and requirements.

As long as you prioritize these factors, you can select a smart and reputable fintech software development company.