What are the biggest challenges for fintech companies today?

There are many challenges fintech faces today. 1. Competition with traditional financial institutions: Fintechs are competing with banks and other conventional financial institutions, which are also entering the fintech market, innovating and improving their services.
2. Security and privacy: As the volume of financial transactions carried out by fintech increases, so does the risk of identity theft, financial fraud, and privacy breaches. Fintechs need to provide an exceptionally high level of security to their customers to gain their trust and maintain their reputation.
3. Regulation and compliance: Fintechs must comply with various laws and regulations, including banking laws, data protection, money laundering, and tax. Proper compliance with these can require a great deal of money and time.
4. Increasing costs: As fintech grows, so do the costs associated with developing and maintaining technology, creating new products and services, and ensuring a high level of security.
5. Customer acquisition: Increasing competition in the fintech sector influences the acquisition of loyal customers, and their maintenance, making this more difficult than before. Nowadays, customers expect fintech to provide appealing offers that attract and encourage them to use particular services.
6. Financial support: Fintechs often need large amounts of funding to develop their services and products. However, raising capital can be difficult, especially for smaller, not yet well-established fintech companies.
7. Technology and innovation: Fintechs shall keep up with the rapid pace of change in technology and innovation to remain competitive in the market. However, these innovations often require enormous financial and technological investments and skilled employees.
8. People management – with the market still for an employee, skillful employee acquisition and retention becomes crucial, especially for smaller and new companies. Creating an employee-oriented culture, providing development for people, and the still much-underestimated feedback is the bare minimum these days.

What are the challenges of developing software for fintech companies and what processes ensure the smooth implementation of new solutions?

The risks associated with the following challenges must be kept in mind: technical debt arises when, in order to meet business needs quickly, we take ‘shortcuts’ and reach for suboptimal technical solutions – solutions that make it difficult or even impossible to achieve the company’s future goals. Further development, e.g. new investments or improvements to specific processes in the organization, are only possible after catching up, i.e. paying off the technical debt. The 3 most important aspects you need to focus on are:
1. Productivity: When creating and developing an application, we must bear in mind that any change can reduce productivity and the efficiency with which the system works. For this reason, we must not forget about regular performance tests that will verify the speed and response time of the solution being developed, the stability and reliability of the system, and scalability and resource utilization according to the application load.
2. Security: Modern applications require multilayered security across code, delivery pipelines, app runtimes, and databases. Start by providing developers with secure dev boxes with well-governed identities. As part of the DevOps lifecycle, use automated tools to examine dependencies in code repositories and scan for vulnerabilities as you deploy apps to the target environment.
3. Integration: Software integration is one of the most important phases during software development. This is because most of the hidden problems of the previous phases start to appear in this phase. Integrating these technologies and systems is not easy. It has been a challenge for IT teams.

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