The global financial services market is set to expand from nearly $26 billion in 2022 to $28 billion in 2023, with a CAGR of 8,8%. It is predicted by experts to achieve over $3,7 billion in 2027 with an average annual growth rate of 7,5%. According to Statista research, in 2019, 75% of consumers adopted some sort of fintech products, primarily related to money transfers and payment services.
The fintech industry is highly competitive and complex, requiring a unique approach, comprehensive expertise, and insights. The world of BFSI (Banking, Financial Services, Insurance) is thriving with spanerse areas of development such as banking, insurance, lending, and investing offering substantial opportunities for product advancement and financial gain.
Cognitive analytics, AI, blockchain, and robotic process automation are crucial factors that are rapidly transforming the BFSI sector. For example, a new survey of IT executives in banking finds that 85% have a “clear strategy” for adopting AI in developing new products and services (fraud detection, optimizing IT operations and product design, digital marketing, risk assessment, credit scoring, personalizing customer experience).
What is Digital Finance Transformation?
Digitalization of the fintech sector is a revolutionary process of leveraging technology to revamp financial operations and processes that assures better financial performance, control over data, cost efficiency, and robust security, and provides additional value to clients by improving customer experience.
Digital BFSI sector transformation involves adopting digital tools and platforms such as digital payment solutions, cloud-based financial management systems, AI and ML, business intelligence and data analytics tools, blockchain, digital identity and authentication, regulatory compliance, and automated financial processes.
Possible benefits:
- Enhanced financial transparency and control.
- Real-time insights and data-driven decision-making.
- Improved accuracy and compliance.
- Data analytics and reporting.
- Increased efficiency and automation.
- Customer engagement and better experience.
- Competitive advantage over peers.
Fintech provides many opportunities for product development, evolution, and profitability, but at the same time, it requires a unique approach, extensive expertise, vision, and experience. This is where BFSI consulting companies come into action.
Fintech advisors are experts in both technology and business who possess a thorough understanding of the field and its trends. Fintech advisory services are tailored to suit each company's specific requirements, scale, technical capabilities, niche, budget, etc. They offer advice on the decision's relevance, evaluate the overall status of your product and business, and identify risks and solutions to overcome obstacles.
FinTech Consulting Services’ Scope
Digitalization in finance aims to transform the corporate finance processes with the help of modern tools and advanced technologies like AI/ML and blockchain. It eliminates up to 90% of manual finance-related tasks, driving significantly more accurate, cost-effective, and faster financial workflows.
Digital financial transformation is a key approach for businesses looking to improve their financial operations and remain competitive in an increasingly digital environment.
How can consulting services optimize your business performance? NetLS experts have researched the area of fintech consulting and identified the main advantages for our customers to seize commercial opportunities coming with the right strategies:
- Updating for compliance with new standards.
- Documentation flow optimization.
- API development or optimization.
- Data security.
- Cost optimization.
Challenges FinTech Consultants Help Overcome
Transition may bring you a new unique set of potential challenges:
- People, mainly employees, may resist changes, particularly new technologies, as they lack understanding and are afraid to lose control. Training could be a possible solution to gain new skills and knowledge to cope with new tasks and feel confident.
- Concerns over investments.
- Complexity and requires specialized expertise.
- Regulations and compliance requirements.
- Security and privacy.
Benefits of Our Approach to BFSI Software Development
Fintech companies apply technological innovations and IT products in their activities, including the latest business models and software. Such organizations adapt to market changes with ease.
Primarily, fintech consulting is necessary for those BFSI companies that use such advanced solutions:
- mobile banking (ability to manage bank accounts and funds on them using a mobile application);
- contactless payment systems (conducted through devices with built-in NFC chips);
- electronic means (crypto assets, digital wallets, etc);
- services for the issuance of loans, execution, and conduct of insurance transactions, and trading operations on online exchanges;
- mechanisms for identifying customers by fingerprints, face shape and features, retina, and voice.
Financial Management Consulting Process Flow
Analysis - Planning - Development
The main steps are as follows:
Firstly, analyze the financial management requirements and gather functional and non-functional requirements. Secondly, audit available financial software stack and analyze its weak points and strengths. Thirdly, prepare a business case for further financial software product development or modernization. Fourthly, develop a technical requirements specification.
Finally, introduce an inspanidual financial processes digitizing plan.
Additionally, we are poised to provide complete financial software development, modernization of existing corporate finance systems, and the delivered solution post-launch assistance.
Checkpoints on Hiring FinTech Experts: Why NetLS?
Partnering with NetLS provides the ability to develop single-point or cross-functional solutions according to the customer's requirements.
We offer:
- Development of financial software specifically tailored to the BFSI sector.
- Accounting and financial analysis software to help maintain records and perform financial analysis.
- Asset management systems that help financial institutions and investors manage and improve their asset portfolios.
- Analytical tools for analyzing financial data and making strategic decisions.
Depending on your needs, NetLS can provide full outsourcing of FinTech software development, a dedicated team, or team augmentation with our best experts.