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Expert: **Egor Tomilin,* CTO, Advisor, Consultant, Problem Solver*
Do fintech apps have different problems than other types of apps? While developers deal with similar issues in different areas, fintech comes with its own challenges. In this article, I'll explore the main issues developers face in fintech, looking at it from a developer's perspective.
If Fintech changes so rapidly, what does it mean for developers: to have good experience in Fintech? Is it about using developers’ tools or about mindsets?
I think it's a blend. Firstly, you can have experience working on specific fintech products. Secondly, possessing some knowledge of economics to see the bigger picture. Thirdly, being prepared to constantly learn new tools, integrations, and delve into regulatory documents.
When I say I have experience in fintech, it's a combination of economic education and experience working on fintech projects in various areas: banks, virtual banks, expertise covering many different sectors of fintech. I chose the path of broad expertise. At the same time, understanding how it all works in general makes it easier to delve into the specifics of individual directions.
Security remains a significant challenge for Fintech startups. Balancing between cost, speed, and security is often a tough decision. Many startups have security protocols on paper, but implementing them effectively is a different story.
However, there's no guarantee that your product won't suffer a cyber-attack or data breach that could cause significant damage at the most inconvenient time. This could happen, for example, when you have reached a significant user base, having completely forgotten about some security issues at the beginning of your journey.
So, when your startup starts to grow, make sure to check everything for problems. Especially if you didn't pay much attention to safety in the beginning.
For me, the biggest difference with fintech projects compared to others is that they're mostly about integrating different things.
Most fintech projects rely heavily on integration, about 80% of it. Few build all the features from scratch. These projects are like puzzles made up of different integrations. Some are big, famous, and work smoothly, like Stripe for payments, Wize for transfers or Plaid for accessing bank data. They are user-friendly with great documentation and tools. But if you dive into less common integrations, you'll find a mix of old-school systems from the '80s and new, but rough, solutions from small companies due to their limited market exposure.
So, when you're developing a fintech project, you'll deal with a mix of easy-to-use integrations and some that require more effort.
Developing fintech products demands a clear understanding of the regulatory landscape surrounding fintech applications. While stakeholders and product owners usually handle regulatory compliance, developers must also be prepared to adhere to these regulations. If developers are tasked with specific functions, they'll require knowledge of regulations and practices to execute them effectively, potentially involving specialized courses and tests. Ensuring compliance with regulatory standards for KYC, AML, GDPR, and PCI-DSS is vital for the application's features, functionality, and data processing practices.
I'd say a big issue with fintech applications is their usability. In the US and European financial markets, these products have been around for ages, with many solutions dating back 10-15 years. People are used to them, so it's not easy to change. But the landscape is changing, with new services and development capabilities emerging. Now we're more likely to see innovative solutions coming from developing markets.