FinTech Product Development Outsourcing: Should You? If So, How?

June 20, 2024
Reading time: 4 min

Running a FinTech startup? Launching a new financial product? As a manager, you likely want to keep development in-house to have full control. But sometimes, limited resources and unique challenges make it tough to do everything internally.

If you don’t have enough people or resources, how do you ensure the project stays on track and maintains high standards? What’s the solution?

Can Outsourcing Be Your Best Move?

Outsourcing can save money and help you scale up or down according to changing needs. This flexibility is useful for new FinTech startups where resources might be tight, and also for agile corporate environments.

On the other hand, outsourcing means you’re giving up some control and trusting other managers' decisions.

If staying in control is important, consider another option: outstaffing. This involves hiring external employees who work as part of your team but are employed by another company. This approach offers more control over the project and better integration with the in-house team. It’s like hiring new employees but without the HR hassle.

What to Outsource in FinTech Product Development?

When thinking about outsourcing in FinTech, focus on areas that aren’t the core of your business but are still crucial for success. There are a lot of different functionalities Fintech apps have (payment, lending and mortgage, crowdfunding services, personal finance, insurance, investment, сryptocurrency, online banking, etc.), but they all have similar development stages. Here are some examples of tasks that were given to our outsourcing teams:

  • Prototyping
  • MVP
  • Mobile app development
  • Data analytics and reporting system
  • API development and integration
  • UI and UX
  • QA testing
  • Security audit

Our experience shows that it’s easiest to achieve quick wins with outsourcing/outstaffing by starting with the following tasks: app development, data analytics, API development, and security audit.

Many of our B2B clients from the FinTech industry outsource mobile app development. If they have an in-house iOS team, they outsource Android development, or vice versa. A remote organic team we provide helps them to speed up the development process and publish release versions on the Play and App Store at the same time.

Outsourcing data analytics and reporting can also be beneficial. Remote experts with a fresh gaze, can help you identify trends and patterns in your data that an inhouse team can miss. This can also help speed up the development of custom algorithms and reporting tools.

We also suggest outsourcing API development. A responsible and experienced external team can ensure rigorous integration with banking, payment, and financial services. They can help you access a wider range of APIs in minimal time, allowing you to offer more comprehensive services to your users.

When dealing with sensitive financial data you are exposed to security and compliance risks. So if you are also understaffed, you should consider outsourcing these components. It will help you to minimize risks and get the necessary proof of compliance for fintech partners.

What About Other Tasks?

Consider where you're comfortable sharing responsibility instead of sticking strictly to objective criteria. Focus on those areas first. Pick one, prioritize it, and start there. Once you take that first step, you'll find that outsourcing isn't as daunting as it seems.

So, Why Outsourcing/Outstaffing FinTech Software Development Makes Sense

  • Access to Specialized Expertise: Outsourcing gives you access to skills and expertise that may not be available in-house. This can help you innovate faster and stay ahead of the competition.
  • Cost Efficiency: Outsourcing is often cheaper, especially in the early stages when resources may be limited.
  • Faster Time to Market: Outsourcing can help you bring your product to market faster, allowing you to capitalize on market opportunities more quickly.
  • Focus on Core Business: Outsourcing non-core activities allows you to focus on what you do best – developing innovative FinTech solutions that meet your customers' needs.
  • Risk Management: Outsourcing can help you manage risk by leveraging the expertise of experienced outsourcing partners who understand the regulatory environment and can help ensure compliance.
  • Innovation and Technology: Outsourcing firms are often at the cutting edge of technology and can help you incorporate the latest innovations into your FinTech product.

Final Thoughts

Outsourcing parts of your FinTech product development can be a strategic move that allows you to access specialized expertise, reduce costs, and accelerate time-to-market. By carefully considering what to outsource and partnering with reliable outsourcing partners, you can maintain control over critical aspects of your product development while tapping into external expertise and resources.

Looking for a dedicated development team? Contact us to see how we can help you develop innovative FinTech solutions that meet your customers’ needs and drive your business forward.