Six Key Aspects Of Software Development Every Fintech Startup Should Keep In Mind

Software is the core asset of every fintech business. High quality of the implemented solution and zero issues are critical. Even a minor error in calculations (e.g., for financial transactions) may result in long-term consequences.

It’s no surprise that the tech part of software needs constant attention. This determines strict requirements for security, confidentiality and fault tolerance.

Tech aspects are not visible to end users. However, they affect performance, resilience and ease of use—and eventually, user retention.

Both new and loyal users expect the same satisfaction level. It is a startup’s goal to deliver a friendly, straightforward flow and comply with all industry rules and regulations at the same time.

Software Architecture

Balanced architecture is key to a successful project launch.
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Underengineering results in limited scalability and functionality. When starting MVP development, it makes sense to prepare for future project growth in advance and shape software architecture based on the project’s long-term goals.

Still, overengineering results in budget overruns, which are never favorable for a startup. When the development team designs infrastructure that might be useful sometime in the distant future, it only increases both development and maintenance costs. Those costs could be spent elsewhere on decreasing time to market or strengthening startup positions.

Software architecture needs to be flexible. It needs to support scalability and feature expansion but never be too complicated.


Fintech projects provide a straightforward, transparent solution to a business problem. Such solutions improve the speed, costs and efficiency of business processes. For instance, PayPal introduced fast and easy payments using only the recipient’s email. Stripe solved the problem of payment integration. It becomes possible by adding a few lines of code.

Users love when a product solves their problem fast while bringing novelty and value. User flow should not create ambiguities or uncertainties.

A convenient, problem-solving product is possible through iterative work on UX improvement.


Security on all levels cannot be underestimated: Fintech apps are at constant risk of a breach.

Extended logging, 24/7 monitoring, automated blocking of suspicious operations and extra verification steps are equally important.

A great fintech product must both comply with strict security and data encryption requirements and offer its users a decent, polished UX/UI.

External Components

No wheel reinvention is required. Various ready-made components are available to help launch faster and with increased quality. Biometrics security, payment gateways or real-time analytics charts belong here.

Every wheel must be well placed and adjusted. Libraries and frameworks often aim at covering a variety of use cases. It is important to adapt them to specific project needs (e.g., by throwing away unused functionality). This way, a third-party component works to its full extent. A fintech app remains lightweight, fast and consumes resources moderately.

Compliance With Regulations

Startups need to be prepared for the fact that a fintech solution can become a tool for money laundering, fraud and sanctions evasion.

Compliance strategy is one of the top items on the list of requirements for fintech software. Startups must complete regular audits and pen tests, search for security issues and undergo certifications.

Fintech software also must constantly comply with announced regulations.

Product owners must apply regulation changes in local policy fast and update functionality only for users in selected areas. The rest of the user base remains unaffected.

Optimization And Technology Upgrades

It is critical to check and implement updates for languages and frameworks regularly, keeping app response, security and performance on the same high level.

Successful adding and revamping of app features is possible with constant revision of the tech stack. For instance, by refactoring software infrastructure, the development team can cope with growing volumes of user data. Test and deployment automation can increase app code stability and decrease both the time and costs of regression testing without quality loss.

Tech debt management is crucial for a prolonged life cycle. Tech debt emerges when the product evolves while the team must provide compatibility with the existing solution. It also accumulates slowly when the team has no time for tech improvements, the latest framework version is organized differently and more.

Tech debt ends up in limited scalability. It blocks the smooth delivery of new features. Hence, regular revisions are a vital part of activities aimed at prolonging the software life cycle.

Fintech businesses cannot stay idle. They need to meet user expectations from safe, seamless, real-time operations across all available locations.

Great software increases a fintech company’s bottom line. To make this happen, fintech startups need to keep in mind constant control over quality. Timely identification of key tech aspects makes it possible to receive the highest value for invested resources.

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