How fintech companies can find success with a partner
Fintech companies have been making waves in the financial sector for years now – global funding having reached nearly $20 billion in 2015, and even more in 2016. They have transformed the traditional world of finance by both disrupting the sector and developing on existing services. Being a fintech company means that fast innovation is a prerequisite whether the focus is on banking, payments, lending or anything else within the industry. Due to this, software delivery must be carried out in the most effective possible manner. Where does the answer lie for fintech business leaders looking to simultaneously maximise their development quality and keep up in the industry?
Agile and nearshoring?
Many, if not most fintech startups are at various stages in an agile journey, and this is unsurprising: the speed of innovation within fintech almost makes agile a necessity for teams to keep up. This communicative, reactive type of culture can initially appear to clash with the idea of outsourcing: how can these two concepts mix? Many companies of all sizes have found that it can not only be done, but it can be done exceptionally well. If a fintech company needs to introduce extra talent without damaging its current use of agile methodology, a nearshore partner already skilled in agile delivery is the answer.
In nearshoring, overcoming potential barriers to an effective agile partnership is simple. Communication problems may initially seem to be an issue – time zones seemingly the obvious worry. However, nearshoring in Europe means a time difference of just 3 hours, and working hours can be adapted to appropriate times so that time zone issues are completely erased. The issue of distance is also solved by, ironically, technology: video conferencing services allow for face-to-face communication at any time.
Flexibility is vital in agile – it defines the concept. The importance of this maximises in fintech: in order to keep up with the high level of competition in the sector, every fintech company must be adaptable to rapid change. Teams need to embody this, and the addition of a partner should only improve the company’s ability to adapt. By nearshoring, the option to scale teams becomes an asset. SME fintech companies can choose what resources they need and when, so when requirements inevitably change they can rely on the partnership to be able to adapt with them, without cost being a critical issue.
A finance and nearshore partnership success story
Not only are fintech startups able to benefit from the nearshoring model. Larger financial services companies looking to incorporate fintech concepts in order to stay technologically up to date can achieve this effectively with a nearshore partner. Many finance companies have chosen now to both innovate and collaborate with revolutionary fintech companies, but the issue of being able to deliver in a high-quality, cost-effective manner always remains.
Experian has chosen nearshoring as the best way to introduce agile into their delivery process. In 2016 having partnered with Fintech Sandbox, a nonprofit aiming to solve data challenges within fintech — Experian is a consistent player within financial technology. They previously struggled with flexibility around software development, and the climate of the financial sector meant that this was an issue that needed solving quickly. By choosing to nearshore, Experian benefited from the introduction of agile methodology, and are able to deliver in a more fluid manner.
David McHugh, Director of Technology at Experian, “We were looking for a partner that was experienced in agile software development, and implementing best practice agile methods as the purpose was to bring Experian’s software development practice to the same executive level as our products.” Read more of their story here.
Are you curious to find out more? Visit http://www.godeltech.com/about-us/ for more information, or to speak to a member of our team get in touch.