10 Use Cases of FinTech Software Development Outsourcing

tpotanski

Last updated on January 21, 2025 | 17 min read

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Key insights of the article:

• IT services empower accounting firms by enhancing cybersecurity, automating workflows, and ensuring compliance.
• DevsData LLC specializes in providing tailored IT solutions, including advanced automation, predictive analytics, and 24/7 support, to streamline accounting operations.

In recent years, outsourcing has become an increasingly popular strategy for FinTech companies looking to enhance their software development capabilities. As the industry continues to grow, many FinTech firms face the challenge of scaling their operations, reducing costs, and accessing specialized expertise. Outsourcing software development components is particularly valuable, as companies typically cannot outsource their core financial services, and assembling in-house teams from the ground up can be a challenging process.

The global FinTech market is expected to grow by USD 536.6 billion, at a CAGR of 28.34% between 2023 and 2028. Consequently, the FinTech outsourcing market is also expected to grow because outsourcing is an essential tool for reducing operational expenses while allowing businesses to focus on core activities like innovation and customer experience​. By partnering with outsourcing providers, FinTech firms can leverage external expertise in areas like artificial intelligence (AI), machine learning, blockchain, and mobile app development—domains that are often costly and complex to develop in-house.

Moreover, outsourcing enables FinTech companies to remain agile in an ever-evolving market. As the demand for cutting-edge technologies and rapid product development increases, outsourcing allows companies to scale quickly without the need for significant investments in infrastructure or additional internal teams. This flexibility is particularly valuable for FinTech startups and small-to-medium enterprises that may not have the resources to hire full-time experts in niche fields.

As the outsourcing landscape continues to evolve, FinTech firms are also turning to specialized providers who offer tailored solutions for cybersecurity, regulatory compliance, and data analytics. For instance, outsourcing partners can help FinTech companies integrate AI-driven analytics to enhance fraud detection and optimize risk management strategies. These partnerships ensure that firms not only reduce costs but also stay competitive in a fast-moving industry.

This article will cover 10 use cases of software development outsourcing for FinTech for you to understand all the benefits this operation model can offer.

1. AI services outsourcing

   Outsourcing AI services helps automate processes, reducing operational inefficiencies and improving real-time decision-making. It enhances fraud prevention through advanced transaction monitoring and anomaly detection tools. Additionally, it lowers development costs by eliminating the need for expensive in-house AI infrastructure.

   Challenge

   The financial services industry generates and processes massive amounts of data, leading to inefficiencies and missed opportunities for actionable insights. Traditional systems often fall short in delivering real-time analytics and advanced fraud prevention, particularly as cyber threats become increasingly sophisticated. According to Juniper Research & Statista reports, global financial fraud losses reached $41 billion in 2022 and keep growing. This underscores the urgent need for AI-driven solutions not only for fraud detection and prevention but also for streamlining data analysis, optimizing workflows, and enhancing operational efficiency to address the growing complexity of financial systems.

   Solution

   Outsourcing FinTech software development for AI-driven solutions provides access to a skilled workforce adept at implementing artificial intelligence and machine learning technologies. This approach helps automate complex data analysis, streamline routine processes, and deliver predictive insights that improve decision-making and operational efficiency.

   Organizations embracing AIoutsourcing can realize significant advantages. Companies have reported up to 70% improvement in operational efficiency by automating repetitive tasks and optimizing workflows. AI-powered fraud detection systems analyze patterns in real time, significantly enhancing security and reducing false positives. By partnering with outsourcing experts, firms save on upfront development costs and achieve faster deployment timelines without compromising quality.

   Specialized outsourcing teams also ensure AI systems comply with evolving regulations, enabling seamless integration into FinTech operations. This allows companies to focus internal resources on enhancing customer experience and scaling core services effectively.

2. Blockchain integration

   Outsourcing blockchain development allows FinTech companies to reduce costs by up to 30% while maintaining high-quality standards. By working with specialized teams, firms can achieve faster deployment and seamless integration of blockchain solutions into their operations. Additionally, outsourced developers bring essential expertise in smart contracts, decentralized finance (DeFi), and regulatory compliance, helping ease the challenges of blockchain adoption.

   Challenge

   Financial institutions face mounting challenges in ensuring transaction transparency, minimizing fraud, and efficiently managing cross-border payments. Conventional systems often struggle with inefficiencies, high costs, and vulnerabilities to cyberattacks, which cost the global economy $10.5 trillion annually by 2025. For FinTech companies, these limitations can lead to reduced customer trust and operational delays.

   Developing in-house solutions requires substantial investment in specialized skills, infrastructure, and time, which many companies struggle to justify. Meanwhile, over 53% of executives consider blockchain a top priority for their organizations.

   Solution

   Outsourcing blockchain development allows FinTech firms to overcome these barriers by leveraging external expertise. Leading outsourcing providers offer access to skilled blockchain developers who specialize in areas such as decentralized finance (DeFi), cryptocurrency transactions, and smart contract creation. Additionally, the integration of blockchain significantly reduces transaction costs, particularly for international payments.

   Collaborating with outsourcing experts ensures compliance with financial regulations, accelerates implementation timelines, and enables FinTech companies to stay competitive in the rapidly evolving market. Blockchain-powered fraud detection and verification systems further enhance security, safeguarding sensitive financial data while maintaining transparency across all operations.

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3. Cloud computing outsourcing

   Outsourcing cloud computing adoption helps ensure compliance with FinTech-specific security and privacy regulations, such as PCI DSS and GDPR. It minimizes service disruptions by using incremental migration strategies, ensuring a smoother transition. Specialized outsourcing teams bridge skill gaps, bringing in-depth expertise in cloud technologies to ensure efficient deployment and management.

   Challenge

   The financial sector increasingly adopts cloud technology for scalability, flexibility, and cost efficiency. However, according to Analytics insight, transitioning to the cloud poses significant challenges, especially for FinTech companies. These include compliance with stringent data security regulations, integration of legacy systems with cloud environments, and the potential for service disruptions during migration. Additionally, hidden costs like data transfer fees and cloud sprawl often exceed initial budget estimates. FinTechs also face skill gaps, as cloud migration requires specialized expertise to manage intricate cloud architectures effectively.

   Poor planning can lead to data loss, extended downtimes, and security vulnerabilities, negatively impacting customer trust and financial stability. Addressing these challenges while focusing on innovation and service delivery becomes a significant burden for in-house teams. Thus, outsourcing cloud migration processes offers an effective solution.

   Solution

   Outsourcing cloud migration to experienced providers can alleviate the complexities FinTech companies face. Specialist firms bring expertise in navigating regulatory requirements, ensuring compliance with standards like PCI DSS and GDPR. They can implement robust data encryption and conduct regular security audits to mitigate risks. Outsourcing partners also offer tailored solutions for integrating legacy systems into cloud environments without disrupting ongoing operations.

   Additionally, outsourcing firms provide access to advanced cloud cost management tools, helping FinTechs optimize resource allocation and prevent budget overruns. They employ best practices, such as incremental migration strategies and real-time data replication, to minimize downtime and service interruptions. Skilled outsourcing teams can bridge the knowledge gap, ensuring seamless migration and efficient post-deployment management.

4. Robotic process automation (RPA)

   Outsourcing RPA enables rapid implementation, helping FinTech companies tackle operational inefficiencies without requiring in-house expertise. External providers bring specialized knowledge, ensuring precise automation and minimizing the risk of human error. Outsourcing also facilitates the integration of RPA with AI and machine learning, creating intelligent systems that improve decision-making and business outcomes.

   Challenge

   FinTech companies are under constant pressure to enhance operational efficiency while meeting stringent regulatory standards. A major challenge they face is the volume of repetitive, rule-based tasks such as data entry, transaction processing, and compliance reporting. These tasks, while necessary, often result in high operational costs and delays when performed manually. Moreover, the human errors associated with these processes can lead to significant financial losses and legal consequences, especially in a sector where precision is paramount.

   The increasing complexity of financial services, combined with regulatory demands, exacerbates the problem. As businesses grow, the need for streamlined, error-free operations becomes more pressing, making manual processes unsustainable. FinTech firms must find ways to address these inefficiencies without compromising on quality or compliance.

   Solution

   Outsourcing RPA implementation offers FinTech companies a cost-effective and rapid solution to these challenges. By leveraging specialized outsourcing providers, firms can access advanced automation tools and expertise without the need to invest in internal RPA infrastructure. Outsourcing allows companies to quickly deploy RPA solutions tailored to their specific needs, such as automating transaction processing or compliance reporting, ensuring that routine tasks are completed faster and more accurately.

   It also helps reduce the risk of errors. External RPA providers bring specialized knowledge that minimizes the chances of implementation failure. Additionally, outsourcing allows firms to scale their automation efforts without worrying about hiring additional staff or managing complex technology stacks in-house. Since many RPA vendors provide ongoing maintenance and optimization services, FinTech companies can ensure continuous improvement, adapting to changing regulations and business requirements.

5. Cybersecurity outsourcing

   Outsourcing cybersecurity secures third-party API integrations, protecting against vulnerabilities in external services. Specialized expertise in zero-trust architectures strengthens defenses across user and device interactions. Real-time threat intelligence enables proactive responses to emerging cyber risks, minimizing potential damage and downtime.

   Challenge

   FinTech firms face mounting challenges as cybercriminals deploy increasingly sophisticated tactics targeting financial systems. In 2023, more than 18% of attacks were targeted at financial institutions. Threats such as advanced persistent attacks (APTs), credential stuffing, and supply chain vulnerabilities are reshaping the cybersecurity landscape. Cloud adoption, while beneficial, has introduced additional risks like misconfigurations and unauthorized access to sensitive data. Furthermore, the integration of third-party APIs for services such as payments and fraud prevention exposes systems to potential breaches originating outside the company’s control.

   Balancing security needs with seamless user experiences is also a significant challenge. Overly stringent security measures may discourage user engagement, while lax defenses can lead to catastrophic financial and reputational damage. Staying ahead of these multi-faceted cybersecurity risks requires deep expertise and dynamic solutions.

   Solution

   Outsourcing cybersecurity brings specialized skills and technologies that address unique risks, such as vulnerabilities in third-party APIs or gaps in supply chain security. Outsourcing firms monitor and assess external integrations to ensure robust protection against indirect attack vectors.

   Outsourced experts enhance data security by employing advanced solutions like zero-trust architectures, ensuring strict verification protocols across all user and device interactions. They are adept at conducting penetration tests and security audits, uncovering weaknesses that internal teams might overlook.

   Another unique advantage of outsourcing is access to real-time threat intelligence shared across industries, providing early warnings about evolving threats. This proactive approach empowers FinTech companies to respond swiftly, minimizing damage and downtime during cyber incidents. By delegating these responsibilities to external specialists, FinTech firms can align security efforts with growth strategies without overburdening internal teams.

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6. Banking and APIs

   Outsourcing API development ensures compliance with strict security and authentication requirements, reducing the risk of regulatory penalties. Specialized teams optimize API scalability and performance, handling high volumes of API calls as adoption grows. Outsourcing firms modernize legacy systems, ensuring seamless integration with third-party providers while continuously monitoring API activity to detect and resolve security threats.

   Challenge

   The rise of open banking presents complexities for FinTech companies. Regulatory mandates, such as PSD2 in Europe, require financial institutions to develop APIs that facilitate secure data sharing with third-party providers. Ensuring compliance with these regulations is resource-intensive, demanding careful attention to data security, user authentication, and privacy standards.

   Furthermore, managing the rapid proliferation of API integrations—expected to grow from 102 billion API calls in 2023 to 580 billion by 2027—creates technical complexities. Institutions must handle issues like API scalability, security vulnerabilities, and interoperability between legacy systems and new technologies. Without expertise, these challenges may lead to system failures, customer dissatisfaction, and regulatory penalties.

   Solution

   Outsourcing API development and management provides FinTech companies with the expertise needed to navigate the technical and regulatory hurdles of open banking. Specialized outsourcing partners are well-versed in the latest compliance standards and ensure APIs meet strict security and authentication requirements, reducing the risk of non-compliance fines.

   Additionally, outsourcing firms bring the technical know-how to optimize API scalability and performance, managing high volumes of API calls as adoption increases. They also facilitate interoperability by modernizing legacy systems, enabling seamless integration with third-party providers. Outsourced teams monitor API activity in real time to detect and resolve security threats, protecting sensitive financial data from breaches.

   This approach also offers cost advantages, as it eliminates the need for extensive in-house training or hiring, allowing firms to redirect resources to customer-centric innovations. By outsourcing, FinTech firms can accelerate time-to-market for new offerings, remain competitive, and ensure their open banking initiatives align with regulatory demands.

7. Banking mobile app development

   The rise of FinTech start-ups and the increasing demand for mobile banking solutions have led to significant advancements in financial software. By the end of 2024, there will be over over 3.6 billion mobile banking users worldwide, highlighting the growing need for innovative mobile banking solutions. Despite the massive growth in mobile banking, many FinTech firms face challenges in terms of scalability, cost-efficiency, and access to specialized resources. The complexity of developing secure, user-friendly, and high-performance mobile banking solutions requires significant expertise, and many firms struggle to keep up with rapidly changing technology and increasing consumer expectations.

   Challenge

   Outsourcing mobile banking software development can help FinTech firms overcome these challenges by providing access to specialized talent, expertise, and cost-effective solutions. McKinsey notes that digital-native banks and FinTech firms leveraging Banking-as-a-Service (BaaS) platforms scaled operations rapidly while maintaining cost efficiency. Outsourcing development enables companies to focus on customer experience and innovation, while trusted third-party vendors handle complex backend technologies such as AI, blockchain, and data security.

   Solution

   Outsourcing partners bring specialized skills to the table, ensuring faster deployment times and access to the latest technologies, all while cutting operational costs. As highlighted by Deloitte, outsourcing development can also drive growth by reducing the burden on in-house teams and enabling firms to leverage proven expertise. This allows FinTechs to launch and scale innovative mobile banking platforms quickly, addressing the growing demand for convenient and secure financial services.

9. Big data and analytics

   Outsourcing enables financial institutions to centralize data, improving the accuracy and efficiency of analytics. It allows firms to leverage specialized expertise in AI and big data, enhancing decision-making and reducing risks. By utilizing data-driven insights, outsourcing enhances the ability to create personalized financial products tailored to customer needs.

   Challenge

   Financial institutions increasingly rely on big data, advanced analytics, and AI technology to gain valuable insights into customer behavior, market trends, and risk management. However, many firms face challenges with integrating and centralizing data from multiple sources, which can result in inefficiencies and inconsistent insights. The integration and centralization of data systems is a critical trend for 2024. Efficient data management is essential for financial projection and reporting, but many companies still struggle to harness the full potential of their data due to fragmented systems and inconsistent data quality. Poor data quality can undermine decision-making, leading to missed opportunities and increased risk.

   Solution

   Outsourcing big data and analytics services allows financial institutions to tap into specialized expertise for data integration, management, and analysis. Outsourcing data services helps companies centralize their data and gain access to advanced technologies such as AI and machine learning, which enhance data quality and predictive analytics. By partnering with experts in the field, financial institutions can overcome data fragmentation issues, streamline operations, and make more informed strategic decisions. Outsourcing allows companies to focus on their core business operations while specialists manage the complexities of data handling and analytics.

   Additionally, outsourcing partners can help with the development of tailored financial products, enabling institutions to personalize offerings for their customers based on data-driven insights. As PwC highlights, the effective use of big data leads to better risk management and a deeper understanding of customer needs, giving firms a competitive edge in a rapidly evolving market.

10. Graphic design for FinTech dashboards

    Outsourcing graphic design for FinTech dashboards enhances user experience by delivering intuitive, visually appealing interfaces. This approach provides access to specialized design expertise, ensuring complex financial data is presented clearly and effectively. Additionally, it offers cost savings by eliminating the need for an in-house design team and provides flexibility to manage varying workloads.

    Challenge

    FinTech companies often face the challenge of presenting complex financial data in a way that is both functional and user-friendly. As users demand intuitive and visually appealing interfaces, companies require specialized design skills and an understanding of user experience principles to meet these expectations. However, maintaining an in-house design team can be costly and may lack the diversity of expertise needed to create effective dashboards. Without professional design solutions, user engagement and satisfaction can suffer, impacting overall business success.

    Solution

    Outsourcing graphic design for FinTech dashboards provides access to a pool of highly skilled professionals with experience in creating user-centric designs. This ensures that dashboards are both functional and aesthetically pleasing, improving user satisfaction and engagement. Professional designers apply the latest design principles and technologies, tailoring solutions to meet the unique needs of FinTech platforms.

    Investing in quality graphic design has been shown to significantly enhance user engagement and conversion rates in FinTech applications. For instance, a case study on a FinTech product reported an increase in conversion rates by almost 25% after implementing design improvements. By outsourcing graphic design, FinTech companies can achieve significant improvements in user satisfaction and operational efficiency. Access to the latest design tools and technologies without the associated costs further enhances the quality of the dashboards.

11. CX/UX design & marketing optimization

    Outsourcing Customer Experience (CX) and User Experience (UX) design, along with marketing optimization, enables companies to enhance user satisfaction and engagement through expertly crafted interfaces and targeted marketing strategies. This approach provides access to specialized skills and innovative solutions, ensuring that products and services meet user needs effectively while optimizing marketing efforts for better reach and conversion. Additionally, it offers cost efficiencies by reducing the need for extensive in-house teams and allows for scalability based on project requirements.

    Challenge

    Companies often struggle to deliver seamless and engaging user experiences due to a lack of specialized design expertise and insights into user behavior. This gap can lead to products that are difficult to navigate, resulting in decreased user satisfaction and retention. Additionally, without effective marketing optimization, reaching the target audience and achieving desired conversion rates becomes challenging. Maintaining in-house teams for these specialized functions can be resource-intensive and may not yield the innovative solutions required to stay competitive.

    Solution

    Outsourcing CX/UX design and marketing optimization provides access to professionals with extensive experience in creating user-centered designs and implementing effective marketing strategies. These experts utilize the latest tools and methodologies to develop intuitive interfaces and optimize marketing efforts, enhancing user satisfaction and engagement.

    Investing in quality CX/UX design and marketing optimization has been shown to significantly impact business performance. Companies that focus on improving customer experience can gain up to 80% more revenue than those that do not.

DevsData LLC as an outsourcing partner

DevsData LLC, is a reliable IT recruitment and software development company with over 8 years of experience in the industry. With a strong global presence and local offices in North America, Europe, and Latin America, the company has earned an excellent reputation. It holds a perfect rating of 5/5 on platforms like Clutch and GoodFirms. Having successfully served over 80 clients in various markets, including innovative startups from the US and Israel, DevsData LLC is known for delivering high-quality services that meet the needs of diverse industries.

A prime example of the company’s expertise in FinTech outsourcing is a recent collaboration with a prominent financial services firm. The project involved the development of a custom ERP and project management system tailored to the client’s specific requirements. Despite challenges such as ensuring robust security, managing sensitive data, and integrating complex features into a user-friendly interface, the project was completed successfully.

DevsData LLC used its outsourcing capabilities to execute the project efficiently. Despite the project’s complexity, their team facilitated smooth collaboration, communicated effectively, and met tight deadlines while upholding high-quality standards. The outcome was a solution that replaced Jira in two departments, optimized task management and data handling, and contributed to significant cost reductions for the client. More about this case here.

To connect with DevsData LLC, email them at general@devsdata.com or visit their website at www.devsdata.com

Bottom line

The FinTech sector is rapidly evolving, driven by advancements in AI, machine learning, blockchain, cloud computing, and more. These innovations are reshaping how financial institutions operate, offering new ways to enhance efficiency, improve security, and provide personalized services. Outsourcing has become a key strategy, enabling companies to access specialized expertise, reduce costs, and streamline complex processes such as AI implementation, blockchain integration, and cloud migration.

Key challenges in the industry, such as data management, fraud prevention, and the need for scalable solutions, are being addressed through outsourcing. Whether it’s leveraging AI for predictive analytics, implementing secure blockchain solutions, or adopting cloud infrastructure, outsourcing allows FinTech companies to stay competitive while overcoming the complexities of modern software development. Additionally, Robotic Process Automation (RPA) and cybersecurity innovations are helping firms improve operational efficiency and protect sensitive data.

DevsData LLC is a proven partner for FinTech companies seeking outsourcing solutions. With over eight years of experience, the company delivers high-quality IT recruitment and software development services. DevsData LLC has supported clients in overcoming the challenges of the FinTech sector, helping them innovate and scale efficiently. Their expertise makes them a reliable ally for businesses looking to stay ahead in the competitive financial technology landscape.

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Tom Potanski Managing Director

Passionate and experienced technology leader. Combining business and technology, helping American clients find exceptional technical talent in Europe and LatAm.

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