Choosing the right software development company to outsource your fintech project: What you need to know

For decades, financial institutions have had the upper hand on the consumers - forcing high fees, unacceptably low-interest rates, and overall – making their clients' lives miserable. Then came fintech.
Today, fintech software development is reshaping the way people and businesses access and manage money. From mobile banking and payments to insurance, investment platforms, and embedded finance, the industry is evolving faster than ever, making services more user‑friendly, accessible, and efficient.
The right technical partner leverages custom fintech software development to deliver solutions that bring your vision to life and keep you competitive in a digital-first world.
Fintech overview and current trends in EMEA
Fintech sits at the crossroads of finance and innovation, but as the industry matures, customers increasingly demand practical solutions that address their everyday needs. Meanwhile, traditional financial institutions, faced with disruptive competitors, have shifted their approach and are actively seeking partnerships or acquisitions with emerging fintech software development companies to capture new markets or retain their existing share.
Traditional financial services companies face a sea of change; however, this is a unique opportunity to become a skilled sailor. Compared with disruptors, traditional companies are experienced in compliance issues and regulations, don't have significant workforce fluctuation, and are often more stable. What may seem like drawbacks in the short term can actually foster stronger product development, improved operational efficiency, and deeper customer engagement over time.
Let’s review how KPMG sees the current state and trends of EMEA’s fintech industry
- Global fintech investment dropped in the second half of 2024 compared to the first half, but in the last quarter of 2024, investment started to pick up. This was helped by lower interest rates, cheaper capital, and fewer uncertainties after several elections worldwide. Even with ongoing global conflicts, there is hope that fintech investment and deals will keep growing in 2025.
- B2B fintechs will keep attracting strong interest, especially in payments and regulatory technology (regtech).
- Mergers and acquisitions (M&A) will increase. Startups want to grow bigger and more competitive, and companies are looking to buy fintechs for strategic reasons and to handle regulations better.
- Interest in AI-powered fintech will grow. Investors like startups using AI to improve compliance, cybersecurity, and customer service.
- Regtech remains a key focus in the EMEA region because of growing regulatory challenges.
- Partnerships will expand in Asia-Pacific (ASPAC). Regulators, central banks, companies, and fintechs are working more closely across borders.
Fintech software development comparison: In-house vs. outsourcing
One of the first and most enduring questions companies face is whether to develop fintech software internally or collaborate with an experienced software development partner. And the honest answer is – it depends. Some companies tend to lean on in-house development, while others search for the services of a reliable specialist with domain expertise.
Even companies with skilled developers and sufficient funding sometimes lack in-depth knowledge of the competitive landscape and consumer insight. Here are some questions a company looking to execute a fintech project on their own needs to think about:
- Do you understand the fintech landscape well enough to recognize the opportunity for a new product or service?
- Does your internal team have enough experience to execute a proof of concept or a pilot project?
- Does your internal team need specific technical skills to develop the final product or service?
- Can you choose an appropriate technology stack that will fulfill all the design and development requirements?
Some questions might prove more challenging to answer, and when that happens, keep your mind open and consider partnering with a financial software development company.
What are the benefits of partnering with a fintech software development company?
Partnering up with a financial services software development company certainly has advantages and can significantly lower the overall costs of building and maintaining your product. Let's explore the main benefits:
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It is cost-efficient
The average cost of a developer's salary in Western European countries can easily reach more than €100K annually without calculating the additional costs you might incur related to vacations, sick leave, and benefits to retain and recognise talent. On the other hand, the average rate of outsourcing is significantly lower, which makes it a more reasonable choice.
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In-house development can distract you from core business
You know how it goes with new products – you will probably allocate a certain amount of hours of your internal team to a new fintech product, and with time, your core business will start to suffer. By partnering with a fintech software development company, this doesn't happen because the external team works only on the product you assigned them.
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Proven experts work on your product.
When hiring, you are often limited to a pool of available developers. By partnering with an external software development team, you gain access to a global pool of domain experts with extensive experience in fintech.
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You can scale up - and down as well.
During the development, you may need to bring in fintech software developers with highly specific skill sets. This can be challenging if you’re only looking for short‑term help. By working with a dedicated fintech software development partner, you can avoid this problem, as they have the flexibility to adjust their team to match your needs.
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Faster development
When developing the product internally, you are limited by the number of developers on your team. By working with an external development partner, you can quickly set up a team tailored to your needs, allowing you to speed up the development process significantly.
How to choose a fintech software development partner?
First, why do you need a partner and not a vendor?
Vendors typically focus on delivering quality software based on client's requirements at a reasonable cost. However, the software is not just a business enabler in fintech. It is a critical business asset and competitive advantage. Accordingly, software development requires innovative thinking, a proactive approach, and deep domain expertise. For this, you need a fintech software development company that will be your partner and takes ownership of the project.
With the global talent pool growing every day, you need to be mindful when selecting the right fintech software development partner for yourself. The most important qualities to look for are strong fintech domain expertise, a deep understanding of industry trends and products, and the ability to fully grasp and meet your unique business demands.
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Define your business needs
Successfully defining your business needs is the most crucial step when developing a fintech product.
First of all, you need to examine what will be your ideal fintech niche - and there are plenty to choose from. However, keep in mind that it would be perfect if it's related to your core business; that way, you won't need to deviate far, and at the same time, you will be adding value to your core product or services.
Second, define the area of improvement you will target and your competitive advantage. As you move along the steps, be sure to launch extensive research to evaluate if the market is ready for the innovation you are planning.
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Make a list of potential fintech software development partners
Begin by researching and creating a list of financial software development companies that match your project requirements and business goals. When evaluating potential partners, consider important factors such as:
- Relevant expertise and industry experience
- Strong reputation backed by client reviews
- A solid portfolio demonstrating successful projects
- Stability and strength of the management team and company size
Taking these elements into account will help you identify the best candidates to move forward with, ensuring a strong foundation for a successful fintech software development collaboration.
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Analyze their case studies and previous clients
Let the financial software development company know that you consider hiring them and ask for fintech case studies and references. In this way, you will establish contact and almost instantly be able to evaluate their approach and level of professionalism.
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Ask to see certification, security, and privacy policies.
When developing a fintech software solution, security and policy are the biggest concerns. The partner you select needs to know different answers to problems that might arise and strictly adhere to proper security standards and data management when developing a product to mitigate risk.

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Read moreChoose your niche: types of fintech software development services
Fintech and financial services companies are constantly innovating to meet evolving client needs. Extensive expertise across a wide range of fintech software solutions is essential in this tightly regulated sector, where deep domain knowledge and technical excellence make all the difference.
Key areas of financial software development services include:
- Embedded finance solutions that integrate financial services directly into non-financial platforms
- Digital banking platforms that enable seamless, secure online banking experiences
- Mobile payments and wallet applications facilitating fast, convenient transactions
- Payment processing software for efficient and compliant transaction handling
- Core banking software supporting the essential operations of banks and financial institutions
- Blockchain software development, cryptocurrencies, and central bank digital currency (CBDC) development for next-generation financial innovation
These financial software development services empower businesses to stay competitive by delivering user-friendly, secure, and compliant financial products tailored to market demands.
Choose the right fintech software development approach and model
Every fintech software development project has unique requirements. The first step is to clearly define the project scope, core features, and milestones before selecting the best financial software development model.
Consider:
- What is the full scope of the fintech solution?
- Which core features must the product have?
- What deadlines and milestones are critical?
With these insights, it becomes easier to select optimal financial software development services tailored to specific needs.
Fintech software development collaboration models:
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Team extension
Staff augmentation is ideal for projects requiring specific fintech software developers temporarily. These experts integrate smoothly with in-house teams, bringing the skills needed to support a wide range of initiatives – including fintech app development services, payment solutions, core banking systems and more.
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Dedicated team
For long-term fintech software development, dedicated teams function as an extension of the business. They take full ownership of financial services software development, ensuring high quality and deep domain expertise throughout the project.
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End-to-end delivery
For complex fintech projects requiring a full lifecycle approach, fintech solutions software development services cover everything – from planning to deployment. The client provides the vision; the partner manages and delivers the solution.
Partnering with a trusted financial software development company ensures technical excellence, proactive communication, and deep industry insight, turning fintech ideas into competitive, innovative products.

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Read moreHow Vega IT can help you with your fintech software development needs?
With a proven track record in building reliable, secure, and user-centric fintech products, Vega IT supports clients across the entire development lifecycle – from early discovery to delivery and beyond. Whether it's building a custom fintech app, scaling your development team with experienced fintech software developers, or developing complex financial platforms, collaboration is tailored to match each client’s specific goals.
By combining technical excellence with a partnership-based approach, Vega IT helps financial services companies transform their ideas into digital products that create real impact.
Ready to build your next fintech solution? Let’s talk.