A major trend in Financial Software development is a shift from on-premise tools to cloud-hosted programs. Companies, like Intuit, have come up with accounting, taxation and payroll software. You can access these platforms online, offering great convenience. This development in financial technology has transformed the role of financial professionals, such as CPAs.
Another development in financial technology is the use of Optical Character Recognition (OCR). This technology helps in browsing through multiple transactions on paper statements and scanning them into excel sheets making the reconciliation process much quicker than before.
Advancements in Financial Software Development
1. Use of Blockchain and AI
Blockchain continues to disrupt the financial industry in recent years. People have started investing in bitcoin, a blockchain currency. Software developers are now focusing on programs that can make bitcoin transactions convenient for users and service providers. On the other hand, developers are using AI for creating predictive financial models in multiple sectors, including wealth management, retail, and consumer services.
Just like the e-commerce wave of the early 90s, when businesses started focusing heavily on online sales, the financial services industry is now focusing on digitizing its operations to the maximum. This means that consumers need not visit their service providers. These service providers include banks, insurance companies or wealth managers to acquire information on their accounts. They can now access and transfer their balances online using digital media. Software development is continuously evolving to make the customer experience more convenient and faster than before.
Financial software development plays an important role in creating a paperless environment in the money markets. This means most of the transactions are taking place online or through mobile applications. Software programmers are working day and night to add cybersecurity features to digital transactions to make them safe for public transactions. Their efforts focus on reducing the risk of identity theft and fraud.
4. Shared Economy
The concept of a shared economy started with taxi services and hotel rooms and has now crept into the financial industry as well. Future developments in financial software will allow capital users to access financial resources through shared resources rather than going to the banks.
Financial software development is changing the way people access money and how organizations perform their accounting, taxation and payroll functions. Companies like Open Source Group have developed financial programs that add value for customers and corporations alike.