Local software developers in the financial sector are in high demand as they capitalise on expertise from operating in one of the most sophisticated banking and advanced mobile tech environments.
South African software developers that service the financial sector are in high demand locally and internationally as they capitalise on expertise gleaned from operating in one of the most sophisticated banking and advanced mobile tech environments in the world.
The country’s highly progressive banking system, good technical skills, mobile know-how and competitive pricing are making it an important destination for international fintech software development.
The mobile space particularly is growing increasingly important as consumers around the world perform more financial transactions from their mobile devices.
Local financial services organisations are leading the way in demonstrating how these mobile apps can be functional, transactional and secure.
“South Africa has a developed banking system, and our mobile technology is equally modern. Put that together with innovative software developers, and you have a combination that’s ready to take on the world,” says Martin Dippenaar, CEO of Cape Town software developers, Global Kinetic.
“We spend a lot of time abroad, building products, which gives us a good perspective on the state of banking in other regions too,” adds Dippenaar.
South Africa has a relatively small banking community of just 13 banks, made up of the big five, and then second tier operators. By comparison, says Dippenaar, there are around 12,000 banks and credit unions in the US, each with separate licences, and operating autonomously.
“We can effect change here in South Africa a lot faster than is possible in such a disparate environment,” he says.
“The US banking system as a whole is also not particularly advanced. For example, around a quarter of all payments in that country happen by cheque. There are few organisations in South Africa still using such a dated process.”
While banking in the US is market-driven, in Europe the impetus behind innovation is spurred by regulation.
“More innovative mobile banking products are likely to come out of Europe in time, as progressive legislation starts to make deployment of mobile banking technology a lot easier there,” says Dippenaar.
In 2018, Europe will introduce the Payment Services Directive 2 (PSD2) protocol. The objective of PSD2 is to standardise the sector and make payments safer, increase consumer protection, and stimulate innovation and competition.
Although all banking apps need to allow users to do similar things like check balances and perform transactions, the real challenge for developers lies in consolidating and standardising the underlying technologies that allow these transactions to be carried out across multiple systems.
Schalk Nolte, CEO of mobile security specialists, Entersekt, based in Stellenbosch, says developing fintech apps requires an understanding of a wide range of issues and disciplines.
“These include regulatory compliance, privacy, accuracy, and protection of personal information. Development needs to be highly secure, super accurate, and involves intensive testing, especially for banking platforms.
“There are huge opportunities for tech companies designing new ways of delivering financial services to end-users,” he says.
“South Africa stands out as an attractive destination for fintech software development not least because development costs here are in rands. Our rates are highly competitive, with a higher quality of service and expertise than at other development sites around the world, including those in Eastern Europe, India and the Philippines,” concludes Dippenaar.
Nolte adds: “Banks, insurance companies, and many other financial services organisations are turning to South African specialist software developers because they are likely to have already encountered and dealt with the challenges of bringing secure banking and mobile technology together.”