The banking industry is arguably at its peak, and that makes competition between different companies fierce.
Market giants have an easy time staying ahead, which is why small startups need to take measures to stay afloat, but how do they do it? The answer is simple: IT Staff Augmentation service.
This service, used by Fintech companies worldwide, is simple but offers multiple benefits.
Basically, it consists of an external team fully dedicated to the project or projects for which they are hired, with flexible schedules and experts in the appropriate technologies and tools, previously defined in a consulting phase.
How are Fintech companies evolving?
Traditional banking companies have changed, evolved, and adapted to the needs of the modern customer and an increasingly accelerated world, both technologically and in terms of economic growth. Hence the need for a team with up-to-date knowledge.
Hiring the services of a company dedicated to IT Staff Augmentation offers the following benefits:
- Senior software developers with international certifications
- Time zone flexibility, adapting to the needs of the Fintech startup
- Immediate start of work, addressing the Fintech’s weaknesses
- Daily reporting of work done with the goal of achieving the proposed goal
This will be immediately noticeable in your company with an increase in production, customer satisfaction, and innovative projects launched to keep up with the competition.
Are there real cases where IT Staff Augmentation has helped a Fintech?
Of course it is. This is a service created almost with a Fintech company in mind, ready to help whenever needed.
A case we can use as an example: there is a Fintech company dedicated to offering microloans to its client base, but it is facing slowness in the application process and, in the process, struggling with a faulty website.
After exploring various options for improvements, they decided to hire the services of an IT staff augmentation company.
Following a consultation where they defined the project objectives, a team was assigned to not only update the existing systems but also create new modules that allowed the fintech company to accelerate the lending process and thus double its client base.
Their website was also updated, as part of the team focused on its design and development, giving the fintech company a modern and attractive touch, helping them gain even more clients.
Fintechs’ Challenges in IT Staff Augmentation
Though staff augmentation service has become a strategic advantage for fintechs – a fallout from it giving them immediate access to specialized technological skills and the ability to quickly scale up teams without the rigidity of traditional hiring – it is not without its significant challenges:
Culture and Communication Management
- Merging external and internal teams can create clashes in work culture.
- It requires firm leadership, established processes, and collaboration tools to achieve coherence.
Security and Confidentiality
- In a highly regulated sector like the financial sector, outsourcing sensitive information to third-party providers requires rigorous compliance and cybersecurity protocols.
Supplier Dependence
- Excessive use of staff augmentation can make the startup dependent on third-party vendors for critical tasks, decreasing autonomy in the long term.
Scalability and Continuity
- The model is great for rapid expansion, but unless a transition plan exists (for example, keeping a couple of experts or documenting learnings), learning is lost when consultants finish their contracts.
Regulatory Compliance
- Financial regulations are often a stumbling block for Fintech companies. They require the company to comply with all regulations and laws, many of them governmental, which can complicate hiring an external IT team and its subsequent audit.
Conclusion
It’s no secret, but IT Staff Augmentation can be the solution to the problems facing Fintech companies today.
It’s important to hire experts with certifications and proven experience. Analyze their portfolio of past projects and ensure they meet all safety standards.
