One of the hottest trends has become, undoubtedly, the global rise of FinTech firms with IT firms who specialize in bridging the gap between the worlds of finance and technology.
These firms are pioneering the future of how money works, streamlining the current financial ecosystems and paving the way for new applications and new ways people can make money, invest money and spend money.
Capitalizing on customers’ dislikes and frustrations with dealing with standard banks and other traditional financial institutions, FinTech firms have created a niche by offering consumers various financial services such as (but not limited to) mobile payments, money transfers as well as a myriad of online trading platforms.
Nowhere in the world have FinTech firms established as strong a foothold as in Berlin, maybe not so much the financial capital of Germany as is Frankfurt, but certainly Berlin is not only the capital of Germany but in the past few years the innovative metropolitan has become the IT start-up as well as the FinTech capital for all of Europe.
According to The FinTech 2.0 Paper: Rebooting Financial Services, the 2.0 version of FinTech will focus on two key aspects: more efficient and reliable use of data as well as engineering more robust, easy-to-use customer experiences.
Banks must continue on their journeys of digitisation. But they need not travel alone. They should be clear about where their market advantages and institutional strengths lie. Where they fall short they should look to work with the start-ups who can provide what they need, The FinTech 2.0 paper advises.
What Kinds Of FinTech Services Can Benefit From QA Outsourcing?
There are a wide variety of FinTech services that can not only benefit from QA Outsourcing but that really require establishing trusted partnerships with QA experts.
From equity funding and money transfer services to mobile payments and trading platforms, FinTech seems to have its finger on the pulse of a new wave of financial transactions that rely on solidly built and rigorously tested information technological systems.
Once only applicable and accessible to large financial institutions, the transparency, ease of use and deployment of FinTech systems has become a revolutionary game changer in the funding of and operation of small and medium-sized businesses as well as consumers around the globe.
Please note in the infographic below how small to medium sized businesses are incorporating Fintech solutions on both sides of their balance sheets: Fintech frameworks and tools for both conglomerating their assets as well as managing and reducing their liabilities.
What Kind Of Services Rely On FinTech?
The quick answer is that there are plenty.
First, come the crowd-funding services such as Kickstarter, Patreon and Go Fund Me that all empower consumers as well as entrepreneurs to bypass normal bank loans and raise their own capital for their projects. Also widely popular are money transfer services such as Revolut with the global mobile payment market surpassing $1 trillion in transactions last year, according to Statista.com.
Establishing a rock solid QA Testing Strategy in FinTech firms who manage cryptocurrency exchanges such as Coinbase and Gemini establish secure and reliable platforms for the buyers and sellers of bitcoins.
Another huge sector is the growing field of Robo-Advising and Stock-Trading Apps which allow potential investors to circumvent the normal channels of trading and to literally have more of a hands-on, thumbs-on-app approach to making trades such as with the low-minimum apps like Robinhood or Acorns. It is expected that, by the end of 2020 ,the volume traded on these platforms will exceed $10 trillion with about 60% of that in B2B e-commerce.
According to the FinTech Adoption Index, an annual survey of almost 25,000 “digitally active” consumers, “FinTech has achieved initial mass adoption in most countries” and has “gained significant market traction.”
The Index Survey’s findings include:
- Most consumers already use at least 2 FinTech services.
- Markets with the highest adoption rates: China (69%) and India (52%)
- Evidence of heightened awareness: 84% aware of FinTech services
- Adoption of FinTech has been led by younger and higher income users, as the graphic below illustrates.
The survey also finds that the number one reason consumers are ready to ditch their normal banking options and adopt FinTech solutions is that FinTech accounts are relatively easy to set up and many of these firms offer very competitive and attractive rates/fees.
The infographic below does a very good job at explaining consumer adoption of FinTech services.
Berlin FinTech Hub
Germany’s fastest and most highly charged FinTech hub, Berlin has been skyrocketing in terms of leading the charge on the European FinTech scene.
With the instability of German banks and the larger overall European economy which Germany primarily fuels, the German capital has become a magnet for FinTech start-ups who show record growth both in revenue as well as attracting reputable international IT talent with one firm boasting employees from over 30 countries.
Especially paired with the outsourced QA expertise of neighboring Poland and Eastern Europe, Berlin is poised to become a world leader in FinTech development.
Overview Of Berlin’s FinTech Landscape
Like a veritable and fertile garden, there are literally hundreds of FinTech start-up companies blossoming in Berlin. Here are three of the quickest growing and wildly successful FinTech firms:
For the past seven years, N26 has emerged as a neo-bank with millions of commercial and private clients throughout Europe, the United Kingdom and the United States.
Partnering with other FinTech firms, N26 is known for offering the creme de la creme of financial services, including transfers, savings, insurance, credit and more. The FinTech firm has been cited as “one of the most well-funded fintech companies in Germany.”
One of the largest FinTech companies in all of Germany, Smava is a loan portal, making personal loans to customers in the most transparent, fair and affordable manner. They aim for transparency and fairness and last year their portal arranged for about $1 billion in personal loans, partnering with over 20 international banking institutions.
Raisin, an up-and-coming player in the Berlin FinTech scene is Raisin, a firm that offers savings and investment services for its clients. According to their web site, Raisin is currently operating in 30+ countries around the world and boasts about a quarter of a million customers. It partners with over 90 banks and financial institutions and has aggregated about $22 billion in assets.
With over 300 FinTech firms in Germany alone, here are some of the most well-funded firms with their disclosed funding as of 2018.
- Kreditech Holding – US$282M
- Deposit Solutions – US$143.6M
- Spotcap – US$132.92M
- solarisBank – US$112.76M
- Simplesurance – US$57M
- Scalable Capital – US$45M
- Clark – US$45M
In addition, here is a graphical overview of the current German Fintech landscape, highlighting the relationship between traditional banks, FinTech startup companies and their relationship to investment agencies as well as larger financial players on the global scene.
What Outsourced QA Testing Teams Can Offer FinTech Firms
“Nothing eats up an IT budget like a failed application deployment and the associated rollback. DevOps’ continuous delivery/continuous integration reduces errors by doing away with manual interventions by operations.
With a ‘shift-left’ mentality there is a focus on replicating production earlier in the life-cycle so small configuration changes don’t blow up down the road. The result of shared involvement is fewer unpleasant surprises and higher quality releases” reports Brad Parks, Vice President of Business Development at Morpheus Data.
With millions of dollars and euros existing as sensitive digitized data which mostly flow between various financial and technological ecosystems, FinTech companies are scrambling to outsource their Quality Assurance needs to trusted teams such as Apphawks to make sure transactions are safe, secure and reliably made.
The main QA Testing Strategy for any FinTech firm hovers around avoiding insufficient testing, working with unsanitized data, poorly maintaining software as well as addressing any and all practices that could lead to disastrous security breaches.
FinTech firms’ QA Process Implementation strategies ideally should hover around three main pillars:
- Quality Assurance is the number one priority: With the threat of mistakes costing in excess of hundreds of thousands of US dollars, there is no room for error when it comes to ensuring every product and service functions seamlessly.
- Integrating QA Testing to the processing of all data flows: With literally terabytes of financial data that FinTech firms must process at every stage of their operation, QA Testing teams are integral to maintaining the viability of all transactions and automating them whenever possible.
- Embracing industry standards such as DevOps and Swift Agile Frameworks that aim to marry development with QA Testing Continuous Development and Integration to ensure the best user experience that of course save the firm countless hours of effort and keep down costs.
Built on strategies such as Containerization, DevSecOps, which hinges on all important Key Encryption mechanisms to keep all parties’ personal financial information private and safe, outsourcing your FinTech’s QA Testing needs to monitor and maintain the highest quality excellence has never been easier and has never been more advisable.
We here at Apphawks would love to offer Berlin’s FinTech firms our wide array of QA Testing Services as well as our experience to design solid and robust QA Process implementation strategies.
With Apphawks’ headquarters located in Poznan, Poland, a mere 3 hours car or train journey to Berlin, Apphawks is ready to offer its outsourcing services to any number of Berlin FinTech start-ups.
With Poland and Eastern Europe leading the software and QA Testing markets, we at Apphawks are looking especially for those firms who want to bring on board an experienced team of QA Engineers to ensure their projects are born, bug-free, issue-free and are developed with extensibility in mind as their services scale up to meet the million of users who are really driving this market for the financial technological needs of the future.
Apphawks has a proven track record instilling confidence not only among its clients, the creators and producers of mobile apps and software, but also among these firms’ growing worldwide base of users.
Please contact us today and as neighbors in Poland, we would be more than happy to set up a face to face consultation with you.