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Building a successful digital business requires perfecting many moving pieces, but a reliable foundation is a non-negotiable. In technology, this refers to the tech stack. A tech stack comprises programming languages, frameworks, a database, front-end tools, back-end tools, and applications, stacking to create a multi-layered ecosystem. Select the wrong programming language and you could derail your entire foundation.
Choose the right tech stack components and the benefits are endless. A flexible infrastructure will ensure that a FinTech company can scale and adapt to changes in the market, as there will be little-to-no barrier between your business and new digital features. With the right framework in place, implementing new services can be streamlined and fuss-free, without the risk of compromising other service areas (should there be rollout issues).
Selecting the right programming language and framework is the first layer of the foundation. For FinTech specifically, some codes will be a better fit than others.
The Top FinTech Programming Languages
Java
Java is one of the most well-known of all programming languages and is particularly popular with financial services due to its best-in-class security options. This code can handle large volumes of data in a secure environment — critical for banks processing high transaction traffic.
Python
Python is another popular programming language, praised for its speed of programming and simplicity. Python can be used to support pricing, trade management, and risk management platforms; it also offers a reduced error rate and is cheaper to run.
Ruby
As a newer programming language, Ruby is a strong option for those who want built-in plugins. Ruby is commonly used for digital payment systems, asset management systems, and e-wallets, and is designed to support secure and scalable apps.
C++
C++ is a strong option for those who prioritize speed and efficiency as it can handle numerous operations and advanced computations. It is commonly deployed for quantitative finance.
Kotlin
Kotlin is an open-source option that is expected to become a compelling alternative to Java. It is primarily used to develop web and mobile applications, including for the banking sector.
Top Trends for the Future of Fintech
If a company isn’t quite sure which tech stack to deploy, one approach is to consider the big trends in the market and determine which framework will accommodate them best. Tech stacks are meant to support an organization’s larger strategy, so it is important to keep that bigger picture in mind when making technology investments.
Looking ahead, regulatory changes may significantly impact the financial services sector. As new businesses get involved in financial services, particularly through the use of FinTech integrations, it is critical to adapt regulations as well. In order to stay above board, organizations should ensure that their technical framework supports regular audits and that a clear pipeline exists that incorporates verification of compliance so nothing slips through.
Business models are also expected to adapt as financial solutions become more accessible through embedded Fintech. Shared economy and business ecosystems will allow financial institutions to diversify their revenue streams, while other industries leverage payments in their own offerings. Tech stacks must be able to support these new channels if companies are to take advantage of market opportunities.
Experts forecast that many institutions will also invest in developing specialized infrastructure for their organizations to support these new channels. Digital platforms are already necessary to keep up with changing consumer behavior, while internal data hubs will help store and organize the greater volumes of data flowing through the company. This will come as institutions decentralize their financial services network, leveraging third-party solutions at scale for a more cost-effective and resource-efficient model.
Why a Flexible Tech Stack Is Critical
With so much change expected in the industry, financial institutions must protect themselves and ensure they are set up to weather this storm. If done right, not only will these companies survive, they will emerge with a stronger position in the market. The first step involves selecting the right tech stack and developing a long-term digital strategy.
A flexible tech stack provides a framework that supports multiple solutions and applications so that the company can swap in new tools as needed. The right infrastructure enables quick integration and data sharing so that all departments can benefit from the new solution and stay up to date. At the same time, individual programs will be deployed independently so that any potential issue is confined to that program alone; the rest of the platform’s operations will be uninterrupted.
Selecting a programming language and identifying the right tech stack may not seem as important or exciting as launching a new consumer product. But this decision will underpin the entire platform’s performance. Flexibility from the ground up will be critical to success.
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