Many factors define the quality of a web solution, including its performance under increasing load, code maintainability, and overall system security, which all rely on a high-capacity backend system.

In a landscape filled with backend technologies including Ruby, Node.js, Go, Python, and PHP, selecting the right technology stack is crucial. While navigating this diversity might pose a challenge, we’re here to help.

In this article, we closely examine Go and Node.js, both of which are known as robust backend technologies: 

Renowned companies such as Uber, UpGuard, and Koding have made the transition from Node.js to Go, while tech giants like Netflix remain loyal to Node.js. With each technology excelling in different domains, let’s explore which is the right fit for your project.

Exploring Go

Go, or Golang, is a compiled open-source programming language. First introduced by Google in 2009, Go aims to combine the best parts of existing programming languages while solving common pain points.

Like C++ and Java, Go is statically typed for efficiency. It also has syntax similarities to C for speed and simplicity. The result is a lightweight language optimized for building readable, reliable, and scalable software.

Read also: Why use the Go language for your project?

Becoming Go

Widespread adoption

The first stable release of Go came in 2011. It featured built-in support for concurrency with goroutines and channels that helped ensure hassle-free data exchange. It also included a garbage collector and testing tools out of the box.

Since then, Go has steadily gained popularity in the developer community. Tiobe named Go the Programming Language of the Year in 2009 and 2016. The PYPL Index confirms Go’s popularity, ranking it 12th out of 29 languages based on Google searches for learning tutorials. In the Stack Overflow Developer Survey 2023, Go was the 13th most popular programming language.

Notable companies using Go include Google, Uber, the BBC, SoundCloud, and Basecamp. Go has become a preferred choice for building scalable web applications and cloud-native applications. As developers continue to adopt Go for its simplicity, speed, and scalability, it’s poised for even greater growth. Its blend of features, like fast compile times, concurrency support, and minimalist syntax, make Go a worthy addition to any engineering team’s tech stack.

Primary use cases

Go excels as a systems language for services, APIs, web apps, and distributed systems. Its sweet spot is backend development, where efficiency and reliability are critical.

While Go is usable for frontend development, other languages like JavaScript are more common. Go isn’t ideal for processor-intensive tasks better handled by C++. But its versatility and focus on productivity make it a handy tool for all kinds of development.

[How organizations use Golang]

Exploring Node.js

Node.js is a JavaScript runtime environment built on Google Chrome’s V8 engine. First introduced at JSConf in 2008, Node.js was quickly embraced by developers. It allows you to write JavaScript code on both the front end and back end without learning multiple languages.

Node.js is an open-source platform that runs on various operating systems. It excels at creating fast, scalable server-side applications and real-time services.

[How organizations use Node.js]

Widespread adoption

In 2014, an independent fork of Node.js, known as io.js, emerged. A year later, the io.js and Node.js communities merged to form the Node.js Foundation. Today, Node.js is the most popular JavaScript framework, while JavaScript holds the status of the #1 programming language on StackOverflow. Major companies have broadly adopted it, including Netflix, eBay, and Groupon, which use it for full-stack development. 

At Yalantis, our recent Node.js projects include a live election data processing app, an IoT-based enterprise SaaS solution, and a wealth management platform.

Primary use cases

Node.js is primarily used for backend development and full-stack applications. It excels at handling server-side logic and APIs. While it has some frontend capabilities, Node.js is better suited for server-side tasks, real-time services, and asynchronous operations. Frontend developers often prefer dedicated UI frameworks over Node.js for their work.

Node.js’s flexibility and extensive libraries continue to make it a valuable choice across domains. It empowers developers to build fast, scalable applications using a single language for both the client and server sides.

[Top industries that use Node.js. Data source: Enlyft]

Comparing Go vs Node.js

Now that we’ve provided background information about Node.js and Go, we see that both languages are modern and performant options used for backend web development but with different philosophies and strengths.

But if compared head to head, how do Go and Node.js stack up? Let’s compare them across a few key factors like scalability, performance, and error handling.

Short on time? Take a look at this quick comparison: 

 

Aspect

Node.js

Go (Golang)

Execution speed

Interpreted language, affecting speed, but with high performance through asynchronous operations and optimization

Compiled language with low overhead, making it fast and efficient

Concurrency

Supports optimal concurrency with Event Loop and worker threads

Built-in goroutines for efficient concurrency

Performance

Medium

Excellent

Scalability

Good for I/O-bound tasks

Excellent for both CPU and I/O-bound tasks

Ease of learning

Relatively easy due to JavaScript familiarity

Generally easy to learn, especially for experienced developers

Community & ecosystem

Large and active community, extensive npm package ecosystem

Growing community, rich standard library, and support for modules

Web development

Strong for server-side; supports frontend development with frameworks like Express.js

Strong for server-side; not typically used for frontend development

Use cases

Ideal for web servers, APIs, and real-time applications

Ideal for microservices, system-level programming, and high-performance applications

Error handling

Callbacks, promises, async/await

Built-in error handling and return values

Tooling

Abundance of development tools and libraries

Strong tooling support, including gofmt, go vet, and more

Deployment

Easy deployment with various hosting options

Simple deployment as a single binary with no runtime dependencies

Static typing

Dynamic typing

Strongly typed language

Learning curve

Lower for beginners familiar with JavaScript

Moderate for newcomers, quicker for experienced developers

For a more detailed comparison of different criteria, keep reading our guide.  

Criterion #1: Performance

In terms of raw performance, Go is the indisputable leader. But in real life, Node.js and Go show equally good performance. 

 

Go

Go is renowned for its remarkable performance and is often likened to C and C++. The absence of a virtual machine, along with its compilation to machine code, ensures that Go programs execute swiftly, without the need for warm-up time.

Furthermore, Go boasts a built-in garbage collector that diligently manages memory, identifying and releasing unneeded memory to reduce the risk of security vulnerabilities. This robust memory management, combined with Go’s small memory footprint and fast performance, makes it an ideal choice for building microservices and generating statically linked binaries.

Node.js

Node.js offers unique performance characteristics of its own. Inherited from JavaScript, its asynchronous and non-blocking nature allows Node.js to perform small tasks in the background, ensuring that they don’t disrupt the main thread. Additionally, Node.js harnesses the power of the V8 engine, renowned as one of the fastest JavaScript engines.

Node.js’s code reusability is another standout feature. This trait is particularly valuable for event-based applications, such as for real-time data updates, making it a popular choice for instant messaging, video chats, and online gaming.

In real-world scenarios, notable organizations like PayPal and Medium have experienced significant benefits from using Node.js. PayPal saw a 200 millisecond reduction in page load times and a 35% decrease in average response times after migrating from Java to Node.js. Similarly, Medium, an online publishing platform, leveraged Node.js’s event-driven, non-blocking architecture to achieve remarkable performance, scalability, and enhanced user experiences.

For further performance comparisons, you can refer to synthetic tests conducted by The Computer Language Benchmarks Game.

 

binary-trees

source

secs

mem

gz

cpu secs

Node js

6.37

1295776

711

19.51

Go 

14.69

642688

666

58.49

Criterion #2: Scalability and concurrency

Concurrency allows a program to run multiple tasks simultaneously and communicate between them. It’s an effective way to utilize the CPU and boost app performance. 

Both Go and Node.js are capable of efficiently handling large numbers of concurrent connections and requests. However, at a large scale, Go may have a slight advantage due to its compiled nature.

 

Go

Concurrency is a central focus in Go, making it a robust choice for large software projects. Go provides developers with channels and goroutines, enabling efficient organization and execution of concurrent tasks. 

Goroutines are lightweight, initially occupying just 4 KB of memory, in stark contrast to operating system threads, which begin at 1 MB. This allows developers to run thousands of goroutines simultaneously without excessive RAM use. Communication between goroutines is facilitated through channels, simplifying program structure and maintainability.

[This is how goroutines work]

Node.js

Node.js uses an event-driven, non-blocking input/output (I/O) model that makes it lightweight and efficient for handling I/O-intensive workloads.

However, Node.js executes on a single thread. So CPU-intensive tasks can block the event loop and prevent other I/O operations from being handled promptly. This can lead to program slowdowns and frustrating user experiences.

Criterion #3: Community & ecosystem

Node.js and Go are open-source, with communities contributing to their development. While both have GitHub repositories, they differ in size and focus. Node.js has a mature and vibrant community, while Go’s community is smaller but growing, backed by Google’s support.

 

Go

The annual GopherCon brings Go developers worldwide together to discuss new opportunities and advancements. This conference has played a pivotal role in attracting more developers to contribute to the Go community and its projects. 

A 2023 Golang survey underlines high levels of satisfaction among Go developers and reinforces Go’s status as a prominent choice for efficient and scalable software solutions.

Node.js

The Node.js Foundation actively promotes widespread adoption, with a dedicated security team and long-term support plans for stability. The Technical Steering Committee, consisting of 11 regular members and over 3,200 contributors, further demonstrates the community’s vitality. 

Notable companies like GoDaddy, Intel, IBM, Microsoft, PayPal, and NodeSource are active members of the Node.js Foundation. The community hosts the annual Node+JS Interactive event to introduce improvements and changes, and Node.js boasts over one billion downloads and 98,000 GitHub stars to date.

Criterion #4: Tooling

Node.js offers a wide array of development tools and frameworks, making it an attractive choice. However, with its smaller toolkit compared to Node.js, Go provides some powerful tools of its own.

 

Node.js

Node.js provides a wealth of development tools and frameworks thanks to its event-based framework and microservices architecture. This architecture allows for easily adding new components to your app. The Node.js package manager (npm) is a standout feature, offering access to approximately 1,300,000 ready-made tools. However, navigating them can be challenging due to the lack of a well-structured list.

Go

In contrast, Go offers a more streamlined selection of tools, largely thanks to its comprehensive standard library, which often negates the need for third-party support. On the other hand, Go lacks a built-in GUI library.

Notably, despite having fewer tools compared to Node.js, Go still boasts robust tools like Gofmt, Godoc, GoMetaLiner, and Go run.

Criterion #5: Error handling

Go and Node.js differ in their error handling approaches due to different language and runtime characteristics. For example, Go focuses on explicit error handling with return values and encourages error wrapping. In contrast, Node.js follows an event-driven, callback-based approach, with recent improvements like Promises and async/await for structured error handling. So both have their merits. 

 

Go

Strong typing and explicit errors. Go is a statically typed language, which means that variable types are known at compile time. Go encourages the use of explicit error handling through a combination of return values and error type. Functions often return two values: the result and an error. Developers are expected to check the error value explicitly.

result, err := someFunction()
if err != nil {
// Handle the error
}

Error wrapping. Go provides a mechanism for wrapping errors to add context and details to an error. This can help in creating a chain of errors to understand the root cause of an issue.

err := someFunction()
if err != nil {
return fmt.Errorf("additional context: %w", err) 
}

Panic and recover. In exceptional cases, Go allows for panics (similar to exceptions in other languages), which can be caught and recovered using the recover function. However, panics are typically reserved for unrecoverable errors.

Node.js

Asynchronous nature. Node.js has an asynchronous, event-driven architecture. Many operations are non-blocking and use callbacks or Promises to handle errors.

someFunction((err, result) => {
    if (err) {
        // Handle the error
    }
});

Promise-based error handling. With the advent of Promises and async/await in JavaScript, error handling has become more structured and readable in Node.js.

try {
    const result = await someFunction();
} catch (error) {
   // Handle the error
}

Event emitters. Node.js often uses event emitters for handling errors in event-driven applications. Error events can be emitted and then handled.

emitter.on('error', (err) => {
    // Handle the error
});

Exception handling. Node.js provides a way to catch unhandled exceptions using the process.on(‘uncaughtException’) event. However, it’s generally recommended to avoid unhandled exceptions and handle errors gracefully.

Real-life experience of major tech players with Go and Node.js

Now, let’s see what popular companies say about using Go and Node.js for software development. 

 

Go

Uber. In 2016, Uber migrated from Node.js to Go to improve the performance of their geofence lookup microservice. This microservice turned out to be the company’s service with the most queries per second (QPS). 

There were two main reasons why Uber decided to migrate to Go: 

  1. The dynamically typed and interpreted nature of Node.js hinders the ability to efficiently handle CPU-intensive point-in-polygon algorithms.
  2. To ensure that they had the freshest geofence information, Uber needed to refresh information from several sources simultaneously. While this took a lot of time with single-threaded Node.js, Go’s Goroutines enabled parallel execution and provided an easier learning curve.

Overall, Uber developers have praised Go for its reliability, ease of adoption, and maintenance, achieving 99.99% uptime and handling peak loads of 170,000 queries per second. 

[Major companies using Golang]

Basecamp. Go has found its way into Basecamp’s backend services and infrastructure, and Basecamp has highlighted Go’s simplicity. Noah Lorang, a data analyst at Basecamp, says that Go is a great solution for building data pipelines thanks to its goroutines. In his mind, Go’s main pros are its robust standard library, simple syntax, and easy refactoring and deployment processes. 

Node.js

Netflix. The whole user interface of the Netflix app is built with Node.js. The Netflix development team chose Node.js because they wanted a fast and lightweight application. By moving to Node.js, they achieved a 70% reduction in app startup time. 

Groupon. Under the guidance of director of software engineering Adam Geitgey, Groupon switched from Ruby to Node.js. They made this change because JavaScript is nearly a universal language, making it simple for their frontend developers to adopt Node.js. Additionally, Node.js performance empowers Groupon to efficiently handle over 425,000 active deals.

[Major companies using Node.js]

These real-world experiences showcase how Go and Node.js cater to specific requirements, delivering improved performance and ease of use in different contexts.

So, who wins the Node.js vs Go battle?

To sum it up, Go excels in handling high loads and is a strong contender for microservices and enterprise-scale projects. On the other hand, Node.js offers a vast array of ready-made solutions, reducing custom software development time and providing versatility for various development challenges.

The key takeaway is that there’s no one-size-fits-all answer; the right choice depends on the type and characteristics of your application. Each tool has its strengths and is tailored for different tasks.

Struggling to make a decision? Feel free to reach out to us and we’ll assist you in making the right choice based on your project’s requirements.

Have a web app in mind?

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Yalantis has launched its own line of ready-to-use products that have been proven efficient in a diversity of operations including managing delivery teams, facilitating development processes, and serving as a foundation for complex IoT product delivery. All of these products will be available in the Solution Hub section of our website.

Why launch a Solution Hub? 

As a long-term player in the outsourcing software development industry, we considered the pain points and technological priorities our clients faced with their product delivery throughout more than a decade. Our objective was to identify which problems remained relevant despite changing market circumstances.

 

“As the Chief Technology Officer, I am delighted to unveil the Yalantis Solution Hub, a transformative initiative designed to empower businesses with a robust strategy for exponential growth. This initiative is rooted in our commitment to deliver unparalleled business value to our clients.”

— Denis Doronin, Chief Technology Officer at Yalantis 

Tailoring solution adaptability and flexibility across diverse industries

All of our products and solutions can be tailored to your specific needs and branded according to your corporate style. Their architecture allows for a streamlined and quick integration with various third-party services necessary for your daily operations, such as Jira, Confluence, and more. 

To expedite the adoption of any solution, our technical team is available to deploy, configure, and develop these solutions into your comprehensive end-to-end business product. Additionally, we can organize workshops for your internal teams to ensure seamless integration and effective utilization of the solutions.


Key solutions in our pilot release

The first release includes the following solutions:

  • Yalantis IoT Accelerator: A domain-agnostic and easily scalable data management platform with a set of customizable features focused on receiving, sending, processing and analyzing real-time IoT data on energy consumption.
  • Yalantis Predictive ML Model: A customizable and easily integrated model for real-time IoT data processing and analysis that works based on machine learning algorithms.
  • Yalantis Enterprise Resource Planning (ERP): An ERP system providing opportunities for accurate and convenient financial management and reporting, streamlined human resources allocation, and efficient project management.
  • Yalantis Competency Evaluation Platform (CEP): An internal system for evaluating employees’ performance and competency levels throughout their cooperation with the company.
  • Yalantis Payments: A corporate platform for the comprehensive management of employees’ compensation.
  • Ya.me: A custom HRM system with flexible roles and permission flow that can allow employees to easily monitor their available leaves and get a transparent overview of the company’s structure. 

All of these products are distributed under the Yalantis license, and, if needed, you can get a comprehensive consultation from our support team or technical specialists. 

However, the work isn’t finished yet. In the near future, there will be even more updates within the Solution Hub, and you’ll find that instrument you’ve been lacking in your business processes. Stay tuned!

A skilled developer can speed up development timelines, deftly handle challenges, and provide ongoing maintenance, giving you the ability to stimulate innovation, preserve competitiveness, and deliver excellent user experiences while maintaining complete control over the development process. With their technical expertise, your software will be built with cutting-edge technology and accepted industry standards in addition to being customized to your specific specifications.

Partner with one of the best software developers in the market today, partner with Yalantis! Yalantis stands out as a reputable software engineering and IT consulting firm, having amassed more than 13 years of expertise and proudly holding ISO 9001 and ISO/IEC 27001 certifications. Our extensive presence across Europe through various development centers and a skilled team exceeding 500 professionals which enables us to deliver great solutions.

As a matter of fact, we’ve been recently named as one of the most-reviewed software developers in Warsaw by The Manifest. This award means a lot to us and we are extremely proud to be featured on this list.

The Manifest is a business blog platform that aims to gather and verify the hard data, expert insights, and actionable advice that you need to build your brand and grow your business – to provide the practical business wisdom that manifests in your success.

We would like to thank our clients for being a significant part of this award. We couldn’t have done it without you! Thank you for your support and for trusting us with your business.

We’d love to work with you.

Collaborate with Yalantis today!

Contact us

We are delighted to announce that we’ve been recently recognized by The Manifest as one of the most reviewed app developers in Lviv, Ukraine. Getting on this list of winners underscores our achievements obtained as the result of our incredible efforts in the software development industry.

This award is a testament to the high quality of our development services and reflects our fruitful client relationships. We would like to extend our gratitude to our wonderful clients and partners for their overwhelming support. To The Manifest and their team, thank you for choosing us for this special award.

The Manifest is a business blog and reviews website that gathers and verifies the hard data, expert insights, and actionable advice that you need to build your brand and grow your business. Consequently, The Manifest strives to provide practical business wisdom that manifests in your success.

Established in 2008, Yalantis has achieved a stable and long-lasting market position. We are an ISO 9001 and ISO/IEC 27001 certified software engineering and IT consulting company with over 500 experts on board. Among our clients are globally recognized brands such as Toyota Tsusho, Bosch, Zillow, KPMG, and LifeWorks.

If you are looking for a development partner with exceptional and polished software development services that is capable of satisfying your business needs, you’re in the right place! Tell us about your project today.

In search of a reliable software development and IT consulting partner?

Check out how we can help

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We are delighted to announce that we’ve been ranked second in a list of the top 10 IoT app development companies for July 2023. This list was compiled by FindBestWebDevelopment, which helps businesses find expert software development providers. In ranking providers, FindBestWebDevelopment examines their ability to deliver innovative and consumer-centered IoT solutions.

Yalantis develops smart home, building automation, industrial, automotive, healthcare, and other IoT solutions. Examples of our complex IoT-related projects include:

  • WisDM, a SaaS solution that provides automated management of IoT networks
  • a telehealth solution with medical IoT device integration
  • ConnectHome, an IoT solution for automated smart home management
  • team augmentation for a producer of IoT devices and software for their management

Yalantis clients benefit from our:

  • vast expertise gained through multiple successful IoT projects across various domains
  • time-saving, cost-efficient, and secure development approach
  • innovative product mindset ensured by engaging top talent and modern technology
  • commitment to creating software considering clients’ long-term goals
  • dedication to delivering scalable and flexible solutions to meet ever-changing business needs

Looking for a trusted IoT development partner?

Learn what we can do to successfully implement your project.

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On June 13, 2023, Yalantis hosted a knowledge-sharing event in Warsaw, Poland, to discuss the latest AI and ML technologies. More than 70 attendees listened to four top-notch speakers from Yalantis. Let’s look at a quick overview of each presentation.

How AI and ML disrupt businesses of all sizes

Denys Doronin, our Chief Technology Officer, covered a brief history of AI and ML evolution and how each type of business can benefit from implementing AI and ML. Given a limited number of resources, small businesses can benefit from launching a niche AI solution to win the market. Midsize businesses may already have many interconnected systems and lots of data sets, and they can use AI/ML for scaling. Large enterprises, in turn, can use AI/ML to improve their operations at the departmental level.

Data is the new precious metal of the 21st century. If you, as a business representative, know how to use your data most effectively using ML and AI, then you can get it all: a competitive advantage, automation, increased business efficiency, and much more.

Denys Doronin, Chief Technology Officer

ML use cases

In his interactive presentation, Serhii Zhuravel, our Director of Engineering, explained that ML comprises algorithms fed with structured data to perform tasks that aren’t rule-based with much higher accuracy than humans. Serhii also pointed out that when working on ML projects, we first need to clearly define the problem to solve. Only then can we integrate a suitable ML model, refine it if the initial solution was incorrect, and monitor the model for consistently correct results.

Clients may have data with which they want to teach a neural network to solve certain practical tasks. But it may turn out that the data is labeled incorrectly or is too specific. That’s why we need to carry out a feasibility study to define if the collected data is fitting to implement an ML model.

Serhii Zhuravel, Director of Engineering

Architecture design techniques to build corporate ML chatbots 

The next speaker was Maksym Moskvychev, our Head of Architecture Design Office. Maksym’s speech focused on a Yalantis ML project. With the help of ChatGPT, Yalantis built a website chatbot for prospective clients and a Slack chatbot to help the sales team quickly find relevant case studies and articles. Maksym’s team needed to define which components to develop from scratch and which existing solutions could be used. To deliver optimal products, the team used The Open Group Architecture Framework (TOGAF) approach and architectural tradeoff analysis.

To start this project, we developed an architectural vision first, which means transforming the client’s requirements into clear statements to make it easier for us to work on the project.

Maksym Moskvychev, Head of Architecture Design Office

AI and ML advancements and trends in IoT software projects

Denys Hukov, our Program and Delivery Manager, discussed the benefits and opportunities of adopting AI and ML in the IoT domain. Key benefits range from processing large data sets that numerous IoT devices generate in real time to efficiently detecting operational anomalies and enhancing predictive maintenance. Denys also covered a few success stories of IoT companies implementing AI, such as the Polish company Bin-e, which offers smart AI-based waste bins; and Google’s Waymo Via project, which provides self-driving trucks.

What’s next with AI and ML solutions? No one actually knows. Personally, I see the future of IoT in using AI-/ML-enhanced edge computing and visual recognition to support quick and automated decision-making.

Denys Hukov, Program and Delivery Manager

Stay tuned for more upcoming online and offline events from the Yalantis team on technology and business topics. You can learn about new events on our company’s social media pages, including on LinkedIn.

Transform your business operations with a custom AI solution

Define the feasibility of implementing AI or ML into your project and ensure streamlined execution with a highly experienced team.

Contact us

We are excited and honored to announce our collaboration with X, a US R&D factory founded by Google in 2010. This innovation lab is at the forefront of technological breakthroughs. Calling themselves Moonshot Factory, X aims to pursue moonshots — fixing global problems by inventing disruptive new technologies. 

Google Glass, Google Brain, Google Watch, and Google Camera are only a few projects successfully implemented by X. Technologies being developed by X range from industrial robotics and smart wearable devices to driverless cars and renewable energy storage systems.  

As an experienced and reliable technical vendor, we provided X with software engineering services.

Need a reliable and trusted technology partner?

Our experts can help you with software development, reengineering, and support

Get in touch

According to the US Federal Trade Commission, American consumers lost nearly $8.8 billion in 2022 due to fraud. By comparison, in 2021, losses from fraud amounted to $5.8 billion. Fraudulent activity is becoming a growing concern for businesses, with more cases of fraud happening every day. FinTech businesses, in particular, are highly vulnerable to fraud due to the nature of their operations. As a result, it has become critically important for them to implement anti-fraud solutions to protect themselves and their customers from potential financial losses and to avoid reputational damage.

In this article, we explore recent fraud trends and what businesses should consider when implementing anti-fraud solutions.

 

What is fraud detection and anti-fraud software? 

Fraud detection refers to measures taken to identify and prevent fraudulent activities before they can cause harm. These measures typically involve either implementing software for detecting fraud or educating employees and users about emerging fraud trends. Educating employees and users is a popular supplementary measure among traditional banks and neobanks, which commonly use social media or email campaigns to increase awareness of fraudulent schemes.

Anti-fraud software contains sophisticated tools to detect and prevent fraud without human intervention. It offers a range of functionality such as for identifying duplicates, signaling potentially fraudulent transactions based on preset rules and scenarios, and calculating behavioral risk scores. By adopting anti-fraud software, financial technology companies can enhance their customers’ financial security and protect customers’ assets.

Providers of anti-fraud software constantly monitor the market, closely examining emerging fraud trends and updating their software accordingly. This ensures that the software is able to identify and prevent new types of fraudulent activities.

FinTech fraud trends in 2023

Fraud threats can arise from anywhere and may come from external perpetrators or even your own employees. Types of fraudulent activities vary based on the type of perpetrator and on the ultimate target — a business or an individual.

Let’s take a look at the most common types of FinTech fraud and segment them by target audience.

Business-oriented fraud

FinTech businesses are increasingly becoming targets for fraudulent attacks. These attacks can cause significant financial losses, not to mention the potential loss of customers and reputational damage, making it crucial for businesses to be proactive about detecting and preventing fraud. The types of fraud FinTech businesses usually face include:

  • Bank insider fraud: This type of fraud is committed by an employee or insider within a bank or other financial institution. It can involve embezzlement, theft, or other illegal activities that result in financial losses for the bank and/or its customers.
  • Invoice fraud: This occurs when a fraudster sends a fake invoice to a company or individual, usually for goods or services that were never provided. The recipient pays the invoice only to later discover that they have been scammed.
  • Digital asset scams: Such scams can take many forms, including Ponzi schemes (an investment scam where returns are paid from new investors’ money), fake initial coin offerings (ICOs), and fraudulent cryptocurrency exchanges. Fraudsters may promise high returns or exclusive access to digital assets in exchange for money or personal information.
  • Business email compromise: This type of fraud involves a cybercriminal impersonating a high-level executive or vendor and sending fraudulent emails to employees or customers. Through these emails, cybercriminals may request sensitive information or authorize fraudulent transactions, leading to financial losses for the business.
  • Money mules: These are individuals who are recruited by fraudsters to transfer money or goods between different accounts. The mules are often unaware that they are participating in illegal activities and may be tricked into transferring money to overseas accounts or buying goods with stolen credit cards.

Individual-oriented fraud

A significant proportion of fraud attacks target individuals’ accounts, transactions, and identities.

  • Phishing is a type of fraud that involves tricking individuals into providing sensitive information such as login credentials or credit card numbers through fraudulent emails or websites.
  • Synthetic identity fraud involves creating a new identity by combining real and fake personal information. This information is then used to open new credit card accounts or take out loans.
  • Account takeover occurs when a fraudster gains access to a victim’s account via stolen credentials and uses it to make fraudulent transactions or steal personal information.
  • Transaction fraud involves unauthorized transactions on a victim’s account with the help of stolen payment information.
  • A technical support scam is when fraudsters contact individuals and pretend to be from a reputable technical support company, offering to fix a non-existent problem in exchange for money or access to personal information.

To protect businesses and individuals from such attacks, anti-fraud software providers implement advanced technologies capable of identifying fraudulent activities.

Fraud prevention solutions for FinTech companies: tried-and-tested technologies and approaches 

In this section, we outline which technologies our financial software development company uses to effectively fight fraud and discuss how companies themselves should contribute to lowering the chance of fraud attacks being successful.

 

Technologies to use in advanced anti-fraud solutions

As fraudsters become more skilled in carrying out fraudulent activities, fraud prevention software should keep pace by using advanced technologies capable of identifying modernized or new fraudulent schemes:

Artificial intelligence (AI) in combination with machine learning (ML) are increasingly used in fraud detection software due to their ability to process vast amounts of data quickly and accurately. AI and ML algorithms can analyze behavioral patterns and identify anomalies that could indicate fraudulent activity. They can also help with predictive modeling, natural language processing (NLP), and image (document) analysis.

Predictive analytics is used in fraud detection software to identify and signal potential fraud in real time by analyzing patterns and anomalies in transaction data.

Business intelligence (BI) can be used to analyze historical and real-time financial data and identify areas that are most vulnerable to fraudulent activity. Relying on such research, businesses can achieve cost optimizations by eliminating vulnerabilities and protecting their systems against fraud attacks.

Rule-based transaction monitoring involves setting up predefined rules to detect and prevent fraud by identifying suspicious activity and instantly blocking transactions that don’t meet predefined criteria.

High-risk alerts. Automated high-risk alerts can be generated based on criteria such as unusually large transaction amounts or suspicious transaction patterns. This allows the risk management team to take immediate action to prevent fraudulent activities.

Data interchange security. Anti-fraud software must guarantee security when integrating with FinTech solutions by implementing various security measures such as encryption, secure data transmission protocols, and access controls.

KYC (know your customer) and KYB (know your business). Integrating KYC/KYB services can help to identify and prevent fraudulent activities, including money laundering and identity theft. By verifying the identities of and information about customers and businesses, organizations can ensure that their operations comply with relevant requirements and minimize the risks associated with fraudulent transactions.

 

Learn how Yalantis built an automated cybersecurity ecosystem for a Fin Tech company

READ CASE STUDY

Company-based anti-fraud strategies and approaches

Not only anti-fraud software vendors participate in protecting FinTech organizations. There are also a bunch of responsibilities on the shoulders of the fraud prevention department at these organizations:

 

  • Risk assessment and mitigation. Conducting risk assessments can help identify potential fraud risks and determine proper mitigation strategies to prevent or reduce the impact of fraudulent activity.
  • Fraud investigation. In the event that fraud occurs, companies must conduct a thorough investigation to identify the root cause and any possible vulnerabilities revealed by the attack that must be addressed.
  • Awareness of fraud trends. As new fraud techniques emerge, companies must adapt their fraud prevention strategies to stay ahead of the threats. This may involve implementing new technologies, updating policies and procedures, or investing in additional employee and user training.
  • Customer and employee education. Educating customers and employees on fraud prevention best practices can help reduce the risk of fraud by raising awareness and promoting good security practices.

When it comes to implementing anti-fraud software, companies face a challenging decision: choose a ready-made solution or invest in custom software development. Let’s talk about each option in detail.

Ready-made vs custom fraud detection solutions 

While both options offer benefits and drawbacks, the choice ultimately depends on the business’s specific needs and resources. First, it’s important to examine what ready-made solutions may provide you with.

Top 3 anti-fraud products in 2023

 

ClearSale is cloud-based fraud protection software that uses advanced algorithms and artificial intelligence to identify and prevent fraudulent activities across multiple channels. Its key functionalities are:

  • Multi-layered fraud detection using artificial intelligence, machine learning, and expert human analysis
  • Global fraud protection with a focus on cross-border transactions
  • Customizable fraud rules and thresholds based on business requirements
  • Real-time decision-making and order review
  • Chargeback guarantees and fraud insurance to protect against losses

 

2. Seon

Image source: G2

Seon is fraud prevention software that combines data enrichment, behavioral analytics, and machine learning to identify and prevent fraudulent activities in real time. The Seon fraud prevention solution is flexible and customizable, and its feature set includes:

  • Real-time fraud detection using data enrichment and behavioral analytics
  • Customizable fraud rules and thresholds based on business requirements
  • Advanced device fingerprinting to detect and prevent device-related fraud
  • Transaction monitoring to identify patterns and anomalies in transaction data
  • Chargeback protection and fraud management tools to streamline the dispute process

3. Tookitaki

 

Source: Tookitaki website

Tookitaki is an anti-money laundering (AML) tool that utilizes machine learning and artificial intelligence to detect, investigate, and report suspicious activities while reducing false positives and streamlining compliance processes. Tookitaki provides the following functionality:

  • Risk-based real-time alert generation for detecting suspicious activity
  • Automated transaction monitoring for AML compliance
  • Advanced analytics and reporting for enhanced risk assessment
  • Machine learning algorithms for accurate identification of suspicious patterns
  • Continuous monitoring and screening for ongoing AML risk management

Yalantis has experience working with Tookitaki on mobile banking development project which involved building a reliable anti-fraud protection system for a large US-based neobank. The results of our work were a 40% decrease in fraud-related financial losses within a quarter.

Limitations of anti-fraud software

Despite its efficiency, an average anti-fraud solution has the following limitations:

  • False positives. It’s not possible to guarantee that financial fraud detection software is capable of identifying all fraudulent activity, as user behavior varies and deviates from patterns. This creates the risk of suspecting the wrong users or damaging a company’s reputation.
  • False negatives. Fraud detection software relies on historical data and predefined rules to identify fraudulent activities, and it may not always identify new or emerging fraud patterns. In addition, fraudsters may be able to avoid detection by using sophisticated tactics that the software isn’t designed to detect. This can result in fraudulent activities going undetected, leading to financial losses for the business.
  • Incompatibility with legacy systems. Legacy systems often use outdated technology and may not be compatible with modern fraud detection software. This can make it difficult and time-consuming to integrate anti-fraud software with existing systems, requiring additional resources and expertise.
  • Limited detection capabilities. Some fraud detection software may not be able to detect all types of fraud, such as identity theft or social engineering scams, which require human intelligence and intervention. In addition, fraudsters may be able to bypass fraud detection systems by using new or emerging techniques that the software isn’t designed to detect.
  • Maintenance and updates. Fraud detection software requires regular maintenance, updates, and even staff retraining to stay effective, which can be time-consuming, costly, and process-disruptive.

Obviously, such limitations may put obstacles in the way of error-free and stable integration with anti-fraud software. Besides these limitations, there are also technical challenges to integrating with fraud detection solutions.

 

Common challenges FinTech companies face when implementing fraud prevention software

There are three challenges FinTech companies commonly face when implementing fraud prevention software:

  • High costs. Сompanies have to spend a lot of time and money on research to find the right anti-fraud software that will be technologically compatible with their platform and have all necessary functionality. It’s especially important if your solution has legacy code. Then after the right solution is found, the company has to spend resources implementing it and ensuring its stable performance.
  • Scalability. The fraud prevention solution you’ve chosen has to keep up with your platform. Your business will likely grow, and you will process more transactions, serve more end users, and become a target for more fraudsters. As such, your fraud detection software should be capable of detecting fraudulent activities on a greater scale. If you initially choose a weak solution, you will have to switch to a scalable one (which also will cost quite a penny); otherwise, you’ll lose a lot of money.
  • Third-party services. Implementing anti-fraud software requires integrations with third-party services, which presumes exchanging data. In this case, a business should ensure that software providers have proper security measures in place and aren’t vulnerable to data breaches. This means additional monitoring and the implementation of supplementary security measures.

Custom fraud detection software as a solution to the imperfections of ready-made tools

Unlike ready-made solutions, custom software can break through limitations that may be present in off-the-shelf products, allowing for a more efficient and effective fraud prevention system. Among the business benefits that custom anti-fraud solutions offer are:

 

  • Adaptable to specific business needs: Custom anti-fraud software will be developed to meet the specific needs of a business. This means that software engineers take into account factors such as the industry, the size of the business, and unique risks and vulnerabilities that are specific to the business, making the software more effective in detecting and preventing fraud.
  • Greater flexibility and scalability: Custom fraud prevention software will be more technologically flexible and scalable than off-the-shelf solutions. This allows for easier integration with existing systems and the ability to adapt to changing business needs. With a custom fraud detection solution, you will have the software needed to grow and evolve as your business expands or changes.
  • Improved accuracy and efficiency: Anti-fraud systems developed from the ground up are usually optimized for specific types of fraud that a business typically faces. This specialization increases the accuracy and efficiency of detection and prevention efforts. The software can be designed to detect subtle changes in patterns, identify unusual behaviors or transactions, and identify other suspicious activities, resulting in quicker and more accurate fraud detection.
  • Enhanced security: Custom anti-fraud software is built with security in mind, exploiting advanced encryption and other security features to protect sensitive data and prevent unauthorized access. Such software should meet specific security standards and compliance requirements.
  • Cost-effectiveness in the long run: Although developing custom anti-fraud software may require higher upfront investment, it can be more cost-effective in the long run. Since the software is tailored to the specific needs of the business, it can reduce the risk of financial losses due to fraudulent activity. This also eliminates the need for ongoing licensing fees for off-the-shelf solutions. Custom software can also provide a higher return on investment (ROI) due to improved fraud detection and prevention, leading to greater customer trust.

Conclusion 

Fraud detection software is of the utmost importance in today’s business environment, where fraudsters are constantly developing new tactics to deceive and steal from companies and their customers. With the increasing demand for this type of software, businesses must be considerate in selecting the right solution that suits their unique needs.

While off-the-shelf solutions may seem attractive in the short term, custom software development offers greater flexibility and customizability, allowing businesses to tailor the solution to their specific requirements. By investing in custom fraud detection software, businesses can better protect themselves from financial losses and reputational damage caused by fraudulent activities, giving them confidence to focus on their specific operations and growth.

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FAQ

Why does your FinTech company need an anti-fraud solution?

Companies need anti-fraud software to protect themselves from financial losses, reputational damage, and legal liabilities. With the increasing complexity and frequency of fraudulent schemes, it has become critical for companies to implement effective fraud detection and prevention solutions. Anti-fraud software from a fraud detection company can help identify and investigate suspicious transactions, analyze data patterns to detect anomalies, and monitor internal controls and compliance. By using advanced technologies such as artificial intelligence and machine learning, anti-fraud software can provide real-time protection against fraudsters and minimize the risk of financial crimes.

What technologies do you use when developing a fraud protection solution?

When developing fraud protection software solutions, we use the technologies that will work best for our clients, considering the specifics of their business. Such technologies include AI in combination with ML, predictive analytics, and rule-based transaction monitoring. These are must-have technologies, especially for large organizations that need reliable financial fraud detection software. Depending on the type of business, we also develop customized protection mechanisms that meet specific business requirements. 

What experience do you have developing anti fraud software?

Yalantis has been working in the FinTech industry for over seven years. We have developed solutions for traditional banks, neobanks, wealth management platforms, stock operations management platforms, and other FinTech institutions. All of them have required reliable anti-fraud systems to prevent financial losses and secure customers’ transactions. We’ve worked on holistic anti-fraud systems and rule-based fraud detection algorithms according to our clients’ needs. 

Financial management software helps businesses manage all of their regular financial operations, which include managing, planning, analyzing, and predicting revenue, expenses, and assets. It’s no wonder that the global financial management software market is expected to reach $24.4 billion by 2026.

In this article, we explain the necessity of implementing financial management software and the benefits a business may get from doing so, including process automation, cost optimization, and risk predictions.

 

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Types of software products for the solution of financial management tasks in 2023

There are three main types of software for financial management: accounting software, financial management software, and enterprise resource planning (ERP) software. They can be considered stepping stones as your company’s financial intelligence needs and market size grow. All of them help your business achieve new goals in the course of the company’s development. And as you move from one type of financial management software to a more sophisticated type, they help your company’s departments or divisions work together more cohesively.

Let’s consider these types of software as a financial solution pyramid:

 

Stage 1: Accounting software 

Accounting software assists finance departments in keeping track of billing, invoicing, record-keeping, expense tracking, accounts payable and receivable, and other financial operations. It is mostly used by small businesses whose financial operations are relatively simple.

Stage 2: Financial management software 

Financial management solutions help midsize and large companies with all accounting operations and more advanced financial affairs such as asset management. This includes forecasting and planning future expenses, analyzing expenditures with data visualization, ensuring compliance with regulatory requirements, automating operations, and monitoring the business’s overall financial stability.

Stage 3: Enterprise resource planning

Enterprise resource planning, or ERP, systems are more complex all-in-one solutions that, in addition to helping with financial operations, assist users with managing human resources, finances, projects, customer support, and other aspects of the business. All insights about operation of these departments are considered and integrated to enable business owners to effectively manage the business.

ERP systems can be too costly and complex at the earliest stages of a company’s growth. That’s why we recommend you rely on our financial software development services to gradually move from accounting software to financial management software and to ERP systems as your business grows to build successful financial processes in accordance with your business capabilities and potential.

What benefits will you get from financial management system software? 

Finance management software actively assists businesses in building effective financial operations and switching to a paperless office. Among the benefits of financial management solutions are:

 

  • Full financial transparency. With a financial management system, all financial operations in your company will become transparent, as all documentation will be synchronized and visualized, and possible errors or inconsistencies will be highlighted. Also, financial management software offers smart reporting with insights on all financial operations.
  • Greater operational, time, and cost efficiency. Financial management software for businesses provides vast opportunities for process automation. With smart automation, your staff won’t spend a huge amount of time on basic but resource-intensive operations that can easily be completed by the system itself. For example, the system can generate financial reports or carry out recurring transactions.
  • Elimination of human errors. With a financial management system, your specialists will only need to create the right automations scenarios for completing specific tasks. This way, you will avoid human errors in calculations and data inconsistencies that can critically damage financial statements.
  • Data-driven decision-making. Thanks to the advanced analytics and data visualization available in financial management solutions, your financial specialists can see the company’s current financial performance and suggest ways to improve performance. Moreover, financial digitalization and historical data analysis will allow the director of the finance department to plan and forecast future expenses more accurately, help identify poor decisions or ineffective strategies, and avoid them in the future.

See how we developed a wealth management platform for Lifeworks

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Choosing the right finance management solution for your business

It’s common to believe that mobile application development for banking requires to pay particular attention to user experience and functionality set but, in fact, any financial software needs this. Here are a few aspects you have to consider when purchasing or subscribing to a financial management solution:

  • Functionality
  • Convenience of the interface
  • Maintenance and support

In this section, we discuss must-have functionality for financial management systems and discuss the financial management solutions with the most user-friendly interfaces, constant support, and regular product updates.

Criteria for successful finance management software

To maximize business efficiency, you will have to choose a solution with a feature set that supports:

  • Basic accounting operations. A financial management solution should provide you with convenient record-keeping functionality for expenses, revenue, assets, liabilities, and so on. Additionally, you should be able to monitor all transactions, generate reports, and work with financial statements.
  • Process automation. To achieve efficient financial management, you should be able to automate fundamental operations such as payments and report generation.
  • International financial operations. If your business is international, your financial management solution should support multiple languages, international transactions, operations with multiple currencies and conversions, and compliance with location-specific financial requirements.
  • Financial planning. Make sure the solution you want to implement will support accurate financial planning and allow for comprehensive planning with historical data and complex analysis of trends, patterns, and fluctuations.
  • Cash flow monitoring and management. Double-check if your finance management software will help to simplify and unify cash flow management tasks and activities such as consolidations, budgeting, and allocations and provide a  real-time view of the organization’s cash flow.
  • Analytics and reporting. Software should allow for financial reporting including balance sheets, profit and loss statements, budget allocations, and ad-hoc reports. More advanced systems may offer AI-based insights and optimization suggestions based on your company’s historical financial data.

Besides having a great feature set, your financial management solution should enable your business to scale. It’s impossible to manage the finances of an enterprise-level company with a solution that’s only capable of serving small businesses. Also, you won’t be able to achieve maximum business efficiency if your finance department doesn’t have a convenient enough working environment. There are a few aspects we recommend paying close attention to when choosing software for financial management:

Seamless integration and scalability. Your financial management solution has to be flexible enough for seamless and quick implementation, provide all necessary documentation, and easily integrate with other systems. Also, it has to manage rapid scaling and keep pace with your business expansion.

Product updates. To be sure that you’ve chosen a solution capable of serving you well in the long run, check its history of updates. A software provider should regularly deliver new functionality or product updates to support your business workflows and any new financial operations.

Customer support. You have to be sure bugs and feature requests conveyed to the support team will be considered and resolved as soon as possible so that your business can operate smoothly. Read product reviews and forums to learn whether people are satisfied with the system you’re interested in.

User experience. The system’s user interface (UI) and user experience (UX) should be convenient enough for daily operations, intuitive to reduce the time for onboarding, and streamlined to complete tasks with a minimum number of screens and clicks.

Top 5 financial management solutions on the market

Before getting into the list of solutions we’ve prepared, it’s important to note that just purchasing or subscribing to a financial management solution isn’t enough. The IT department needs to migrate all available data, set proper data backup procedures, and prepare onboarding for the whole finance department.

If you don’t have an IT department or if they need some assistance from an experienced team, you can rely on outsourcing software development companies like Yalantis to make sure you are all set for handling complex financial operations. And in case you need any other services such as payment app development, we can always have your back and even manage parallel projects. 

 

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Having analyzed a variety of options, we are ready to present the top five financial management solutions for businesses:

 

1. QuickBooks

Source: QuickBooks website

QuickBooks is financial management software for small and medium-sized businesses. It provides an easy-to-use interface and allows businesses to streamline their accounting processes, increase accuracy, and save time and money. Its key functionalities include:

  • Invoicing and billing
  • Expense tracking and management
  • Payroll processing
  • Bank account and credit card integration
  • Inventory tracking
  • Sales and tax calculation
  • Financial reporting and analysis
  • Time tracking
  • Mobile access and integration with other apps
  • Multi-user access and permissions

 

2. SAP Financial Management Software

Source: SAP Financial Management Software website

SAP Financial Management is enterprise-level financial management software that helps businesses streamline their financial processes, optimize their cash flows, and reduce financial risk. It offers advanced automation and analytics capabilities and can be customized to meet specific business needs. Key functionalities of SAP Financial Management:

  • General ledger and accounting
  • Accounts payable and receivable
  • Cash management and forecasting
  • Treasury management and risk analysis
  • Financial planning and budgeting
  • Asset accounting and management
  • Tax management and compliance
  • Real-time financial reporting and analysis
  • Multi-currency and multi-language support
  • Integration with other SAP modules

 

3. Oracle NetSuite Cloud Accounting Software 

Source: Oracle NetSuite website

Oracle NetSuite Cloud Accounting is cloud-based accounting software that helps businesses manage their finances, accounting, and compliance requirements in a secure and scalable environment. It offers advanced security and disaster recovery capabilities. Key functionalities include:

  • General ledger and financial management
  • Accounts payable and receivable
  • Bank and credit card integration
  • Expense management and tracking
  • Multi-currency and multi-language support
  • Tax management and compliance
  • Real-time financial reporting and analysis
  • Customization and scalability
  • Integration with other NetSuite modules
  • Mobile access and collaboration tools

 

4. Workday Financial Management 

Source: Workday Financial Management website

Workday Financial Management is cloud-based financial management software that helps businesses manage their accounting, procurement, and expenses in a single system. It offers advanced automation and analytics capabilities and can be customized to meet specific business needs. Its functionalities include:

  • General ledger, accounts payable, and accounts receivable
  • Procurement and inventory management
  • Asset management and depreciation
  • Expense management and tracking
  • Revenue management and billing
  • Financial reporting and analysis
  • Audit and compliance management
  • Multi-currency and multi-entity support
  • Integration with other Workday modules

 

5. Sage Accounting 

Source: Sage Accounting website

Sage Accounting is cloud-based accounting software that helps small businesses manage their accounting and financial needs. It offers personalized dashboards, insights, and notifications to support decision-making, and it can be accessed from any device. Its key functionalities include:

  • Invoicing and payment processing
  • Expense tracking and bank reconciliation
  • Financial reporting and analysis
  • Inventory and project management
  • Multi-currency and multi-language support
  • Tax management and compliance
  • Customization and scalability
  • Integration with other Sage products and third-party apps

Imperfections users face when implementing ready-made financial management solutions

There are a few reasons why ready-made solutions aren’t always the best option:

  • Legacy code. This is a common problem with financial management solutions for businesses, as most of them have been developed since the 2000s and contain outdated technologies. In the future, such systems may not be capable of providing your company with the performance, stability, and functionality you need.
  • Legacy UX. One consequence of legacy code is non-optimized processes that can affect the finance team’s user experience and efficiency. This may result in multiple steps to complete a single task, time-consuming processing of database requests, or simply the necessity to manually monitor data consistency in various software modules.
  • Lack of flexibility. Some financial management software isn’t flexible enough in terms of integrations with third-party providers or the ability to make changes to its codebase quickly without affecting the whole platform’s operation.

What other options do you have besides ready-to-use financial management solutions?

Building a custom financial management solution can be an alternative to choosing from ready-made solutions. By opting for custom solution development, companies can address two main concerns: proper data security and long-term technological stability. With custom solutions, companies can:

  • Customize and strengthen their data protection ecosystem
  • Avoid switching to another solution provider or integrating with third-party services if the initial solution isn’t capable of covering all their needs

You might say these aren’t sufficient reasons to go for custom solution development and that everything can be solved by choosing a technologically suitable solution. However, there are crucial business benefits to building custom financial management software:

  • No dependence on an external solution provider. When you build a custom solution, you own the software and are its main stakeholder. With full rights to change anything within your solution, you won’t have to depend on the off-the-shelf solution provider and wait until the desired functionality is implemented. For that matter, functionality you want might never be implemented if it’s only required by your business.
  • Long-run cost efficiency. B2B financial management software is costly, as pricing is based on the number of users. The bigger your finance department and the faster your business grows, the more money you will have to pay each year. It may turn out that your overall expenses on ready-made software will be enough to cover custom end-to-end solution development.
  • Ability to perfectly cover all of your current and future needs. With custom solution development, you won’t have any gaps in your solution’s functionality. Your software will be perfectly tailored to your business’s needs and requirements. And if you need new functionality, the development team can deliver it to you on demand, customized to your new needs.
  • Easy and affordable support by a small IT department. You won’t need a big development team once your custom system is completed. It will be enough to work with a small support team that can monitor and maintain your system.
  • Improved data security. When developing a cloud-based solution or integrating with third-party services, software engineers can ensure maximum security of data in transit and in storage based on your business’s specific requirements.

Outsourcing accounting services: building a data automation bridge between companies with hybrid software development

It’s common to leave financial matters to accounting outsourcing companies that carry out all bookkeeping operations. This helps to reduce labor costs and avoid the necessity of maintaining a huge finance department. The only challenge accounting companies have to overcome to ensure smooth collaboration is setting up proper data interchange between their clients’ systems and the software they use themselves.

Most of the time, accounting companies have to manually upload data about the accounts they work with, which is highly inefficient and time-consuming. Needless to say, this also affects their clients. In this case, the best option will be to integrate both solutions through a custom unified interface.

This way, both sides will achieve maximum efficiency in managing information. All financial data about the company will be automatically uploaded to the accounting software, and, in the event of sudden changes, the information will be synchronized across both systems to maintain its integrity. Such hybrid software development is less costly than custom developing a solution from scratch and can be of great help when it comes to outsourcing financial services.

What about personal financial management solutions? 

The financial management software market contains more than just IT financial management software. Ordinary people also want to keep their finances in order.

As younger generations become more interested in financial knowledge and control over their finances, investments, and wealth management in general, they are also becoming a lucrative target audience for businesses delivering personal financial management solutions. It’s predicted that the size of the global personal finance software market will reach $1.57 billion by 2027.

Applications for personal finance are usually not that complex, as their focus is far from business accounting operations and enterprise-level financial planning. If you want to become a financial management software vendor but aren’t sure about building a B2B solution, consider developing a personal financial management solution. This way, your business may spend fewer resources on development.

Yalantis has experience building products for young audiences. Learn about how we delivered a high-quality neobanking product for one of the top American neobanks.

Conclusion

Financial management is complex and resource-intensive. Financial management solutions should be directed towards making this process smoother and less complicated. If you want to get an efficient and long-lasting solution that’s able to meet future needs, consult with an experienced team if you don’t have subject matter experts in your company.

Over years of actively developing solutions for various industries, including FinTech, Yalantis has come up with a unique software development strategy that helps our clients save resources. We can provide you with functionality for each process in your financial department. With our help, you can build a solution for rapidly scaling and quickly implementing new functionality.

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We are proud and delighted to announce our successful 18-month collaboration with the Toyota Tsusho Corporation. This is a trading company and a member of the Toyota Group. With 150+ offices and 900 subsidiaries and affiliates, Toyota Tsusho has a global presence. The corporation is involved in marketing chemical products, performing integration functions, exporting passenger cars and commercial vehicles, supplying energy solutions, enhancing initiatives to create a stable food supply, and more.

 

Our collaboration with the Toyota Tsusho Corporation started in the summer of 2020, and for over 18 months we’ve been serving as a reliable technology vendor.

“It is a great honor to announce our partnership with the Toyota Tsusho Corporation. Toyota Tsusho is a powerful and technologically advanced business, and we are proud to be a trustful vendor for them,” says Oleksandr Kholodov, CEO and co-founder of Yalantis.

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