JUNE 6, 2022
6 min read
Modern financial technology is reaching its peak. Don’t just take our word for it. Look at the stats — they reveal the whole story!
- $50 Billion is invested in fintechs annually
- Nearly two-thirds of all financial transactions are made online
- Every year, around 500 new fintech startups are established
- Banks can gain an up to 30% operations profit by turning to fintech
- Nearly 2 Billion people are still unbanked
The list might go indefinitely, but the idea stays the same. Fintech has undoubtedly emerged as the new black in the world of technology. When it comes to fintech, it’s easy to forget that the technology is responsible for half of the success or global trend toward digitalization.
You will be competing against players who offer innovative services based on scalable infrastructure. Catching the list of most popular backend technologies for web development may be the difference between becoming the next unicorn or crumbling beneath the weight of technical debt.
List of Most Popular Backend Technologies in 2022
There are many backend web development technologies one may choose. The choice typically depends on the scope of the project, one’s need to deal with legacy infrastructure, and plain old performance. That being said, there are specific elements you can’t overlook when choosing a back-end technology for your fintech project. They are:
- Robust infrastructure
- Potential of quickly dealing with regulatory issues if the need arises
- The capacity to respond quickly to customer interface issues
It is often approached as the best backend technology for web development. The astonishing statistic: 65% of developers use it as their main programming language today. The fact that this is the case brings several benefits:
- Finding talent is much simpler. Even new staff will be able to use the language.
- Great talent is relatively cheaper. IT outsourcing services or staff augmentation is much more cost-effective when you are looking for engineers who are experienced with the “traditional” tech stack.
- Perfect fit for legacy projects. What’s to say here? If you want to improve an existing banking application, chances are it was built using Java.
Then there’s security. This language has been the go-to technology for most banks and financial institutions for well over two decades for a reason. The technology can be manipulated for both enterprise financial institutions and new fintech startups. Furthermore, it is well-structured and gives developers access to a large variety of tools and third-party connections. It also offers security features out of the box, such as runtime constraints and an advanced security manager, helping to prevent fraud and cybercrime.
Lastly, Java is quite powerful. It offers developers a high level of functionality and deliverability, which is crucial in the rapidly developing banking and fintech businesses. One of the most mature programming languages in the market, it is both lightweight and flexible but still powerful to handle heavy volumes of data easily. Java helps organizations to give highly customized and cost-effective services to their customers and consumers since it can operate on practically any platform.
Python may not boast the huge history and longevity, but it is definitely among the best backend technologies and a solid choice for lightweight web-based fintech apps due to its simple yet robust nature.
The language is quite simple to master as its dynamically-typed syntax resembles English. In a word, your workers will be able to learn and master Python faster, resulting in a significant savings in technology acquisition costs. The ability to quickly read, understand and manipulate complex code is also an excellent feature for an industry that is evolving as dramatically as fintech. This means that both your time to market delivery and the ability to implement quick changes based on new regulations are enhanced putting the language in one row with top technologies used for backend development.
Lastly, Python is known for its robust ecosystem of libraries. It allows programmers to build platforms and even whole microservices without having to start from scratch with each component. When third-party APIs and frameworks are available, integrations become simpler and faster.
Python is their preferred programming language if you’ve got:
- Time to market delivery
- The ability to make swift changes.
- The ability to scale up or down your staff at any moment.
- A large selection of APIs and integrations for your project.
Ruby is a relatively fresh technology when it comes to fintech-specific software development projects. Nonetheless, it is one of the most prominent and quickly growing languages, primarily thanks to its powerful framework, Ruby on Rails.
Ruby and RoR are top backend technologies in 2022 when you are developing:
- Digital payment systems
- Asset management solutions
- Analytical projects and data visualization dashboards
What makes Ruby tick?
The language owes the lion’s share of its success in backend for financial technology to two primary factors: a wide variety of ready-to-use plugins and the aforementioned RoR framework. The combination of these factors allows for the development of secure, stable, and maintainable solutions without stomping time-to-market delivery into the ground.
The most prevalent disadvantage is a lack of proper documentation for its code. There is a massive amount of info accessible, but finding a particular item you need right now is nothing short of a monumental undertaking.
The boot speed is also nothing to write home about but it is a pretty minor disadvantage.
Previously, we’ve discussed various advantages of Kotlin vs Java. What’s especially great about the technology is that it is designed around the mobile-first approach. If you are developing a mobile banking app or a modern digital banking service and you can’t afford to compromise quality and security, Kotlin is a perfect choice.
It is often our weapon of choice for most fintech projects. Some of the greatest advantages this language offers are:
- High performance
- Compatibility with Java
- A highly functional JVM version
- A reliable concurrency model
- Simple syntax
- The vast availability of tools, resources, frameworks, and APIs
As for the disadvantages, Kotlin is a relatively new technology and, as such, there aren’t too many experts available on the market. However, you are aware of where to find them.
If you are developing a data-heavy solution designed with quantitative financial analytics in mind, C++ is probably your best backend development platform. The language is fast and efficient.
More on the matter, C++ is known for offering high speed of execution and the capability to deal with countless numerous operations simultaneously.
Developers who rely on C++ advocate reusability of code so even if it takes longer to build the initial elements of a product, the code is then easily repurposed to speed up ongoing development stages.
A wide gallery of tools and frameworks as well as great accessibility of talent on the market also make the language into one of the best technology stack for backend development.
That being said, C++ isn’t the most reliable technology when it comes to security so you will probably face many more issues when dealing with regulatory compliance. Because of the vastness and complexity of the language, onboarding new staff will be difficult.
What is the Best Backend Technology for Fintech Project?
The fintech firms and technologies presented here are only a sampling of what’s available. Even yet, the financial industry is well-versed in these situations. Remember these stacks if you’re working on your own financial business and want to use the appropriate backend platform. The back-end is built using many programming languages, including Java, Kotlin, Python, C++, C#, and Ruby, all of which are popular in the financial business.
The significance of technology and software testing cannot be emphasized. If you don’t care about testing, even the most advanced tech stack with the most relevant technologies might fail. Proper quality assurance (QA) guarantees that your software performs as intended and provides the services needed by its end users. Thus, start with planning and analyzing, then build your technological stack, and don’t forget to test everything during development!
Traditional technologies may not be adequate if you want to create the best tech stack for a digital banking app. Banks are being compelled to look for new and better methods to service their clients, and new and cutting-edge technology is more crucial than ever.
The Progress Locomotive never stops
There is nothing you can do since technology has developed. Even in a nascent industry like fintech, programmers have the choice of using Java, Kotlin, Python, or RoR. The best course of action is to accept the change and see it as a chance to progress.
As a consequence, jumping on board with “the next big thing” isn’t always the greatest decision. Why recreate the wheel when C++ has been available for decades and works best for Big Data analytics solutions?
Consider the size of your project, your criteria, the functionality you want, and the audience for whom you are developing the solution. Only then can you choose the best technology stack for your product’s backend.