Why Python Should Be the Choice For Fintech Industry in 2021

Python is the go-to language for building applications and web pages for several industries, including finance and fintech. Primarily because Python’s modeling capabilities and simple syntax provide an excellent outcome for digital solutions meant for several purposes, including trading, analysis, transaction processing, etc.
The finance and fintech industry is growing progressively with a specific interest in the latter. Until the first half of 2021, $98 billion dollars have been invested in fintech across the globe. 

It would be wrong to say that every one of the products that came out of these investments used python. We can say this with confidence that being the second most popular programming language (September 2021), Python was used extensively in fintech and finance development.

Python development company

Source: TIOBE

Let’s see why and how a Python development company uses this programming language to build finance and fintech-related solutions.

Python in Fintech and Finance

Python in Fintech and Finance

  1. It is used to Build Digital Wallets and Payment Interfaces

    Digital wallets and payment systems need the best security, speed, and encryption to conduct successful transactions. These applications are sold based on their security and ability to transfer money easily.When you hire Python developers for building a digital wallet, they will build a secure and scalable application. According to a WhiteSource report, Python’s vulnerabilities have been low to 5.45%, better than C, PHP, Java, and JavaScript. 

    Example: PayPal and Stripe.

  2. Analytical Systems and Software

    One of the most critical functions of the finance industry is analysis and monitoring. Python, by way of its simple syntax and flexibility, is well fitted to help build such systems characterized by quantitative financing.Programmers in a Python web development company can utilize libraries like Pandas which gives access to ready-to-use solutions for analyzing large data sets.Harnessing the programming language’s inbuilt capacity to process data quickly, you can hire python developers to create the required solution. Besides Pandas, other libraries are available, like Scikit and PyBrain. They also provide Python-based solutions powerful machine learning capabilities.

    Example:
    Holvi and Iwoca
  3. Building Cryptocurrency Solutions Every cryptocurrency-oriented business needs a digital front to help people engage and interact with the same.They need solutions to allow the community to carry out transactions, read data, analyze the market, speculate, study, research, transact, and whatnot. Subject to the fact that you choose the best Python development company, you will get a performant solution to begin with.This is because Python is effective for blockchain-based solutions due to its scripted language and pre-compiling. The pre-compiling specifically helps Python developers work on blockchain technology.Example: Enigma, Steemit.
  4. Banking Software and Solutions

    A lot of banks and financial institutions are pinning on Python to build their required solutions. The reasons for keeping Python into their tech stacks is how easy Python is to handle and its ease of scalability.As banks and other financial institutions need to quickly adapt to the market dynamics, they hire Python experts who can deliver them the required services effectively.Most importantly, Python covers every bit of banking function right from ATM management to auditing and data management. Its ability to build a secure and flexible platform makes the banks enhance their performance in terms of transaction processing, customer relationship management, and security.Example: Bank of America and J.P Morgan
  5. Building Trading Policies and their Implementation

    Stocks and trading markets absorb huge amounts of data on a daily basis, which needs management, sorting, and analysis. Because there is a huge amount of data involved, Python helps with its analysis and creating the required solutions.A Python development company follows a functional programming approach that helps write and evaluate trading structures required to analyze the data. Furthermore, we can extend the python code to include dynamic algorithms customizing them for trading purposes.Most of all, working and building these solutions with Python is quick, which is absent in C and C++.
    Example: Backtrader and IBPy

Why Fintech and Finance Companies Choose Python?
Python Development

Now that you know how we can use Python to develop digital solutions let’s see the reasons behind this heightened interest to choose Python.

  1. Flexible and Simple Coding
    Python is easy to write and understand. Due to this, it turns out to be a better choice for writing complex and high-performance applications and software. Because the majority of the functions in a financial and fintech software development company are complex, Python is well-suited to provide an easy solution.More importantly, Python’s syntax is manageable and effective in including numbers (data) easily. In other words, seeing the large amount of data generated in this industry, a Python development company can build a customized solution.Python Development Compay
    Source: Pixabay
  2. Helps Create a Solution FasterThe financial and fintech sector is as dynamic as it gets. With so many threats, opportunities, and possibilities coming up, the businesses and institutions need to understand them and respond accordingly rather quickly.The motive is to provide the required value as quickly as possible without risking security. This is where Python comes in as it offers building a scalable and flexible solution quickly.For best results, you can hire Python Django developers, as the combination of Django and Python will help you get the required solution cracking right away.
  3. Building Algorithms and Formulas

    It is said that Python brings together Data Science and Economics. In other words, it helps an organization harness the data and makes quick calculations while keeping in mind their impact on the economy.While the subject matter experts handle the economy part, your Python development company can build customized solutions catering to the requirements and conditions.As a result, economists and data scientists use Python-based solutions to make quick calculations. For this, the Python developers you hire can use SciPy, NumPy, or Matplotlib for building the interface to make complex calculations quickly.
  4. Extensive Libraries, Tools, and Ecosystem

    Working with Python means the developers will get access to a wide variety of tools and libraries. These additional tools add to the development and make working with the technology easier.Products and solutions in the fintech industry require several third-party integrations meant to make the solution secure, accessible, and more functional. Python’s libraries make this possible by giving your solution a competitive edge over the competition.
  5. Machine learning and AI ApplicationsAnother one of the reasons why you must hire Python developers for building fintech and finance applications is its affinity with machine learning and artificial intelligence. Both ML and AI are data-intensive technologies. And Python has several inbuilt systems to analyze and observe vast amounts of data. Moreover, due to Python’s compatibility with AI and ML, the developers can write the code for systems like chatbots and other smart applications.Furthermore, when used in the fintech industry specifically, Python is useful for creating a predictive analysis model required in investment, speculation, and trading functions.

Conclusion

Python did not pick up speed after its launch in 1991. But from 2007, Python started to gain some momentum and started getting popular. Today it is a part of the tech stack of several organizations, including the ones hailing from the finance and the fintech industry.

Its claim to fame comes from a fantastic community, extensive tools, libraries, ability to handle big data and reliability. All of these are essential to building the perfect digital solutions in the finance and fintech sector.

If you are looking to hire a Python development company to build the perfect, scalable, and modern solution, choose Inexture. With us, you will hire Python developers who are passionate about development and have extensive experience in the industry.

Join us to understand the true development power of Python and leverage it to write your success story.

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