Why Python Should Be the Choice For Fintech Industry in 2021

Python development company, python web development services, hire python developers

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. 


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.

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.



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 Python development services 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 with 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 Web 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?


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.  


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 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.


Visit Our Blog: Why Python Should Be the Choice For Fintech Industry in 2021

Published by Mahipalsinh Rana

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