The FinTech industry looks for the right technology that can support the business and for this the industry finds Ruby on Rails to be a perfect option. Yes! If you are looking for a strong, scalable, and safe backend technology that can support the FinTech domain then Ruby is the right choice, as it has the most suitable features with great advantages. There are so many companies associated with the financial technology sector. Every start-up and established company looks for a stable and secure return on investment (RoI) framework.
FinTech Industry
The latest technologies, such as Blockchain, Cloud Computing, and Artificial Intelligence, have become an integral part of the FinTech sector. These technologies have helped the FinTech sector to see remarkable growth. Technology keeps changing and brings new trends that get adopted just as digital lending, digital currency, mobile payments, and others. According to the sources, by the year 2023, the digital payment industry is expected to reach $6.7 trillion with a CAGR of 12.7%. Moreover, the global mobile banking market is projected to grow to $1.82 trillion by 2026, with a CAGR of 16.4%.
The future holds a lot, and this is a reason why the FinTech industry provides immense scope to startup organizations in this sector. It is important to focus on the choice of the tech stack that will be used for the development of a FinTech app. Ruby on Rails is the preferred option, as it is reliable and efficient at delivering results.
Why Ruby on Rails is Perfect for FinTech?
It is the different characteristics and features of Ruby that make it the perfect option for FinTech. Some of the characteristics of the RoR framework worth mentioning include -
Community of developers- There is a big community of developers associated with Ruby on Rails, enhancing the availability of resources for startups. You can easily find plugins, pre-built libraries, and support communities to help solve problems and ensure smooth FinTech functioning.
Affordable- Startup FinTech organizations usually don't have a big budget, so RoR is the right option; this open-source framework is free of cost to use, and advanced features can be added cost-effectively.
Quick development- RoR has the unique feature to quickly sample modeling and develop web applications. This supports quick and robust development which is the prime requirement of any FinTech startup.
Suitability to Agile- Fintech start-ups usually look for software that has agile development, and RoR has good suitability with agile development. This supports the quick development of Fintech products while focusing on flexibility and adaptability.
Real Case Studies with RoR in the Backend
There are so many successful FinTech companies that are using Ruby on Rails in their backend. Some of these companies include:
- Robinhood
- Stripe
- Coinbase
- Betterment
Frontend Frameworks that gel with RoR in the Backend
Depending on the project, you can look for the right frontend framework that gels with Ruby on Rails. Ruby on Rails works very well in the backend with some of the best frontend frameworks, such as:
- AngularJS
- Ember.js
- ReactJS
- Vue.js
Challenges Faced by the FinTech Industry
There are some of the obstacles faced by the FinTech industry that should not be overlooked. When developing a FinTech app, some of the concerns include traffic, security, and analytics.
Traffic- Fintech apps face a problem with high traffic. It must be ensured that the apps are capable of handling large amounts of traffic without compromising speed and also avoiding the chance of crashing. There is a need for a high-performing Fintech app that allows users to quickly access their financial data and carry out real-time transactions without failure.
Security- Data in FinTech apps is confidential and sensitive; it needs to be kept safe and secure from cyber threats. Cybercriminals are always searching for such confidential data, and to maintain 100% security, the FinTech app must be secured with robust authentication and encryption measures. If any irregular behavior is noticed, it must be reported quickly. FinTech apps must maintain complete security to develop trust among customers, as failure in maintaining security can lead to a loss of reputation and trust among users.
Analytics- FinTech industry deals with large amounts of data so the app must have analytical capabilities. By analyzing data one can get to know about the deep insights related to customer behavior, market trends, and transactions. Data analysis is beneficial for the business, as it can focus accordingly for better growth. The analytical abilities of FinTech apps can help in the quick detection of fraud cases for which proactive measures can be taken.
How RoR can overcome the challenges faced by the FinTech Industry?
A FinTech application looks for efficiency, robustness, and reliability for smooth functioning, and Ruby on Rails can provide this. Ruby on Rails is one such framework that can overcome the problems faced by the FinTech industry in the following ways:
Scalability to handle traffic- It is the scalability of Ruby on Rails (RoR) that helps it to overcome traffic issues. RoR framework can support FinTech companies by providing them scalability in various forms such as load balancing, caching, horizontal scaling, and asynchronous processing.
Overcoming security issues- There are several built-in features that make the Ruby on Rails (RoR) framework secure for use. Security features in the RoR framework help developers create highly secure applications that can withstand attacks from cyber criminals. This is how the RoR framework addresses security issues.
RoR integration for better analytics- Ruby on Rails has the ability to integrate with several data analytics tools that help with better analysis. FinTech companies find this integration feature of RoR to be beneficial, as it helps to overcome the problem of analysis. RoR has the capability to integrate with data visualization, machine learning, and data warehousing, which helps to transform the FinTech industry completely.
Let’s Sum Up!
Although there are many other frameworks available, Ruby on Rails happens to be the right option for the FinTech industry, as it produces better output. The FinTech industry requires a lot of security and management of high user traffic that can be easily dealt with by RoR. RoR has the ability to integrate with other technologies, which helps to overcome the obstacles faced by the FinTech industry. In conclusion, employing Ruby on Rails development aligns seamlessly with the requirements of the FinTech sector.
