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Agile Development Approach For FinTech

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Startup companies have great ideas and the best intentions for impact because they are passionate, motivated, and inspired. But because of this, very soon, they end up just getting frustrated. The key to avoiding this frustration and failure is the discipline of agility. In software development, being agile means being flexible and able to respond to changing situations fluently. For FinTech startups, being fast is often mistaken for being agile; this misunderstanding is costly in terms of money and  morale. Being Agile is keeping customer satisfaction at the centre of the digital transformation journey. 

Agile mostly focuses on the development process by highlighting change while accelerating delivery. Traditional software development processes rely on some principles, where a development team schedules, plans, and completes all the activities for every phase in a linear format. Issues with traditional all-in-one delivery models forced professionals to develop softwares by using the agile and lean methodology. I have listed those issues below. Let’s have a look at each issue.

Risk Management

Traditional methods of software development can be inefficient at times in dealing with risks and uncertainty. When you want to deal with risks and uncertainty, you must use an agile method. This process is the best-suited process for managing risk and uncertainty.

Poor Visibility / User Feedback

Traditional software development does not allow for a collaboration between the client/product managers and development teams. Project managers consult the client, then clients share their requirements through product requirement documentation and then proceed through the sequential process. Lack of feedback loops often results in client dissatisfaction and frustration. This frustration forced professionals mostly to develop softwares by using the agile and lean methodology.

All-in-One Delivery

In traditional project management approaches, the deliverables are released to the customer only after completing all five stages, i.e., all-in-one delivery, instead of the small chunks in incremental releases, i.e., Minimum Viable Product (MVP) approach.

Adaptability to the Changing Requirements

Waterfall is mostly seen as a heavy-weight and BDUF (big design upfront) approach to project management. It does not have any course correction mechanism, checkpoints, and most of the development is carried out without taking changing conditions into consideration. So, if you want to adapt requirement changes in between the development process, agile is best. If you work on agile methodology, you can work in little phases and adapt changes easily. 

Agile-driven approaches have a three times better success rate in delivering complex projects, especially new software development ones where intangible and scope requirements are a variable quantity. This is because agile methodology offers a lightweight to the traditional software development process and focuses on delivering value to the customers frequently in small increments.

An enterprise is only successful when the team working for the project is successful. Likewise, a team is only successful when the team members are motivated and believe they can meet the goal together. Unfortunately, the software development teams often neglect organizational success in favor of the more easily achieved technical and personal success. 

How Finance is Benefitted by Agile Approach

1. Increase in Decision Velocity

Scrum teams, a small, cross-functional group of people working together and regularly checking for problem-solving and progress reports, are at the core of Agile techniques. Finance can also apply this technique and make small development teams that regularly meet the functional authority for decision making. This increases decision velocity via focusing on the highest priority objectives and developing well-defined control of decision making and governance criteria.

2. Reduces Complexity

Complexity goes against Agility. Finance involves many people in crafting, analyzing, and approving budgets, leading to complexity, whereas Agility involves very few people in decision-making. Agile techniques will help the finance team simplify lines of accountability and devolve decision-making rights to fewer organization people reducing the complexity. To remove manual intervention in finance, bringing transparency on decision justification, you can consider automating approval processes.

3. Equalize the Data

High standards for data are created by the best IT architectures that entirely rely on one data that consists of all approved data. A single source that means one data to plan technology investments focuses on discussing to help revolutionize business requirements. It also eliminates confusion over competing for data sets between finance teams and IT teams that helps in quicker budget decisions.

4. Rapid Redeployment of Resources

Fast redeployment means sustainable economic growth efficiency that can offer one solution by substantial benefits, both economically and environmentally. This helps in quickly reallocating resources when and where required. To meet these requirements, the Finance and IT team should also evaluate whether or not the teams are trained, resourced, and consider applying such principles for the rapid redeployment of resources.

5. Agile Finance Leaders

FinTech teams that have made the most progress using the agile methodology have been identified as a strongest competitor across the globe. As found by the researchers, these Agile finance leaders had a very advanced specialization in centralizing and migrating several processes. In terms of supporting agile implementation, informing strategy, informing agile performance management, they were ahead of the rest. They used a very substitutable workforce and cloud-based Enterprise Resource Planning (ERP). 

6. Innovate Continuously and Responsibly

Agile methodology always helps organizations and encourages a culture of experimentation and innovation. This culture must be nourished across the enterprise and not be relegated to a single innovation team. Initiatives like ideathons, hackathons, or immersive learning experiences based on the principles focusing on cross-functional collaboration help firms continue the innovation curve.

Conclusion

Indeed, Agile finance is a new operating model for modern finance. It is a new type of collaborative finance investing in a range of new skills and competencies powered by technologies. With the Agile development approach, I have seen faster-to-market time and productivity increases across the world in But that’s not all. Alongside simply being busy, quality results have risen, and employees report being more engaged and satisfied in the working process.

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