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FinTech Software Development in Europe: A True-to-Life Guide to Crack the Unknown With Product Engineering

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FinTech is a force for growth, modernization, and customer satisfaction in Europe’s financial services sector.

In fact, Europe is become a real hotspot for FinTech innovation lately.

Reason? Product advancements and focus on regulation.

Fintech companies like N26, Monzo, and Revolut are catching the eye of investors big time.

And guess what? Europe’s actually outsmarting the US and Asia for the top FinTech investment spot.

This blog is gonna dive into the current state of FinTech software development in Europe.

From integration to compliance and fraud detection to a powerful tech stack, we’ve covered everything to build FinTech software.

So, let’s get into it!

How FinTech Apps for Europe are Different than the Rest of the World?

Stability, innovation, and technological developments – this a kind of business environment that Europe offers.

In each of the seven largest European economies by GDP (France, Germany, Italy, the Netherlands, Spain, Switzerland, and the United Kingdom) – at least one FinTech ranks among the top five banking institutions.

Here are some key ways in which FinTech apps for Europe may differ.

HTML Table Generator
Rest of the World
Regulatory ComplianceStrict adherence to GDPR and PSD2.Regulations vary greatly – from fragmented to tighter. 
Market Landscape Fragmented with numerous countries and languages. More dominated by large, regional players 
Focus Strong focus on payments, challenger banks, and wealth management. More diverse focus, with regions like Asia, seeing a rise in InsurTech and lending platforms. 
 Technology AdoptionHigh smartphone penetration and internet access. Emerging markets often have lower technology adoption rates. 
Funding Strong investor interest in FinTech. Funding varies regionally. 
Open BankingLeveraging open banking APIs for third-party integration. Adoption of open banking may vary by region or country. 

In fact, within Europe itself, there are a lot of disparities can be observed when it comes to FinTech adoption and growth.

McKinsey FinTech Market

Source: McKinsey

Cross Border Payment Integration in FinTech Software Development

Integrating cross-border payment – a solution to unlock significant benefits for your users and your business.

From enhanced customer experience to cost reduction and financial inclusion to global business expansion, it plays a pivotal role in FinTech software development.

Here’s an overview of the key aspects of it.

  • Traditional bank APIs
  • Direct integration with Payment APIs
  • Blockchain-based integration
  • Use the Open Banking APIs
  • Middleware integration
  • Partner with specific banks
  • Navigating the complex regulatory landscape
  • Connecting with disparate bank systems and APIs
  • Ensuring secure data exchange
  • Building and maintaining relationships with multiple banks for wider coverage
  • Eurozone
  • European Free Trade Association (EFTA)
  • European Economic Area (EEA)
  • European Banking Union
  • European System of Financial Supervision (ESFS)

How Omnichannel Banking is Redefining Customer Experiences?

Gone are the days of confused banking experiences.

Customers today crave a smooth, unified interaction across physical branches, mobile apps, and online platforms.

But with FinTech software development, you can personalize and simplify the banking journey effortlessly.

Below are the focus areas to be considered in omnichannel enablement.

Omnichannel banking focus areas

Here are some key trends in the omnichannel banking.

  • Hyper-personalization by using data analytics and AI to deliver personalized recommendations, targeted offers, and proactive communication based on individual needs and behaviors.
  • Integration of blockchain technology for identity verification and secure payment solutions.
  • Collaboration with FinTechs for innovative services, including asset management, investment advice, portfolio monitoring, and financial planning.
  • Integration of voice-based banking to enable hands-free control of finances through virtual assistants like Amazon Alexa and Google Assistant.
  • Shifting from on-premise to cloud-based infrastructure to quickly adapt to changing market demands and integrate emerging technologies more effectively.

RegTech: Navigating Regulatory Complexities with Innovation

In Europe, laws about finance are always changing, presenting challenges for financial institutions to keep up while still being innovative.

And that’s where RegTech comes in.

It utilizes advanced software solutions to automate compliance processes, monitor regulatory changes in real time, and mitigate risks effectively.

From efficiency gain and greater accuracy to enhanced risk management and greater internal alignment, RegTech offers tangible benefits for financial services.

That’s the reason, the RegTech market is expanding rapidly.

RegTech Market

Here’s how it can help.

  • AI-powered KYC/AML solutions that analyze connections between clients, accounts, locations, and transactions to detect and prevent abnormal activities.
  • Monitor transactions in real-time for AML risk using rules and ML algorithms like anomaly detection, ID clustering, and graph analysis.
  • Effortlessly and precisely identify only the regulations that apply to your business, no matter how often they change.
  • Automated tools to generate accurate and timely reports for keeping institutions compliant with complex regulations.
  • Data analytics to identify potential compliance issues and develop risk mitigation strategies.

The Overview of Compliance Laws for FinTech Software Development in Europe

Navigating the European FinTech regulatory landscape can be complex.

Because there are multiple compliance laws (based on your specific activities and user base) that you need to adhere to avoid data breaches as well as hefty fines.

Here’s an overview of key compliance laws for FinTech software development in Europe.

  • General Data Protection Regulation (GDPR)
  • Payment Services Directive 2 (PSD2)
  • Electronic Money Directive (EMD)
  • Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations
  • Markets in Financial Instruments Directive (MiFID II)

An Expert-Made Roadmap to Corporate Banking Transformation

Let us share an interesting report first.

Corporate Banking Revenue

You can see that with revenues of $2.3 trillion, corporate and commercial banking accounts for a significant share of total global banking revenues

But surprisingly, many banks aren’t paying enough attention to these clients’ digital needs.

In fact, nearly half of the corporate banking divisions don’t have a clear digital plan, even though businesses really want digital banking services.

However, the few banks that are making changes and going digital are seeing good results, like making 10% more money from digital services and spending 20% less on different parts of their business banking work.

Blockchain, AI, big data, and cloud computing are playing a significant role in this transformation.

Here’s how FinTech software development can help achieve digital banking success.

1. Core Banking System Upgrade

  • Assess the current core banking system and identify areas for improvement.
  • Evaluate and select a modern, scalable core banking solution that supports the desired functionalities.

2. API Integration and Open Banking

  • Develop APIs for account information, payment initiation, and transactional data access to comply with PSD2 regulations in Europe.
  • Enable integration with third-party financial services providers like accounting software, payment gateways, and wealth management platforms.

3. Data Management and Analytics

  • Implement a data lake using technologies like Apache Hadoop or Amazon S3 to store and analyze structured and unstructured data from various sources.
  • Use machine learning algorithms to predict credit risk and detect fraudulent activities.

👉 Explore Lessons from Formula 1 for Enterprise Data Management Services

4. Cloud Migration and Infrastructure Modernization

  • Migrate legacy banking applications to a public cloud platform like Microsoft Azure or AWS to improve scalability, reduce infrastructure costs, and enable rapid deployment of new services.
  • Utilize containerization technologies like Docker and Kubernetes to containerize banking applications for easier deployment and management in cloud environments.

👉 Check Out Our Seamless Cloud Migration Service

5. Agile Mindset

  • Adopt a DevOps culture and CI/CD pipelines using tools like Jenkins or GitLab CI/CD to automate the SDLC and accelerate the delivery of new features.
  • Implement IaC using tools like Terraform or AWS CloudFormation to automate the provisioning and configuration of cloud infrastructure resources for banking applications.

6. Innovations

  • Use RPA tools like UiPath or Blue Prism to automate repetitive back-office tasks such as data entry, account reconciliation, and report generation.
  • Utilize ML algorithms to identify unusual activity in transactions and accounts to enhance fraud detection.
  • Explore the potential applications of blockchain and DLT in corporate banking, such as trade finance, supply chain financing, and identity management.

Remember – This is a high-level roadmap, and specific technologies and timelines will vary depending on your bank’s unique needs.

Gen AI in Banking – Intelligent, Personalized, and Highly Efficient

Imagine your customers walk into a branch not greeted by a queue but by a friendly AI assistant.

No more repetitive interactions, just a personalized conversation that understands their financial goals and anxieties.

This assistant, powered by Generative AI, analyzes their data, offering tailored investment plans, loan options, and even budgeting tips – all in real time.

Generative AI has moved beyond just hype; it’s now transformative force in the banking sector, promising to streamline operations, personalize services, and anticipate customer needs with unprecedented accuracy.

So, here are a few use cases of Gen AI in banking.

  • Implement AI-powered chatbots to offer personalized financial advice, help with transactions, and handle customer questions that go beyond simple rules.
  • Utilize generative AI to create knowledge repositories on financial products, market trends, and regulatory updates.
  • Implement semantic search capabilities for quick retrieval of data.
  • Organize content using natural language processing, making it easy to find and understand.
  • Automate the extraction, classification, and analysis of financial documents.
  • Generate structured insights from extracted data to support decision-making, compliance, and regulatory reporting requirements.
  • Analyze historical data, market trends, and customer behavior to identify patterns and correlations at each branch level through inquiry-based methods.

👉 Find Out Our NextGen Generative AI Development Services

How FinTech Software Development Can Help in Achieving BankTech Maturity?

BankTech maturity is not just a buzzword; it’s a vital factor for modern banking success.

By investing in mature technology, you can remain competitive, manage risks effectively, and deliver exceptional customer experiences – for a secure and prosperous future.

And here is what BankTech Maturity looks like.


Your banking systems are organized into smaller, specialized services, each handling a specific task like transaction processing, customer management, or account operations independently.

API-First Approach

In order to ensure smooth integration with new features and services, you build your systems with openness in mind and give top priority to the development of interfaces, or APIs.

Agile Mindset

Your development process is automated and streamlined, allowing code changes to flow smoothly from development to production, ensuring that new features and updates are delivered to customers quickly and reliably.

Data Lakes & Analytics

Your banking systems use data lakes and analytics platforms to centralize and analyze vast amounts of data. Data lakes provide a scalable and cost-effective storage solution for storing raw data, while analytics platforms to uncover insights.

Blockchain Integration

You integrate blockchain technology into your systems to ensure trust and transparency in financial transactions, opening up new possibilities for secure, decentralized banking services.

DevSecOps Practices

Security is embedded into your development process, from coding to deployment. You use automated tools to scan for vulnerabilities and enforce security best practices.

👉 Read Our Insightful Blog on DevSecOps for FinTech

Machine Learning and AI

You use machine learning and AI algorithms to analyze data, predict patterns, and personalize services, delivering tailored experiences that meet individual preferences.

Monitoring & Observability

You monitor system performance and security in real-time, collecting and analyzing metrics, logs, and traces to detect and address issues proactively, ensuring smooth and faster operations.

What’s So Good About Decentralized Finance (DeFi)?

The Decentralization of Finance is really good for humanity.

While still in its early stage, it can help individuals bypass traditional institutions and control over their finances.

This means that every person, every family, and every business can enjoy more freedom, more liberty, more opportunities, more power, more abundance, and more wealth!

In fact, several European startups are building DeFi platforms, such as Aave and MakerDAO.

At this moment, European FinTech is actively exploring a few of its capabilities, such as –

  • Building blockchain-based solutions for lending, borrowing, and trading.
  • Exploring interoperability between DeFi and traditional financial systems
  • Developing robust regulatory frameworks to ensure responsible DeFi growth

Building a future where money isn’t a barrier – that’s the goal of DeFi, and Europe is well-positioned to lead the way.

How Cloud FinOps Services Maximize Efficiency and Transparency in FinTech Software Development in Europe?

“89% view FinOps as the way to reign in cloud cost complexity.” (Source)

FinOps stands for Financial Operations – a methodology to manage cloud computing costs while maintaining transparency.

It helps you focus on maximizing business value rather than just minimizing spending by promoting data-driven decisions and continuous improvement.

Here is how it drives efficiency, transparency, and innovation.

  • Reduces cloud costs by identifying and eliminating inefficiencies
  • Improves resource utilization
  • Enables to gain better visibility into cloud spending, leading to enhanced financial transparency
  • Helps you make data-driven decisions about cloud spending
  • Real-time monitoring to identify cost anomalies and take action promptly
  • Seamless cloud budget management practices
  • Forecast future cloud costs accurately
  • Help mitigate compliance risks


FinOps PrincipalsSource

The Real-time Fraud Detection and Prevention with AI in FinTech Software Development

“On average, FinTechs lose 1.7% of their annual revenue to fraud every year – with smaller firms losing an even higher rate (2.2%).” (Source)

Fraud is a persistent and costly obstacle in the world of finance.

However, AI offers a powerful solution to tackle against fraud in real time, protecting both your software and your customers.

Here’s how AI can be used for real-time fraud detection and prevention in FinTech software development.

1. Machine Learning for Pattern Recognition

ML algorithms can analyze vast amounts of transaction data, customer information, and external data sources.

The aim is to identify patterns indicative of fraudulent activity.

For that, batch processing is being used.

It is a process that involves analyzing large volumes of historical data in fixed-size batches.

This can be valuable for identifying long-term fraud trends and patterns that might not be immediately apparent in real-time data.

2. Real-time Transaction Monitoring

AI systems can monitor transactions in real time, identifying suspicious activity as it occurs.

This allows for immediate intervention, such as blocking transactions, contacting the user for verification, or notifying the authorities.

For that, stream processing is utilized.

It is a process that involves analyzing data in real time as it is generated.

Frameworks like Apache Kafka, Apache Flink, or Apache Storm can be employed to ingest, process, and analyze high-velocity transaction data in real time.

3. Anomaly Detection

AI can detect deviations from a user’s usual spending habits, location history, device utilization, or other behavioral markers.

Such anomalies might signal instances of account breaches, unauthorized entry, or potential money laundering attempts.

4. Reduced False Positives

Through the utilization of machine learning, the system can learn from past data.

This enhances its ability to distinguish between legitimate and fraudulent transactions effectively, leading to reduced false positive alerts that can inconvenience users.

5. Scalability

AI-driven fraud detection systems are engineered to adapt and thrive in high-volume transaction environments.

By utilizing dynamic learning algorithms, parallel processing, cloud computing, and real-time processing, these systems provide you the capability to outsmart fraudsters and safeguard both your assets and brand value.

A Powerful Tech Stack to Build FinTech Software: Azilen’s Perspective

At Azilen, we strongly believe that the tech stack is the foundation of your engineering work!

Hence, it should be powerful, scalable, and lit.

Here’s a commonly recommended tech stack for successful FinTech software development in Europe.

1. Frontend Programming Language

  • React.js is a popular choice due to its component-based architecture, virtual DOM for efficient rendering, and strong community support.
  • Maintained by Google, Angular is another powerful fronted language. Its strict architecture and conventions make it suitable for large-scale FinTech projects.
  • Vue.js is a versatile framework known for its adaptability and ease of use.

2. Backend Programming Language

  • Known for its expressiveness and emphasis on immutability, Clojure can be an ideal choice, especially if you’re looking for a functional programming language that runs on the JVM.
  • Renowned for its performance, concurrency, and simplicity, Golang can be beneficial for building high-performance backend systems for FinTech software.
  • Elixir’s fault-tolerant, distributed, and real-time capabilities, built upon the battle-tested Erlang VM, make it particularly well-suited for building resilient and scalable FinTech software.
  • Python reigns supreme in FinTech due to its simplicity, readability, vast ecosystem of libraries, and large developer community.

3. Databases

  • Relational Databases – PostgreSQL or MySQL for structured data storage and ACID compliance.
  • NoSQL Databases – MongoDB or Cassandra for handling unstructured data and scalability.


Data Warehouse vs Datalake vs Datelakehouse

4. Framework/Tools

  • Clojure – Libraries like Ring and Compojure can be utilized as the foundation for building web applications.
  • Gin and Echo are popular web frameworks for building RESTful APIs and microservices in Golang.
  • The Phoenix framework is the go-to choice for building web applications and APIs in Elixir.
  • Django is a high-level web framework that is well-suited for building complex web applications in Python.

5. Cloud Services

  • Hosting: Amazon Web Services (AWS), Microsoft Azure, or Google Cloud Platform (GCP) for scalable and secure hosting infrastructure.
  • Utilize Docker for containerization and Kubernetes for container orchestration.
  • AWS Lambda or Google Cloud Functions for serverless computing to reduce operational overhead and cost.

6. APIs and Middleware

  • Integrate with existing financial services like payment gateways, credit bureaus, and market data providers, such as Plaid, Stripe, and Finicity.
  • Manage and govern API access, security, and performance. (e.g. Apigee, Kong, and MuleSoft).
  • RabbitMQ or Apache Kafka for asynchronous communication and handling high message volumes.

7. Security

  • Consider AWS IAM, Azure Active Directory, or Google Cloud Identity & Access Management.
  • Securely store and transmit sensitive data with technologies like AES and TLS.

8. Monitoring and Logging

  • Use tools like AWS CloudWatch, Azure Monitor, and GCP Cloud Monitoring for monitoring system health, performance, and security.
  • Tools like Dynatrace, New Relic, and Datadog can be helpful to gain insights into application performance and identify bottlenecks.

9. DevOps

  • Automate infrastructure provisioning and management with tools like Terraform, Ansible, and AWS CloudFormation.
  • Automate testing, deployment, and delivery processes. Consider Jenkins, GitLab CI/CD, and CircleCI.
  • Package and deploy applications as portable units using containers like Docker and Kubernetes.



👉 Check Out Our DevOps Managed Services

Azilen’s FinTech Software Development Expertise: Top Case Studies

1. Intuitive, Fast & Criteria-based Stock Search Engine

The client is one of the leading stock brokers in the United Kingdom.

A stock search engine serves as a helpful tool for investors, allowing them to sort and assess stocks based on specific criteria.

This assists in their analysis of potential investment opportunities.


  • UI/UX Complexity
  • Data Granularity and Accuracy
  • Algorithmic Complexity and Performance
  • Range Flexibility and Interpretation
  • Scalability

Key Highlights

  • Diverse stock types and criteria
  • Data sources and integration
  • Data indexing and multiple cores
  • Fast and scalable search
  • Real-time results
  • Enhanced performance

Explore Azilen’s Solution Approach 👉 Stock Search Engine

2. Buy Now Pay Later – Alternative Credit & Payments

The customer based in South Africa is one of the leading digital banking solution providers.

The customer aims to deliver a world-class payment solution that is superior and easily adaptable by consumers and merchants.


  • Consumer Data Sovereignty
  • Fraud & Risk Prevention
  • Multi-technology Integration
  • Transactional Info. Encryption

Key Highlights

  • Multi-party transactions
  • Historical payment data management
  • Consumer credit score analysis
  • Automated merchant settlement
  • PCI compliant
  • Financial reporting and accounting

Explore Azilen’s Solution Approach 👉 Buy Now Pay Later System

3. Digital Wallet for Cashless Micropayments

The client is a South African veteran, providing banking and payments services to SMMEs (Small, Medium & Micro Enterprises), banks, and telcos.

With a strong commitment to boosting economic development, the client conceived a groundbreaking idea to transform the landscape of micropayment transactions.


  • AI engine for authorization
  • Fraud and chargeback prevention
  • Financial data security
  • E-Wallet top-up with cash
  • Regulatory compliant

Key Highlights

  • Digital KYC
  • Cash withdrawal from the wallet
  • USSD based transactions
  • WhatsApp bot
  • E-commerce & POS integration
  • Enterprise-grade security

Explore Azilen’s Solution Approach 👉 Digital Wallet For Cashless Micropayments

Ready to Build NextGen FinTech Software in Europe? Let’s Talk!

We’re a software product engineering company.
For the past 15 years, we have been engineering the ingenious FinTech products.
Whether it’s tailoring solutions to the specific needs of clients or delivering comprehensive services to financial institutes, we excel in all.
We pride ourselves on not being a jack of all trades. Instead, we do one thing and master it for years!
That’s the reason, we have a dedicated team of FinTech-specific software engineers, designers, business analysts, QA specialists, and domain experts.
Together, let’s redefine the possibilities of FinTech!

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