When it comes to creating applications and web pages for different industries especially for the financial services industry, Python is the go-to language for every developer. And this is because Python comes with simple syntax and modeling capabilities that provide an excellent outcome for digital solutions that are meant for various purposes like analysis, trading, transaction processing, and more. And as the fintech industry is growing every day, the demand for development of banking and financial software solutions is increasing. There are many fintech service providers available in the market who are bringing a change with their innovative products. As per a survey, till the first half of 2021, around $98 billion dollars have been invested by companies in fintech around the world.
And the majority of the products that come out of these investments are created using the Python data science ecosystem. To know more about how and why Python is used extensively in fintech and finance development, let us go through this blog.
How Can One Use Python for Financial Institutions?
Python is one of the best general-purpose programming languages which means that it is designed to create various software solutions. It comes with various frameworks and libraries that Python developers can use. The simple and flexible Python language also comes with advanced security features. This proves that Python is an effective tool for projects in data analytics, scientific computing, artificial intelligence, and web applications. Python online course is recommended to learn python for gaining expertise.
Besides, there are many different uses of Python code in the financial services sector. Python is the programming language that can successfully create digital payment solutions (Stripe), f banking platforms (Revolut), financial analytics software (Kensho), stock marketplaces (Robinhood), and cryptocurrency payment processing system.
Some of the most popular reasons why Python can be the best programming language for financial services.
Why Python Programming Language For Fintech Products?
1. Easy to Learn
Python is a general-purpose, open-source, high-level programming language that is easier to learn and use than it is to elaborate the first half of this sentence. But understanding it can give you proper Python knowledge. So here we go –
- General-purpose programming language means that it can be used by any developer to create virtual programs. The means that they can even create their own projects is they become familiar with Python development.
- Open-sourcemeans that Python is made to be used, edited and redistributed by any web developer for free. This is why Python is so popular amongst technical computing experts.
- High-level programming languages are able to operate strong abstractions that are similar to human languages. This makes Python easy to learn and write for experts working on development projects.
These are the qualities of Python that make it more accessible and easier to learn for financial services providers.
2. Very Popular
When it comes to Python, the talent pool is one of the most important advantages. As of June 2021, Python lists at close second place in the TIOBE Index which means that the popularity of this scientific and technical computing language is increasing. And there is no doubt that it is going to take the first place and be in a position where only Java and C have been before. Besides, it has become one of the most favorite languages for developers who have to work for finance and fintech. It is also popular amongst people who are not professional developers. This is because of the simplicity of its code.
3. Huge and Vibrant Community
Nowadays, in the modern software development world, it’s people who make the programming language great. When a programming language reaches a certain level and becomes popular, it becomes easier for developers to code with the help of their knowledge and support from the community.
Python is no different. It comes with a user base that is vast and diverse. Python has the most dedicated enthusiasts in its community. There are more than 215,000 members on Python’s official server and 1,744,000+ questions tagged [Python programming language] on Stack Overflow as of June 2021. With this many Python developers actively working together in solving various issues, there is a big chance that their knowledge and documentation will help other professionals who are trying to create Python-based solutions.
4. Perfect for Machine Learning and Artificial Intelligence
You all know that Machine Learning is a form of Artificial Intelligence project that utilizes statistical models and algorithms to enable predictive analytics by continually receiving new sets of data. This is the reason why Python is commonly used in creating fintech products in areas of automated trading, personal finance, cyber-security, risk management, and customer service. Besides, there are various other reasons behind selecting Python for any machine learning project. For instance, development speed, code readability, execution speed, and supportive communities.
5. Easy to Market a Python-based Software
When it comes to developing ATM software or any other financial applications, Python is surprisingly fast. It comes with libraries like NumPy and frameworks like Django that enable the talented Python developers to create from already existing blocks of code rather than starting from scratch. This makes the development process faster and results in having a competitive advantage in the financial markets. Besides, Python applications are also highly scalable when they are created on frameworks.
6. Extensive Python Libraries and Tools
Fintech startups prefer Python as it comes with a wide range of libraries and tools that enable the developers to build payment solutions. Besides, there are some additional Python-based tools that add to the development and make it easier for the developers to work with this technology. And as products in the financial industry require many third-party integrations to make the solution accessible, secure, and more functional, Python’s libraries can be of much use.
Conclusion
As seen in this blog, Python is one of the most popular technologies when it comes to the financial sector. Since 2007, it has started to gain some momentum in the market and today it is a very important part of the tech stack. Many organizations within the fintech industry are using it to create fintech solutions. And the main reasons behind it are that Python comes with a fantastic community for developers, extensive libraries, tools, and reliability. All of these are very essential for creating a perfect digital solution in the fintech sector.
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