Ruby on Rails for FinTech: A Complete Guide

Financial management has turned digital, and technology is a major cause behind this revolution. With the onset of technology, it is apparent that the financial sector is likely to witness immense growth. In this realm, one such technology that is making enough hustle is Ruby on Rails. In this post, we are going to spill the beans on exploring the nitty-gritty involved in this trending tech for the FinTech sector.

Finances and technology- seem to be an odd combination, as there are multiple factors related to security, data transfer, and whatnot.

However, with time, there has been a quick turnaround, enabling technology to be in sync with the financial sector, leading to incredible possibilities which were not possible or imagined before.

The technological advancements such as AI, Blockchain, ML, and cloud computing are already creating a stir in the financial domain, and now it is Ruby on Rails for FinTech Business!

To quench your doubts, questions, and curiosity, we have brought you this post, to unleash what all RoR entails for the fintech sector.

FinTech- A Growing Market Trend

As the name suggests, FinTech is a fusion of finances and technology to bring out the best results for businesses and users alike.

It has immense scope for startups due to its rapidly growing market and disruptive potential.

With advancements in technology and changes in consumer behavior, traditional financial services have become obsolete.

This presents a great opportunity for startups to leverage innovative technologies and offer new solutions to meet the evolving needs of consumers.

However, the key challenge lies in making the right choice of technology to ensure the success and sustainability of these startups.

This is where RoR- Ruby on Rails for FinTech steps in for startups enabling them to perform reliably and efficiently.

But much before we dive into the details, let us understand the challenges knocking at the door of the fintech industry.

Key Development Challenges of FinTech Projects

It is not easy to be a FinTech industry owner- due to numerous concerns about some aspects that matter to the FinTech application user.

These aspects include convenience, security, and functionality!

As customers increasingly rely on FinTech solutions for their financial needs, it is important to ensure that the application meets their expectations.

Some of the challenges are:

Security

It is a significant challenge for FinTech startups, as they deal with sensitive financial data, which makes them attractive targets for cybercriminals.

In today’s digital age, where online transactions are becoming more prevalent, ensuring the security and integrity of financial data has become paramount.

Cybercriminals are constantly evolving their techniques and strategies, seeking to exploit any vulnerabilities in FinTech systems.

As a result, FinTech startups must be diligent in implementing robust security measures to safeguard their customers’ sensitive information and maintain their trust.

High Traffic

The success of a FinTech application relies heavily on its ability to handle high traffic without compromising performance.

As we all know that customers expect instantaneous responses and seamless functionality.

Here, any delays or glitches caused by inadequate traffic management can lead to frustration and a potential loss of business.

Thus, building a robust infrastructure to accommodate increasing user demand is crucial for the sustained success of FinTech companies.

Analytics

FinTech startups are fueled by innovative technologies and a deep understanding of customer needs.

Therefore, to thrive in this highly competitive landscape, FinTech startups must possess strong analytical capabilities.

Analytical tools and techniques enable these startups to gain valuable insights into customer behavior, transaction patterns, and market trends.

Ruby on Rails for FinTech- Yay or Nay?

Ruby on Rails is a fascinating term colloquially, and its worth is equally engaging from a technical perspective.

It is a popular open-source web application framework written in Ruby.

RoR follows the Model-View-Controller (MVC) architectural pattern, encouraging the separation of concerns and enhancing code maintainability.

Developers integrate a convention-over-configuration approach, enabling a set of default conventions to develop applications rapidly.

Here, we should not forget the development style of Ruby on Rails (RoR)- which is based on simplicity and productivity.

With its emphasis on convention over configuration, RoR provides developers with a framework that allows for rapid development and easy maintenance.

This, coupled with the extensive library of gems and plugins, makes Ruby on Rails an attractive choice for FinTech startups.

Its support for secure transactions and data encryption further solidifies its position as the ideal choice for businesses operating in the financial sector.

To support our point, we have compiled a few more points here:

Expedites Development

Ruby on Rails (RoR) is a popular web development framework that is widely recognized for its ability to quickly build and deploy web applications.

It is possible due to its exceptional features and functionality, such as convention over configuration, modular design, test-driven development, and extensive third-party libraries and plugins.

This further helps in streamlining the development process by providing developers with a set of predefined conventions, reducing the need for excessive configuration.

Also, its modular design allows for easy scalability and extensibility, making it a versatile choice for a wide range of web development projects.

Robust Community Ecosystem

RoR has a large and active community of developers, which means that there are many resources available for Fintech startups to leverage.

This community offers ample support, guidance, and collaboration opportunities, making it easier for startups to overcome challenges.

Also, it helps in staying updated with the latest trends and technologies.

By tapping into this vibrant community, Fintech startups can access a wealth of knowledge, expertise, and best practices to accelerate their development processes.

Agile Methodology

It is a robust and versatile web development framework that has gained popularity in recent years.

With a wide range of tools and features, RoR simplifies the process of building web applications.

To be precise, RoR is well-suited to an agile development methodology, which is a popular software development approach in Fintech startups.

This methodology emphasizes flexibility, collaboration, and rapid iteration!

Consequently, it empowers coders to quickly respond to changing requirements and deliver high-quality software solutions.

Cost-effective Approach

Cost-effectiveness is another factor that has led RoR to be at the top of the charts.

As this technology is free to use, it becomes a suitable option for startups with budget constraints.

Furthermore. Its open-source nature allows startups to leverage the extensive RoR community for the support and development of applications.

Companies looking forward to building and deploying fintech apps faster- RoR is the go-to choice.

Resolves Security Issues

Security concerns are paramount in the fintech world, and they are answered well by Ruby on Rails (RoR).

It offers developers a set of tools and conventions to build robust and secure applications.

To be specific, it incorporates several security features to protect against common vulnerabilities, such as cross-site scripting (XSS) attacks, SQL injection attacks, and CSRF (Cross-Site Request Forgery) attacks.

With these security measures, FinTech apps turn resistant to malicious exploitation and provide a safe environment for user interaction.

Front-ends that gel well with RoR Backend for FinTech Apps

When it comes to frontend frameworks, several options work well with Ruby on Rails for building FinTech apps.

These frameworks provide a solid foundation for creating user-friendly interfaces and enhancing the overall user experience.

Due to the excessive number of frameworks available in the market, it sometimes becomes hard to make the right choice.

Below we have compiled a few prominent frameworks that are your go-to choices for the RoR backend.

Here they are:

ReactJS

It is a popular JavaScript library that allows developers to build user interfaces for web applications.

It is widely used in the front-end development industry due to its simplicity, efficiency, and extensive community support.

When combined with Ruby on Rails, a powerful and reliable backend framework, ReactJS enables developers to create robust and highly responsive FinTech applications.

Angular JS

It offers a wide range of features and functionalities that make it an excellent choice for developers.

The seamless integration between AngularJS and Ruby on Rails allows for efficient development and enhances the user experience of the application.

With this framework, the app platform gets a robust structure for organizing and managing complex web applications, making it highly suitable for FinTech projects.

Vue.js

Undeniably, Vue.js is a popular frontend framework that is frequently utilized in conjunction with Ruby on Rails for developing FinTech applications.

It encourages developers to build dynamic and responsive user interfaces leveraging on the backend capabilities provided by Ruby on Rails.

Its progressive nature means that it can be easily integrated into existing projects, making it a versatile choice for FinTech development.

Ember.js

It is a flexible and powerful frontend framework that pairs seamlessly with Ruby on Rails to create robust and modern FinTech applications.

Leveraging the intuitive and expressive syntax of Ember.js simplifies the development process, allowing developers to focus on creating rich user experiences.

Developers can take advantage of the best of both worlds – the backend power of Ruby on Rails and the frontend efficiency of Ember.js.

With Ember.js, financial technology companies can deliver innovative and feature-rich applications that meet the demands of today’s market.

RoR- Best bet for creating MVP

Entrepreneurs are always in a rush, and they don’t have time to spend endless hours on their digital solutions.

This is what calls for the need for an MVP- Minimum Viable Product.

It gives startups a fair chance to present their ideas in front of stakeholders and gain the attention they require to grow their businesses.

However, creating an MVP using Ruby on Rails helps cater to new customers’ initial requirements.

This approach allows for the creation of a minimum viable product that addresses the key needs of potential users and provides a solid foundation for future development.

By using Ruby on Rails, developers can leverage its robust framework and extensive libraries to quickly build and deploy a functional prototype.

This not only saves time and resources but also allows for faster feedback and iteration during the product development process.

Hidden Brains- Addressing your FinTech App Development Needs

A financial app is not just an app but an investment for the future, fostering a better user experience for the users.

Hence, business owners need to select the right technology partner to make this passage as smooth as possible.

This is where Hidden Brains steps in as a trusted and reliable technology pattern to help you build a scalable fintech solution.

Your technology partner needs to be proficient in multiple aspects, and technical efficiency along with scalability matter most.

Hidden Brains’ team has empowered a vast number of businesses across the world to find their feet in the FinTech domain.

We have a proven track record of successfully delivering FinTech app solutions to known brands and disrupting startups across the geographies.

You can be the NEXT!

Frequently Asked Questions