There are a number of key changes disrupting the financial services industry of late, points out Kosta Peric, Deputy Director of the Bill & Melinda Gates Foundation’s Financial Services for the Poor. According to Peric, this includes a change in how consumers and businesses now access and use financial services, as well as an increased uptake of mobile technology use in developing areas.
Tech-driven innovation is proving to be The Great Shake-Up for the financial services industry
Smartphones, tablets and software applications are mixing up the way in which financial services are being accessed and used across the globe, points out Peric. Gone are the days of PC-based web sites, with multiple security and access codes. ‘There’s an app for that’ is now a common, tongue-in-cheek quip related to how automated our world is becoming. Because it’s true.
Most banks have already developed their own smartphone-based, banking applications, investment companies are building robo-advisors, in lieu of financial planners, to offer their clients some DIY financial advice, while companies across the world are increasingly automating their financial administration, payment and business processes. Previously inaccessible communities, in remote or developing areas, are increasingly connecting to financial services via their mobile phones.
According to a H2 Ventures and KPMG report, the latest fintech is also providing businesses and customers with alternative payment solutions that:
What are the benefits of digitally transforming financial systems?
Soliditech believes that there are many perks to ‘going digital’ with your financial and payment systems. Process automation improves the quality and reliability of output by reducing the opportunity for human error. Automation increases accuracy and consistency related to workflow. It also saves time, as previously repetitive and manual tasks, when digitised and automated, no longer require the same number of man hours previously spent on them. This is cost-saving and, ideally, frees up employees to pursue more strategic activities related to their work function. As a financial manager, these could be activities like growing the business and improving its cash flow.
The ideal digital payment system needs to have a range of capabilities that speak to common pain points in financial administration
Not all digital payment solutions are made equal, however. When reviewing the latest fintech, you want to look for a product that allows you to process secure payments at all banks, and access all account types, within a particular country. This product should be able to process both recurring and once-off payments, while removing the monthly headache of recapturing customer or employee information each time.
Better still, it should integrate with existing accounting software solutions, so that payment records can be imported directly into accounting software and invoice records are automatically updated onto an existing system.
Imagine fintech that allows company and consumer credit checks, and company registration and director checks to be automated. Imagine being able to verify identity numbers and bank account details effortlessly, before any payments go through.
Your ideal payment software solution should provide you with an invoicing system that is easy for both you and your customers to use, as well as a range of payment options that takes the pain out of recurring payments and payment collections.
In short, the future of financial services and products is digital
As more and more customers and businesses move to online purchasing and payment solutions, companies who don’t offer or integrate similar functionalities will ultimately be left behind in a cloud of proverbial dust.