More and more companies are offering innovative and attractive services based on new technologies for the financial sector, the so-called FinTech. This growth is due to the benefits for the companies that decide to contract these services. Their use has many advantages over traditional financial services, regardless of the type of company that uses them. Jason Simon, an expert in the field of FinTech, gives a detailed explanation of how the benefits provided by the field can help the growth of many companies today.
To begin with, the term FinTech is a neologism that comes from the contraction of the English words finance and technology. Initially, it refers to technology startups that take advantage of the latest technologies to create innovative digital financial services. “FinTech involves a revolution of the customer experience, in some cases creating entirely new services and in others improving or disrupting existing ones. FinTech services target end customers, whether they are individuals, professionals, or companies, without intermediaries,” Simon explains.
Depending on the type of financial technology product used in a company, the benefits may be one or another. But even so, they are vast and help numerous companies across the board. Savings is a clear example of this. Faster and more automated processes improve business efficiency. An efficiency that translates into economic savings as it pertains to the case of finance. But we must not lose sight of the need to save time in an era in which time is more precious than ever.
Flexibility is also a concept that is 100% applicable to FinTech. This type of technology builds new, more agile workflows. Therefore, they allow you to store data, make operations through alternative financing, and much more; wherever and whenever you want.
Another great benefit gained is transparency. Through this technology applied to finance, the company can manage itself in a fast and completely transparent way. As a result, FinTech becomes synonymous with business transparency.
On the other hand, financial technology also makes everything more efficient. Atomization means a high degree of specialization as it offers very specific services. Thus, its high degree has an impact on a high level of efficiency and quality of services, in addition to a quick and agile response. Companies that invest in FinTech solutions emphasize efficiency and better time management.
Thus, for finance professionals, the main advantage of using technology in finance is, for 54.6%, to achieve more efficient processes or management for their company. Time savings (50.9%) and immediacy (41.7%) are some of the most common reasons, according to several recent studies.
The use of this type of technology also improves process analysis, with more detailed information and data. “In general, therefore, significant competitive advantages can be gained over competitors who do not use these types of services or platforms,” Simon asserts.
FinTech start-ups, although relatively small and young, tend to be much more internationally savvy. They have a good understanding of the internationalization needs of companies and offer more flexibility and better-related solutions.
The regulation also plays an important role in the implementation of this technology. For example, legislation in several countries is moving towards a new regulation of the FinTech sector, albeit in fits and starts. Even so, these processes would not be completely unregulated, since it is necessary to establish certain levels of security and solvency criteria to avoid fraud and generate distrust in the sector.
Simon says, “Technology and social networks are the most efficient lifeline we can use, not only to overcome these moments of isolation but to be competitive in the new normality that is coming so, as a business owner, you must undertake, reinvent yourself and adapt using all possible resources, in this case, FinTech, to achieve success.”