Fintech Companies Taking Advantage Of The Power Of Technology

The goal of financial process optimization is to take the organization’s financials from an afterthought to a core business driver by using real time P&L dashboards, revenue recognition and tight expense management. Companies are leveraging technology and the power of the internet in creating better solutions for clients.

Because of the increasing power of technology, greater access to communication and others, unprecedented growth has been fostered in the financial technology (fintech) industry. According to report from Globenewswire, the market for financial technology is estimated to be worth $305.7 billion by 2023.

Most of the innovations in the fintech industry are coming from non-bank entities like venture-backed startups. Research from CB Insights reveals the venture capital-backed fintech companies were able to raise about $39.6 billion in 2018 which is a 120% increase from the previous year.

Fintech companies can offer their clients traditional banking services like personalized products and services without even meeting the client in person through computers and online platforms. An example is Wealthsimple that recently launched an application called Wealthsimple Trade that allows people in Canada to buy and sells stocks with 0% commission. If you will compare this to the commissions charged by traders, the advancement is quite significant.

Better client solutions are built by fintech companies because they allocate most their internal resources to hiring software engineers that can build scalable services and investment products. While traditional banks have offices in every corner, fintech companies communicate with their clients through technology.

Advancements in technology have promoted the creation of analytical tools that can be used to collect and integrate data to support process optimization, risk management and decision making. Fintech companies use agile and scalable quantitative investment strategies to challenge traditional money makers in delivering value and justifying their rates. Some of the larger banks in Canada are catching on the trend and they are now adding technological tools and fintech solutions to their offerings.

End-to-end services can be provided by a financial process optimization team so that books are balanced and reports become actionable. Expert level advisement is provided on topics like revenue recognition, inventory, depreciation, restricted revenue and other areas that can make or break an organization.