5 Ways That Fintech Can Shape the Future of Your Company

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With the development of fintech (financial technology) over the years, a large number of improvements have been made to how the financial sector operates. However, the use of these newer types of technology is not just limited to banking institutions and other large financial enterprises.

By adopting the latest improvements in machine-learning capabilities and efficient data exchange, businesses in a variety of industries can now automate much of their workflow and lower their operational costs.

Here are five ways that fintech can help shape the future of your company.

Better Payment Processing Through Blockchain Technology

The buzz of blockchain technology has grown exponentially since its inception in 2008. Cryptocurrency mining, especially in Bitcoin, has become extremely popular both with aspiring entrepreneurs and large enterprises. However, blockchain technology has a much larger potential beyond just cryptocurrencies.

For instance, businesses are now using blockchain to create more efficient supply-chain processes. IoT and blockchain technology have integrated to help companies create smart contracts, transaction blocks and shared ledgers, all distributed through secure peer-to-peer networks. This also allows businesses to store huge amounts of operational maintenance data and records for regulatory purposes.

Convenience and Security That NFC Provides

Chances are you've been using NFC (Near Field Communication) technology regularly without realizing it. This is one of the largest benefits that the latest fintech provides. When it comes to quick-tap card payments and mobile register transactions, the convenience of NFC is the reason why so many third-party payment providers and large smartphone brands are quickly investing in the technology.

For retailers and other businesses that rely on credit card purchases, working to create a better customer experience all the way through checkout is vital. Not only does NFC allow goods and services to be purchased quickly and painlessly, but it is also a much more secure way for customers to process their payments when compared with traditional magnetic strip payment solutions. This is due to the fact that NFC transactions operate behind several layers of protection, including device passcodes, fingerprint scanning technology and strict security standards.

Regtech Creates a More Efficient Process for Internal Audits

Regtech is a technology that helps financial companies comply with regulations. After the financial crisis of 2008, it was important for regulators to ensure that the financial industry remained stable and improved its risk control policies and procedures. While this technology was developed primarily for financial institutions, its benefits can be seen in the financial stability of many different types of organizations.

For example, real-time payment-transaction monitoring and identity verification help companies recognize fraudulent purchases quicker than ever before. When it comes to audits and risk management scenarios for accounting departments, regtech allows accounting departments to utilize advanced scenario analysis and forecasting to better understand the financial stability of an organization.

Improved Automation Through AI Technology and Machine Learning

Perhaps one of the largest advancements in fintech is in new artificial intelligence and machine-learning capabilities. AI systems and applications can now analyze large amounts of data, providing valuable insights and informing company decisions.

This technology is invaluable for marketing teams and business development professionals looking to better understand their customers and their purchasing behavior. It has also helped customer service departments by spurring the development of automated chatbots that can interact with customers using advanced dialogue recognition processes.

Intelligent and Cost-Effective Investments From Robo-advisors

With the integration of artificial intelligence in financial systems, the newest form of wealth management has surfaced in the form of robo-advisors. Robo-advisors (also known as digital advice platforms) are automated systems that use complex algorithms to collect an individual's financial data and paint a detailed picture of their future portfolio. This technology has benefited both financial advisors and customers alike, as the technology takes the guesswork out of transactions and investment strategies.

For businesses looking for ways to cut transactional costs associated with financial investments, third-party companies utilizing automated wealth management solutions are now able to cut out the middleman and offer these services and transactional fees at a fraction of the cost. Individuals and businesses can begin making investments with fewer upfront commitments and smaller budgets.

While developments in fintech continue to shape how the financial sector operates, small businesses and growing enterprises can reap the benefits that come with newer technologies and the adoption of advanced payment systems. The future of fintech looks very bright and each year promises to bring better, more efficient ways to help you run a successful business.With the development of fintech (financial technology) over the years, a large number of improvements have been made to how the financial sector operates. However, the use of these newer types of technology is not just limited to banking institutions and other large financial enterprises.

By adopting the latest improvements in machine-learning capabilities and efficient data exchange, businesses in a variety of industries can now automate much of their workflow and lower their operational costs.

Here are five ways that fintech can help shape the future of your company.

Better Payment Processing Through Blockchain Technology

The buzz of blockchain technology has grown exponentially since its inception in 2008. Cryptocurrency mining, especially in Bitcoin, has become extremely popular both with aspiring entrepreneurs and large enterprises. However, blockchain technology has a much larger potential beyond just cryptocurrencies.

For instance, businesses are now using blockchain to create more efficient supply-chain processes. IoT and blockchain technology have integrated to help companies create smart contracts, transaction blocks and shared ledgers, all distributed through secure peer-to-peer networks. This also allows businesses to store huge amounts of operational maintenance data and records for regulatory purposes.

Convenience and Security That NFC Provides

Chances are you've been using NFC (Near Field Communication) technology regularly without realizing it. This is one of the largest benefits that the latest fintech provides. When it comes to quick-tap card payments and mobile register transactions, the convenience of NFC is the reason why so many third-party payment providers and large smartphone brands are quickly investing in the technology.

For retailers and other businesses that rely on credit card purchases, working to create a better customer experience all the way through checkout is vital. Not only does NFC allow goods and services to be purchased quickly and painlessly, but it is also a much more secure way for customers to process their payments when compared with traditional magnetic strip payment solutions. This is due to the fact that NFC transactions operate behind several layers of protection, including device passcodes, fingerprint scanning technology and strict security standards.

Regtech Creates a More Efficient Process for Internal Audits

Regtech is a technology that helps financial companies comply with regulations. After the financial crisis of 2008, it was important for regulators to ensure that the financial industry remained stable and improved its risk control policies and procedures. While this technology was developed primarily for financial institutions, its benefits can be seen in the financial stability of many different types of organizations.

For example, real-time payment-transaction monitoring and identity verification help companies recognize fraudulent purchases quicker than ever before. When it comes to audits and risk management scenarios for accounting departments, regtech allows accounting departments to utilize advanced scenario analysis and forecasting to better understand the financial stability of an organization.

Improved Automation Through AI Technology and Machine Learning

Perhaps one of the largest advancements in fintech is in new artificial intelligence and machine-learning capabilities. AI systems and applications can now analyze large amounts of data, providing valuable insights and informing company decisions.

This technology is invaluable for marketing teams and business development professionals looking to better understand their customers and their purchasing behavior. It has also helped customer service departments by spurring the development of automated chatbots that can interact with customers using advanced dialogue recognition processes.

Intelligent and Cost-Effective Investments From Robo-advisors

With the integration of artificial intelligence in financial systems, the newest form of wealth management has surfaced in the form of robo-advisors. Robo-advisors (also known as digital advice platforms) are automated systems that use complex algorithms to collect an individual's financial data and paint a detailed picture of their future portfolio. This technology has benefited both financial advisors and customers alike, as the technology takes the guesswork out of transactions and investment strategies.

For businesses looking for ways to cut transactional costs associated with financial investments, third-party companies utilizing automated wealth management solutions are now able to cut out the middleman and offer these services and transactional fees at a fraction of the cost. Individuals and businesses can begin making investments with fewer upfront commitments and smaller budgets.

While developments in fintech continue to shape how the financial sector operates, small businesses and growing enterprises can reap the benefits that come with newer technologies and the adoption of advanced payment systems. The future of fintech looks very bright and each year promises to bring better, more efficient ways to help you run a successful business.