The power of Fintech and Digitized business finance
Digitization has become critical to evolve businesses in tune with the modern landscape. Cloud technologies, AI, automation, and blockchain are being worked on to make financial data integration and forecasting touchless. CEOs and CFOs of corporations are aiming to quickly adapt to innovative digitization strategies in order to get ahead of the industry trends. That is why digital transformation has become a great parameter for businesses’ success in the transformed marketplace.
Digitization has become ubiquitous in almost every industry right now. 89% of all companies have already adopted a digital-first business strategy, IDG reports. Fintech is one of the contributors enabling businesses to carry out that process. India has an estimated 4200+ Active Fintech Startups with over 500+ of them Funded. The total estimated employment by the sector is over 1.8L. There have been 130 Fintech Deals in 2022 (YTD) worth 3.2Bn$ at the average ticket size of 24Mn$. These companies with varied business models offer new forms of financial services.
Why choose Fintech and digitized business finance?
In a modern enterprise, IT and Finance sectors have to collaborate to help expand and advancement of the enterprise. Fintech, short for financial technology, includes different businesses providing technology solutions for payment, lending, investment, banking, and more. It digitizes financial services and attempts to make them fast, accessible, and secure by connecting the user directly to the capital provider.
Fintech startups have taken off in the thriving Indian business ecosystems with its cashless payment options and virtual currencies. Leaving traditional finance services behind, companies are using Fintech solutions to make their documentation, identification, and transaction processes quick and hassle-free. Not only that, but it also enables smaller, more frequent, and more diverse payment options for consumers, especially the tech-savvy youth that were underserved by traditional finance services.
Hence, digitization of business finance becomes important not only for its operational efficiency but also because it opens the door to a large customer base for the business. SME businesses can especially benefit from adopting a digital-first strategy. They can deliver a customer-centric experience by offering the convenience of digital technologies.
Financial digitalisation in the existing business ecosystem
Digital financial services have helped keep economies afloat during the COVID-19 crisis and played a huge role in financial recovery post-pandemic. In India, the massive boom in the accessibility of mobile phones and the Internet has brought a wave of digitization of financial services. It has made the functioning of firms transparent and efficient while making loans accessible to every consumer.
Several Indian banks have also taken experimental steps to use Distributed ledger technology (DLT) platforms for conducting their financial operations, but for mass adoption, we still have a long way to go.
Companies have also massively benefitted from fintech adoption, which has helped them reduce the cost of financial operations and decrease the risks of Non Performing Assets (loans with late repayment) through credit assessment technology.
According to statista, two of the biggest priorities of CEOs during the pandemic were:
- Bringing digital transformation projects
- Enhancing remote work opportunities and experience
According to Deloitte, finance is entering the golden age of technology, and companies would make use of these technologies to develop cloud-based specialized financial applications and microservices.
How can you employ digitization of business finance?
Automation and AI
Increased automation and decreased paperwork would lead to less operational costs for businesses. It also decreases human errors as the system becomes automated and streamlined, creating less need for human resources.
Financial data integration
Several Fintech SaaS platforms help in effective data integration and storage for businesses. Data gets stored through cloud computing which prevents data loss and automates the process of data backup. Cloud computing platforms like Google and Microsoft store data in high-security databases.
Mobile Money Systems
Creating Ecommerce solutions is essential to business growth in the competitive business landscape. The fintech payment industry has rapidly grown in the past few decades and has helped companies scale through fast and easy payment options. Look out for the best Fintech payment solution for your business that leads to value creation and customer satisfaction.
Invest in security
Digital transformation strategy should take concerns of security, and disaster management into account. Companies are actively working on making the transaction process secure through digitization. Automating the processes can help companies navigate through disasters and mishaps.
Make sure to employ a service with a strong firewalling system. This would ensure that the customer is protected from the failure of business’ IT systems, Mobile Network operators, as well as cyber breaches by employees of the company.
Invest in future technologies
To keep your firm competitive in the industry, along with investing in financial infrastructure, you have to keep an eye on future finance technologies as well. In the fintech ecosystem, cryptocurrency and neobanking systems have seen a 143% and 173% average growth rate in the past 2 years. Mindfully investing in future technologies can power your business organization in the competitive market.
Invest in Skilled talent
To successfully implement these innovations, businesses require a skilled and motivated workforce. As fintech opens the gateways to financial inclusion and business advancement, digitization becomes a superpower for startups that are willing to innovate and evolve with the changing trends in the digital space.
Yet, skilled talent stays to be the biggest denominator in maintaining sustained, robust growth for businesses. In the thriving Fintech job market, candidates have options to choose from, which has made it harder to retain good talent in an organization. Xpheno provides staffing solutions to forward-looking enterprises, connecting skilled talent to scaling companies to create meaningful and impactful corporate relations. Get in touch with us to stay updated on the industry landscape and reach industry-level professionals.