The Fintech industry at the moment is an extremely exciting one to watch. Fintechs are starting to make the financial landscape completely unrecognizable, and that is an extremely good thing. They are positioned perfectly to take full advantage of new tech.
It's a new technological age, and Fintechs are leading the charge. Bitcoin, for example, proved that it was possible to conduct peer to peer transactions faster, more securely, and less expensively, and it was all thanks to the innovative tech underlying it. This led to Bitcoin being used or even preferred for a multitude of transactions. For example, it's easy to find an online casino that accepts Bitcoin for anonymous gambling - all you have to do is look through a website like BitFortune to find a legit one and you're good to go. Bitcoin can also be used to book flights and hotels, and even to order takeout!
The blockchain technology underlying the Bitcoin network showed us that thinking outside of the box could provide solutions no one would have ever dreamed would work. Who would have thought that storing information across a network of computers would be more secure?
As a result, most of the world's leading banks have already started looking into blockchain based technology to help secure their networks.
But it is not just the traditional banking environment that has been significantly changed by Fintechs. Advances in artificial intelligence have made it possible to analyze big data in a way that was never possible before.
Intelligent machines can analyze and process huge amounts of data in minutes, leaving the way open to provide more accurate assessments. In the insurance industry, for example, this has meant the ability to produce more accurate risk assessments and so offer more personalized insurance rates.
AI is also making it a lot easier to automate menial tasks, like certain accounting functions, for example. The tasks are completed faster, more accurately, and at less expense. Companies can maximize staff productivity by freeing them from boring, repetitive tasks.
Take the accounts receivable function, for example. In the more traditional course of operations, an invoice would be issued by the sales department. This would then need to be captured by the accounting department.
They would then need to manually capture payments. And that is if everything went well. If clients did not pay timeously, they would need to take more time out of their day to follow up.
New Fintech makes it possible for the entire process to be handled by AI from start to finish. The invoice is captured by the sales team and is automatically populated into the accounting program. The system can match payments made automatically and send off reminders as necessary.
In the event of a client ignoring reminders, the system can notify the designated company official. This system makes the entire accounts receivable process a lot simpler and more efficient, leading to improved debt recovery and more predictable cash flow.
And that is what is at the core of the Fintech revolution – finding ways for us to get things done faster, with more precision and with more efficiency.