Technological advancements that took over the smallest aspects of our lives can make a sensitive change regarding businesses’ problem-solving capabilities. The fintech sector seems to be continuously growing in potential and the services it can easily tailor. Both B2B and B2C parties can now find, thanks to this industry’s contributions suitable solutions, tools, apps and services that increase flexibility and convenience.
If you are not familiarised with the concept, you should know that the fintech Sector dedicates its efforts to create new technologies and tools that leverage new, better financial products. For instance, the home banking app on your smartphone is an exquisite example of a fintech piece of engineering. And so are online transactions; but you should keep in mind that the products developed by fintech companies are not exclusive to banks. Insurance companies, financial management companies, asset management companies can also profit from these amazing products skilfully tailored by financial experts in collaboration with software engineers.
Especially banks and other alternative financial institutions rely enormously on technological and fintech advancements for the well-development of their internal processes. Below is a comprehensive list of those challenges that can be simply solved by fintech.
1. Product Distribution
Employees working in the front line, directly with the products they have to sell or interact with are very familiarised with this issue: plenty of information about a product dispersed on various mediums. Shared folders, hard drives, flash sticks and paper. This makes information hard to access and the process itself a lengthy one. finding the right information was previously a real hunt from department to department, from a colleague to colleague. The first revolution in this prospect began in 2000, when somebody came up with the idea to centralise all their products online. This afterwards turned into the first online shop version. By this simple measure, the eCommerce era began. In the fintech industry, development companies put continuous efforts to make it easier for the employees in financial institutions and businesses operating in adjacent sectors to have access at a centralised information, easy to find and share. With an accessible and facile interface and effective search tools, these apps and programs can make the life of these employees and their work-related duties significantly easier.
2. Fund Order Administration
It’s hard to believe that fund administration is still handled and completed in some cases with paper and faxes, given the amount of technology we enjoy today. For some reasons, even although we can launch nowadays orders through an app, we still keep in the dark order administration. Some claim that automation in this specific area is difficult to achieve. We all know that fund houses and distributors have quite restrictive negotiation terms. But this particular challenge is not that difficult to solve, as many fintech companies have proven. Some successfully developed connectivity solutions directly to the fund houses. Many have even succeeded to automate a process that was seemingly impossible to automate.
3. Compliance Monitoring
Compliance reporting is an important aspect of a financial institution’s activity. While these establishments have implemented numerous compliance reporting tools, but unfortunately, the legislation is so complex it makes it difficult for those to encompass all the necessary data. But Contis Canvas offers an alternative in this regard, developing multiple products that come as a great replacement for traditional reporting tools. Keep in mind to surf the offer with care, as not all companies that deal with fintech developments. However, some of the most specialised companies in the industry can use the data available on multiple supports to deliver better and better products.
4. Call report
While not having an automated solution for call reports isn’t that big of a problem, an automated one will significantly reduce the time intervals necessary to complete those. An Excel spreadsheet might work well and might not even raise any problem, but an automated tool will certainly advantage your company. But the content of these reports is what might interest you more. Excel and Word spreadsheets cannot mine the intelligence that results from an automated process, the information encapsulated by those cannot surpass the information stored by an intelligent tool. A note is not enough to make the most out of your client engagements. Technology can, on the other hand, offer you some viable solutions, which as you build up your library, can be used in numerous ways, as these can tell quite a lot about your client’s investment patterns and preferences, but also their risk resilience.
5. Improved customer segmentation capabilities
An appropriate customer segmentation is oftentimes difficult to obtain, as customer behaviour patterns are on a continuous change and development. As all companies today are costumer-oriented, customer segmentation matters a lot, especially for companies in the banking, financing and other adjacent industries. By using big data, fintech developers can now offer better customer segmentation capabilities, based on gender, spending habits, age, socio-geographic coordinates and so on. As technology is advancing, new prospects open for these companies. This makes bank operators better at tailoring their products depending on each client’s needs and expectations, but they can also become quite accurate and successful at making personalised offers and packages. Obviously, this leads to higher levels of customer satisfaction and retention.
6. Fraud detection capabilities
For those companies that work in the banking and financing sector, fraud is one of the main concerns and challenges they have. Once again, the technology we have today, can turn all the data generated by our electronic devices into useful information. The apps and tools developed by Fintech companies can now analyse spending behaviour, and if something suspicious occurs in those, both the customer and their bank institution will be informed. While this won’t put a complete end to fraud, the potential this technology has makes it worth our attention.
These are only some of the challenges faced by businesses all over the world, which can be easily solved with appropriate fintech tools. Experts claim that finding a reliable fintech company and collaborating with it on a regular basis might help so many financial institutions carry in a safer and easier fashion their activity.