If there’s anything that most companies appreciate about FinTech, it probably all boils down to speed and efficiency. According to Business Matters, for any small business or startup, FinTech simplifies several business-critical factors including: transparency of information, global transactions, and lending. Having these solutions in place boosts the capabilities of companies trying to get their foot in the door.
But what about for companies whose systems have been firmly established, and whose transition to FinTech will require a robust change management program? It may seem like a massive undertaking. But for organizations moving out of a legacy system, FinTech isn’t simply about productivity and cost savings in the long run. Coupled with the business acumen and experience of relatively long-standing companies, FinTech opens new doors of opportunity for these organizations.
Here are a few ways that FinTech can accelerate your company’s success and performance:
FinTech solutions can change your business with the availability, transparency, and easy access to data. An AI-powered system offers the flexibility to create a product that is truly centered on customers’ needs. Data-driven insights eliminate the guesswork in rethinking your approach to product development. Designing a product and service around consumer behavior and preferences allows you to capitalize on relevant insights gathered in real-time.
Expanding market reach
Ease-of-use attracts customers, including those who may not have always been reachable due to operational constraints. One problem that FinTech addresses is the complexity of international transactions, and this is great news for organizations looking to expanding the business on a global scale. The feature-rich capabilities of a FinTech system also enable you to redesign your product to solve specific customer concerns: security and speed for businesses, convenience for people on the go, and advice or guidance for those who seek information.
With cost-efficient solutions and more automation in operations management, companies have room to invest in innovation. As companies transform to more digital procedures, they increase agility, allowing change to be implemented at a faster pace. Going agile reduces the costs and risks of innovation.
In the area of market lending, we’ve recently seen disruptive innovation in action, thanks to advances in FinTech. Let’s look at an example cited by Ash Gupta, former Chief Risk Officer and President of Global Credit Risk for American Express. As quoted in Forbes, he says, “Fintech and digital lenders have created new excellence in customer experience and have permanently changed customer expectations with regards to speed of credit decisioning and the choice and flexibility available with regards to range of offers and prices.” As experiences and expectations change, so should business strategy and direction.
Statista reports, based on a recent survey of strategy leaders in finance companies across 71 countries, that the expected ROI on FinTech projects ranges from 14 percent to 25 percent. For companies today, the shift to FinTech is no longer a question of yield or return on investment; it’s now a matter of timing. Machine learning, artificial intelligence, and cloud are transforming businesses today at a pace that may be difficult to keep up with. The sooner the shift to FinTech, the faster you can gain a competitive advantage.