Digitization of the finance function: what should we expect in the future?
Financial companies often prove to be one of the most stable businesses in crises. Be that as it may, people always buy, sell, save, and invest finances and valuable assets. And if your business is related to the financial sector, you can already be sure that you will have stable ground under your feet. However, to continue growing and stay competitive, a modern financial company must consider digitalization in finance and accounting. After all, the further the world develops and the faster its pace becomes, the more urgent the issue of digital business transformation becomes. We have gathered some information to help you get started on the path to digitalization and learn what to expect in this area in the near future for the financial sector.
Why do financial companies benefit from digitalization?
All owners and managers of financial companies can ask a logical question: why do we need financial digitalization? The transition to the digital world will have at least the following benefits for such companies:
- Increased efficiency and throughput.
We have a reasonably simple analogy that will help put everything into perspective. Let’s compare the speed of calculating a complex equation without a calculator and with one. Of course, it will be faster to perform such an operation using a calculator and take some of the workloads of the person performing the calculations. In terms of digitalization, processes can work similarly. You can significantly increase the number of operations you will have time to perform if you digitize your processes. As a result, the overall efficiency of your business will grow.
- The ability to be modern and meet customer needs.
Even people who don’t know much about technology are somehow in contact with it every day. Food delivery services, streaming platforms, taxi apps, emails, and much more have already become part of everyone’s daily routine. Thus, fintech digitalization will help your company always be available to your customers. In addition, having researched the market, you can see that most financial companies are already represented in the digital world in one way or another. You should also have a website, an app, or even your own software to be competitive. It depends on the specifics of your business.
- A way to relieve some time of your employees.
A lot of paperwork and mechanical work can indeed be entrusted to a computer. This will save a huge amount of time because the speed of filling out, organizing, and storing data manually and using a computer is not even comparable, so much so that the computer wins in this regard.
- Improving the convenience of working with data.
If you had a company with five clients, searching and storing data would be no problem. However, we are sure that you have many clients, each of whom has its own needs and peculiarities. When planning a digitalized finance company, you make it easier to work with documents. All data can be quickly and conveniently sorted, each client will have their own card in the computer system, and when they come to visit you or open your app, they will have quick access to all the information they need.
- Data security.
Paper documents are very fragile and are exposed to various factors — fire, water, and simple mishandling. But documents in cloud storage, protected from cyber threats, always remain safe. This will improve your image and increase the level of trust your customers have in you.
There are many more reasons why going digital is a great idea for almost any business. But the above should convince you that it’s worth developing your software for your company.
What changes should we expect in the near future?
When it comes to developing your software, you have to do everything, so to speak, six according to the latest fashion. So what trends should we expect in the world of fintech digital in the near future?
At least, such opportunities are currently being actively discussed:
- Artificial intelligence.
AI’s capabilities are impressive: from calculating complex equations to building a dialog in which it is impossible to distinguish between human and artificial intelligence. How can you use it in business? There are many options. For example, if you provide services to traders, developing software with AI capabilities would be appropriate. Artificial intelligence can take on an important part of the work of finding suitable trades, analyzing data, checking the prospects of each trade, etc. This will greatly simplify the trader’s work and bring more profit to your company.
The famous Bitcoin, which has made a splash in recent years, is one of the representatives of the opportunities offered by blockchain technology. This technology can be used, in particular, to simplify financial transactions and increase their security. The fact is that blockchain allows for storing all the necessary information in one environment, while traditional accounting and transaction processing systems use many databases. This slows down and complicates the transaction process. Meanwhile, blockchain is one of the most discussed and trending technologies, and all leading fintech companies are trying to create software with its capabilities.
Here, the list of possibilities and options is simply incredible. Almost any process can be robotized – for example, not so long ago, artificial intelligence learned to write texts indistinguishable from those written by humans. But let’s take a more practical look at this issue. A fintech company can process, sort, and store data using robotics. You can also always reduce the workload of employees who process incoming requests. Namely, you can create a chatbot that will answer frequently asked questions and redirect a person to a live consultant only if necessary. And this is just one of the hundreds of possible examples of why you should use robotics in your processes.
You can see for yourself how much the digitalization of a financial company can free your hands. You will get an essential tool for developing your company, and with an intelligent approach, you will be able to realize even the most complex challenges. What do you need for this? At the very least, you need to audit your current workflow and existing systems, analyze competitors’ experience, and find a worthwhile contractor to develop and implement new digital tools for your business.
How to digitalize your financial company
Need to get your own software or want to upgrade your systems completely? Perhaps you are interested in financial digitalization consulting because you are not even sure where to start and what your company needs to succeed?
We suggest you contact the experts at Magnise. We provide a wide range of services for developing, designing, and implementing software solutions. In particular, we have extensive experience in the fintech sector and will be happy to help your company reach even greater heights!
To find out more, sign up for a consultation. During the conversation, we can determine how exactly your company can be digitalized.