Innovative and attractive services are being offered by more and more companies that use new technology for the financial sector, or FinTech. These services offer many benefits to companies who contract them. They offer many benefits over traditional financial services regardless of which type of company uses them. Aaron Rodriguez, a specialist in business operations and innovation, explains how entrepreneurs in Latin America have found an ally in FinTechs for their respective growth and expansion.
FinTech is a neologism derived from the combination of finance and technology. It refers to tech startups that use the latest technologies to develop innovative digital financial services. These financial services can also be described by FinTech.
Rodriguez explained that FinTech is revolutionizing customer experience. In some cases, it creates entirely new services, while in others, it improves or disrupts existing ones. Fintech services are designed for end customers. They are available to individuals, professionals, and companies without the need for intermediaries.
Depending on the type of financial technology product used in a company, the benefits may be different. But, in general, several advantages can be defined that tend to be repeated in all areas related to financial technology.
The first is savings since faster and more automated processes improve business efficiency. This efficiency translates, specifically in the case of finance, into financial savings. Even so, we must not lose sight of time savings in an era in which time is more precious than ever.
Flexibility is the next step, which can be applied to all aspects of FinTech. This technology allows for new and more flexible workflows. It also makes it possible to store data and make payments through alternative financing. This technology is applied to finance and allows the company to manage its finances in a transparent, fast manner. FinTech is synonymous with transparency in business.
“Of course, FinTech is and makes us more efficient,” Rodriguez points out. “Automation is a high degree of specialization because it offers very specific services. Thus, its high degree has an impact on a high level of efficiency and quality of services, in addition to a quick and agile response.”
The benefits of such a solution for a company’s finance department in relation to corporate travel or employee expenses are vast. Because of automation, there are also strategic financial advantages to consider that extend past the direct savings in time and resources.
One of these advantages is budgetary control. Thanks to the travel request functionality of some platforms, for example, it is possible to control and monitor that travel expenses are in line with established budgets and company expense policies before the expense is incurred or even before it is booked (in the case of hotels, flights, trains, etc.). Then, with automated tracking and monitoring, it is also possible to check that the expense incurred complies with these requirements and standards. Thus, budget deviations are minimized and controlled.
In addition, the information on these expenses that specialized platforms can collect is very detailed. Each company can customize its environment to obtain the specific data it is interested in. Thus, it is possible to carry out a detailed, updated, and in-depth process of management accounting and cost accounting, which will allow finding new and very important savings opportunities.
“In this context in which FinTechs are gaining more and more ground and where users reward personalized, fast and uncomplicated treatment, it is essential to be trained in this technology, especially those professionals already working in the financial sector,” Rodriguez asserts.
FinTechs are not the enemy of traditional companies, but rather can be considered the opposite. FinTech startups seek integration into the financial fabric, becoming the new technology partner of many companies in Latin America today.