In the last few years FinTech has been grabbing news headlines as a disruptive technology that is making a big difference to consumers. Rarely deployed by older style banks until recently, FinTech is synonymous with disruption, but you were more likely to read or use it through new start-ups aiming to disrupt the financial heavyweights, rather than by the traditional players in financial services. Sleeker, faster, cheaper and often leveraging mobile technology, users liked the new user experiences, so older financial services companies have woken up and are now aggressively exploring these newer technologies to enhance their selected solution offerings to end users.
What is Different?
In a nutshell a combination of technologies have come together at the same time allowing the more nimble software developers to leverage them as a starting point to build something different. These newer solutions have a smaller technology footprint, and bring to the market functionality at a much lower cost than available before. They enable ultra-fast transaction processing together with enhanced decision support capability and control.
Do I Need to Be a FinTech Company ?
No, any company can leverage these technologies and to do so allows them to gain competitive advantage by being able to streamline business processes and to undertake any required transformations at high speed including those with Big Data.
Why Should I Care?
Recent Studies undertaken by CFO.com point to a number of relevant data points but two stand out. Firstly that the finance function spends about 50% of its available time on transaction processing, (Source CFO.com, 4th December 2015, Metric of the Month: How Finance People Spend Their Time), and secondly that the "cost of finance as a percentage of revenue" differs somewhat widely, even within the same industry, (Source CFO.com, 15th March 2016, Metric of the Month: Total Cost of the Finance Function). So taking a rough average delta of about c. 1.5% of revenue between the most and least efficient companies would suggest that there is additional profit well worth having for any organization.
Another buzzword but in essence all about allowing your customers to love you more by being easy to deal with at all levels. Easy to explain but hard to do especially when your processes are suffering from excess friction.
Why is It Different?
Users can define their own processes from data collection through all transaction processing to visualisation including reporting @anywhere. Reports can have rankings and Virtual Assistants can help with full or partial automation of processes @anywhere, whether that be contextual alerts and/or workflows, all helping you to improve productivity. Additionally Business Simulations can be run. All can be done with high performance with all processes auditable and repeatable meaning that the system is working for you.
What Can I Do?
You can tackle complex tasks and processes within Financial Services. Examples being compliance with IFRS 9 and 13, Loan Simulations & Classifications, Portfolio Management, Lease Management, GRC processes, HKMA Reporting, CSR Initiatives like Supplier Audits, and processes that go across multiple locations like intercompany “ Internal Research Billing”.
Latest technologies bring enhanced capability. For example Cloud Burst technology to create hybrid processes to leverage the public cloud but where data is always stored in-house. Embedded reports to avoid attachments.
Do I Need to Replace or Upgrade Existing Systems?
These latest technologies can work with your existing systems to start knocking out business bottlenecks. For decision support and other reporting activities information can be quickly transformed. Any staff movement where users leave ad hoc spreadsheets for someone else to pick up, or where spreadsheets get removed, will be a thing of the past as all processes can be reviewed collaboratively, step by step, for continual improvement.
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