The growing prevalence of financial technology, generally regarded as "fintech," has become increasingly advantageous for businesses. The rise of this new and innovative tool has seemingly transformed the financial services industry.
Why? Because financial technology is altering the fundamental way business is conducted, especially for banks, trading and securities firms, etc. Whether you are simply logging on to an online banking app via smartphone or utilizing more complex software for important business transactions, the vast majority of the population is rapidly becoming more accustomed to the concept of "fintech," perhaps without even realizing it.
However, not everyone is convinced. Some companies are apparently wary to just “hop on the bandwagon." But why the hesitation in embracing new technology and such an innovative, growing industry segment? Perhaps employees are unwilling to adapt or senior management cannot justify the cost of this type of investment. Alternatively, the cost of "retraining employees" and the financial technology itself is perceived as too high. These arguments against financial technology often stem from fear of "change" or a general lack of knowledge and awareness of the economic benefits.
Nonetheless, many companies are embracing the "fintech" phenomena and reaping a variety of benefits. And for those who haven’t, it’s not too late. In fact, here are three reasons why your business should support and invest in financial technology:
1. EFFICIENCY: The bottom line is that "fintech" products are designed to improve and automate financial services processes. You know the phrase "time is money"? Well, investing in financial technology will increase the productivity, accuracy and speed of your business processes and transactions. Even further, it can enhance the overall experience and satisfaction of your clients and/or customers.
2. DATA IS POWER: When you invest in financial technology, access to important and time sensitive information is easier than ever before. Whether you need to review historical transaction data with a client or a discrepancy in your financial reporting, simple access to important data can be vital for your company's success.
3. PROFITABILITY: Sure, there are costs associated with investing in financial technology. However, what it really comes down to is the overarching question: Do the benefits outweigh the initial cost? A close examination of the previously mentioned benefits, among others, will likely reveal that financial technology can contribute to increased profitability for your company.
Does any of this “fintech” talk sound a bit confusing to you? Let us clear it up! We work with our clients to deliver quality technology solutions for institutional fixed income trading. Matrix offers a suite of cutting-edge products, including QTIX, TradeBlazer and 4210 Margin Calculator, to simplify and maximize your company’s potential.
For more information, go to www.matrixapps.com.