The Future of Finance: Exploring the impact of digital transformation in Fintech

Geetanjli Dhanjal

Fintech’s evolution in the years following the 2008 crisis brought significant changes to the industry and became a disruptive force in the financial sector. This evolution offered innovative solutions addressing vulnerabilities such as risk management, regulatory compliance, transparency, and accountability for a more sustainable financial system. From mobile banking apps to blockchain technology, peer-to-peer lending, and digital payments, fintech is pervasive in our everyday lives.

Fintech and ERP are complementary technologies that work together to automate and streamline financial processes within an organization. As a tech consultant, I see many organizations leveraging these fintech tools, sometimes even before deciding to use an ERP system. When fintech solutions are integrated with ERP and processes are automated, that’s when we see real operational and process efficiencies.

Also Read | Redefining customer engagement in the BFSI & Fintech sectors – A view from inside

Here are some of the ways organizations can automate Fintech and ERP to achieve operational and process efficiencies.

    1. Invoicing Automation: Fintech tools like Stripe can integrate with ERP systems to automate the generation and distribution of invoices based on predefined rules or triggers, reducing the manual effort
    2. Payment Processing Automation: Payment Solutions like PayPal, and Solupay can be integrated with ERP systems to automate payment processing, allowing for seamless transactions and faster reconciliation of payments.
    3. Automated Financial Reporting: Data visualization tools like Tableau or Power BI, when integrated with ERP systems, automate the generation of financial reports and dashboards, providing insights into key financial metrics and trends in real-time.
    4. Accounts Payable Automation: Fintech platforms such as Tipalti or can automate accounts payable processes within ERP systems, reducing the need for manual data entry and processing invoices, payments, and bank reconciliation. There are some technology service providers developing API-based direct integrations with banks where there are no out-of-the-box connectors available.
    5. Predictive Analytics: Fintech solutions can utilize machine learning algorithms to analyze financial data within ERP systems and provide predictive analytics for forecasting revenue, expenses, and other financial metrics.

I have seen many companies benefit from Fintech and ERP automation, some of which are:

  • Streamlined financial processes by automating tasks, accelerating processing times, and improving overall efficiency.
  • Real-time availability of financial data enabling better decision-making
  • Comprehensive and accurate financial reporting provides valuable insights into the company’s financial performance and trends
  • Cost reduction by automating repetitive financial tasks and optimizing financial processes
  • Readily available audit logs for compliance monitoring assisting in risk management and financial governance
  • Improved and enhanced customer experience with direct portal access to customers, leading to higher customer satisfaction and loyalty among customers
  • Handling increased transaction volumes without manual interventions provides scalability and flexibility for growth and expansion

The future of innovation between Fintech and ERP holds exciting possibilities aimed at further enhancing efficiency and scalability in financial processes. Some of the innovations to look for are:

  • AI-powered Financial Insights will enable more advanced financial insights. AI can analyze vast amounts of financial data to provide actionable insights, such as predicting cash flow trends, identifying cost-saving opportunities, and optimizing investment strategies.
  • Robotic Process Automation (RPA) can automate processes like data entry, invoice processing, and reconciliation, freeing up time for finance teams to focus on more strategic initiatives and decision-making.
  • Real-time payments and settlements, such as instant payment networks and distributed ledger technology, facilitate faster, more efficient transactions, reducing the need for manual intervention and reconciliation.
  • Blockchain for secure transactions can reduce fraud risks, streamline transactions, and improve trust among stakeholders
  • Embedded financial services will enable users to access a wide range of financial products and services directly within the ERP platform, such as business loans, invoice financing, and insurance, enhancing convenience and efficiency.

Also Read | Digital Evolution in Finance: Navigating Challenges, Embracing Change

Overall, the future of innovation between fintech and ERP holds immense potential for transforming financial management processes, driving efficiency, and empowering organizations with advanced capabilities to thrive in an increasingly digital and interconnected world.

Views expressed by: Geetanjli Dhanjal, Senior Director of Business Transformation at Yantra Inc

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