Fintech – friend or foe? How is technology helping the finance sector?
There’s no denying that technology has shaped the way we think and how we do things, but how is it impacting the finance sector? With the rise of the Fintech industry it’s clear that the way we do finance is changing. But what does this mean for accountants and credit departments? Is it replacing the need for a well manned finance department or is it helping us to do our jobs better?
How has technology impacted the finance sector?
One of the major changes in the finance sector has been the emergence of Fintech – the finance technology industry. This rapidly growing industry was created to enhance and automate financial services. As a result, day-to-day financial operations have undergone a radical change where the need for paperwork and manual processes are dwindling. This reduces admin time and helps to minimise errors made as many calculations are done automatically.
How has technology helped businesses?
Finance technology has allowed the development of better payment systems and a more intuitive approach to credit management. What’s more, regardless of your size or industry your business will be able to access financial information and credit reports instantly in real-time. This information can help to inform future business decisions and avoid potential credit risk. Making informed business decisions like these can be key to a business’ survival – especially if you’re a smaller company.
What does this mean for the future of accounting?
With all these new developments the benefits for businesses are easy to see, but what about accountants? These changes to the finance industry have left many accountants wondering what this could mean for their departments and whether technology is slowly gearing up to replace them.
There’s no doubt about it – the role of an accountants is changing and learning to use new technology will be a part of that. New technology and automation will free up precious admin time to focus on other administrative tasks or consultation. This time will also be extremely valuable in identifying potential financial threats and opportunities to the business.
Innovative Fintech companies like Xero and QuickBooks are already paving the way showing us how the future of accountancy could look. These companies have already made a profound impact on the accounting software industry.
Adapting and learning to work with technology will be key to the new age of finance and accounting. Technology was designed to work with us to make our jobs easier, learning to embrace it will help to pave a new way into how we do finance.
Do you agree?