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Tag: fintech startups

The Billion-Dollar Friction Problem Fintech Could Solve

Posted on by Imarticus Learning

Fintech has seen massive growth over the last few years, and a lot of companies have begun seeing its benefits. It helps in cutting down costs and even making processes faster. One telling aspect is that Fintech has helped solve problems that are at the lower end of the spectrum. Smaller businesses are benefiting the most, and this has helped bridge the gap between the two and make smaller businesses more positive.
There needs to be interoperability between the supply chain ecosystem and the software being used. Here are just some of the friction problems that fintech courses could help solve.

Accounts Meeting Crypto

E-invoicing for fintech start-ups is simple, but the future looks bright with better strategies that are centred on capital management.
One of the biggest pain points for businesses is their working capital. The rise in fintech operations in the invoicing space is largely attributed to help manage working capital better. There are opportunities available that could eliminate the need for financing in general or even complement this service
Dynamic discounting is generally accepted as accounts receivable to speed up payments and make it easier. If accounts payable could look into alternative currency to find cheaper instruments, discounts could be locked either way.
Many two-sided e-invoicing companies would begin developing their own version of concurrency. In a world where trade is globalized, transacting without the need for currency conversion is always an attractive offer. Network accepted currency would end up becoming advantageous and help complete settlements much faster.

Other Problems It Can Solve

The supplier invoice in the future of the fintech industry could feature an option to pay with the help of an e-invoicing token for accounts payable. This would also add a discount in addition to the early payments through fiat currencies. Fiat currencies could still have to go through the dark alleys of back-end infrastructure that banks generally have and would require transactional fees on the way as well.
Also, imagining a world where a bot does all the work such as optimising and reporting daily accounts isn’t unthinkable. You can manage payments through a mix of tokens for networks along with fiat currencies that were previously in hand. While the same technology is available today, a smarter version of it doesn’t exist yet. If you could use the same to solve this issue, it could be highly beneficial and solve a large slew of issues.
Also get know more about the Fintech (Financial Technology), through just a single click: https://imarticus.org/Professional-Certificate-Course-FinTech/

How Is Fintech Disrupting Traditional Banking?

Posted on by Imarticus Learning

One of the common buzzwords that seem to have taken over the banking industry off late is Fintech. The word simply refers to using technology in all aspects of financial servicing and its functions. It is mainly seen as the replacement to all paper-driven tasks and processes, which take up a significant chunk of the banking industry.
Fintech was initially used for office functions with software used to control and manage transactions, handle personal accounts, manage databases and more. Today, however, fintech has completely transformed and changed the way banks operate. Fintech has become a vital part of customer-facing processes with every digital transaction, now available on the customer’s fingertips. Be it stock investments, transferring money, shopping, forex or even opening a bank account, FinTech is at the forefront of it all.
Here are a few ways fintech is transforming financial services in a huge manner:

Chatbots

Chatbots are software which have been coded to apply machine learning and natural language processing techniques to learn from interactions with humans. It has become a very popular tool, and banks are using it judiciously for a wide range of customer-facing processes like directing customers to departments or handling simple queries. One of Japan’s biggest banks is releasing a chatbot which aids customers to find any relevant information, directly on their website.

Blockchain

Blockchain is seen as the future of banking and as a primary disruptor in the FinTech industry in general. It uses a digital public record of transactions that is decentralised, unchangeable and anonymous. Instead of depending on a bank to maintain a private database of any records, blockchain fintech technology releases all records to the public. The impact it could have is touted as revolutionary and life-changing.

Personal Finance

Personal finance was seen as an industry that was wholly controlled by most of the major financial institutions. There are companies, however, that are making it more transparent and affordable. There are online platforms and even cell phone apps which aid businesses develop budgets, file taxes and invest and more. FinTech courses also allows people to track their expenditures on a daily basis and scan through their financial status whenever needed.

Payment technology

There are a wide array of payment technologies which allow individuals to transfer their money via the internet. By simply using smartphones and the NFC tech, payments can be completed in a flash. These services eliminate the need for a debit and credit card and even cash!
Thus, the FinTech industry is here to stay with many innovations looking to change the way individuals bank.

How the US Midterms Changed Fintech?

Posted on by Imarticus Learning

The ironic response of the US asking India to be more open and encourage international companies makes one wonder about the impact of the midterm elections in the US. 
Let’s ruminate a bit on it.

The Midterms 2018

The US midterms-2018 has split the political struggles of the legislature between the Democrats and Republicans who insist on the deregulation for rules on processing payments and creating a focus on the protection of US consumers. It even brought in changes in the committee leadership creating a political-stalemate with a wafer-thin majority. While opposing sides claim to promote innovation and technological progress, their policies are in opposition to crucial issues affecting the fintech industry.
The Democratic stance is over-sighted and could harm market-based developmental pushes, while the Republican stance is isolated and not in the interests of international cooperation or an unregulated internet. It is a no-win situation with the Democratic control of the House giving congressional action proposals which face vetoes or stalling in the Senate.

Effects on Innovation

The financial technology based e-commerce and payments across borders developers using blockchains, clouds, and mobile apps will now think twice about the US first and excesses reining in policies. Though it was proposed by Steven Mnuchin the Treasury Secretary to offer fintech startups, identity-based technology, and sandboxes regulatory relief even temporarily as in the UK, the Democrats shut it down. The administration, however, ended the policy of internet neutrality vital to technology development and innovation.
The Trump administration’s stance on immigration curtails benefits to skilled tech workers which in turn will affect the global tech-markets and America’s competitiveness. Political pressures have also affected the data protection policy and impacted fintech companies as a result. In the political chasm is the open data rule.

Learning from the Midterms

Fintech courses would do well to study both Trumpism and Brexit and their core policy of isolationism favouring domestic-development. Western payments companies like Paypal, Stripe, Mastercard, Visa, Walmart, Amazon, and others are now in a state of flux and uncertainty. The vital markets of China and India now require local-presence to make or offer payments in them. India also requires local data storage which it terms a security measure while silently promoting Paytm a local mobile payments solution. The success of the UK’s sandbox concept is affected by the Brexit’s uncertainty. Meanwhile, Lithuania emerged as a fintech hub for the fleeing fintech companies.
The net result is that sanctions and an uncertain political environment become a hurdle to both technology and market development. The US stalemate is its own foe irrespective of any political party’s vision.
 

Why Global Fintech Startups like DXC, Cardlytics and SOSA are Flocking to Vizag?

Posted on by Imarticus Learning

The financial capital of Andhra Pradesh, Vizag, has been in the spotlight of late. With news of global fintech (Financial Technology) start-ups flocking to the city, the city has been in the papers quite a bit. This is of course not an overnight phenomenon. Let’s consider the reasons why Vizag has now become the financial hub for fintech start-ups over the years. Here are some of the reasons why the city is a hotbed for finance companies to open a base there:

Where It All Began
In December 2016, the Andra Pradesh state government launched Fintech Valley Vizag, an initiative to promote the business structure of the state. The programme offered a global Fintech ecosystem to produce growth through industry-enablers, innovations, entrepreneurship and world-class infrastructure. From the very start of the operation, the programme had an ambitious plan to expand as a global Fintech hub.

Initiatives
The Fintech Valley Vizag rolled out numerous initiatives to develop a thriving Fintech ecosystem in the city. A few of them are listed below:

  • The launch of BFSI case repository program: Collaborating with leading banks, insurance companies, capital marketing companies and NBFCs, the valley launched a Hackathon and Innovation Challenge to operationalize the use of case repository.
  • Blockchain Business Conference 2017 – We know that blockchain is considered to be the solution for existing security woes of Fintech sector. Valley conducted a conference regarding this technology to pave a path for new business models by revolutionizing the current expensive systems.
  • Fintech Valley Accelerator Program – This program was conducted to provide a chance to the start-ups of the valley to find success by connecting them with bigger players of the industry. It gave the selected startups an opportunity to access technology resources, mentoring on fundraising and legal guidance.

All these initiatives helped the valley to boost its image as a sustainable fintech ecosystem not just in India but on a global level.

Facilities
Under the Designated Technology Park Scheme, the Valley offers government-backed support facilities at subsidized rates. The Valley welcomes resident fintech courses, fintech start-ups, incubators, accelerators and innovation hubs to use the facility as a co-working space.

The infrastructure facilities of the valley include Millenium Towers with an area of 300,000 square feet, 40 acres for an IT park in Rushikonda and a 600-acre IT park that’s coming up at Kappulapada. The facilities of connectivity in the state are remarkable.

The Andhra Pradesh Fiber Grid Project is under construction which is aiming to bring optical fibre network to all part of the state. This project has been implemented at a cost of ₹333 Crore and it will make Andhra Pradesh the first Indian state to make all its citizens digitally active.

Recent Events
In October 2018, The Valley conducted a 5-day festival named Vizag Fintech Festival. The conference hosted various leading start-ups, corporates, investors and academia from around the world. The fest ended with such success that it was proof of the global recognition to the valley.

The first day of the fest witnessed the Andhra Pradesh government signing pacts with Whub of Hongkong, SOSA of Israel, Singex and Bizforce among others. The launch of Vizag operations of Cadlytics, DXC and First American Corporation was announced later during the fest.

It is clear that the government is making huge efforts to make Vizag a global hub for Financial Technologies. With the current rate of success, we can expect Vizag to turn out as a one in the upcoming years.