The Billion-Dollar Friction Problem Fintech Could SolveDecember 12, 2018
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.
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