Although fintech issues often become a hot topic when we talk about financial technology, fintech has enhanced several financial aspects. These enhancements include loans, payment processes, insurance, and many more. This transformation resulted in a smooth and unique user experience, allowing clients to understand fintech easily. One of the marvelous things about fintech is the software interface. For example, good accounting software allows you to do multiple things in one platform, such as cash flow management, journal entry, and reconciliation.
With accounting softwares, there’s a higher chance that you’ll avoid human errors. Besides, fintech has brought significant changes in the past few years, impacting many companies especially the financial industry. However, there are still some problems regarding fintech. In this article, we will go through the issues within fintech and how accounting software could help.
What Is Fintech?
The main goal of introducing financial technology (fintech) is to replace or complement the traditional financial process—for example, software, algorithms, methods, and business models. Personal investment, trading, financial services, and insurance is the main thing for almost every fintech application.
According to Market Screener, the worldwide fintech market will be worth $26,5 trillion in 2022, growing at a 6% annual rate. Global economic growth, increasing credit and insurance demand, and increasing investment interest are the cause of this rapid expansion.
Idenfity Problems With Fintech
Despite the promising future of fintech, the talk about the fintech issue is still a thing. The majority of customers continue to prefer traditional banking institutions. Fintech, while undergoing a technological revolution, faces some concerns and hurdles. Some of the most serious issues are a lack of trust, a lack of transparency, security breaches, and specific customer habits.
However, these fintech issue are not entirely true or guaranteed will happen to each and everyone involved with Fintech. Just like any other newly introduced thing, fintech is still trying to get the heart of the public. To ensure long-term success, businesses must do all possible to first recognize these difficulties.
1. Security problems and user privacy
In 2020, the use of financial technology in some parts of the world expanded by 72%, accompanied by enormous Fintech investments. However, such expansion may result in unexpected effects, the most serious of which are new security risks. Cybercrime is on the rise, with a new attack being launched every 39 seconds. Unfortunately, Fintech firms are one of the most common targets for hackers.
2. Keeping up with modern technologies
According to a Gartner CIO poll conducted in 2019, more than half of financial services CIOs predict that most firms will function through digital channels and that digital efforts will produce more revenue and value, highlighting the importance of Fintech trends in the future. Organizations who employ outdated business management software or disconnected systems, on the other hand, will not be able to stay up with a world that is more focused on digital technologies.
Safe and Sustainable Fintech
As sustainability becomes more integrated into business strategies for long-term viability, one method of achieving sustainability goals is to implement an Enterprise Resource Planning (ERP) system, which increases production efficiency, reduces costs and waste, and improves supply-demand planning.
Moreover, we assume you have understood what is the common fintech issue. Therefore, we are going to assure you that safe and sustainable use of Financial Technology is possible. To be more specific, we are going to explain how safe is the implementation of Fintech for businesses in the form of a software.
Accounting software is one of many other fintech available in the market. If we talk about data safety, HashMicro’s Accounting Software could be more than capable to make sure you are covered. HashMicro’s Accounting system will keep your company data safe. In addition, for sustainability, the customizable software should leave you with no worries of having to readjust to the application every now and then.
Moreover, this software can integrate the information you need during accounting activities. Here are the benefits of the best Accounting software in Singapore for your company:
- Optimized Efficiency: Minimize manual, time-consuming accounting procedures like bookkeeping, asset depreciation calculations, and more.
- Real-Time Data: Get complete, real-time financial information that helps you make better business decisions.
- Improved Accuracy: Know the financial condition across all business unit through in-depth analysis and accurate forecasts of your income.
- Increased Profitability: Increase your business profitability with the help of automated, accurate budget calculations.
Also read: 4 Key Benefits of Using an Accounting App
Financial technology will be an excellent addition to many industries if we can utilize it correctly. Learn the correct methods theoretically before you finally implement it in your business. With the tremendous amount of automation possibilities, the appearance of fintech should be able to push the growth of many businesses in the world.
Start your fintech journey by automating your accounting process. HashMicro’s accounting software will provide you with the best financial ERP experience. It will solve your problem regarding data safety, cash flow management, reconciliation, analytical reporting, and many more. Get the accounting software pricing scheme calculation to help you collect the information about the cost of HashMicro’s accounting software.