It’s fair to say that, when we think of finance, many of us envisage Wall Street; men in suits, on the phone, surrounded by reams of paper.
However, the financial industry, like every other, is changing – and one of these ways is in the use of technology.
Banks very much lead the way, with online banking and apps making it easy for people with busy lives to manage their money on the go.
But where does technology fit into other aspects of the financial world – and how can businesses make sure they’re capitalising on it?
Firstly, firms need to rethink the way they approach technology, and software in particular.
Software and finance are a match made in heaven, but, too often, clients think of the technology as a cost, rather than an investment. Put it this way; a cost is something you have to pay for but you get no money from it – it’s dead money.
An investment, on the other hand, is going to give you something in return – and software very much falls into this category.
It may be a more efficient workforce, it may be a greater range of services, it may be safeguarding your future – but sooner or later, you’ll reap what you have sown.
So, taking the example of financial services; your staff cost you money, so you need them to be efficient; out on the road, meeting clients, doing the work.
To work even more efficiently, they need to be able to access all the information they need about those clients and process it in a timely and effective manner – and there’s software available to do just that.
The more info you put at their fingertips, the more accurate KPIs you can generate as a business, which will ultimately save you money and give your clients a better experience.
Nowhere were the benefits of the initial outlay on technology clearer than during the recent pandemic. Granted, nobody saw it coming, but those firms that had previously invested in home-working measures, such as cloud software, were ready to hit the ground running – the others were left playing catch-up.
While many aspects of the financial world are now wholly automated – money comparison sites, for example – that’s not to say this works for every client and every need.
Firms that need that face-to-face (or, so often at the moment, Zoom-to-Zoom) touch can also use technology to support their staff, combining the old with the new to everyone’s benefit.
At Sapere, we’ve been working with financial institutions for the past decade, like our work with Tees Mutual and Careys Personal Credit last year.
Chief executive Phil Carey said at the time: “The new digital system Sapere built has addressed the frustrations of our previous system, especially in reducing the duplication of tasks like scanning documents that are now automatically uploaded via an app.
“It’s a slick process now, providing a base to help us meet changing demands from regulators, and the evolving needs of customers, many of whom still prefer the face to face weekly collection process, while others prefer direct card payments they can carry out from their own home.”
While the financial services industry can – by its own admission – be archaic at times, we know from our work with it that a slow, natural evolution is needed.
As part of our series of ExperTEES events, we spoke to Karl Pemberton, managing director of our client Active Financial Services, to hear what he thought about the FinTech culture shift.
He told us: “Financial services is an old, traditional industry and, in some sections, there is that fear of change.
“For me, I feel that if you’ve done something in a certain way for a long time, you need to evolve.
“My approach has always been to change a little each year, evolving as you go, rather than stick to the old ways and then have to undergo radical reform to keep up.
“To progress, you have to evolve. If you stand still, you’re technically going backwards – especially in this industry.”
And so what of the evolution of FinTech; what does the future hold?
Due to its very nature, the technology is always changing and innovating. Artificial intelligence (AI) is the next big thing making waves in the FinTech world, with providers looking to target customers in a similar way to streaming services such as Netflix.
There are even moves to make the unwieldy process of insurance more automated using AI. Customers of one Chinese firm, Ping An, involved in an accident can take a photo of the damage with a phone and send it to the insurer. Algorithms assess what type of car is involved, how significant the damage is, and how much it will cost to fix, before sending over an offer to settle the claim immediately.
All of this highlights just how Fin Tech can streamline the most time-consuming of processes, allowing us to work smarter and better, giving us all more that most precious commodity – time.
If you’d like to talk to us about reimagining your business and freeing up your staff, call us on 01642 955645 or email sales@sapere.co.uk