Every company wants the best possible financial and accounting team onboard, but the demands of the jobs — and the skills required to fulfill and maintain them — are changing quickly, especially now. Businesses can stay competitive by integrating top fintech into their corporate finance strategy to streamline processes, reduce costs and enhance security.
Notable examples include using blockchain in finance and cross-border shopping, relying on risk management tools and using big data in corporate finance. So, how can you make fintech work for your organization?
what is fintech?
Fintech, short for financial technology, involves incorporating technology into financial services and products. It includes any technology that automates, improves or even sometimes disrupts traditional activities such as investing, lending, banking and payments. Blockchain, digital payments, big data, etc. are all fintech tools. Let’s take a look at four of the popular ones and what they do.
1. blockchain
what is it
A blockchain is a digital record of transactions copied and spread across a network of computers. Each block holds several transactions, and when a new one occurs, it's added to every person’s record.
In finance, blockchain is widely used for cryptocurrency and digital payments. A recent report by Global Industry Analysts estimated the global market will grow from $1.4 billion in 2022 to $43.1 billion by 2030.
how it can help your company
Many businesses, including financial institutions, are adopting blockchain-based systems to enable faster, cheaper and more secure cross-border payments and money transfers. It offers a secure, clear and decentralized method to record and confirm transactions without relying on a bank.
who you need on the team
The implementation of blockchain technology may involve a Chief Technology Officer (CTO), who would develop and guide the strategic direction of the technology. An IT director would handle the technical aspects, ensuring the blockchain technology integrates well with existing systems.
2. AI in risk management
what is it
AI in risk management involves using technologies like machine learning to recognize, evaluate and lessen potential risks across different areas.
how it can help your company
AI systems can analyze vast amounts of data, seeking out patterns, irregularities and potential threats to your business. This provides real-time monitoring and predictive insights crucial for managing risks, including compliance tracking, cybersecurity, fraud prevention and operational risk management.
Employing professionals with expertise in AI and machine learning can substantially benefit your company. These skilled individuals can help develop systems that quickly identify and prevent fraudulent activities, and analyze huge datasets to assess risks. They can also put in place proactive measures to help protect your assets, keep pace with your competitors and maintain trust among stakeholders.
In addition, AI risk management can offer guidance on tackling AI's technical, ethical and societal challenges, promoting responsible and beneficial innovation. Major institutions like the National Institute of Standards and Technology (NIST) and the European Union have developed extensive frameworks to handle these risks effectively.
who you need on the team
Incorporating AI in risk management may involve several key roles. The Chief Risk Officer (CRO) identifies and mitigates potential threats. Working with the CRO, a risk management director develops policies to minimize credit risk. The technical aspects are overseen by a data science team lead who creates and deploys AI models. The IT director ensures the seamless integration of the AI system with the existing IT infrastructure, while a compliance officer ensures adherence to laws and regulations.
3. digital payments
what is it
Digital payments conduct financial transactions electronically, bypassing physical cash or checks. Methods include online banking, mobile wallets, digital currencies and electronic payment systems.
Corporate finance is quickly embracing digital payments. Big players like Amazon, Walmart and Apple have incorporated digital wallets and mobile payment options into their platforms. Financial heavyweights such as JPMorgan Chase and Goldman Sachs are tapping into blockchain technology and digital payments for safe and efficient cross-border payments. Microsoft, Whole Foods, Home Depot and Starbucks are just some of the corporations already accepting crypto payments.
how it can help your company
Digital payments make transactions easier and faster than traditional methods like checks or wire transfers, saving time and money. They are safer because they don’t involve anything physical like cash, and they use special security measures to prevent fraud or theft. Lastly, with the rise of online shopping and mobile banking, digital payment options can speed up the process, keep customers happy and increase your sales.
who you need on the team
Implementing digital payments may involve a Chief Financial Officer (CFO) or finance director due to the financial implications. The Chief Technology Officer (CTO) or IT director would oversee the technical aspects of implementation. Additionally, you might appoint a project manager to manage the implementation process. It’s also common for companies to have a digital payments manager or similar role specifically dedicated to looking after digital payment systems.
4. cybersecurity
what is it
As you may already know, cybersecurity involves protecting computer systems, networks and data from unauthorized access, cyberattacks and other digital threats. The connection between fintech and cybersecurity is crucial because the rise of digital financial transactions raises the threat of cyberattacks like data breaches and fraud.
how it can help your company
Implementing strong cybersecurity measures can greatly enhance your company’s operations by safeguarding sensitive data and preserving client trust. Digital identity verification and other measures help prevent financial (and reputational) loss from cyber threats like data breaches and ransomware. Additionally, a solid cybersecurity framework can promote regulatory compliance, mitigating the risk of fines and legal complications.
who you need on the team
In finance, cybersecurity measures are usually supervised by the Chief Information Security Officer (CISO) or a security manager, who would implement the security strategy and lead the team. The Chief Technology Officer (CTO) or IT director may also be involved, especially in integrating security with existing IT systems. The Chief Executive Officer (CEO) and other top executives may also be on the team due to its importance.
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we can help
Curious about the top fintech to integrate into your corporate finance strategy? Our experts can find exceptional talent with the skills to implement leading fintech solutions that take your business to the next level. Contact Randstad today to find out how we can help your business achieve its goals.