How are Financial Businesses Overcoming Crisis & Planning for Future Post COVID-19?

How_are_Financial
Businesses worldwide have to react in agile and decisive ways to meet the challenges due to the pandemic. As time moves on, now is the time for financial businesses to seek out and seize the burgeoning opportunities emerging in the financial crisis recovery. The action of recovery involves conducting a review and then collecting data and taking insights on the lessons learned from the pandemic. After that, financial firms can prioritize actions to enhance their business value and build strategic resilience in the future.

Despite certain plans of action to overcome the economic impact of COVID-19, the rebound is anticipated to be uneven across the globe, as developing economies lag behind. Yet, global financial growth is expected to accelerate to 5.6% by 2023.Accelerations from holders of major economies such as China and the United States will be significant.

So, how are financial businesses overcoming the economic crisis post-COVID-19? How are they planning for the future economic setup? What are the steps they are taking to deal with the crisis?
Let’s read ahead about it.

Dealing With the Crisis

During the pandemic, it was a scenario where not all financial services firms leveraged their plans to overcome in analogous ways. The global market study shows that about a quarter of financial services firms relied on their surviving business continuity plans to manage through the crisis. Rather, only 16% of finance firms used modified plans to deal with the crisis. And their plans worked well.

But now, surprisingly, the firms that couldn’t do well in handling the global recession are doing well now. And thus, they found some of the most common gaps at the backend. The gaps were in the ability to anticipate responses in the plans, which were specific to the pandemic.

The ability to leverage technology usage, stringent operational controls, and practicing digital capabilities were some of the major gaps that resulted in a major mishap for several financial firms. Let’s see some highlights of how firms saw failure in their plans.

According to Deloitte’s survey:

  • 59% of financial businesses did not include pandemic-specific actions
  • 34% of financial businesses found gaps in addressing technology
  • 16% of financial businesses found gaps in stakeholder communications
  • 16% of financial businesses lacked plan alignment
  • 9% of financial plans were outdated
  • 10% of financial plans were not actionable and impractical

Customers also mentioned technology challenges, especially when it came to dealing with surged demand for loans as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

But, with that in mind, here’s an outline of some of the scenarios emerging in favour of financial businesses and firms.


Firms Are Developing Emergency Plans

Several financial firms are now creating contingency plans in anticipation of an uncertain global economic recovery. The plans are to manage the crisis through disruption and focus on strategies and operational activities. These plans are now under action, which is now more strategic in nature.

Of the plans, firms are mostly planning or operational contingencies over the next six months of 2022. According to Deloitte’s reports, almost 40% of firms expect a need for the same.


Digitalization of Communications & Interactions

Moving forward, what financial firms have learned is to include digitalization in communications and interactions with clients and customers as a part of crisis management. Digitalization will enhance existing resilience plans.

Many other firms believe that digitalization is one of the priorities for better coordination, more comprehensive documentation and stimulating more frequent compliance-focused finance exercises. Assessing requirements for critical workloads and reassessing the global financial crisis recovery is also top-of-mind.

For example, TODO1/iuvity’s solutions will have the digital financial experience powered by Modyo integrated with TODO1/iuvity’s Open Service Platform by the end of 2022. TODO1 is a leader in powering essential digital financial institutions in Latin America. The services have served more than 21 million digital customers in the past twelve months.

This partnership is aligned with our goal of working with exceptional talent to build state-of-the-art products. We are excited to join forces with Modyo to continue being at the forefront of user-centric technologies that empower businesses to better serve their customers."
 

Felipe Uribe, CEO of TODO1

Let’s understand how firms identified digitizing clients’ interaction and communication as a top priority.

Deloitte’s study says,

  • 40% of financial firms are rethinking and digitizing client interactions
  • 42% of financial firms have technology upgrades
  • 24% of financial firms are using digital to redesign plans and operations
  • 11% of financial firms are revising third-party partnerships


Technology Investment

Financial firms, along with technology, are anticipating increasing capabilities around upgrades in operations, systems, internal and remote communications, and client interactions. Firms also anticipate doubling the speed of technological transformation over 2025. These initiatives include increased investment in cloud technology, data center evolutions, smart tool use to improve business agility, communication, analyses of data, reporting, onboarding, servicing automation. All of these (including more tech tools) will aid firms in responding to a range of potential future developments. 

For example, ixFintech has come up with a successful integration of privacy identity authentication and post-quantum computing security into ixWallet. The initiative is to safeguard users' identities against cybersecurity risk. In Q1 2022, the company also aims to launch ixPoint, its first-ever reward point scheme, as well as the first asset-backed TeaCoin.

With those priorities in place, financial institutions now have the opportunity to develop an integrated monitoring process. The process collectively captures data from various other systems across organizations, such as physical security, fraud, threat, cyber and other issues.


Redesigning of Controls

Many financial firms have learned from the economic impact of COVID-19 that controls will need to be redefined to function with a remote workforce. As the aftermath of COVID-19 has forced the finance industry to operate its services remotely, this step counts under the priorities that businesses are focusing on shifting. So, the most critical controls, such as process, preventive controls, and fraud control, mainly rely on improved workflow tools with the help of technology and digitalization. These controls are considered with the help of visual risk-sensing and machine learning capabilities.

If you own a financial business and are looking for a real-time action plan to recover from the global financial crisis, then the above-mentioned steps will assist you in managing your business well. Still, some tips for financial crisis management could be added along with those steps.


Tips to Manage the Financial Crisis


Always Arrange an Emergency Fund

Being prepared for all types of circumstances aids in managing a crisis, even if it is a pandemic. So, having an added emergency fund to your business’s account will avoid any disaster that might occur at any time. Emergency funds will help you get through various liabilities such as utility payments, rents, payroll, vendors, taxes, and many other financial roles.


Manage Debts Effectively

It is necessary for you to manage your debts effectively. But how? You can keep track of the repayment of debts. To manage or repay the debt on time, you can build a separate fund account that would cater only to the debt amount. In this way, you’ll be able to track, manage, and get the right information on the amount to repay.


Monitor the Money Flow

If you monitor the flow of money in your financial business, you will be able to recover from the harsh economic impact of COVID-19 faster. Keeping a check over expenses—profit and loss would certainly help you overcome a crisis.

While the entire financial industry is recovering, this is the time to document the lessons learned and emerge stronger than before. If you are still struggling, you can use the plans for quick recovery from the impact of COVID-19 on your financial business.


Frequently Asked Questions


What is a financial crisis?

A financial crisis occurs when a firm’s assets decrease significantly in valuation. As a result of this, firms face hindrances and troubles in meeting their needs and requirements.


How do businesses affect the economy?

Firms create employment opportunities for themselves and willing employees. So, entrepreneurial activities such as the introduction of new products, methods of business, and production processes influence productivity and thus boost competition among their peers, which affects the economy.


How can businesses help the economy recover?

Businesses can drive economic stability and growth significantly. They can do it by providing valuable products, services, and tax payments that directly contribute to the economy. These aspects then lead to more jobs, and thus, strengthen the global economy.

Spotlight

Towry

When making decisions about your financial future, at Towry we believe these should be made as part of a lifetime financial plan. Whether you are interested in helping children onto the property ladder, planning for retirement or considering the best way to pass wealth onto your family, we can help. Whatever your stage of life, by developing a plan that’s just for you we can support you in achieving your goals.

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Financial Management, Payments

Unlocking Crypto's Power: Digital Currency and Its Boundless Potential

Article | July 6, 2023

Delve into the transformative potential of digital currency and B2B crypto payments, as they hold the key to revolutionizing conventional financial systems and advancing financial inclusion. Contents 1. Introduction 2. Benefits of Adopting Crypto in B2B Payments 3. Overcoming Challenges in B2B Digital Currency Integration 4. Trends and Innovations in Digital Currency 5. Future Aspects 1. Introduction The digital currency has emerged as the driving force behind the immense potential of cryptocurrencies, revolutionizing traditional financial systems and reshaping how individuals perceive and utilize money. Digital currencies have become a focal point of economic discourse, offering new avenues for financial inclusion, efficiency, and security in the era of technological innovation and decentralization. This paradigm shift in the concept of currency has sparked a global conversation on the future of finance, making it imperative to explore the transformative role of digital currencies. 2. Benefits of Adopting Crypto in B2B Payments Cryptocurrency is gaining prominence in mainstream usage by converting conventional coins to NFTs. It has led businesses to wonder whether electronic payments could replace regular cash. Crypto in B2B payments furnishes a cost-effective, swifter, and more efficient alternative to cash and bolsters the security of customer privacy during transaction execution. Here are the advantages of incorporating cryptocurrencies into B2B payments: Fraud Defender Most B2B payments use traditional methods like checks, cards, wire transfers, or cash, which are regulated and often involve intermediaries, making them susceptible to fraud. In contrast, cryptocurrency transactions are more secure, avoiding traditional financial institutions and relying on blockchain technology for direct execution and verification through distributed algorithms on network nodes. Swift Transactions Infusing B2B crypto payments into the payment spectrum guarantees faster transaction processing than conventional methods. This efficiency stems from a streamlined process involving fewer intermediaries, reducing processing fees. Boosting Business Reach Industries like mining, as well as oil and gas, often operate in countries with limited banking infrastructure, requiring alternative payment methods. Cryptocurrency provides a solution, enabling cashless transactions. Still, businesses must adhere to local regulations, as cryptocurrency use doesn't exempt them from responsibility, given restrictions on engaging with foreign governments. Secure Ownership Control In B2B crypto transactions, exclusive ownership control is a key feature, ensuring that users retain sole ownership of their encryption keys unless they choose third-party wallet management services. This differs from traditional banking or credit cards, which can lead to account closure due to terms of service violations, presenting re-entry difficulties. Resilient Adaptability 'Privacy coins' drive increased anonymity on blockchain networks, while supply chain tokens improve efficiency across various industries. These innovations underscore the versatility and continuous development of cryptocurrency. 3. Overcoming Challenges in B2B Digital Currency Integration In B2B digital currency integration, numerous challenges arise that demand strategic mitigation. Below are some of the challenges, along with their pathways to address them effectively: Managing Payment Method Diversity in B2B Transactions Moving from paper-based procedures to streamlined B2B payments is praiseworthy; however, substantial challenges must be addressed to accept digital payments broadly. To effectively navigate the myriad payment methods available to B2B clients and facilitate their digital acceptance, businesses must assess factors including cost, speed, security, accessibility, and compliance. Selecting the most suitable digital payment method entails ensuring that systems are contemporary, equipped with cutting-edge technologies such as encryption and tokenization, and capable of safeguarding customer data against cyber threats. It is equally imperative for businesses to stay attuned to evolving regulations and statutes governing digital payments to maintain compliance with industry norms. Ensuring Robust and Secure Interconnectivity Establishing a secure connection between two entities is a prerequisite for effective digital payments. This mandate encompasses the authentication of both parties and the deployment of encryption technologies to safeguard customer data from unauthorized access or tampering during transmission. Furthermore, mutual trust and access to a secure platform skilled at handling large data transfers are necessary. Creating such a system can be overwhelming, requiring substantial time and resources. Overcoming Legacy Infrastructure Challenges Many companies rely on obsolete legacy systems for B2B payments, which may need to be compatible with current digital payment solutions. Before modernizing payment processes, companies must evaluate the feasibility, costs, and benefits of upgrading these systems. This endeavor is costly and resource-intensive, requiring comprehensive security measures to protect customer data from cyber threats. Payment Platform Integration in Enterprises For the prompt processing of payments, businesses should smoothly incorporate their selected payment platform with current enterprise systems, including accounts receivable software, accounts payable software, or ERP systems. Achieving this integration is frequently intricate and time-consuming due to various platforms' distinct technical specifications and protocols. This poses a significant challenge for businesses, demanding substantial effort and resources to ensure the integration's success. Additionally, companies must guarantee data security during transfer and compliance with industry regulations and standards for all transactions. Managing Digital Payment Regulations Companies venturing into B2B cross-border payments must carefully comply with all applicable regulations governing procedures such as KYC/AML, data privacy laws, and international financial transactions. Ensuring compliance with local laws across multiple jurisdictions complicates this. The challenge lies in the need for companies to remain vigilant regarding regulatory changes, requiring substantial investments in time, expertise, and continuous updates to stay abreast of the latest developments. Simplifying Payment Processing for Efficiency Companies must also ensure that payment processing is seamless and efficient from both the clients' and providers' perspectives. Minimizing manual interventions wherever possible is imperative to maximize the operational efficiency gains inherent in digital B2B payments, including reducing processing timeframes and associated costs Seamless payment processing necessitates establishing robust processes, infrastructure, and technology, which, in turn, requires significant effort and resource allocation. This can be challenging for businesses grappling with tight timelines and limited budgets. Addressing Fraud and Security Risks Cybercrime and fraudulent activity pose a significant threat in digital transactions where two entities exchange potentially sensitive financial data. Failure to implement appropriate buyer risk management measures exposes both parties involved in the transaction to a heightened risk of financial loss due to fraud or security breaches. Although various security measures exist to safeguard data, companies must take additional steps to ensure the security of their digital payment platforms and protect sensitive information. This undertaking poses a challenge, demanding additional resource allocation, time, and effort to implement effective fraud detection and prevention measures. 4. Trends and Innovations in Digital Currency McKinsey and Company cite an 11% growth in digital payment penetration from 2021 to 2022. Moreover, this trend is only expected to continue, with more users adopting digital payments as their primary method for financial transactions. [Source – Vation Ventures] The adoption of various digital technologies is becoming increasingly prevalent. For instance, financial institutions swiftly embrace cloud computing to streamline and enhance their operational procedures for clients. Blockchain, an emerging technology, is gaining prominence as it facilitates swift and secure transactional activities beyond its conventional association with cryptocurrencies. It ensures the fast recording and monitoring of transactions and supports the legal facets of digital payments. Concurrently, biometric authentication methods, including fingerprint and facial recognition, are gaining prominence in digital payments, introducing notable security and privacy concerns. Despite these challenges, biometric technology is poised for an upward trajectory. Regarding services and service providers, there is a growing demand for real-time payment and settlement capabilities, driven by individuals and businesses seeking expedited and rapid transaction processing instead of conventional, less efficient batch methods. While this technological proliferation offers substantial advantages, it also raises significant considerations, including those related to privacy and anti-fraud measures. 5. Future Aspects According to Bank of International Settlements, more than 50 central banks, representing the bulk of global GDP, are exploring digital currencies. The Economist reports that ‘the EU wants a virtual euro by 2025, Britain has launched a task force, and America, the world’s financial hegemon, is building a hypothetical e-dollar.’ [Source – IBM] The future of digital currency holds significant promise and potential for transformative changes in finance and commerce. The rapid development of central bank digital currencies (CBDCs), increasing adoption of cryptocurrencies, and ongoing innovation in blockchain technology underscore the enduring significance of digital currencies. These advancements offer the potential for improved financial inclusivity, lower transaction costs, and enhanced payment system efficiency. Nevertheless, these opportunities go hand-in-hand with notable regulatory and security challenges that require attention to ensure digital currencies' safe and secure integration into the financial systems. Effective collaboration among governments, financial institutions, and technology providers is crucial to unlocking the full potential of digital currencies while mitigating potential risks. With careful planning and strategic implementation, digital currencies have the potential to reshape the future of finance, delivering a more accessible, efficient, and inclusive financial system for all.

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Financial Management, Payments

Proofing B2B Payments with E-Invoicing: A Path to Sustainable Growth

Article | August 4, 2023

Discover the digital payments’ momentum, powered by proofing B2B payments. Explore how professionals navigate skill gap challenges in the era of digital transformation and electronic transactions. Contents 1. Introduction 2. Need for Future-Proofing B2B Payments 3. Advantages of Electronic Billing in B2B Transactions 4. Traditional Paper-Based Invoicing versus Electronic Billing 5. Security and Compliance in Digital Payments 6. Future Scope 1. Introduction In a move towards digitalization and streamlining business processes, France will implement mandatory B2B e-invoicing and e-reporting from July 2024 until January 2026. This new e-invoicing mandate introduces the Continuous Transaction Controls (CTC) model, which impacts all companies operating in France. [Source: Nuflow] The adoption of electronic invoicing and payments, also known as e-invoicing, is becoming increasingly essential for businesses across various sizes and industries. Through digitizing the invoicing procedure, e-invoicing empowers companies to realize many advantages, including heightened efficiency, fortified security measures, fiscal savings, increased precision, and augmented transparency in financial transactions. This transformative approach to invoicing is gaining traction as a pivotal tool for businesses seeking to modernize their operations and bolster economic sustainability. Furthermore, adopting electronic billing systems minimizes the likelihood of errors by enabling the automatic transfer of invoice data between systems and reducing the need for manual data entry. 2. Need for Future-Proofing B2B Payments The need for future-proofing B2B payments has gained unprecedented urgency in the wake of the COVID-19 pandemic, which catalyzed the rapid evolution of digital payment technologies. This global crisis has compelled businesses across various industries to expedite their transition towards cashless and digital payment solutions, intensifying the demand for agility and adaptability. Technology professionals are facing significant pressure as they navigate the need for rapid upgrades, digital transformation efforts, and the essential task of closing skill gaps within their organizations. Furthermore, Chief Information Officers (CIOs) and Chief Technology Officers (CTOs) have faced exceptional challenges in banking and finance as the pandemic rendered traditional in-person banking obsolete, forcing institutions to pivot toward online-only and cashless operations. In this situation, the need for future-proofing B2B payments has become more than just a strategic requirement; it has become a critical lifeline for businesses striving to excel in the swiftly advancing, digitally-focused era that emerged after the pandemic. 3. Advantages of Electronic Billing in B2B Transactions According to a report by Arden Partners, e-invoicing provides organizations with 70% greater visibility into their financial processes. [Source: LinkedIn] This transformative approach to billing is steadily gaining prominence as an essential instrument for companies seeking to modernize their practices and enhance financial resilience. Optimized Process Efficiency Integrating e-invoicing serves to fine-tune billing procedures, alleviating errors and delays while delivering heightened operational efficiency. This, in turn, empowers businesses to allocate resources with greater precision and amplify their overall productivity. Cost Savings The cost savings realized through adopting electronic billing in B2B transactions extend beyond eliminating paper-based invoicing. By automating invoice processing, businesses can significantly reduce overhead costs associated with manual data entry, postage, and storage, allowing for more efficient allocation of financial resources to core business activities. Heightened Accuracy E-invoicing's heightened accuracy reduces the potential for manual errors, such as inaccuracies in data entry and mathematical calculations standard in traditional invoicing, but also contributes to enhanced trust in financial transactions. This precision ensures that billing information is reliable, fostering smoother B2B interactions and financial accountability. Enhanced Security E-invoicing systems provide more secure methods for transmitting invoices and associated data than conventional paper-based invoicing. Its solutions frequently incorporate advanced features like encrypted documents and digital signatures, ensuring document authenticity and controlled access to user accounts. Consequently, records are safeguarded against security breaches, reducing the risks of errors and fraudulent activities. Improved Visibility into Financial Transactions E-invoicing offers businesses an automated and centralized repository for storing, tracking, and managing their invoices. This facilitates simplified payment monitoring and provides comprehensive insight into financial transactions spanning multiple offices, locations, and departments. 4. Traditional Paper-Based Invoicing versus Electronic Billing Electronic Billing or e-invoicing can be described as the electronic exchange of invoices in structured data formats between software applications, distinct from traditional methods like sending PDFs or emails. This approach is fully automated, and when compared to conventional invoicing, it demonstrates remarkable efficiency in areas such as invoice processing, costs, visibility, transparency, data accuracy, and security for both buyers and sellers. Transaction Processing Traditional invoice processing involves multiple time-consuming steps, from creating and sending invoices to reviewing, approving, and archiving them. This manual process is prone to errors, slows operations, and can lead to payment delays, mainly when staff handles multiple tasks simultaneously. This delay can be especially problematic for smaller businesses, impacting their cash flow. In ideal conditions, paper invoices take about 23 days to process, but this timeframe can stretch to a cumbersome 90 days when errors occur. On the other hand, B2B electronic payments operate differently, simplifying the process for sellers and buyers. Sellers generate invoices from their purchase orders (PO) within their software. The buyer's software then matches the invoice with the PO for payment approval. Automation eliminates the manual steps, making e-invoicing 60-80% more efficient than traditional paper-based processing, with some sources citing an average processing time of just five days. This accelerates payments for sellers and streamlines operations for buyers. Financial Outlays Traditional invoicing entails a range of expenses for both buyers and sellers. These include costs associated with printing, whether physical or PDF invoices are used, leading to expenditures on paper, ink, and printer maintenance. Labor expenses also escalate as businesses expand, requiring additional personnel for invoicing tasks. Furthermore, physical invoices entail postage costs when mailed, and the need to file physical invoices incurs its own expenses. Conversely, e-invoicing significantly reduces costs due to the diminished need for manual processing and the electronic transmission of invoices. These advancements have made e-invoices approximately 70% cheaper than their traditional counterparts. Additionally, e-invoicing often allows buyers to adhere to their suppliers' payment terms, mitigating late fees and enabling early payment discounts. Visibility and Data Precision Traditional invoicing can be a complex process involving various platforms and software, as well as the maintenance of intricate physical and electronic filing systems. This complexity can pose challenges in effectively managing, preserving, and retrieving records, impeding the reporting process. Consequently, this can adversely affect the precision of a business' performance metrics and the data quality used in decision-making. In contrast, e-invoicing streamlines this process by enabling businesses to utilize a single software solution for invoice creation and processing. This simplification enhances visibility and transparency in managing payables and receivables. It also reduces the need to consolidate information from multiple systems and handle paper documents. Moreover, the diminished risk of errors resulting from manual processing contributes to improved data accuracy. Security Traditional invoicing poses significant security risks, including the potential for counterfeit or tampered invoices, where invoice details can be altered without the knowledge of either party, as well as the susceptibility to billing scams and fraudulent activities, with invoices sometimes sent to misleading sources, resulting in financial losses due to the easily adjustable formats and the risks associated with sending invoices via mail or email. In addition to its role in facilitating secure B2B payments and transactions, e-invoicing offers a heightened level of security. It requires certified access points for sending and receiving invoices, ensuring adherence to a robust and reliable framework mandated for all participants. E-invoices are sent in a standardized format that cannot be altered. This approach significantly improves the traceability of archive management, thus enhancing your audit trail. Moreover, e-invoicing often includes advanced encryption and authentication measures, further safeguarding sensitive financial data and reducing the risk of fraudulent activities. These combined security features make e-invoicing a compelling choice for businesses seeking both efficiency and enhanced security in their payment processes. 5. Security and Compliance in Digital Payments Digital payments offer heightened security compared to offline transactions as they eliminate the need for individuals to carry physical cash or cards, reducing the risk of theft and providing a comprehensive electronic trail for tracking and identifying potential fraud. Moreover, they remove businesses' need to hold cash on-site, enhancing security by transferring funds directly to a secure bank account. However, digital payments also pose unique security challenges, such as verifying consumer identities in the faceless online environment, which may necessitate innovative security measures to counter potential fraud and theft. Businesses that accept digital payments encounter several security risks, encompassing the following aspects: Third-party Risk Many B2B payments companies rely on third-party entities to streamline operations and reduce costs. However, this practice introduces additional layers of risk if companies fail to thoroughly evaluate their prospective third-party partners before establishing a business relationship. Many third-party vendors outsource their operations to external entities, thus generating fourth and fifth-party risks. Enterprises often engage with many vendors, such as payment processors, point-of-sale system providers, and payment gateway service providers. Inadequate security controls for third-party involvement can expose all the data transmitted through these devices and applications to various security vulnerabilities. Phishing Scams Phishing has remained a well-established method for illicit data acquisition and is a potent hacking technique. The hacker typically solicits sensitive personal information to fulfill an urgent request, such as completing a loan application requiring banking details. Hackers can exploit the obtained personal information upon the victim's compliance to gain unauthorized access to credit cards and bank accounts. Phishing scams can target anyone, from lower-level employees to senior management personnel, putting data security at risk and facilitating theft. Malware Malware incidents arise when users download applications, files, or attachments that contain malicious software. Once the malware infects a device, the perpetrator behind the software gains unauthorized access to all stored information. Although many companies install firewalls and antivirus software on their desktop and laptop computers, these protective measures are frequently omitted for mobile devices. Many businesses now employ tablets or smartphones as point-of-sale operating systems to process payments. The substantial volume of cardholder information stored on these devices renders them susceptible to malware attacks, potentially compromising the data of any individual who has conducted a transaction using the affected device. 6. Future Scope This article explores electronic billing, focusing on proofing B2B payments and emphasizing the need for future-proofing payment processes. While the advantages of electronic billing over traditional paper-based invoicing have been highlighted, the future scope resides in the continuous evolution of technology and regulations in digital payments. As businesses increasingly adopt e-invoicing solutions for efficiency gains, there will be a growing demand for innovative tools that enhance security and compliance, ensuring the smooth flow of transactions in a secure, transparent, and sustainable manner. Moreover, integrating emerging technologies like blockchain and artificial intelligence may further revolutionize B2B payment solutions, presenting exciting opportunities and challenges for businesses seeking to stay competitive in financial transactions.

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Core Banking, Digital Banking

Why Payments-as-a-Service is the first choice for FIs

Article | June 16, 2023

The pace of change within the global payment’s technology space is still at full speed with no sign of slowing down. While traditional incumbents have until recently taken comfort in their size and decades of dominance, new digital-only challenger banks are ramping up and making a huge impact on the global financial landscape.

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BIG TECH IN FINANCE: A DEEP DIVE INTO THE FUTURE OF FINTECH

Article | February 10, 2020

The following article looks at Big Tech and its impact on the financial services sector. Whilst competition from small fintech startups will certainly take away some market share from traditional banks, the impact of “GAFA” could be huge. The fintech movement did more than unbundle banking and its core services — it spurred financial inclusion across Asia, increased overall economic growth, and made significant inroads into the finance value chain. The born-digital companies brought technology to the forefront, attacking the traditional risk-averse sector from various points — digital payments, insurance, P2P lending, and investment management, among other avenues.

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Spotlight

Towry

When making decisions about your financial future, at Towry we believe these should be made as part of a lifetime financial plan. Whether you are interested in helping children onto the property ladder, planning for retirement or considering the best way to pass wealth onto your family, we can help. Whatever your stage of life, by developing a plan that’s just for you we can support you in achieving your goals.

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MO Technologies Chooses Esri's ArcGIS Platform to Support Alternative Credit Scoring Tool

MO Technologies | March 22, 2022

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Bitcoin and Crypto

NOYACK Logistics Income (NLI) Started Accepting Cryptocurrency Payments with Partnership with BitPay

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EVODeFi comes out with its new payment solution EVODeFi.Pay

EVODeFi | March 21, 2022

EVODeFi cross-chain solution just unveiled its new product – EVODeFi.Pay. This is a powerful tool for making crypto payments, allowing sellers to accept and bill cryptocurrency to customers with minimal time and effort. The product will be especially valuable for users who want to perform their money transactions in cryptocurrency without using complicated schemes. The high-tech system of EVODeFi provides numerous crypto services including business tools to increase crypto payments, a bridge between networks, and a high-tech system to work with crypto exchange and crypto-salaries. A professional team that has already launched one of the top 5 bridges created EVODeFi.Pay that facilitates the process of exchanging cryptocurrency between sellers and buyers. EVODeFi.Pay is a product that performs fast crypto-transactions between vendors and customers. The process of using the service is extremely simple: a buyer chooses the cryptocurrency which he or she wants and pays for the purchase. EVODeFi.Pay converts one cryptocurrency into another and sends the payment to a seller in the crypto that has been chosen. Since many have refused to use BTC/ETH in favor of faster networks, EVODeFi.Pay can offer several popular networks, such as BSC, Fantom, Avax, Polygon, which already have a large number of users. In addition, the development team uses a powerful security system to protect transactions at all stages. Moreover, convenient localization and the ability to use the service on any device will greatly facilitate integration. About EVODeFi: EVODeFi is a cross-chain solution providing a set of crypto products including a bridge between networks, business tools to increase crypto payments, and a high-tech system to work with crypto exchange and crypto-salaries projects, available in a single system. EVODeFi develops the following services: Bridge, Pay, Exchange, Payroll and App. Using the latest technologies and great experience, the EVODeFi system works at the international level, providing its services in regions around the world, for example in the USA, Europe, and South America.

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Financial Management

MO Technologies Chooses Esri's ArcGIS Platform to Support Alternative Credit Scoring Tool

MO Technologies | March 22, 2022

MO Technologies, which offers financial technology (fintech) companies a more complete view of a person's creditworthiness through location intelligence, has adopted Esri's ArcGIS Platform to provide the precise, frequently updated data at the core of MO's tools used to complement traditional credit scoring models. Understanding that the financial life of a person doesn't always fit the mold used by credit scoring bureaus and banks, leaders at MO believe knowing more about where a person lives and works can help fill in gaps and warrant extending credit to some of the hundreds of millions of people left out of the financial system. Situations can change dramatically, as we've seen in the last two years, It's important to account for evolving characteristics in a location where a credit applicant lives. Placing data in a geographic context offers valuable insights and crucial understanding." Javier Díaz-Cely, MO's chief analytics officer. Central to MO's software as a solution (SaaS) offerings—including its latest product, MO Geo—is reliable information from Esri, the global leader in location intelligence. By adopting ArcGIS Platform, Esri's platform as a service (PaaS), MO unlocked access to Esri's rich demographic data and precision geocoding services. We're excited MO turned to ArcGIS Platform when the company needed reliable data and geocoding, By offering flexible solutions, we allow our customers to focus on what they do best." David Cardella, Esri product manager for developer technologies. MO uses data about housing prices, the cost of food, access to transportation and public utilities, and more, to create models that can help estimate what a person's income or financial risk might be. MO's team discovered that in Argentina, for example, the distance between a person's home and an ATM is a significant factor. In Mexico, it is important to consider home prices and how many grocery stores are in an applicant's vicinity. MO Geo, the company's recently launched stand-alone product, provides fintechs and other financial institutions with geographical indexes—developed through machine learning—that can be used as inputs to complement traditional models. The product also works in tandem with MO Score, the company's own credit scoring platform. Beyond financial institutions, the company has worked with businesses in the gig economy as well as consumer product goods manufacturers that wanted to extend credit to small merchants with little financial history. Based in Bogotá, Colombia, MO has focused its work so far in the Latin America and Caribbean regions. The company's technology has already played a role in one million credit assessments. A free version of the MO Geo solution is being made available in the US. The company is expanding the product's availability to Mexico, Colombia, and the rest of the Latin America and Caribbean regions. About MO Technologies At MO, we are moving technology forward for a more inclusive, digital & seamless financing. We are a SaaS credit tech company covering the E2E digital credit lifecycle management for origination, servicing, and debt collection in a one-stop-shop schema. Our productized solution enables a laser speed launch of your new hyper-personalized product, fully digital and integrated seamlessly with your platforms. We are the right tech partners for Fintechs and traditional issuing players as we enable them to revolutionize the credit industry. About Esri Esri, the global market leader in geographic information system (GIS) software, location intelligence, and mapping, helps customers unlock the full potential of data to improve operational and business results. Founded in 1969 in Redlands, California, USA, Esri software is deployed in more than 350,000 organizations globally and in over 200,000 institutions in the Americas, Asia and the Pacific, Europe, Africa, and the Middle East, including Fortune 500 companies, government agencies, nonprofits, and universities. Esri has regional offices, international distributors, and partners providing local support in over 100 countries on six continents. With its pioneering commitment to geospatial information technology, Esri engineers the most innovative solutions for digital transformation, the Internet of Things (IoT), and advanced analytics.

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Bitcoin and Crypto

NOYACK Logistics Income (NLI) Started Accepting Cryptocurrency Payments with Partnership with BitPay

NOYACK | March 21, 2022

NOYACK Logistics Income (NLI) is now accepting cryptocurrency payments for share with the partnership with BitPay. NLI is sponsored by NOYACK Capital and for investing in supply chain real estate. The partnership has made NLI the first-ever REIT to accept cryptocurrency and enables investors to fund their commitment with Bitcoin (BTC), Wrapped Bitcoin (WBTC), Dogecoin (DOGE), and Litecoin (LTC). In addition, investors can also use Ethereum (ETH), Bitcoin Cash (BCH), ShibaInu (SHIB), and five USD-pegged stablecoins (BUSD, DAI, GUSD, USDC, and USDP) for payments. NLI is the first REIT to partner with BitPay, a leading crypto payment service provider and one of the initial alternative investment offerings that enable investors to convert digital cryptocurrency into ownership of a hard asset seamlessly. This partnership is a critical way to connect with today's investors to include investment real estate and cryptocurrency in their retirement accounts. NOYACK's BitPay payment integration is one of the pioneering initiatives for structured commercial real estate investment. Investors can now divide investment between traditional and cryptocurrency. They can easily select their preferred wallet or exchange, select a cryptocurrency, scan a QR code or manually enter payment details. Interestingly, they can easily do it through their mobile devices. CJ Follini, CEO of NOYACK Capital. This is another example of moving crypto mainstream. More investors are asking to move cryptocurrency allocations into physical assets like real estate. This ability puts Noyack at the forefront of alternative investment management. The market potential for crypto adoption bridging into the physical world is huge. We estimate $55 Billion in purchases and investments using cryptocurrency in the next 12 months." Stephen Pair, CEO of BitPay. Therefore, bbeingNOYACK's proprietary analytics and market research, NLI will further identify properties serving emerging needs for autonomous vehicle infrastructure, climate-controlled storage, same-day delivery, and solving other rapidly evolving uses.

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Payments

EVODeFi comes out with its new payment solution EVODeFi.Pay

EVODeFi | March 21, 2022

EVODeFi cross-chain solution just unveiled its new product – EVODeFi.Pay. This is a powerful tool for making crypto payments, allowing sellers to accept and bill cryptocurrency to customers with minimal time and effort. The product will be especially valuable for users who want to perform their money transactions in cryptocurrency without using complicated schemes. The high-tech system of EVODeFi provides numerous crypto services including business tools to increase crypto payments, a bridge between networks, and a high-tech system to work with crypto exchange and crypto-salaries. A professional team that has already launched one of the top 5 bridges created EVODeFi.Pay that facilitates the process of exchanging cryptocurrency between sellers and buyers. EVODeFi.Pay is a product that performs fast crypto-transactions between vendors and customers. The process of using the service is extremely simple: a buyer chooses the cryptocurrency which he or she wants and pays for the purchase. EVODeFi.Pay converts one cryptocurrency into another and sends the payment to a seller in the crypto that has been chosen. Since many have refused to use BTC/ETH in favor of faster networks, EVODeFi.Pay can offer several popular networks, such as BSC, Fantom, Avax, Polygon, which already have a large number of users. In addition, the development team uses a powerful security system to protect transactions at all stages. Moreover, convenient localization and the ability to use the service on any device will greatly facilitate integration. About EVODeFi: EVODeFi is a cross-chain solution providing a set of crypto products including a bridge between networks, business tools to increase crypto payments, and a high-tech system to work with crypto exchange and crypto-salaries projects, available in a single system. EVODeFi develops the following services: Bridge, Pay, Exchange, Payroll and App. Using the latest technologies and great experience, the EVODeFi system works at the international level, providing its services in regions around the world, for example in the USA, Europe, and South America.

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