Free up that Cash Flow!: Fintech Gives Businesses Competitive Edge

15th February 2018.

Financial institutions who do not embrace a fintech strategy lack a competitive edge that puts their survival in the industry at risk.

According to a new article written by an executive from Pilatus Bank, traditional banking models are no longer sustainable as customers look for more than a banking product. Instead, customers are looking for an experience that adapts to their needs and simplifies their day-to-day lives. The popularity of mobile banking and online banking and even Apple Pay have transformed the concept to one of convenience and rapidity. People want options on how their money is handled and want to be in the power seat, rather than the banker. Some lenders and retailers struggle to make the transition and experience bad feedback from customers as a result.

Here at the Credit Protection Association, we offer business owners a way to free up their cash flow, rather than see it diminished. We have a range of online programmes to help our members improve their cash flow, as well as ways to maintain it. Many of our members free up cash flow to fund new innovations, whether it’s embracing fintech within their company or renovating their office.

Some traditional lenders and retailers are lagging at providing these digital solutions, and many are reluctant to embrace it at all. A recent customer survey by Pilatus confirmed the customer perception that some institutions hold a stubborn dislike of fintech and see it as a disruption and a costly weight on their balance sheet.

According to Pilatus risk manager, Antoniella Gauci, embracing technology is more than just paying for machines but rather is “facilitating thought and consideration on how to deliver on long-term objectives”. Ms Gauci insists that the key to building a “robust” fintech strategy is founded on the same principles as traditional banking, and adhering to the customer’s needs is at its heart.

Businesses should not sacrifice security for innovation, however, and Ms Gauci does admit that the highest risk in embracing fintech is the exposure to cyber attacks and fraud. These can be overcome by strict regulation and protective software such as firewalls and anti-fraud discussion within departments.

Business concepts are changing at a rapid pace, and while some business owners refuse to accept it, it does not stop the wheels from turning. Fintech is a way to improve the productivity and the efficiency of the most valuable sector of the country. It puts the country on the map, so to speak while putting the customer’s needs at its heart. There is no denying its cost of course, with many using that to justify a stubborn attitude. Banks are in a shaky position at present, bouncing from one scandal to another, and changing old concepts may not be a bad idea.

Here at the Credit Protection Association, we have adapted our business to the digital age, ensuring our members have online access as well as a friendly voice at the end of the phone. Our debt recovery service chases down late payers and non-payers, clearing out bad debt and offering businesses the opportunity to free up cash flow and invest in something new.