Monday, July 15, 2024
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Understanding the Responsibilities of a FinTech Consulting Firm

Every year there are technological advances and innovations that affect almost every area of our lives. The financial sector has not been immune from its impact, making the public expect more and more from the services it receives. Whether it’s lower costs or more streamlined processes, folk expect more and more from their financial providers. In turn, this challenges the traditional infrastructures and the way they currently operate. 

With the rapid development of FinTech (Financial Technology) comes a great need for financial companies to gain outside assistance. Without it, they stand to lose their market share to their rivals. New ways of working are emerging, providing opportunities that can quickly be lost. Whether it’s help with blockchain or peer-to-peer payment technology, many financial companies are eagerly seeking the help of FinTech consultants. This article discusses the responsibilities and skills such third parties possess.

Wide Business Knowledge With A Financial Focus

Whether it’s Monzo, Bitcoin, Kickstarter, Nutmeg or Zopa – all these FinTech companies have one thing in common: finance. Monzo is a digital-only bank and Kickstarter uses crowdfunding. Bitcoin is a famous cryptocurrency and Nutmeg is an online investment company. Finally, Zopa focuses on peer-to-peer lending. They all depend on financial technology to move peoples’ money faster than the ‘old-fashioned’ institutions. 

In addition to the financial and technical aspects, FinTech consultants need to be good ‘all-rounders’ when it comes to business consultation. According to the specialist company PSP Lab, they also need to be conversant with things like licensing procedures and legal compliance. It’s also common for such professionals to be involved with mergers and acquisitions, external auditing and investment. 

A Clear Understanding Of Financial Technology

FinTech consultants need to know how to harness software and systems in order to increasingly automate financial processes and make them faster. Instead of simply being the background systems used by traditional banks, Fintech increasingly represents businesses that are challenging the old methods of operation. 

This new technology has enhanced such activities as mobile payments, transfers and investments. Fundraising and loans also come under this umbrella. FinTech consultants also understand the link between mobile devices and downloadable apps, and the technology that transfers funds from one place to another. 

The Desire To Benefit Companies Financially

It’s an amazing fact that not only does FinTech help people access financial services, but it often operates more cheaply than the previous systems.

With the help of a consultant, a business can operate more cheaply, whilst attempting to lure the public away from the banks and other more established channels. In turn, the public can open bank accounts, manage credit cards or take out loans or insurance completely online. 

Legal Knowledge

We mentioned external audits earlier. If FinTech consultants assess a company’s compliance, it can protect them from future issues. This is because any late or inaccurate tax returns could incur penalties, and in the worst-case scenario the business could be shut down. Whether it’s accounting or transfer pricing, individual or corporate tax, help can be obtained from a FinTech consultant. 

There are other issues where help can be obtained, including money laundering, safeguarding and the drafting of legal documentation. 

The Power To Develop Technology

Not only does software and its related programs need to be customized for purpose; it also needs to be installed correctly. Due to its complexity, FinTech software should be overseen by a third party. Such things as software patches and updates are commonplace as IT development is implemented. 

FinTech consultants have the time to look at such issues as cybersecurity, making sure there is sufficient protection from cybercriminals, hackers and viruses. They are able to develop firewalls and malware protection, and to maintain the fight against phishing attacks. 

Business Connections

Whether you’re a writer, dancer or film-maker connections are important if you are going to be successful. In a similar way, FinTech consultants regularly bring their own business connections to the table when they work for you. This is a great way to enhance your networking activities, and it can help you create valuable and lasting business relationships. 

You can gain priceless information from people in a similar business to you, and in turn, you can share your experience and expertise with them. 

As we have seen, FinTech consultants possess a powerful armory that can help financial companies exploit the technologies and opportunities set before them. Whether it’s relational, financial, legal or technical these contributions can keep companies at the forefront of the market. Whilst such guidance rarely comes free, it can be a vital investment in the company’s future.

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