The majority of us have been caught off guard by the recent years’ volatile financial climate. The effects of the COVID-19 pandemic have been devastating, especially for small businesses. Individuals and businesses alike are feeling the effects of renewed inflation and recession worries.
In this climate, fintechs are deploying investment, accounting, payment, and other technologies to help their customers weather the storm. Business owners can save both time and money thanks to fintechs like Invoice.io and Stripe. And fintechs are enabling investors who are wary of the stock market to still grow their wealth.
Many people see fintechs as the vanguard of economic change and innovation. In fact, their entire business model is predicated on disrupting the status quo of the financial services industry. However, fintechs are no longer merely disruptors but also enablers.
Finances are being automated
Small businesses are having a hard time keeping up with the demands of the market due to the triple whammy of rising accounting fraud, record fines, and a lack of available accountants. For example, a “crisis” of accounting shortages and turnover is described in a Bloomberg Tax article.
The cybersecurity industry and fraudsters are in a constant arms race, with hackers constantly developing new scams. So as to combat this, fintechs are turning to cutting-edge methods like biometrics.
A product called 3DS Flex from FIS Global, for instance, makes use of biometric authentication to verify the identities of online shoppers. This helps stop criminals from making unauthorised purchases with stolen credit card data.
Akkio is an AI-powered platform that helps banks create their own fraud prevention software. With Akkio’s no-code platform, businesses can easily develop their own unique fraud detection models without having to hire costly data science personnel.
What to do Next
Companies of all sizes face difficulties in a macroeconomic environment with high volatility. However, fintechs are able to survive and even thrive thanks to the creative use of technology. Fintechs are thriving despite the storm, and they are a driving force behind innovations like the automation of accounting with blockchain and the detection of fraud with AI.
Any investor, no matter how small, can reap the rewards of fintech. Using digital tools to broaden their investment horizons and spread their risk, investors can better safeguard their assets and increase their net worth.
However, these tools are not a silver bullet. Our data and our money are increasingly at risk in today’s digital world, so it’s more important than ever to take precautions. But if we take the necessary measures, we can ride out the storm together.