The rise in FinTech may convince companies that simply having an automated solution for a financial transaction is what FinTech is all about. It’s not.
I recently wrote an article for BanklessTimes.com that discusses how the rise in FinTech may convince companies that simply having an automated solution for a financial transaction is what FinTech is all about. However, FinTech is not just about process, it’s about alternate financing as well…and if your provider doesn’t offer both sides of this equation, then they’re not offering a true FinTech solution.
The second half of the equation, technology, is dedicated to simplifying financial processes, like AP and AR that used to be time-consuming, costly, lacking in visibility, and often, inaccurate. Instead, the technology segment of the solution automates and manages all transactions, ensures contracted prices and terms compliance, provides visibility into the transaction for both suppliers and buyers, and does it all digitally on a FinTech provider’s platform.
The first half of the equation actually involves alternate financing, where the solution provider pays the supplier in an agreed upon timeframe and then collects the payment directly from the buyer. A Harvard Business Review article that I cite in the article notes that FinTech is impacting the supply chain; that FinTech companies “enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payments to the latter.”
At Corcentric, we’ve created a true FinTech platform and network that goes even deeper into servicing both buyers and sellers. If disputes arise, our transaction experts intervene and manage the dispute process, keeping the supplier and buyer at arms’ length. In addition, as a true FinTech company, we also verify credit rating and provide buyers and sellers with an audit trail that gives them a true portrait of their company’s cash position.
Learn more about FinTech by reading my full article.