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According to reports, investments in fintech reached approximately $56.4 billion in 2023. Therefore, understanding the impact of fintech on their operations is crucial for staying competitive in this rapidly evolving landscape. In this blog post, we explore the evolution of fintech, its impact on traditional finance, the solutions it offers to businesses, future trends, and practical advice for adopting fintech innovations. https://bit.ly/4ca6eFD #fintech #finance #technews #ITnews #ITjobs #FintechJobs #fintechnews #financenews

PROFESSIONALS’ NETWORK – Business Advisory Service. DAILY BUSINESS TONIC – 10TH OCTOBER 2024 Fundamentals of Fintech Fintech, or financial technology, refers to the use of technology to automate and improve financial services. It's a rapidly growing industry that's transforming the way we manage money, make payments, and access financial services. Key Concepts in Fintech Disruption: Fintech companies often disrupt traditional financial institutions by offering innovative products and services at lower costs. Innovation: Fintech leverages new technologies like blockchain, artificial intelligence, and big data to create innovative solutions. Accessibility: Fintech often makes financial services more accessible to underserved populations. Efficiency: Fintech can streamline financial processes, reducing costs and improving efficiency. Customer Experience: Fintech companies often prioritize customer experience, offering user-friendly interfaces and personalized services. Core Areas of Fintech Digital Payments: This includes electronic payments, mobile wallets, and cryptocurrency. Crowdfunding: Platforms that allow individuals and businesses to raise funds from a large number of people. Peer-to-Peer Lending: Connecting borrowers and lenders directly, bypassing traditional banks. Insurtech: Using technology to improve insurance products and services. Wealth Management: Leveraging technology to provide investment advice and portfolio management. Blockchain: A decentralized ledger technology that can be used to create secure and transparent financial transactions. Benefits of Fintech Increased Efficiency: Automation and digitization can streamline financial processes, reducing costs and improving efficiency. Improved Accessibility: Fintech can make financial services more accessible to underserved populations, including those in rural areas or with limited credit histories. Enhanced Customer Experience: Fintech companies often prioritize customer experience, offering user-friendly interfaces and personalized services. Innovation: Fintech encourages innovation, leading to new products and services that can benefit consumers and businesses. Challenges of Fintech Regulatory Uncertainty: The rapid pace of fintech innovation can sometimes outpace regulatory frameworks, leading to uncertainty and potential legal challenges. Security Concerns: As with any technology-driven industry, fintech faces security risks, such as data breaches and fraud. Competition from Traditional Banks: Traditional banks are also investing in fintech, which can increase competition and pressure fintech startups. By understanding the fundamentals of fintech, you can better appreciate its impact on the financial industry and the potential opportunities and challenges it presents. COMPILED BY: OGBIDI DAVID EROMOSELE – BSC ACCOUNTANCY (UNN); MSC ACCOUNTING (UNILAG); ACA, CFA; PHD STUDENT AT LASU.

🚀 **Maximising Innovation: Leverage R&D Tax Credits in Fintech** 🚀 In the fast-paced world of financial technology, staying ahead means constantly innovating. But did you know that your commitment to innovation can also lead to significant tax savings? The Research and Development (R&D) Tax Credit is a government incentive to reward companies investing in new technologies and improvements. For fintech companies, this can mean anything from developing new payment systems to enhancing cybersecurity measures. 💡 **Key Benefits:** **Reduce your tax liability** for the current and future years. **Claim back costs** on qualifying R&D activities, including software development, staff wages, and research expenses. **Reinvest in your business** to fuel further innovation and growth. 🔍 **Qualifying Activities:** **Developing new technologies**: Creating innovative solutions, architectures, bespoke integration designs, or protocols. **Improving existing systems**: Enhancements in performance, scalability, availability, and security of financial software systems. **Redesigning systems**: Overhauling existing financial systems with fundamentally different technologies. **Creating new payment systems**: Innovations in transaction processing, e-wallets, and mobile banking platforms. **Advancing cybersecurity**: Efforts in encryption, login, authorisation, and overall data protection. **Developing AI technologies**: AI applications in trading, lending, crowdfunding, and risk assessment. **Prototyping and testing**: Building and evaluating prototypes and conducting feasibility studies for new fintech products or services. These activities must be part of a project to resolve specific technological uncertainties or create an advance in fintech. 🤝 **Take Action:** Consult with a tax consultancy such as Visiativ UK to evaluate your eligibility and learn how to document your R&D activities properly. The potential savings could be a game-changer for your business. For further information, please get in touch with me at 07477 512950 or tanvir.ahmed@visiativ.co.uk #Fintech #Innovation #ResearchandDevelopmentTaxCredits #RnD #Businessfunding #Funding

FINTECH (Financial Technology) companies use technology to improve and automate financial services, making them more accessible, efficient, and cost-effective. They generate revenue through various channels, including: 1. _Transaction fees_: Charging a small fee for each transaction, such as payment processing or money transfers. Example: Paytm, a popular Indian FINTECH company, generates revenue by charging a transaction fee for payment processing. 1. _Interest income_: Earning interest on loans or investments. Example: Lending Club, a peer-to-peer lending platform, generates revenue by earning interest on loans. 1. _Subscription fees_: Charging customers a recurring fee for access to financial tools or services. Example: Credit Karma, a personal finance platform, generates revenue by offering free credit scores and charging for premium services. 1. _Advertising_: Displaying targeted ads to users. Example: NerdWallet, a personal finance website, generates revenue by displaying ads from financial institutions. 1. _Data analytics_: Selling anonymized data insights to financial institutions. Example: Plaid, a financial data platform, generates revenue by selling data insights to banks and fintech companies. 1. _Partnerships and collaborations_: Partnering with financial institutions to offer co-branded products or services. Example: Stripe, a payment processing company, generates revenue by partnering with banks to offer payment processing services. 1. _Software licensing_: Licensing financial software to institutions. Example: FIS, a financial software company, generates revenue by licensing software to banks and financial institutions. These are just a few examples of how FINTECH companies generate revenue. The specific revenue streams often depend on the company's business model, products, and services. information purpose only, not to take any decisions

Technology has been racing forward, and companies in a myriad of industries have been feeling the pressure to keep up. Sectors that have relied on traditional approaches, like finance, healthcare, and logistics, are especially susceptible.  Advancements in tech like AI, data analysis, and cloud services make the adjustment tough, but not jumping on the digital bandwagon could leave companies fading into the background.  In this Thought Leadership piece, we delve into how Svitla Systems, Inc. steps in to help businesses navigate these tech challenges. https://lnkd.in/ekQ56t9f #fintech #finance #banking #paytech #payments #fintechnews #paymentsnews

As an advisor, I am frequently asked to advise on revenue sharing arrangements regarding partnerships between banks and fintechs. Based on my experience, there are a couple of key models commonly used in the fintech industry: 1. Fixed revenue share - while this model provides predictability, over time, it may not fully account for each party's contributions. For instance, Plaid may take a fixed percentage of the subscription fees earned by fintech apps that leverage their services. The benefit is simplicity however it lacks flexibility as market conditions change. That being said, parties should be free to renegotiate after a significant change in conditions. 2. Variable revenue share - this allows for a more equitable split based on performance, but can be more complex to implement. Payment processors may use a tiered revenue share model, taking a smaller percentage for high volume merchants and a higher percentage for lower volume ones. I think this approach incentivises both parties to maximize overall revenue. 3. Profit sharing or post cost revenue sharing - rather than revenue, the parties agree to split the net profits or revenue post certain expense. The major con with this model is that it requires robust accounting and auditing processes for transparency. 4. Hybrid approach - a combination of fixed and variable components, balancing stability and flexibility. This can be tailored to the specific needs and contributions of each party, though it may be more complex to design and manage. Choosing the revenue sharing model is obviously dependant on various factors such as parties’ bargaining power, market access, product ownership, platform ownership, pricing of the product, parties strategic goal, initial funding/ investment etc. It is therefore critical that all these factors are properly assessed before parties settle on a rev share model. As early stage companies navigate these complex negotiations, drawing on real-world industry examples can provide helpful context and guidance. #fintech#partnerships#corporatedevelopment#

📈 Embedded Finance: The Future of FinTech Innovation 🚀 In today’s rapidly evolving economic landscape, FinTech continues to redefine how we interact with our finances. At the heart of this transformation is Embedded Finance, a game-changing asset projected to hit $160 billion in revenue by 2025. But why is this so important? Embedded finance seamlessly integrates financial services into non-financial platforms, enhancing convenience for both consumers and businesses. From SMEs, who can now offer tailored customer experiences and boost sales, to traditional banks leveraging embedded finance data to stay competitive, the benefits are widespread. Key highlights: - Frictionless finance is no longer a luxury; it’s an expectation. - SMEs can boost revenue and manage cash flow more efficiently. - Data-driven insights offer businesses the ability to tailor services, attract customers, and improve offerings. Don't get left behind! If you’re ready to boost growth, enhance customer experiences, and leverage cutting-edge technology, now is the time to integrate Embedded Finance into your business strategy. The future of finance is here—are you ready to seize it? 👉 Read more insights at https://lnkd.in/erAswSWs and let's get in touch to explore how embedded finance can drive your business forward. The future is bright for those ready to embrace this change. #FinTech #Innovation #EmbeddedFinance #BusinessGrowth

Fintech trends that keep shaping our future in 2024. 1.) Embedded Finance Takes Center Stage: Consumers crave seamless financial experiences within their existing apps. Embedded finance integrates financial services like payments, lending, and budgeting directly into non-financial apps. This trend is expected to see explosive growth, especially in retail and e-commerce. 2.) AI Revolutionizes Personal Finance:  AI is poised to transform personal finance. From analyzing spending patterns and negotiating bills to providing personalized budgeting advice, AI assistants will empower users to manage their money more effectively. Fintech companies are actively integrating AI to enhance their offerings. 3.) Evolving Payment Technologies Gain Traction: New payment technologies like real-time payments and contactless solutions are becoming increasingly normalized. We may see the rise of innovative payment methods that rival traditional credit cards in convenience and security 4.) Alternative Credit Scoring Gains Momentum: Traditional credit scoring can be limiting. Alternative data points, like rental payments or utility bills, are gaining traction as a way to assess creditworthiness. This trend has the potential to expand access to financial services for underserved populations. 5.) Fintech Focuses on Enterprise Solutions:  Fintech companies are not just serving consumers directly. Many are shifting focus to providing solutions for established financial institutions. This includes tools and services that can optimize internal processes, enhance security, and improve customer experiences. 6.) Fintech Supports Environmental, Social, and Governance Goals: Sustainability is a growing concern. Fintech companies are developing solutions to support ESG initiatives. This could involve financing for green energy projects, carbon footprint tracking tools, or sustainable investment platforms. 7.) Regulations Evolve for the Fintech Landscape: With the rapid growth of fintech, regulatory frameworks are likely to adapt. We may see new regulations addressing data privacy, cybersecurity, and responsible use of AI in financial services. 8.) Continued Growth of the Fintech Market: Industry experts predict continued significant growth in the global fintech market throughout 2024. This growth will likely fuel innovation and the emergence of new fintech sectors within the financial services ecosystem. Any hot takes on upcoming trends?

From Start-up to Scale-up: How Fintechs Are Revolutionizing Business Modern businesses are turning to fintech for a competitive edge. Discover how innovative fintech companies are empowering businesses of all sizes with cutting-edge solutions. https://lnkd.in/gYfAsP-s #fintech #businessgrowth #innovation #technology

𝗛𝗼𝘄 𝗙𝗶𝗻𝘁𝗲𝗰𝗵 𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝘀 𝗣𝗲𝗿𝘀𝗼𝗻𝗮𝗹 𝗙𝗶𝗻𝗮𝗻𝗰𝗲𝘀 In today's digital era, fintech is transforming personal finance management. With user-friendly platforms and innovative tools like budgeting apps and robo-advisors, fintech empowers individuals to make smarter financial decisions. If that sounds like something you’re interested in, 𝘳𝘦𝘢𝘤𝘩 𝘰𝘶𝘵 𝘵𝘰 𝘶𝘴 𝘵𝘰 𝘥𝘪𝘴𝘤𝘶𝘴𝘴 𝘢 𝘱𝘳𝘰𝘫𝘦𝘤𝘵. There’s no time like now to get moving on a smart fintech platform. Learn more: https://lnkd.in/gHEbi6iv #Fintech #Innovation #SmartDev