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Fintechs weather the storm: How disruptive technology is driving change


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A roller coaster ride of financial conditions over the past few years has caught most of us off guard. Small businesses in particular have been hit hard and endure the worst during the COVID-19 pandemic. Now, the fear of inflation and recession has reappeared, harming individuals and organizations.

In this environment, fintechs are rolling out technologies in investing, accounting, payments and more designed to help their customers weather the storm. For example, by automating manual invoicing and payment processes, fintech is saving businesses time and money. And by providing access to alternative investment options, fintechs are giving conservative investors the opportunity to raise their money.

Fintech has long been considered a harbinger of innovation and disruption. Indeed, their business model is built on transforming traditional financial services. But in recent years, fintechs have not only become disruptors, they have also become facilitators.

Accounting automation

A trio of rising accounting fraud, filing fines and accounting shortages have left small businesses struggling to keep up. For example, a Bloomberg Tax article describes a “crisis“On shortages and turnover in accounting.

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The Wall Street Journal also notes that “sanctions related to audit and accounting errors” almost tripled,” With businesses being forced to pay increasingly heavy penalties for inaccurate reporting. If that wasn’t enough, a recent study highlights that Accounting fraud is on the rise. Businesses are being attacked from all sides.

However, Fintechs are using blockchain technology and AI to automate many manual tasks related to accounting – from payroll and invoicing to fraud detection. This not only saves businesses time and money, but also frees up accountants to focus on more strategic tasks.

For example, a recent article by Hacker Noon shows how NFT “can be used to generate tamper-proof and verifiable invoices. Not only does this make fraud detection easier, but it also makes invoicing quicker and simpler. With automatic digital ledger – blockchain – businesses can be sure that their invoices are correct and up to date. Once started, Network Bullaare even using blockchain for the entire invoicing, payroll and accounting process.

Democratization of investment

From the dotcom crash of the early 2000s and the Great Recession of 2008 to the COVID-19 pandemic and the latest technical recession, investors today have faced some tough times.

The future doesn’t look any brighter, with The Economist noting that Gen Z can look forward to “dismal profit“Into their investments. In times like these, it’s not uncommon for many to be cautious about investing in the stock market. But fintech is providing alternatives for portfolio diversification and asset growth.

For example, Gridlines is a digital wealth platform that gives access to professionally managed alternative investments with lower minimum capital. By pooling capital, individual investors can participate in traditional investments exclusively, such as venture capital funds and hedge funds, for the first time.

Fraud prevention

There is a real arms race between cybersecurity experts and scammers, with hackers always finding new ways to scam people’s money. In response, fintechs are using cutting-edge technologies like biometrics to prevent fraud.

For example, FIS Global offers a product called 3DS Flex use biometric authentication to confirm the identity of online shoppers. This helps prevent fraudsters from using stolen credit card information to make unauthorized purchases.

An AI-powered example is Akkio, allowing financial institutions to build their own fraud prevention applications. As a codeless platform, Akkio makes it easier for businesses to create custom fraud detection models without expensive data science resources.

The way forward

The volatile macroeconomic environment can be challenging for businesses of all sizes. But fintech is using cutting-edge technologies to persevere — and even thrive. From automating blockchain accounting to AI fraud detection, fintechs are weathering the storm and driving change in the process.

Everyday investors can also benefit from the power of fintech. By using technology to diversify their portfolios and access alternative investments, they can protect their finances and grow their wealth.

However, these technologies are not a panacea. As the world becomes more and more digital, we must be vigilant in protecting our data and money. But with the right precautions, we can all weather the storm together.

Valerias Bangert is a strategy and innovation consultant, founder of three media agencies, and a published author.

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