The pace of technological change in the finance industry is relentless, yet many firms are leaving themselves open to operational and security risks.
Fortunately, you can prevent security breaches while elevating your financial venture by seeking the help of a Fintech consulting company.
Read till the end to learn how these companies help to protect your business and take it to the next level.
What Are the Benefits of Fintech Consulting Companies for Businesses?
Fintech consulting companies are beneficial to businesses in the following ways:
1. Cost Efficiency
A Fintech consulting firm allows companies to cut costs of operations significantly.
Rather than relying on traditional human processes for accounting, making payrolls, and preparing financial reports, consultants help their clients automate or digitize these processes to cut labor costs.
Fintech experts can help you with smart resource allocation through technology as well. Through detailed analysis and the implementation of AI-driven tools, tech consulting firms assist in optimizing resource allocation. This ensures that capital is efficiently distributed across projects and departments, maximizing ROI and minimizing waste.
Fintech solutions often provide more accurate and timely data, which helps to avoid expensive mistakes in financial records. Research has shown that spending 3 percent more on tech saves 29 percent in total costs – including tech consulting.
2. Enhanced Funding Readiness
Tech consulting firms play a crucial role in preparing fintech companies for funding by addressing the technological aspects that investors scrutinize. Here are the key services they offer to ensure your company is funding-ready:
- Technical Due Diligence: Tech consulting firms conduct thorough technical due diligence to assess the robustness and scalability of your technology infrastructure. This involves evaluating your software architecture, code quality, system integrations, and overall tech stack to identify strengths and areas for improvement.
- Risk Identification and Mitigation: Identifying and mitigating technological risks is essential for securing investor confidence. Fintech consulting firms help pinpoint potential risks and liabilities within your software and IT systems, providing strategies to address these issues proactively. This includes vulnerability assessments, risk management plans, and implementing best practices for software development and IT operations.
- Compliance and Security Enhancements: Ensuring compliance with industry standards and enhancing security measures is crucial for investor assurance. Tech consulting firms help you align with regulatory requirements and implement robust cybersecurity practices, protecting sensitive data and minimizing the risk of breaches.
- Technology Roadmap Development: A well-defined technology roadmap can significantly enhance your funding prospects. Fintech experts can work with you to develop a strategic technology roadmap that outlines future developments, scalability plans, and innovation strategies, providing a clear vision of your company’s technological trajectory.
3. Streamlined Payments
Fintech consulting companies can improve their clients’ payment systems by implementing modern payment solutions such as payment gateways, mobile payment options, and lately, blockchain technology. Ultimately, this translates to quicker and more secure transactions.
One critical aspect of streamlining payments is consolidating all a business’s payment channels into a single portal. Sometimes, this process involves developing custom software.
4. Improved Customer Experience
Fintech consulting companies can improve customer experience significantly. They use the latest technologies to understand what customers want and need. With that insight, the financial firm can tweak its products and make its financial services more appropriate for the customers.
Moreover, they provide user-friendly digital interfaces and mobile apps with expert software architecture consulting services. These apps often include 24/7 customer support functionality, so customers can ask questions or address any issues without leaving the comfort of their homes.
5. Improved Financial Management
Tech consulting firms specializing in fintech offer a variety of services designed to optimize financial management through innovative technology. These services ensure that your financial operations are efficient, secure, and scalable. Here are some key financial management solutions they provide:
- Advanced Budgeting and Forecasting Systems: Tech consulting firms can implement sophisticated budgeting and forecasting software that leverages real-time data, enabling more accurate financial planning and decision-making. These systems can be tailored to your business needs, providing flexibility and precision.
- Automated Financial Reporting: By utilizing technology to automate financial reporting, tech consulting firms help reduce manual errors, save time, and ensure compliance with regulatory requirements. This automation provides timely and accurate financial statements, improving transparency and accountability.
- Cash Flow Management: Efficient cash flow management is critical for the sustainability of fintech companies. Tech consulting firms provide tools and strategies to monitor and manage cash flow, ensuring that your business maintains liquidity and financial stability.
7. Enhanced Financial Security
A key perk of having Fintech experts in your corner is strengthening security in financial operations. Fintech consultants advise you on ironclad security measures to protect sensitive financial data from cyber threats and fraud. Blockchain in particular promises a more secure financial future for companies.
But that’s not all; FinTech consulting firms recommend and help implement regular security audits and penetration tests to identify and address potential vulnerabilities. Their expertise in cybersecurity keeps them updated on the latest threats, allowing them to develop a proactive security strategy that keeps your business a step ahead.
8. Regulatory Compliance Assistance
Due to extensive financial regulations, financial organizations may need help to pinpoint the standards that specifically impact their business. Since non-compliance with financial regulations can result in business losses, Fintech consulting companies provide regulatory compliance assistance to help companies stay updated with the regulatory changes.
More specifically, consultants also help to identify the new regulations and inform businesses about the implications of these regulations. In some cases, consulting firms also supply the compliance management system. With this framework, only financial activities in compliance with all relevant standards are approved.
What Are the Services Rendered by Fintech Consulting Companies?
Fintech consulting companies typically offer the following services:
1. Custom Software Solutions
FinTech consulting firms offer a comprehensive range of software development services to help businesses achieve their digital goals. These include:
- Product Development: Whether you’re building a brand new software product from scratch or creating a Minimum Viable Product (MVP) or Proof of Concept (PoC) to test the waters, Fintech consultants can guide the development process.
- System Optimization: Existing systems can benefit from optimization. Fintech consultants can analyze your current infrastructure and suggest improvements to enhance security, performance and efficiency.
- Modernization: Outdated software architecture and infrastructure can hinder growth and leave you open to cybersecurity attacks. Fintech consultants can help you modernize your systems to leverage the latest technologies and stay competitive.
- Integration: Businesses often use a variety of software tools. Fintech consultants can help integrate these disparate systems for a seamless workflow and data exchange, helping you to tap into data insights that were not available before.
2. Financial Projections
Fintech consulting companies help companies put together financial projections and budgets that can aid in strategic decision-making and investment decisions.
Consultants will use financial modeling techniques to help clients project revenues, expenses, cash flows, and profits for a specific period. They will help clients to measure their organization’s performance through key performance indicators (KPIs).
3. Crypto & Blockchain
Blockchain and cryptocurrency have come to stay. The global blockchain market size in banking was valued at $259 million in 2020 and is projected to reach $8.27 billion by 2027. It’s only a matter of time before it becomes an integral part of the traditional finance system.
Fintech consulting firms are already working to that effect. They help financial businesses set up blockchain-based technologies, including decentralized finance (DeFi) platforms, digital asset exchanges, and blockchain-based payment systems.
4. AI Consulting
AI has disrupted almost every industry including finance. But how can AI consulting services accelerate growth in this sector? One way is by integrating it into risk assessment. The AI algorithm is trained with vast data on various risk scenarios. Then, it learns to spot risk patterns and flag them.
Another way AI consulting can foster growth is by delivering personalized services. For example, a financial firm could automatically add real-time installment lending to a user’s shopping experience if the user has used that service frequently.
5. Digital Banking
While the core of banking (or other financial services) has stayed the same, how businesses serve customers across the board has evolved. Customers prefer digital banking experiences that are engaging, accessible, and tailored to their needs. Fortunately, Fintech consulting firms are bridging the gap.
They often specialize in designing smart and seamless digital banking experiences, including intuitive mobile apps, streamlined online account opening processes, and integration with third-party Fintech services.
6. Financial Reporting
Financial reporting involves using information and never-ending piles of money to map the boundaries of companies. It can be dry, backward-looking, and invisible until year-end, but luckily financial consultants are willing to help.
But what is the role of a fintech consultant in financial reporting? The simple answer is optimization. They use automation tools to streamline the reporting process. Consultants also ensure your reports comply with relevant accounting standards (e.g., GAAP, IFRS) and regulatory requirements.
7. Security
Security is one of the most important services Fintech consulting companies offer. Financial services are always at risk of fraud and cyberattacks. Collaborating with a credible security partner is the only way to survive in such an industry.
Top Fintech consulting firms conduct cybersecurity assessments and develop robust security policies and procedures to mitigate attacks. That can also help train your staff in best security practices.
How Zartis Can Help Financial Businesses Build Robust Fintech Solutions
Locating a Fintech consulting company is easy, but finding the right one for your organization can be tricky. Thankfully, Zartis makes it simple to make a choice. We’ll first discuss with you to understand your needs and then recommend an ideal solution that suits your systems.
We’ve worked with financial institutions of all shapes and sizes, building Fintech solutions from scratch or improving existing products. Contact us today to learn more about our FinTech software development services.
