COVID impact on Finance Teams & how Fin-tech presents opportunities for future business.
Few industries have escaped the impact of the COVID-19 pandemic; most will never be the same.
Enterprise and Government institutions are no exception, particularly their finance teams, who face unique challenges compared to other departments.
COVID-19 had a way of teasing out weaknesses in a business model.
For finance teams, this includes security concerns, key-man risk and inefficient, manual processes being their main challenges during COVID, and beyond.
With these challenges in mind, Fin-tech presents finance teams with opportunities to adapt their environment and develop a more secure and efficient workforce for the future. Here’s how:
Finance teams need to take extra precautions in transitioning to a work-from-home culture. Trusted with sensitive information and vulnerable to cybercrime, it’s not as simple as changing to Zoom meetings and Slack workspaces.
To work remotely and securely, Finance personnel need computer security in their home office, including virus/malware protection and network encryption.
Fin-tech SaaS companies, like Likwidity, have to take a ‘security-first’ approach due to their nature of service. For example, AWS (application) environments have rigid security controls, which takes responsibility for much of the security and compliance burden when managing financial transactions.
Focus on efficiency
A manual process that was inefficient in the office can become completely unmanageable in a remote-work setting, where additional communication and collaboration challenges are present.
Also, the possibility of an employee becoming quarantined at any time, highlights the excessive ‘key man risk’. If a significant team member becomes unwell, one who has sole responsibly of various tasks and operations, the department or entire business could grind to a halt.
Secure Fin-tech platforms provide remote teams with transparent and efficient back office processes. They can be managed by more than one team member (eliminating key man risk) and provide transactional records, fully auditable for compliance and quality assurance.
Automate, automate, automate.
No discussion in efficiency is complete without mentioning automation, and Fin-tech leads the way in automating the future of business.
Automation of processes that are labour-intensive or relationship-intensive can make businesses and departments leaner and more data-driven.
For example, cash management and term deposits are predominately a manual process that involves relationships with brokers and banks. But, in an COVID remote working environment, phone calls and email correspondence between external providers increase security risk and inefficiency, with the need for transparency and audit-ability a high priority.
Fin-tech companies that provide automated communication and processing solves this problem.
Not only that, SaaS companies like Likwidity can offer an independent system of price discovery and rate optimization due to the nature of their application and business model – enabling a more efficient and transparent process which also saves Finance teams money on bank and brokerage fees.
For more information on how Likwidity is changing the way Enterprise and Governments manage their term deposits, please click here >>