Did you know that Singapore has over 1,100 FinTech firms, totalling S$1 billion in investment in 2019 alone?
FinTech businesses continue to dominate the Financial Services industry. To support their growth, they need to ensure their own longevity. FinTech firms like yours will not be able to scale sustainably unless you use systems that can scale along with them.
As your FinTech or financial services business grow and expand, business challenges will arise. Teams get bigger, resulting in the need for a more formal management hierarchy.
Regulatory compliance will become more complicated, with different stakeholders you'll have to consult. Your customer relationships might become strained, as your account managers move from juggling multiple roles to becoming specialised in only one field.
ERP software, particularly cloud-based ERP software, can assist you in resolving these challenges. Because they integrate your business processes into a single system, ERP software can streamline your operations and provide a single source of truth into the performance of your FinTech firm.
In addition, the scalable nature and end-to-end integration of Cloud ERP software such as NetSuite are suitable for growing FinTech businesses looking to expand with minimal headaches.
In this article, we will explain the benefits of Cloud ERP for your FinTech or financial services firm using case studies and examples.
1. Cloud ERP Streamlines Automation Needs For Financial Services
As mentioned, FinTech and financial services firms provides products and services that increase efficiency for financial institutions, which leads to cost savings for their clients.
When FinTech businesses like yours expand and grow, they might experience inefficiencies in their own operations due to complexities that arise in internal back-end processes. To continue providing your services to more clients, your business will need either:
- A lot of manpower to manually handle accounts and finances, or
- Automation tools that will do all the work, but faster and more accurately
Instead of struggling with the strain on their back-end processes, FinTech and financial services firms like yours should harness the automation capabilities of Cloud ERP software to automate back-end processes that they depend on to smoothly expand operations.
For example, Cloud ERP software such as Oracle NetSuite helped UK FinTech company GoCardless to automate financial management across multiple markets. GoCardless is a global direct debit network headquartered in the UK, with more than $10 billion transactions a year and 40,000 customers.
As GoCardless expanded internationally, it couldn’t optimize its financial reporting past basic accounting. By using NetSuite, in-depth financial analysis could be conducted with a more streamlined approach.
Cloud ERP software can also help FinTech and financial services firms by consolidating their financial data into reports that provide a single source of the truth. For example, Knox Financial - a firm that turned rental property ownership into a simple investment product - aimed to increase investor confidence with seamless reports on their financial metrics.
Instead of struggling to understand their data, they invested in a Cloud ERP software, and hence were able to keep on top of their finances. From the very beginning, reporting and accounting was seamless, and the automatic updates kept their data fresh and ready to use.
2. Cloud ERP Enables An End-To-End Environment
Fintechs and financial services firms like yours will find that on-premise ERP software often needs to be extensively customised to fit their particular business needs. On the other hand, Cloud ERP can easily integrate with many other programs using APIs, which offers many benefits for businesses like yours.
SRS Acquiom, a Financial Services company that functioned as a provider of closing and post-closing services for private-company mergers and acquisitions, quickly integrated their cloud ERP with CRM, billing and accounting, and security software.
For FinTech and financial services firms which invest in a Cloud ERP early, the headaches that can come with migration of systems vanish. Everything is connected end-to-end from the very beginning. This allows them to focus on providing extra value for their customers.
3. Cloud ERP Complements FinTech’s Cutting-Edge Operations
FinTech’s reputation as innovative game-changers require software that is as flexible, scalable, and data-driven as their business. Because of this, Cloud ERP is the ideal partner for businesses like yours.
A good Cloud ERP software also comes with robust Business Intelligence (BI) tools, which complement the use of Big Data and Analytics in FinTech businesses.
Combined with end-to-end integration, this provides accurate data that eliminates silos. A single source of truth is established that requires minimal manual input. This helps your business provide up-to-date information for your customers.
A Cloud ERP, as compared to an on-premise ERP, is also easily scalable and is known for its flexibility. Cloud ERP solutions tend to focus on economical ‘per user’ subscription plans, and don’t require an on-premise investment. This is ideal for FinTech businesses like yours, for which scalability is an important factor in your choice of software.
4. Cloud ERP Helps FinTech And Financial Services Firms Create More Value For Their Customers
By complementing the processes of FinTech and financial services firms, Cloud ERP can provide long-term benefits for your business that extend far beyond the implementation.
For example, SoFi, originally an online student loan refinancing business that has since expanded into loans and career services, used NetSuite's integration capabilities to integrate with Silicon Valley banks. With the strong financial controls provided by NetSuite, they have been able to earn the trust of regulators and auditors.
By allowing FinTech and financial services firms like yours to reduce the amount of time spent on optimising back-end processes, Cloud ERP frees your business up to concentrate on your value proposition. This creates more value for your customers and investors, who want to see better service and results with no fuss.
By helping businesses like yours take the scalability of their own internal processes off the table, Cloud ERP will undoubtedly play a part in fuelling their future growth.
Why FinTech and Cloud ERP are a perfect fit
In the end, FinTech and financial services firms have two things they need to do to maintain their value:
- Provide higher efficiency for their customers
- Be flexible, scalable, and innovative
For every business like yours in the FinTech and financial services industries, a Cloud ERP solution can help them reach greater heights. By investing early in a Cloud ERP, reporting and accounting is a breeze, even as the company grows and expands.
To learn more about the value that a true Cloud ERP software like Oracle NetSuite can offer for your business, click the image below to learn more.