By Adam

Financial technology (Fintech) has bridged the gap between suppliers and consumers worldwide. The technology has created a beneficial digital system that positively impacts both sides. This has improved the working capital and decreased or eliminated contract processing costs. The digital system applies to all sectors, from healthcare to the banking system globally. Fintech research shows increased investment in the Fintech industry. Statistics show $ 31billion investment deals in the last three years. The technology is also available for trading platforms. The many eToro reviews found online prove the huge impact Fintech services have had on stock trading platforms. The digital trading platform plans a merge with several Fintech services to improve cryptocurrency trading.

Fintech companies
venturing into the supply chain are acting as digital procurement brokers. The
companies use various bank networks to offer the best trading financing terms. Fintech companies rely on different
structures. However, the process starts
with the buyer and ends when the supplier is paid. Fintech can use techniques
such as being the intermediary. For example, the supplier can be paid within
5-10 days, and the buyer to pay within 120 days but still under the same
agreement. The buyer is dealing with the Fintech Company. They receive low
processing costs due to the automated system introduced by the Fintech system.

Fintech Solutions in Supply Chance Finance to Buyers

• Best improved working capital using
  extended accounts payable.
• Lower processing and administrative costs.
• Improved financing terms and streamlined
  procurement process.

For suppliers they get
the payments on time, thus improving service and product delivery.

Corporate Funding Incentive

Since the introduction of
Fintech and the benefits they offer on different platforms. Most corporations
(1 out 4) are utilizing Fintech systems to run their supply chain finance
platforms. Before Fintech, supply chain
finance was conducted by banks. All Companies were limited to banking options
and terms. Today the supply chain finance platform can use Fintech to connect
to a network of banks and financial options. The Fintech solution provides flexible
services such as automated currency exchange. The corporations can provide more working
capital and procurement process to new industries.

SME Global Impact

Fintech solution is
available for small, medium, and large corporations. Technology offers equal opportunities to all
business sectors. Research from
international financial Companies shows the most significant growth of Fintech
(supply chain) is from SMEs. In the
past, financing SMEs was challenging and required documentation, verification
to receive business loans. However, Fintech has improved the loan process
services and duration. SMEs can increase their production due to proper funding
and automated services. SMEs can merge
with large banks through Fintech platforms and get better financing and
financial knowledge.

Healthcare Opportunities

Fintech solutions aren’t
limited to manufacturing or banking industries. The Healthcare industry still underestimates
the power of Fintech in improving their services. The majority of hospitals use the primary
system to enhance their supply chain. A
survey from Syft indicates that many healthcare facilities (98 percent) believe
supply chain management works for medium high priority investments. However, the incorporation of Fintech solution
will save …read more

Source:: Social Media Explorer

Author: Aaron