Financial technology (Fintech)
Financial technology (Fintech) is used in describing the application of new technology to automate and improve service delivery as well as financial services. It includes how different industries and sectors. Fintech describes the synergy between technology and finance, which is applied to strengthen the operations of the business as well as financial service delivery. Fintech can be in the form of business, service or software that offers technology advanced to make service delivery more efficient by adopting modern technology. Financial technology (FinTech) combines finance, innovation management, and technology management. The net worth of global investment in financial technology was US$24.7 billion in 2016. Adoption FinTech will accrue many benefits to the Easter Island UNESCO World Heritage Site. The bridge will help in mobility and accessibility within the park. To enhance the sustainability of the resource it is necessary to have adequate resources, make a wise investment decision as well as operational decisions. This project will, therefore, access the role of FinTech in project funding, investment decision and operation decision.
Financing solutions
Financial technology allows the start-up to secure financing more easily. Previously businesses were required to visit a bank to secure loans. Loan application through the use of traditional bank is complex, require a lot of paperwork and the borrower have to wait for long. Further, traditional banks are interested in establishing the borrower equity and credit rating. Most of the startup companies are not able to satisfy the bank’s requirement and hence it is difficult for them to access the loan.
Fintech’s solution will help the management of the Easter Island site to access funding for their projects more easily. Most banks today offer digital financial services that require one to only download an app on their phone. The company is able to link their account to the application and access financial service without visiting the bank.
Crowdfunding
Startups can raise finance through direct or indirect sale of equity or shares to a group of investors or companies through online platforms. Crowdfunding helps start-up raise initial capital from a large group of people. Unlike traditional financing processes that require much to negotiate over contractual terms and pre-money valuation. Crowd investors invest small amounts through internet platforms (a crowdfunding website) and social media such as Linked, Twitter and Facebook. This platform requires less contractual protection. Easter Island site can invite individuals through the social network to invest in the company. The investor will be promised a given rate of return which will motivate them to invest in the company.
The company can apply equity-based crowdfunding or lending-based crowdfunding to attract the general public to make an investment. Equity-based Lending-based and crowdfunding are also referred to as investment crowdfunding. The investors will get their financial return if the company prosper or grow.
Peer to Peer or Marketplace Lending Model
Marketplace lending helps individuals to directly obtain loans from others without the need of intermediaries or financial institutions. Websites that facilitate peer to peer lending have resulted to increase of other methods of financing. Peer to peer lending is done through internet platforms that link potential borrowers and lenders.
Marketplace lending provides both unsecured and secured loans. However, most of the funds in marketplace lenders offer unsecured personal loans. Marketplace lenders are considered as alternative sources of finance. Instead of depending on traditional banks, the Easter Island site can use peer to peer to finance its operations. This is an easy way of business financing as one can secure a loan within the shortest time possible. Peer to peer lending helps in lowering the interest rate. The company will, therefore, be able to reduce the cost finance as a result of the benefit that emanates from the competition between different lending organizations.
Investment decisions
Emerging trends in financial technology offers solutions to the investors. The Easter Island site can apply the Fintech to make an investment decision. Decision-makers use Fintech as a tool for decision making. This involves the application of computer software to make investment decisions. On key applied software in decision making is the application of artificial intelligence to perform duties that could be performed manually. Businesses are able to perform complex non-linear nexus using artificial intelligence systems. AI plays a critical role in data analysis processes. AI reduces the complexity that is involved in data analysis hence reducing the chances of errors. Artificial intelligence allows low errors as compared to human errors. With artificial intelligence, the speed of data processing and analysis is enhanced. Hence the management is able to make investment decisions more promptly
Robo and digital advisors play a critical role in making investment decisions. Robo-advisory services offer investment solutions through digital platforms hence eliminating direct interaction between investors and financial advisors. Robo-advisers can be incorporated into business to enhance the decision-making process. In the United Kingdom Robo –are registered and regulated by the Financial Conduct Authority. The robot-advice sector is dominated by two wealth management services the adviser-assisted digital wealth managers and automated digital wealth managers. The company can use a fully automated model to seek investment decisions. These are mostly used by forex traders who request signals of the trend of the portfolio. Adviser-assisted robots involve a combination of automated investment services and virtual financial
Automated trading
The use of automated trading/ computer algorithms can help the investor to execute various investment decisions including anonymity, lower transaction costs, enhance more efficient trading and promote greater access to market liquidity. Easter Island site may use the automated trade to measure the volatility of the market hence avoiding the risk associated with the market. The company uses an automated trading system to evaluate whether an investment will be profitable or not. For example, the company can decide to invest in the stock exchange to diversify its portfolio. Before investment, the company can use the computer algorithm to evaluate the historical and present performance of the company.
Analysis of large datasets
As a result of increasing amounts of traditional data including economic indicators, corporate financial statements and security prices, massive alternative data generated from modern information sources, which include sensor networks and social media portfolio managers can be integrated into investment decision-making process which helps to reduce losses as well as generate alpha.
Financial record-keeping
Financial technology helps in tracking of the company’s financial statement based on peer to peer interaction. Allowing peer to peer interaction reduce the need to procure financial intermediaries. As a result, the cost of financial adversary services is reduced.
The ability of fintech play a critical role in data capturing and processing in real-time. This has changed the way the business operation is executed, the perception of products and services in the new market and consumer behavior in this process.
Financial technology has transformed business operations. The catalytic effect of financial technology and its ability to unleash the current innovation competition and opportunity enhancing efficiency in the economy is inestimable and worth of encouragement. The main focus is not only on money digitization, however, but it is also about data monetization. The main focus is on how the organization can add value from the information using the available technology. How the organization can use innovation and technology to add value to their product hence increasing customer satisfaction. For the company to survive in the competitive market it must take advantage to create value for the customers.
Fintech helps to enhance employee productivity in the organization. Embracement of fintech in the organization helps to enhance employee’s efficiency in the organization. With good technology, the employees are able to research the current market trends and hence every operation decision taken will be of benefit for the company. Digitization of the business operation will play a critical role in ensuring the accuracy of the company’s financial statements.
Financial technology plays an important role in ensuring organization data protection. With the current level of cyber fraud, it is necessary for every company to ensure customer financial protection. Fintech can be applied to ensure that the company data, as well as that of the customer, are protected. Easter Island camping site is required to have a secured network and cybersecurity expert team that will help in motoring, detecting and responding to the organization’s cyber threats.
Easter Island camping site can also use robots in different operations from site cleaning to front desk as well as staffing. For example, robot butler can be used to deliver items to visitors when they need it. The robots can also be used in the front services for example if a guest requires a towel the Borllr can be used to deliver the item to the customer. This helps the organization reduce the number of employees required at the campsite hence reducing the cost of operation. The robots are used to respond to customer calls and online conversations in real-time hence increasing customer loyalty.
Today many organizations rely on financial technology to receive payment. Many customers are able to pay for the services in the comfort of their homes. Companies can use online platform forms such as Payoneer and PayPal, mobile payment and credit card payment. Further businesses are also employing mobile applications to help them achieve their strategic plan to take advantage of many people who are able to access mobile phones. The introduction of smartphones has disrupted how people behave themselves and hence changing customer purchasing behavior. Customers today prefer making a transaction online. The customers, therefore, are able to make payments for goods and services using their mobile phones. Financial technology also helps the customers to book for services online. This helps the company to plan its operation more effectively as they are alerted of the visitor even before they arrive in the camping site.
Financial technology helps in fraud detection. The application of computerized accounting systems can be used by the company to detect fraud. The financial managers and accountants of the company can apply information technology to detect errors and frauds. The company is able to access the trends in the financial statement hence using variance analysis to detect if their financial statement is manipulated or not. The machine learning method plays a critical role in the identification of unusual trends in the dataset, therefore, detecting any form of fraud in the financial statements. The Tour industry can use neural networks to identify suspicious trends in company financial statements.
Financial technology is an integral part of human resource management. Today human resource manager is using information technology to recruit, train and develop employees. The company can advertise its current opportunities in the online platforms. in addition, organizations use digital technology to train their employees hence enhancing their productivity. It is not a must for employees to attend seminars but they can use video conferencing to hold seminars and training in their offices or at the comfort of their home. This reduces the cost involved in the management of human resources.
The introduction of financial technology has also enhanced the use of the social network in business operations. Today social site are receiving acceptance as an official mean for communication in business. The business also uses the social network to market their products and services hence increasing its sales volume. In order to maximize the business profit, the management is required to focus on business methodologies that increase sales as well as reducing the cost of operation. With the adoption of financial technology companies are able to increase their sales. Today recreation centers and tourist business market their business using social medial as well as official business websites. Application internet to market the business service the company is able to reach a large number of customers at a lower cost. This reduces the cost of marketing since the company will only require one person to post in the social sited. Blogging is a major example of how businesses can increase revenue. The campsite can use bloggers to create traffic for their services.
Conclusion
To enhance the sustainability of the resource it is necessary to have adequate resources, make a wise investment decision as well as operational decisions. The financial technology has disrupted how business is done today