FinTech help to support the decision making process of the company
FinTech is a multidisciplinary subject that combines finance, technology, and innovation management. It involves the application of technology and innovation to enhance service delivery as well as management of financial information. Fintech is also referred to as financial technology. KPMG 2016 survey on the global analysis of investment in fintech indicated that financial investment was US$24.7 billion. Survey by Garrick and Rauchs 2017 revealed that the crypto-currency market capitalization increased by 3 times in 2017. The values of reward-based, donation-based and equity-based crowdfunding markets have shown a gradual increase over time. An increase in financial technology, as well as innovation, plays a critical role in enhancing company productivity. In the hospitality industry the FinTech help to support the decision making process of the company.
FinTech on financing decision
To start the project the management will require an initial investment of 1,116,500 euros. This amount can be financed through traditional financing method or it can be supported by financial technology. Financing is the process through which businesses fund their operations from different sources. Businesses can obtain finances through different traditional sources of finance such as bank borrowing, family and friends, retained earnings, government funds, franchising venture capital, bonds, debentures, and stock markets.
The development of financial technology offers an alternative financing method outside traditional systems of financing. For example, crowdfunding is an alternative method applied by the business to secure finance at a lower cost. Crowdfunding is considered as one of the most popular methods of financing. Entrepreneurs and start-ups use crowdfunding to bridge the gap between their financial need in the early stage of business and their future capital growth projection. The Greenwich Royal lodge and result can use invite individuals or groups of individuals through online platforms to finance the project. Individuals invest a small amount of money to the company with the objective of getting a return after the success of the business. Crowd funding reduces the complexity and cost involved with traditional financing methods.
The development of on-time communication, mobile device, and artificial intelligence business finance has become possible. The company should focus on improving its processes in terms of lowering transaction costs, information sharing, personalization, flexibility, effectiveness, speed, users’ experience, automation and other kinds of financial decision-making.
As a subtopic of financing, financial technology plays a critical role in social and equity cohesion. Financial technology innovation success results from the new or low-end market and most of the FinTech enterprises of the start-up companies are deemed to be unprofitable. Most new projects like Greenwich royal Result face liquidity challenges and are not able to fund their operation from the traditional banking systems even if the management is willing to pay high interest for the loan. As a startup, Greenwich royal Result management secures a fully digitized factoring process that is flexible and quick. This will help the company to secure funds to support its operation fast without visiting the bank. Fintech plays a critical role in meeting the financial needs of the company in case of an emergency. Financial technology plays a critical role in enhancing financial inclusion. Financial technology play critical role in improving financing decision, for example, the organization can enhance financing by better financial management, hence a computerized accounting system is considered as a solution of improving the business model in financial technology.
FinTech solutions for making investment decisions
The feasibility of the project depends on whether the company is able to meet both established cost and operational cost. The initial investment of 800,000 euros of invested in the bank can give an annual return of 10%, this is the opportunity cost. The projected cash flow for this project is expected to generate a net present value of 179,580 euros after five years. The success of the project depends on the type of investment decision made by the management.
The introduction of fintech in the company will play a critical role in investment management. Today a company can install an investment management application that helps in the management of the shareholder’s wealth as well as make good investment decisions.
Today financial technology has supported the establishment of automated portfolio management applications that use computerized algorithms to analyze the investors’ risk profile. The application helps the management to develop optimal strategies for wealth management. The portfolio management apps lower the minimum investment and fees for the customers. For example, betterment and Acorns are some of the portfolio management platform which targets investors with a small amount of money. The investors make the investment through financial institution or other fund management firms. The automated portfolio management apps can help the company establish a good investment portfolio for efficient investment management hence reducing the cost of investment as opposed to bank investment.
Another fintech solution that has made a significant solution in the investment decision is the robot-advisors which replace the traditional approaches. Robot-advisers help in reducing workforce and save time and also help the investors to manage the wealth more efficiently and effectively than the traditional banks. The pre-programmed algorithms offer automatic investment advisory and online investment management functions hence help in making investment decisions. The company can use robot advisers to enquire about a given investment options. The robot complete risk analysis and then advice on whether to invest or not. For example, if the company wants to invest in the stock market the robot-adviser will perform investment on behalf of the company based on the predicted risk. The robot regularly adjusts and rebalances the company portfolio based on the market dynamics. The company is, therefore, able to get adversary services at a lower cost compared to the use of financial advisors. The company gets financial advice online without direct interaction with financial advisors.
The company can also use analytical tools to make investment decisions. Methods that involve artificial intelligence are used to perform duties that were previously performed by human intelligence. This helps in performing non-linear correlation as well as identity complex. Advancement with artificial intelligence-based method plays a critical role in different data analysis techniques. For instance, analysis is adopting AI to screen a large amount of data including filling of organization data, earning calls and annual reports to evaluate the most important data and to assist identify trends and provide information relating to human behavior and sentiment. For example, the company can use artificial intelligence to invest consumer behavior on a given product based on market trends and hence make the decision on whether to invest in the product or not.
FinTech solutions in operational decisions
Financial technology plays a critical role in business operations as well as business operational decisions. The financial technology (FinTech) helps to bridge the gap between the business operation challenges and operational decision.
First financial technology can be used by the company to recruit qualified skills. At the start, the company is likely to be faced with the challenges of getting qualified employees to help the company in its business operation. Today, companies are able to advertise the current opportunities through online job boards hence reduce the cost associated with traditional recruitment processes. The shortlisted are also able to the online test and hence the screen processes are made easier. Cloud-based systems increase efficiency in human resource administration as well as benefit services to hospitality employees. With artificial intelligence applications and systems, employees can be able to work remotely at their homes. This reduces the cost involved in the procurement of expensive facilities.
Second, the company also helps in strengthening corporate compliance. Compliance refers to conforming to the set policies and regulations. Today compliance is a key business process for different companies. Technology helps in enhancing the regulatory process. Compliance process plays a critical role in reducing transaction cost, enhance trust and reduce the risk for example organizations with reliable financial records are able to secure the loan at lower interest rates. Today many companies are using mobile devices, robots, drones, artificial intelligence, and advanced algorithms to enhance compliance. The company can apply the accounting computer system to prepare financial statements. The Greenwich royal Result can also file tax returns using the online platforms.
Financial technology also plays an important role in enhancing customer relationships. Gaining access to client data and activities provides for targeted marketing opportunities, customer acquisition, and cross-selling opportunities. The Greenwich royal Result can use Fintech to enhance its interaction with its customers as well as other stakeholders. This plays a critical role in enhancing customer value hence increasing their satisfaction. Further, the company is able to market its products online. The company can use its website as well as social media such as Facebook, Twitter, and Instagram to market its services. Blogs are also used to create more traffic for the computer services hence attracting more visitors.
The mobile devices are currently being used to automate the payment of services. Customers can now pay for hotel services using their phones, credit cards, and other online platforms. Digital currency movement, global remittance payment, real-time payment, and digital wallets are applied as means through which customers can pay for services. Digital payment is a more convenient method of payment as compared to the traditional method of payment. Fintech, therefore, helps to create value for the money paid by the customers.
Further, financial technology plays an important role in promoting data and cybersecurity. Identity management and biometrics helps the company to enhance security in the lodge. Technology and innovation increase automated recognition of the company system users (both external and internal to the lodge) and increase the surveillance of customer transactions.
With new technology today, companies are able to sell products and services through online platforms. Companies are using the internet as their shop today where customers can request for service or product and it is delivered at their doorstep. The Greenwich royal Result management can use new technology to enhance its service delivery by allowing customers to book for services at the comfort of their homes. Customers are able to access the products and services offered by the result in the comfort of their home and then make a booking. The customers are also able to communicate with the management using the mobile phone to enquire about the type of service offered by the company.
Finally, financial technology serves as a good tool for improving service delivery in the company. The employees of the company are able to interact with professionals using the new technology hence developing new approaches to service delivery. The management is also able to conduct an online survey on the level of customer satisfaction where employees are encouraged to rate the service delivery in the company. The feedback given by the customer is used to enhance productivity in the company. This plays a critical role in increasing customer satisfaction hence increases the company revenue.
The adoption of budgeting apps for customers is also applied to financial technology. Today the companies can use computer applications to develop a budget as well as collect checks. The company also has financial apps for customers which helps them to easily and efficiently track their budgeting elements. The companies can check the track of their budget in real-time hence ensuring that the company resources are utilized in an efficient manner.
Conclusion
Fintech technology plays a significant role in making financing, investing and business operation decisions. Embracement of financial technology helps the company to develop an efficient mechanism for financing the project.