INNOVATIONS FOR BUSINESS
TECH NOTES
by Mike Hunter
RPA Can Drive Fintech Growth … Will the Industry Take Advantage of It? Research shows that the use of robotic process automation (RPA) allows companies to cut costs and deliver a better service. However, the fintech industry needs to face up to issues that limit its most effective use. RPA is the use of software to automate repetitive and rule-based tasks using crossapplication programs, also called “robots.” It is used for more than cost savings, as there are several types of tasks in which robots outperform humans; properly programmed robots don’t get tired or make mistakes. That is why robots are particularly useful in highly diligent and time-critical tasks. However, despite its advantages — and a pay-back time that Digital Workforce estimates as three to nine months — companies are struggling with realizing the full potential of RPA. A particular challenge arises from the traditional separation of IT and business departments, which are both critical in implementing complex automated solutions. However, for fintechs, which are inherently more focused on technology-driven business, the problem arises elsewhere. According to Marius Galdikas, CEO of ConnectPay, an online banking service provider for internet-based companies, many fintechs are still placing growth as their top priority. Thus RPA gets the back seat. “As the company matures and starts to look at how to optimize its day-to-day, only then RPA becomes the center of attention. Yet the late implementation might make the company lose its competitive edge before it even reaches that stage,” he says. A study by Deloitte (www2.deloitte.com/ content/dam/Deloitte/us/Documents/processand-operations/us-cons-global-rpa-survey. pdf) suggests that many companies require a deeper shift in mindset for the change to be more effective: RPA should be a company-wide endeavor, not one that just involves its functional units. It also stresses the advantages, especially in freeing up the valuable human workforce to work on more fulfilling and productive tasks. “Creativity and motivation are key drivers in fintechs, so it is essential to ensure that work done by employees is valuable and creative,” Galdikas notes. “RPA supports this idea by alleviating the burden of repetitive tasks, allowing to direct more attention towards long-term strategy.”
Fintech Innovations Drive Business Worldwide Fintech startups played a significant role in the global financial industry during the pandemic. Payments companies especially have brought rapid solutions to aid the transition in commerce, which shifted from physical to digital in a matter of months. Many brick-and-mortar businesses began to offer online services, which led to a significant 26% jump in global e-commerce activity last year, according to ecommerceDB. That said, the question whether the need for e-commerceboosting fintech solutions will remain after the pandemic still lingers. Payments industry experts expect the increase of fintech solutions to continue driving the growth of e-commerce for the foreseeable future, citing the change in user behavior. In fact, we believe some challenges that have undermined e-commerce before remain unsolved and so the need for fintech solutions will remain for the foreseeable future. The pandemic highlighted one of the main challenges e-commerce faced for years prior to 2020: the willpower to move toward digital payments. The pandemic restrictions, in turn, have forced many companies to accelerate the implementation of digital payments and virtual customer support in their businesses. Prior to COVID-19, many retail companies around the world had been mulling over digital service offerings. However, a relatively small segment of early adopters treated it as an urgent need. The pandemic effectively drove many companies that previously relied on brick-andmortar stores to explore digital channels to ensure business continuity and survival. E-commerce platforms like Shopify, WooCommerce and others allowed even small businesses to make a quick digital switch without going through huge infrastructural investments. They offer easy creation of an e-shop as well as access to payment gateways and plugins, which enabled business owners to manage essential customer relationship management (CRM) tasks like making appointments, creating a contact list and managing orders in real time. During this time, fintechs working in the Payments industry have also introduced various services and solutions to ease the financial burden on consumers during the difficult economic situation. As an example, the “Buy Now Pay Later” (BNPL) option, which allows shoppers to pay in installments, was made available to many more
customers in recent years. Mobile payments have also shown a dramatic growth, becoming a lifeline for the Emerging markets as mobile phones are more widely accessible than bank accounts. Experts regard this as a giant step toward achieving financial inclusion globally. At Nikulipe, we are working on meeting consumers’ needs to be able to pay with the Local Payment Method of their choice — not just at their local but also at global merchants. This became even more relevant since the COVID-19 crisis. During the last one and a half years, fintechs working in the Payments industry came up with a number of solutions to ease e-commerce tool adoption, and they still have a significant role to play in the growth of e-commerce and global trends over the next decade. As the world begins to make a gradual return to normalcy, e-commerce will have to continue solving the challenges it faces. While the move to digital payments has seen significant progress, a majority of LPMs still exclude global merchants, limiting consumer choice. Financial inclusion has moved forward as well, with BNPL and mobile payments gaining popularity, but suitable LPM solutions and internet accessibility remain restrictive to the wider inclusion. Region-specific regulations remain another hurdle to figure out, and these ongoing challenges could be solved only with continued fintech involvement. —Frank Breuss, CEO and co-founder of Nikulipe (www.nikulipe.com), a fintech company that facilitates Emerging and Fast-Growing market access for fintechs, payment service providers and their merchants by streamlining cross-border payment solutions
ConnectPay connectpay.com
AUG. 2021
22
INBUSINESSPHX.COM
Low financial inclusion has been and continues to be a significant impediment to the growth of e-commerce, especially in Emerging markets. In Africa, where about 60% of the population remain unbanked, fintech companies have come to the rescue. Many African countries recorded huge fintech investments last year, peaking at $1.35 billion by Q4 2020.
