Fintech automation in business: how it works?

Mian Azhar

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Fintech automation refers to the adoption of tools to facilitate the automation and streamlining of end-to-end financial processes. For these processes to be automated, organizations need data on their finances to be on a platform that lets them run and control their financial operations and achieve results in real-time. AP automation is one process that can be achieved as a result of Fintech automation.

Fintech processes differ from those of traditional financial institutions. They are usually faster, cheaper, and convenient, but require significant effort to integrate them into existing financial operations. Here are two major strategies with which Fintech automation software can be integrated into financial processes;

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Fintech automation in business: how it works? Source: pexels.com

 

Enterprise Automation

Workflow automation of SaaS applications, data automation, and enterprise app integration can be done with cloud-based enterprise automation solutions that utilize API connections. A successful integration should result in a reliable software application that has a user-friendly UI that can easily be operated.

Robotic Process Automation

This UI-based automation tool can effectively carry out tasks like extracting info from a mainframe or legacy system. It is an ideal fit for business conditions where the user-interface does not change. The API of Robotic Process Automation can be connected to cloud-based enterprise automation solutions to make workflow automated.

How Fintech Automation can be Implemented

The implementation of automation solutions differs according to variations in business requirements and type. A company has to completely understand their needs and the kinds of problems they aim to solve before the right automation solution can be chosen. Sometimes, there might only be a need to automate one or two tasks in a workflow, but in some other cases, like ones involving accounts payable automation, implementation has to occur end-to-end.

The most popular method of Fintech automation implementation involves the total reconfiguration of their financial operation. Other methods are customized according to the automation needs of the operations in question. It is important to factor in future business goals while designing and setting up the automation infrastructure. All constraints linked to customers, clients, vendors, partners, and regulatory requirements should also be factored into the design.

When the design is done, a team of software engineers and a project manager should start the implementation, test and debugging of the Fintech automation system. The complete automated system should then be rolled out and the employees to use them should be onboarded. It is worth noting that the entire process might take a long time but should not be rushed so the finished system can work as intended.

Automating recurring processes that are prone to human error in a company will always be a good idea and is a great way to reduce overhead cost and time in the long run.

Endnote

Fintech automation is the application of automation tools to financial processes. Financial Technology helps companies save time, reduce human errors and fraudulent activity, and reduce operational cost. The successful integration and implementation of such systems might be time-consuming, but should not be rushed, to avoid a company being stuck with a buggy automated system. A product manager and a team of competent software engineers should work hand-in-hand to ensure the project is successful.

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