Guest contributor |
Digital lending has improved in recent years, with the advancements in open technology and financial services software making customer experiences more convenient and personalised. However more could be done across the industry to embrace and optimise open finance and digital lending.
Open finance enables more people to access financial services that may have traditionally been unavailable, while digital lending provides increased access to traditional banking systems allowing small-to-medium businesses and individual operations to access credit and financial services more easily.
At Finastra, we help our customers to build new financial ecosystems that support their business and customers. Our Microsoft technology-powered open software platform is always evolving, enabling us to integrate new technologies and customer-centric capabilities to support new streams of revenue and enhance efficiency. This enables organisations to adapt to fluctuating markets and changing customer demands with ease.
Our software enables the digitisation of systems and the automation of processes, which improves efficiency by reducing errors and inaccuracies. It also uses data to enable organisations to identify and combat inefficiencies, fix issues and establish new operational approaches to improve efficiency, profitability and customer satisfaction. With a clearer overall view of its business position, and potential risk, an organisation can allocate capital to prioritise more sustainable, environmentally-friendly decisions.
Read more: Finastra’s Anastasia McAlpine on data utilisation for trade and supply chain finance in the Autumn 2024 financial services feature
Finastra operates on the core belief that the industry has a responsibility to support and drive sustainable investment to facilitate the transition to a low-carbon economy. It uses open finance to connect capital with new, impactful initiatives that make a difference to our shared environmental goals. Our software provides businesses with all the tools to understand environmental regulations and make more informed decisions regarding sustainable investments.
An important aspect of creating new financial ecosystems and being more sustainable is championing a more progressive, equitable and accessible banking sector. We’re passionate about bridging the banking gap and reducing the numbers of unbanked and underbanked people in society.
Providing access to open finance and digital lending to more people enables them to prosper and their businesses (whether a single-person operation or a medium-sized enterprise) to thrive.
Our software drives this inclusion by reducing the bias of traditional lending to bring loan and account opening opportunities to an increasing number of people and businesses, particularly those with untraditional revenue streams. Our cloud-based solutions reduce cost per transaction, enhance compliance and reduce fraud. They streamline loans and working capital management, which enables our customers to deliver inclusive, sustainable and efficient finance products and services to their customers across diverse global markets.
Finastra is leading the way in removing the traditional obstacles to banking and financial services to create more inclusive trade opportunities. All levels of society benefit from inclusive trade, which can help to grow the economy while protecting the environment.
Inclusive trade increases competition and discourages monopolistic practices. As a broader range of businesses expand beyond their local or national borders and join the global market, the increased competition can lower prices, making goods and services more affordable for everyone, which is particularly beneficial for low-income households. It also opens up more stable and secure streams of revenue.
Increased competition also allows businesses to source raw materials and goods from the most efficient producers across the globe, which optimises the supply chain. This reduces production costs, which can lower prices for consumers.
Finastra’s modern open software provides seamless integration and collaboration across trade and supply chain finance, which in turn, enables businesses to deploy innovative products that open up new markets and empower next-generation business models, mindful of regulatory compliance.
Embracing open finance and harnessing technology is no longer just a strategic advantage; it is a necessity to help develop and support a strong economy that fosters inclusive growth. At Finastra, we are committed to providing our customers with the tools to create a more connected and sustainable financial future. Our focus is, and will remain, on delivering solutions that benefit everyone.
Matthieu Andrieu is head of corporate banking for Africa, Middle East and Asia at Finastra
Discover more insights like this in the Autumn 2024 issue of Technology Record. Don’t miss out – subscribe for free today and get future issues delivered straight to your inbox!