Fintechs are deploying new technologies to automate accounting while providing alternative options to diversify portfolios and grow wealth.
A rollercoaster of financial conditions over the past few years has caught most of us off guard. Small businesses, in particular, have been hit hard and have suffered the worst during the COVID-19 pandemic. Now, inflation and recession fears are looming again, harming individuals and organizations alike.
In this environment, fintechs are deploying technologies for investing, accounting, payments and more that are designed to help their customers weather the storm. For example, by automating manual invoicing and payments processes, fintechs are saving businesses time and money. And by providing access to alternative investing options, fintechs are giving stock-wary investors a chance to grow their money.
Fintechs have long been touted as harbingers of innovation and disruption. Indeed, their very business model is built on shaking up traditional financial services. But in recent years, fintechs have become more than just disruptors — they’re enablers, too.
A trifecta of rising accounting fraud, record fines, and accountant shortages has left small businesses struggling to keep up. A Bloomberg Tax article, for instance, describes a “crisis” of shortages and turnover in accounting.
The Wall Street Journal also notes that “sanctions related to audit and accounting missteps increased nearly threefold,” with businesses being forced to pay increasingly hefty penalties for inaccurate reporting. If that weren’t enough, a recent study highlights that accounting fraud is increasing.
