Why a Cloud ERP System is the Ideal Solution for Fintech Companies

For all their use of modern technology to deliver ease of use to consumers, many fintech businesses still find themselves manually managing their back office processes. These processes are riddled with human errors and data duplications.

The cloud enterprise resource planning (ERP) system is one that is at the forefront of technologies that are helping businesses automate manual processes and introduce operational efficiencies.

Here is how a cloud ERP system can help fintech businesses

Automation of key financial processes – The manual management of data through spreadsheets result in human errors and data duplication. Mistakes like this can delay financial close time, and affect the financial standing of fintechs, in addition to resulting in costly fines by regulatory authorities. This puts the onus on fintechs to equip themselves with the best that cloud technology has to offer.

Cloud ERP systems help businesses automate key processes such as bank reconciliations, helping fintechs accelerate their close times. Endeavours such initial public offering (IPO) require businesses to rigorously report their finances. Cloud ERPs deliver robust financial reporting functionalities that ensure fintechs are well prepared for an IPO.

Multi-company Financial Consolidation – Fintechs need cloud solutions that can help deliver a consolidated and global view of all their businesses and subsidiaries in different countries. Cloud ERP systems are equipped with global financial management tools that deliver visibility, and are also preconfigured to cater to different currencies, and languages.

Hardly a day goes by without regulatory authorities mulling the imposition of new regulations on fintech businesses. Cloud ERP systems are also preconfigured to enable financial reporting according to global regulatory requirements, ensuring fintechs seamlessly manage their finance on one platform serving as a single source of truth.

Scalability – Fintech businesses operate in an industry that is presently primed for growth. Unfortunately, legacy systems and other small scale solutions do not have the ability to accomodate the often meteoric growth prospects of fintech.

Fintechs will quickly realise that a system that is built to handle 50 users may never be able to handle 500 users. Cloud ERP systems, due to the virtue of their architecture, cloud ERP systems allow fintechs to scale in parallel to their growth. You can often add users and customise the system in line with the growth of your business.

360-degree, real-time visibility – The financial markets that fintech businesses operate in can often be highly disruptive and volatile. The suite of different, best-in-class solutions that fintechs use can sometimes resemble a mountainous stack. Oftentimes these systems are not integrated, do not talk to each other, and end up in silos, greatly diminishing the value of data.

Cloud ERP systems offer robust integration functionalities that can help the different solutions that fintech businesses use, giving business owners a 360-degree, real-time view of their business processes and customers. This can significantly aid fintech businesses in unlocking key insights that can fuel their growth.

Conclusion

When facing mounting challenges posed by an increasingly disruptive marketplace, and also a volatile global business environment, there is little time to stop and think of ways to resolve problems, or innovate.

Cloud solutions such as an ERP system are equipped with robust forecasting tools that enable businesses to plan for their future. A cloud ERP solution also unifies data and provides fintechs with key insights for business growth. The real-time nature of the data you receive with cloud ERP solutions enables you to have your finger on the pulse and respond quickly to changing market or consumer trends.