- Financial institutions are leveraging technology, such as personal savings banks, to offer customers personalized investment advice and lower fees.
- Online banking is becoming more secure and convenient, with biometric authentication methods for added security.
- AI is automating accounting tasks, providing better tracking of expenses and insights into finances.
- Blockchain is being used to create smart contracts that automate verifying and executing transactions for improved transparency and security.
As the world becomes more digital, managing business finances becomes increasingly complex. With new technologies emerging daily, keeping up with the latest trends can help your business stay competitive and make informed financial decisions. Here are the top business tech trends for efficiently managing finances in 2023.
Financial Institutions
With the rise of financial technology (fintech) companies, traditional financial institutions are facing increased competition. To stay competitive, banks are investing in technology that enables them to provide better customer experiences and streamline their operations. Here are some ways banks are leveraging technology:
Personal Savings Banks
One trend gaining traction is personal savings banks, which offer customers personalized investment advice and portfolios based on their financial goals and risk tolerance. These banks use machine learning algorithms to analyze customer data and provide customized investment recommendations.
Another advantage of personal savings banks is that they typically have lower fees than traditional banks. This is because they do not have the overhead costs associated with physical branches and can pass those savings on to customers. An affordable personal savings bank brings more value to customers and can help banks attract new customers. Thus, this is an excellent option for businesses looking to save on banking fees.
Online Banking
Online banking is nothing new, but technological advancements are making it more secure and convenient than ever. Many banks now offer mobile banking apps that allow customers to check their account balances, transfer funds, and even deposit checks using their smartphones.
Some banks are also experimenting with biometric authentication methods, such as fingerprint and facial recognition, to enhance the security of their online banking platforms. This allows customers to access their accounts quickly and securely, which is essential for businesses that need to make time-sensitive payments.
Artificial Intelligence
Artificial intelligence (AI) is transforming the way businesses manage their finances. AI means businesses can automate mundane tasks, freeing resources to focus on more strategic initiatives. Here are two ways AI is being used in finance today:
Automated Accounting
AI-powered accounting software can help businesses streamline their financial operations by automating data entry, invoice processing, and account reconciliation tasks. This saves time and reduces the risk of errors and fraud. With a computerized system, businesses can also generate financial reports quickly and accurately. This provides better tracking of expenses and gives managers greater insights into their finances.
Predictive Analytics
Predictive analytics uses machine learning to analyze financial data and predict future outcomes. This can help businesses make informed financial decisions and identify potential risks before they become problems. It provides better backing for budgeting and forecasting, allowing companies to choose the right path for future growth.
Payment Notifications
Especially for busy businesses, keeping up with payments is a challenge. Payment notifications can help ensure all bills are paid on time, and no customer invoices are overlooked. With payment notifications, businesses get an alert when a payment is due or received, keeping them on top of their finances and helping to avoid late fees and other penalties.
Blockchain
Blockchain technology is most commonly associated with cryptocurrencies like Bitcoin, but its potential uses extend far beyond that. There are many ways blockchain is being used to manage finances, and below are a few examples:
Smart Contracts
These contracts are self-executing contracts that are coded on a blockchain. They can automate verifying and executing transactions, making them faster and more secure. Although this is still in its early stages, smart contracts can be used to manage financial transactions and reduce the cost of traditional contract enforcement. This is especially useful for businesses that make frequent international payments.
Supply Chain Finance
Blockchain can be used to create a more transparent and secure supply chain finance system. By using a blockchain to track the movement of goods and payments, businesses can reduce the risk of fraud and improve the efficiency of their supply chains. It eliminates the need for manual data entry and improves the accuracy of financial records, which provides greater visibility into finances.
These business tech trends are transforming how businesses manage their finances. Whether you’re a small business owner or a CFO at a large corporation, keeping up with these trends can help you make informed financial decisions and stay competitive in today’s digital world.
