Using a financial technology platform can help stabilize your future finance. With a technology platform like Current, you can unbundle your financial services into individual offerings, increasing efficiency and reducing human errors. In addition, a financial technology platform can use blockchain technology to provide reliable access to cryptocurrencies.

Automation Improves Efficiency and Reduces Human Errors

Using automation to improve efficiency and reduce human errors in financial technology platforms is a smart way to save money, reduce risk, and improve results. However, not all tasks are candidates for automation.

Human error is one of the most common factors contributing to business failure. Errors can happen for many reasons, including employees taking shortcuts, forgetting important details, or carrying out tasks incorrectly.

According to the McKinsey Global Institute, 30 percent of tasks can be automated. Although the benefits can be relatively small, the effects can be very large, both at the micro and macro levels. Automating tasks such as data entry can reduce errors by a lot. While bots cannot replace humans completely, they can handle many tasks with the same level of precision.

Similarly, workflow systems can create more timely customer alerts and simplify information flows. Automating business processes also improves transparency, which is important to a company’s reputation.

Reliable Use of Cryptocurrencies

Using a blockchain has several advantages over other methods of securing information. The most obvious one is the fact that there is no single party that controls the ledger. This leads to more privacy.

Another is the fact that the information stored on a blockchain is permanent. It is encrypted with a cryptographic “hash.” This translates into the fact that the record can’t be changed.

While this may seem trivial, it is important to understand that a single database can’t store data across multiple computers. It also can’t verify a transaction on its own. A group of nodes has to work together to verify a transaction. This process creates a big carbon footprint.

While a centralized database may be subject to human error, it may also be subject to hackers. On the other hand, a decentralized database would be more likely to be safe from the nefarious naysayer.

Unbundles Financial Services into Individual Offerings

Historically, financial services have been bundled and offered by large institutions. These institutions provided traditional banking services such as mortgages, trading, and credit cards. They also offered services outside of financial services.

However, the rise of FinTech has allowed companies to break these services into smaller segments. This has created new markets for individual offerings. Some of these startups have even built completely new offerings.

Unbundling financial services has become a trend for a few years. It is a way of increasing competition in the financial services industry. It has also created new revenue streams for fintech companies.

For example, tech companies have begun unbundling business credit cards. Bank of America’s front office has also been unbundled, and so have the equity research departments of several tech companies.

Regulation 

Considering the rising importance of non-bank financial technology firms, authorities need to rethink the boundaries of the financial regulatory perimeter. This may involve creating new rules, regulations, or policies to protect consumers from exploitative practices and failure-prone situations.

Financial technology platforms bring together various customers, offering various financial products. The new organizational forms also create a new set of challenges for regulators. 

Platform businesses may also skim off high-quality loans, offering consumers lower prices. FinTechs may also offer low headline loan rates, but hidden conditions may keep consumers from understanding the products.

Jane