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For 2019, Fintech Faces More Automation, a Rise in Early Payments and a Marriage with Regtech

01/09/2019 By

Spend Matters welcomes this guest post from Chen Amit, CEO and co-founder of Tipalti.

Automation will be a key driver for companies in 2019, especially in a space like fintech. Automation will allow for the reduction and complexity of work, specifically in areas where businesses want to move away from, like back-off processes. Robotic process automation (RPA) became popular in 2018 and will only continue to rise in the ranks as companies are seeing the lasting benefits for a range of applications, including data management, accounting and payroll management.

From this, it’s safe to assume that manual paper-based accounts payable could be eliminated by 2025 due to automation. If not completely automated, these roles will likely become part time as the successful application of automation will reduce time-intensive tasks. Automated AP will cut costs by limiting manual operations and missing information, all while allowing more time to research and invest in strategic business operations.

Another strong trend is early payments, which are being offered by not only larger companies, but small- and mid-sized businesses. This allows companies to turn their AP into a source of income while helping suppliers get paid earlier. Payment acceleration helps improve cash flow, which is essential for businesses of any size. While the gig economy continues to rise, it will become essential for companies to offer early payments to freelancers to remain competitive.

In 2019, fintech will no longer be fintech anymore. Regtech, the concept of using technology to address increasing regulatory requirements and business risks, is marrying with fintech. Finance departments don’t want to simply scale their core financial processes anymore. These departments want to address their business risks, such as fraud, in a productive way that removes data entry and red tape, while freeing finance to make a strategic impact versus pushing paper.