One of the top challenges in secured finance is falling behind the pace of emerging technology and digital disruption. According to the US Bank CFO Insights report, 36% of the 750 respondents rated this disruption as the second-highest risk after talent shortage.
It is challenging to stay ahead of the pace of change when it comes to technology. And everyone wants to move faster. And moving faster – especially manually – introduces risk.
Automation reduces the human touch. Anytime we touch something manually especially repetitively, we introduce risk. And that risk can translate into organizations in multiple ways. But once you set up repeatable automation technology, you can generally run, rinse, and repeat – which lowers costs and speeds up the process without introducing risk associated with manual entries.
That’s why it’s important to partner with a fintech provider who can provide the right technology to meet the need for speed while helping you manage risk.
Ultimately, with the right fintech partner and the right technology, you can connect all your different systems to harness real-time data insights to mitigate risk.
But where to start?
Top technologies to understand, respond, and manage real-time risk
Here are our top recommendations to futureproof your business, mitigate risk, and grow your secured finance business with technology. This technology path will lead you to better understand and respond to real-time risk proactively.
- Create and execute a clear enterprisewide digital transformation strategy
- Move to a cloud-based SaaS technology provider
- Standardize to modern secured finance software with an open finance platform
- Adopt evergreen IT to stay ahead of constant change, protect data, and alleviate IT resources without disrupting business operations
- Harness data insights with connected assets, APIs, artificial intelligence (AI), machine learning, datastreaming, and reporting
See part 1 in this series to learn more: Managing risk: The best strategies use SaaS technology
Uncover hidden insights to identify, predict, and mitigate risk
All five of these emerging technology trends prepare you to seamlessly connect disparate systems and to turn multiple sources of information into meaningful data insights to identify, predict, and mitigate risk.
As much as we can automate anything with collateral management, the better. We want to understand the day-to-day, moment-to-moment movement in all assets that are financed.
The desire is to ensure all client information from multiple sources communicates with each other. If you can accomplish this, you can:
- Optimize business operations
- Identify risk that goes beyond a credit score
- Assess a customer’s buying power
- Reduce costs by eliminating manual processes and errors
- Seamlessly transition to the next generation of emerging technology
- Create a better customer experience
Mitigating risk through real-time performance data
Most lenders understand the value of data. The obstacle is to access and leverage meaningful and timely data into actionable insights. Partnering with a fintech provider offers the technology and guidance you need to accomplish this effortlessly.
Connected assets are becoming more and more prevalent – providing us with real-time performance data at a granular level. This connectivity tells us how assets are being used, are they being operated effectively, and how much fuel or energy is being used.
APIs, data streaming, and reporting connect disparate systems through third-party partners to retrieve the necessary data to turn these multiple sources into business insights. Through this technology, you can identify irregularities and flag potential issues to help you make faster and more accurate business decisions that mitigate risk for you and your customers.
And now is the time to invest in these technologies especially as we enter Industry 4.0 – or the fourth wave of the industrial revolution. That’s because we are more connected than at any other time in history – producing lots of data in real-time. And that data is going to be coming in all directions, super fast. Faster than is humanly possible to extract what’s actually valuable.
APIs connect multiple, disparate systems so you can access more meaningful data. But it’s only meaningful if you’re able to figure out what to do with it.
That’s where data streaming comes in – information is continuously generated by different sources in real-time. And not just any data – the right intelligence to give you actionable insights. Data streaming cuts through all the noise quickly and elevates real-time insights to identify, predict, and mitigate risk. As data grows exponentially every day from multiple sources, you can get ahead with SaaS-based technology, APIs, and data streaming.
How to manage risk with SaaS technology
Read part 6: Managing risk: Using tech to fix the labor shortages