role of FinTech in project funding, investment decision and operation decision

role of FinTech in project funding, investment decision and operation decision

1.0 Introduction

FinTech (Financial Technology) refers to the application of technology in business to automate or promote financial processes and services. Business owners, managers and customers use fintech to manage their financial operation, lives as well as processes by application of algorithms and software that are applied on smartphones, laptops and computers. Like other business UNESCO project will also require financial technology to enhance their operation. Singapore Botanical gardens management considers establishing a project which will attract many tourists in the site hence raising adequate revenue to steer sustainability. The proposal for the improvement of this site, therefore, entails the introduction of an elevated bridge in the garden that would enable visitors to have an aerial view of the garden. The bridge will help in mobility and accessibility within the park. To enhance the sustainability of the resource it is necessary to have adequate resources, make a wise investment decision as well as operational decisions. This project will, therefore, access the role of FinTech in project funding, investment decision and operation decision.

2.0 FinTech solutions for financing

Today the traditional financial service sector has been disrupted or is being disrupted by the fintech. Digital platforms which are different from the traditional channel, which allows financial service providers to provide service to a large number by removing administrative and intermediaries hence making transactions more accurate and more effective.  This has flattened and decentralized financial services. FinTech financial solutions include online lending services, crowdfunding

Crowding funding

Crowdfunding refers to the approach of raising funds in which companies can indirectly or directly sell equity or shares to group or investors or other firms through the internet. Crowdfunding has metamorphosed from methods of financing creative project like games, films and books into new entrepreneurial financing to dramatically change the venture capital ecosystem.

Crowdfunding makes it easy for start-ups to secure venture capital from the large individual group without requiring traditional funding procedures which require a lot of due diligence, contractual terms and pre-money valuation negotiation. Crowd investors who invest a small amount of finance through online platforms like social network or crowdfunding website require less contractual protection.

Speed and accessibility are key motivators behind the development and emergence of the crowdfunding platform. The start-ups can access the fund easily within a short time. Can generate risk information which can be interpreted as indicators of the investment quality, hence impact the funding success probability. Therefore, it can get credit score information of potential borrowers. Crowdfunding plat helps investors to get real-time notification about the lenders to bind on the proposal to help in diversification of the portfolio.

The source is also considered to be less expensive. Unlike traditional financial service providers, the entrepreneur is not to pay interest and other fees. Hence, this makes crowding funding to be a cheap method of acquiring finances.

Weakness of crowdfunding

Sometimes it can be very tough to raise fund through crowdfunding especially when investors don’t buy the business idea. In case the project fails there is a risk of damage on business reputation and investors who financed the project. In case the business idea does not copyright or patent, some people may see it on the crowdfunding website and steal. Also, this involves share dilution and hence reducing the level of the returns. Finally, if funding does not reach the target the returns pledged must be returned while the investor will suffer loss.

Example

The company can attract most of its online subscribers to deposit some money with them with the assurance of getting some returns in future. The company use bloggers and referrals to create traffic for the fund drive.

Digital bank loans

This involves the borrowing of loan through digital platforms. It includes online borrowing and mobile lending platform. Today startups can get an unsecured loan through the use of digital platforms. Most of the loans issued by banks using this platform are short-term.

The biggest attraction for digital credit is that they require short decision making. The investor does not require waiting for long to secure the loan. The borrower is, therefore, able to meet his or her financial need as soon as possible. Digital lending is considered to be convenient and flexible as the borrower does not require to follow allot of bureaucratic processes.

It involves the automatic verification process and hence eliminates the consumption of time. Automation of lending efficient increases efficiency hence reducing the cost of loan processing. The system allows automatic access and verification of information of eternal sources hence customers can get notification of missing information in real-time from their mobile phones. finally today their many online lenders and hence the star-up can achieve their project funding without many struggles.

Limitation of digital banking credits

Since this type of credit is unsecured, banks considered them as high-risk loan. Therefore loans attract high interest hence making them expensive.

You must fulfil all the condition required to fulfil all condition require for you to assess the loan. Most of the online lending banks issue a small number of loans which might not be adequate to fund business

Applications

The management of Singapore Botanical gardens should do market research of various digital lending bank and identify the financial institution with favourable.

operations

3.0 FinTech solutions for investing decisions

finTech also plays a critical role in the making of an investment decision. This involves the use of software programs to make investment decisions. For large latest, the companies can involve computer systems or artificial intelligence (AI) to perform tsk that required human intelligence previously. The companies perform complex non-liner relationships using the artificial intelligence systems. The artificial intelligence strategies help in the data analysis process. It reduces the complexity of data analysis which maybe experience in case of manual analysis however to do this analysis one require skills in the AI technique applied.

Example

Analyst in the tour and travel industry can use artificial intelligence to a large amount of data from the bureau of statistics and industry annual to determine the industry trends and hence make prudent investment decisions.

Robo-adviser (Automated advice)

Robo-adviser is also referred to as automated personal wealth management. This involved provision of investment services to large numbers of investors. This type of technology is offered at a lower cost. The investors can get financial advice from financial advisers through use of the online platform. The robot advisers use internet send financial management advice to their client in real-time. The investor can also post feedback on the online platform and get feedback on real-time. You can get what services are most preferred in the market using such technology.

Automated trading

Execution of investment decision via automated trading applications or computer algorithms may offer several benefits to investors such as access to market liquidity, lower transaction cost, anonymity and efficient trading.  Recreation centres can use automated trading to measure the market trends hence lowering the cost associated with the trade.

Financial record-keeping

Today companies do not require to keep financial record hand copies. Financial record of a business is prepared and kept in computers. Modern technology provides a secure method where investors can track the financial asset of the company in an online trend on a peer-to-peer basis. Today the company engages in peer-peer interaction hence investors or companies transact directly without the involvement of intermediaries. Companies use digital platforms like DLT to interact with other companies and investors and hence reduce third party in decision making. This reduces the amount of time required to make decisions.

Analysis of large datasets

Due to growth in the amount of traditional information/data, such as economic indicator, corporate financial statement and security prices, other large amounts of data retrieved from modern data sources such as sensor networks and social media can be integrated into a portfolio / financial manager investment decision-making process. Modern technology can, therefore, assist in the alpha generation and loss reduction. For example, the management of the bridge project in Singapore Botanical gardens can use social media to get the reaction of customers towards the project and afterwards make prudent investment decisions.

The underlying financial technology in investment technology is motivated by rapid data growth to include including their source, types, quality and quantity as well as the development of technology that help in information capturing and extraction.

Strengths

It is easy to collect a large number of tables; files and recording represent millions of data point. Hence it is possible to make a more objective investment decision.

Data are communicated at high speed and hence fasten the investment decision-making process. Data are obtained in real-time and hence the company can make decisions on time.

The information is gathered from different sources as well as in a variety of formats including unstructured data (such as video messages), semi-structured data ( for example HTML code) and structured data ( e.g., CSV files or SQL tables).

Weakness

Sometimes investors maybe bias when correcting information and hence result in gathering inaccurate data.

4.0 FinTech solutions for operating decisions

Continued mounting costs and margin pressure are forcing service industry to evaluate their operations to improve their efficiency level. A large amount of data in the service industry and operation of tourist part have made manager to shift their interest to machine learning and artificial intelligence.  Financial technology helps in reshaping of the tourist sector. The main focus of fintech is on customer experience from the beginning of the company operations. That is, which park should we visit and why should we visit them and not others.
The main objective in operations of the business is to improve consumer value, while still establishing good business infrastructure. The processes are complex and require experience and expertise. The management should, therefore, provide practical fintech that enhance efficiency in business operation and hence maximizing the return of the tourist site. The tourist industry is a large industry with a high number of stakeholder and hence with better financial technology, there is a high opportunity for growth. Fintech solution for operation includes the use of mobile apps, fraud detection, biometric authentication,  budgeting apps

Online booking

The company can use technology to help customers to access the company service on the company website. The company display all their services and charges on the website. This allows customers to book for services to book for these services through online platform platforms. This makes the process more convenient for customers and at the same time reduce the cost involved in operations of the companies.

Mobile apps

Today most of the businesses are implementing mobile applications in their strategic plan. This is a result of many people who can access mobile phones. The previous studies indicate that more the four billion people have access to mobile phone. With a large number of people having smartphone people smartphone, the business environment has been disrupted. People are currently buying the product from the online store. Through the use of mobile apps, the company can market its product across the globe. Customers can, therefore, make payment for services using the mobile phone by downloading the company apps. The companies also use mobile apps to direct their client on their location. The use of mobile apps has helped in building the communication between the customers and the company hence promoting good customer relationships in the company. This also includes the creation of e-wallets where customers can create a wallet where they save money to use during the trip. This helps the customers to the same money for a trip to the park and hence the company can create a client base. The mobile is more secure and convenient and hence maximize customer satisfaction. Example of mobile application includes google map used by the consumer to know the travel direction.

Biometric identification

With the current global terrorist threat, it is good for companies to heighten the level of security in their environment. To promote security the companies today are using technology unlike the traditional methods used to promote security. The use of biometric identification helps to enhance security in the business environment. Tourist parks attract a large number of people and hence to ensure the security of tourists is not compromised it is good to employ technology. Biometric identification helps identify every individual who accesses the Botanical garden as well as those who use the bridge.

Fintech also plays a critical role in the elimination of cyber fraud. Through the use of biometric identification, the users of the company can identify the identity online users and hence limiting cases of frauds.

Budgeting Apps

Budget apps for customers are one of the most applied fintech today and have shown exponential popularity over the years. Previously, customers were required to develop their budget, collect checks or use the spreadsheet to track the finances. Revolution of fintech has promoted the establishment of financial services apps hence customers can efficiently and easily keep track of their expenses, revenue, and other budgeting elements. The companies can check the track of their budget on real-time hence ensuring that the company resources are utilized inefficient manner.

Fraud detection

Financial technology plays a critical role in fraud detection. Companies can use technology to detect fraud through the use of artificial technology. The financial managers use AI to mine the data. Through the use of AI, the management can access the company financial trend and any variance that may exist as a result of fraud. The management can apply machine learning approach to identify unusual trends in dataset automatically and hence detect any form of fraud. Tour industry can use neural networks to identify suspicious trends in company financial statements.

Social network

Social networks are the most fintech technique in the company to enhance efficiency in company operations. Today companies are using the social network to promote a high level of revenue. To maximize the profits companies focus on approaches to increase sales as well as reducing the cost of operation. Fintech plays a key role in increasing sales. Today tourist parks and other recreation centres use social media to market their services. Companies are therefore able to reach a large number of the customer at lower costs. This reduces the cost of marketing since the company will only require one person to post in the social sited. At the same time, the level of the company revenue is enhanced. For example, companies can use bloggers to create traffic for the company. This helps in advertising the services of the company at a lower cost and hence, in the long run, the level of the customer’s sales is increased.