TECHNOLOGY
“ COVID AND THE LIKELY INCREASE OF A RECESSION BRINGS HUGE VOLATILITY ... WITHIN MOST TRADING BUSINESSES , IT IS AN OPPORTUNIST TIME TO INVEST , EXPAND AND CAPITALISE ”
ADAM VIPOND CASPIAN ONE
markets , especially digital assets , has seen increased growth – and companies need to streamline and fortify themselves against instability and the risk of crisis .
“ Covid and the likely increase of a recession brings huge volatility , which means that within most trading businesses , it is an opportunist time to invest , expand and capitalise .
“ The overall risk with all fintech organisations is the risk of poor cybersecurity measures and systems . We believe the majority of technology investment at businesses will be an increase in cyber-related security , along with best of breed platforms to beat the highly competitive market ,” remarks Vipond .
Vipond pinpoints seven key areas that , if managed properly , can mitigate risk and help fintechs to ride the storm in the event of unexpected downturns . They are :
• Cybersecurity
• Data analytics
• Integration
• User experience
• Speed to market
• Infrastructure reliability
• Know your clients ( KYC )
Lekhi concludes that digital transformation has become necessary for survival , and
technology is the life raft that can help companies survive recessions .
“ Cloud computing , artificial intelligence and big data have been widely adopted by fintech organisations … Fintechs are bolstering their infrastructure by expanding capacity and investing in new resources to withstand the stress on their systems from higher transaction volumes .”
She adds , “ These actions could be especially challenging for fintechs that depend on transaction volumes for revenue and are cash-starved now . Some are raising capital and funding from investors and lenders . Others have implemented costsaving measures , including workforce reduction . Because revenues , for many of them , are transaction and volume-based , a priority strategy right now is making sure that as many expenses as possible are variable , and fixed expenses need to be minimised .”
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