What is fintech and how does it work?
In a world that is driven by technology, the financial sector has also adopted contemporary technological solutions to streamline complex financial processes with ease and accuracy. Interestingly, fintech is not restricted to banking but has also extended its services to multiple industries that involve complex payment systems and integration. Fintech in logistics is certainly a game-changer.
Fintech leverages the potential of artificial intelligence, machine learning, blockchain and similar technologies to provide innovative financial solutions through automated and accurate data collection and analysis for streamlining financial processes.
Why is fintech the best solution for logistics and supply chain finance?
Though there are existing technological advancements in transportation and workflow processes, not much has been accomplished in the previous decades for streamlining payment processing in logistics and supply chain finance. This is where fintech in logistics has become a game-changer and plays a significant role in streamlining data and transactions with flexibility, transparency and security.
How is the integration of fintech in logistics making finance easier?
The integration of fintech in supply chain finance provides administrative, accounting, and automation assistance.
- Administrative Assistance: Financial supply chain managementis often time-consuming and prone to error with limited payment methods, manual invoice processing and delay in payments from the parties involved. However, these challenges can be efficiently dealt with supply chain finance fintech by optimising working capital and payment processes.
- Accounting Assistance: Receiving financial aid and keeping track of payments and receivables is a complex process that needs transparency, accuracy, and risk assessment. Supply chain finance fintech service providers counter these challenges in financial supply chain management by providing accounting assistance in terms of invoice financing, inventory financing, credit management, and insurance Services.
- Automation Assistance: Manual processes of invoicing, credit management, asset monitoring, risk management and claiming insurance is a hectic task in financial supply chain management. The implementation of supply chain finance fintech solutions has the potential to optimise productivity by streamlining processes through efficient automation in terms of fraud detection and smart contracts.
Let’s Wrap Up!
The logistics industry is one of the key economic contributors to a country and it can prove to be more productive by tapping into the innovative solutions offered by fintech in logistics. The integration of supply chain finance fintech applications and services in logistics and supply chain finance provide administrative, accounting, and automation assistance and thereby streamlines the financial process without any complexity, error, or loss of time.
Axlerate is a unified platform for Logistics management, payments and services. Our solutions help to simplify tolls, fuel purchases, fleet expenses, loans, insurance, escrow, payments, truck booking, fleet management and the buying and selling of logistics products and services.