FinTech can Help Reduce Inflation: Here’s How
FinTech has been the buzz word of the twenty-first century, and for good reason. Today, FinTech governs almost every aspect of our monetary exchanges, from online banking to phone transactions and user-friendly payment gateways. But did you know that this emerging solution can help with alleviating the consequences of inflation?
In fact, studies have demonstrated that FinTech can bring about a significant reduction in inflation and unemployment, urging banks and governments to leverage this technology. Here’s the deal:
Digital payment options
Banking is now literally possible in one’s fingertips, which has made life incredibly hassle-free. Products that can be purchased through digital banking products tend to be less expensive, which aids enhanced price comparison. Consequently, businesses can monitor their overhead expenses, while consumers reap the benefits of lower prices and transparent exchanges
Better access to credit
FinTech platforms offer several peer-to-peer lending and alternative credit scoring options, ensuring that every individual and business has optimal access to credit. As a result, investment processes and consumption patterns are enhanced, reducing chances of imbalances in the supply and demand cycle and lowering the risk of inflation.
Data analytics in real time
Comprehensive FinTech platforms provide systematic data analytics in the form of reports, charts, etc. This process enables central banks and other financial authorities to track economic activity, inflation metrics, etc. better and modify their policies. With such accurate analytics, it’s easier to stay updated on inflation trends and prevent the situation from worsening.
Efficient supply chain finance management
FinTech applications help buyers and suppliers with smart payables and receivables management. With fewer payment delays, quick invoice factoring, and real-time coordination between different stakeholders, FinTech can prevent supply shortages, one of the most common reasons for inflation.
At Zuron, we aim to help reduce inflation risks by offering reliable supply chain finance management services, with a user-friendly interface, cloud-based software, high security, flexibility to utilize treasury or bank funds at an invoice level, real-time data analytics, and user-friendly training manuals. Get in touch to know more!
