Digital payments data is leaving old underwriting behind
As more people and businesses rely on innovative digital payments platforms, the wealth of data generated by those transactions will become increasingly valuable. Fintech payment providers already mine and analyze data and will continue to fine tune their services in the future.
There will be more demand from businesses that incorporate these modern payments tools for services that help them analyze their transaction data to provide insight into how to manage everything from cash flow and invoicing to inventory.
Having access to a wider breadth of more timely data from financial transactions can be invaluable for businesses because it leads to more effective planning, whether it's at the project level or companywide. This data plays into an area of expertise known as “Cash Flow Advisory” that’s gaining traction within the accounting industry.
Alternative lending companies are one of the strongest examples of how leveraging rich financial transaction data can be used to go beyond traditional credit risk assessments. The industry has been able to expand lending to businesses and individuals that would have likely been turned down by traditional lenders.
The takeaway heading into next year is this: The payments industry is going to continue evolving as more people migrate to the newest technologies that combine efficiency, security and analytics.
Will we see more small businesses stay in business and thrive due to the adoption of these technologies? We can’t wait to find out.