FinTech partnerships can help financial institutions thrive, Boost Payment Solutions founder and CEO Dean M. Leavitt writes in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”
It’s only natural for businesses and institutions to remain vigilant for the unexpected. Recent years have highlighted the market’s susceptibility to unforeseen events, from pandemics to geopolitical upheavals. As such, it’s prudent to evaluate the potential challenges and opportunities that unexpected events and wild cards might present to your organization.
When considering those wild cards, several factors stand out. One significant area of uncertainty is the election year. The business community’s response to election results can be unpredictable, creating a point of potential instability. Additionally, the possibility of war or geopolitical conflict remains a constant concern, as these events can severely impact supply chains, the movement of goods along maritime routes and the cost and availability of fossil fuels.
On the headwind side, interest rate fluctuations, both globally and domestically, remain a pressing concern, as the cost of capital dramatically impacts procurement decisions and other corporate investments. Another significant headwind is the ongoing threat of bad actors and fraudsters becoming increasingly sophisticated. Staying ahead of these cyber threats via the deployment of tools and processes specifically designed to reduce attack surfaces and defend intruders is now “table stakes.”
Despite these challenges, several tailwinds provide reasons for optimism. The economy is generally strong, with many feeling that the risk of recession has leveled out. Spending and GDP are up, indicating robust economic activity.
The continued adoption of payment digitization across the B2B landscape is accelerating. Traditional payment methods like checks, wires and ACH which do not offer working capital benefits are giving way to the increased adoption of commercial cards, with a special focus on the virtual cards. This shift is bolstered by innovative optimization tools for accounts payable (AP) and accounts receivable (AR) departments which drive the need for a digitized data exchange among trading partners.
More importantly, a tectonic generational shift is underway. Younger generations are taking responsibility for how payments are made and received, setting a higher expectation of consumer-like experiences in the payments arena. This shift is driving innovation and the adoption of more efficient, digital payment methods.
Another positive trend we are seeing is an increasing willingness of financial institutions and legacy providers to partner with FinTechs for expansion, rather than opting to build their own solutions. These partnerships have immense potential to accelerate access to improved payment methods and improve interoperability across the ecosystem.
Boost’s product suite offers significant opportunities to serve our clients and partners on their digitization journey. Our patented technology solutions bridge the needs of buyers and suppliers around the world, eliminating payment friction and delivering process efficiency, security, data insights and revenue optimization. The flexibility of our platform allows for quick and easy implementation, which expedites the speed to market for all stakeholders.
While we all must remain vigilant about the uncertainties that could impact our businesses, we should also embrace the tailwinds that provide significant opportunities for growth and innovation. By staying ahead of challenges and capitalizing on positive trends, we can navigate the unpredictable landscape and continue to thrive.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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