The impact of technology on Financial Firms in China

(with insight from S.J Grand and its CEO)


The technology is changing finance and its for the better.

Jamie Dimon of JP Morgan famously remarked to his wall street colleagues “Silicon Valley is coming to eat our lunch”. The rise of many fintech companies are disturbing the status quo and China is proving this to be true and is forcing a worldwide change.

How does the future look for financial companies ? What will financial services look like 10 year from now? These are the most innovative changes that have happened to our financial system:

P2P platforms:
Stands for peer-to-peer, these platforms eliminate a very big player from the game. The banks. More and more startups start to emerge with this business model, where people without the necessity of employing a third party “middle-man” exchange funds or services. This eliminates any fees that the intermediating banks may charge and creating a more flexible structuring of what may be exchanged and in what quantity.

Crowdfunding:

Another rising fintech that connects companies directly with individuals to raise funds in exchange for a service or equity.

These platform’s staggering growth have caught the eye of the public and the investors. A lot of financial companies today incorporate services that include packages to research, develop, and manage these kind of campaigns.

Digital Accounting:

Since the invention of internet, many financial companies have been looking for entry into the digital movement to simplify their business and keep them in line with the moving trend.

China being the leader of IoT and the incorporation of the internet and technology in nearly every industry is starting to attract foreign investors and entrepreneurs to open up to this new wave of digital revolution. Below we have an example of a company which roots started in China with a clear indication of how far can finance evolve.

An example for this is S.J. Grand, a financial and tax advisory firm that has been on the market for 15 years. The CEO Stephane Grand says:

Technology is driving changes in a lot of professions, and in particular those manipulating data. Compared to 15 years ago, a lot more companies now are using the Internet for all their transactions. This will have a very notable impact on all the financial services sector. In 10 years, it would be surprising that you find accountants and advisors in the same roles as they are today. We have decided to be ahead of the curve. We do not want to be left behind by technological changes in our profession. This is why we have been developing and using our own proprietary application for the last 10 years. This application allows to simplify the work of the accountants while improving tremendously the transparency in our client firms. It also allows to detect and limit fraud, as well as to reduce costs tremendously. Thanks to our solution, the level of reporting and the speed at which information becomes available gives a tremendous advantage to the management of our customers. I believe this is the future.

These financial firms which were traditionally doing work with files and paper are now switching to digital to improve the efficiency, productivity and accuracy. And it’s only getting better.

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The Blockchain:
With the coming of Bitcoin and introducing the world to a virtual crypto currency the blockchain was the carrying force of its rise is challenging the financial system today and is forcing financial firms to come up with intelligent and efficient solutions to fight the blockchain revolution.
This new innovation is refreshing old banking traditions and with over 200 Billion US dollars market capacity and rising fast is setting up new standards for the strategy and approach for financial firms.

 

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