Fintech (or financial technology company) is here to stay. The goal of this financial industry subsector is to make banking convenient for their customers and to reach more people who do not have bank accounts (that is, the unbanked as it is termed). Accountants have a crucial role to play in the fintech industry. We will explain their role below.
Customer and core reconciliations role
For Fintech, there are hundreds of thousands of transactions that take place daily. To ensure that customers' accounts are okay and the integrity of the software used, reconciliations are the core operation job in all this finance technology firm. Accountants are at the forefront when it comes to the reconciliation role.
Internal Control activities
Internal control is the way companies reduce operational risks that can have an impact on the company. If an operational risk occurs, it usually harms the company. For example, if an employee embezzles the company funds, the cash flow that should be used to meet operational needs will be reduced. Therefore, accountants are employed as internal control staff to help reduce this risk.
Risk Management
Some fintech companies may have only internal control departments. This department will also be responsible for risk management and regulatory compliance. However, in bigger fintech companies, Risk management is segregated from internal control roles. When this is so, accountants are employed to manage the role of risk managers and officers of the entity.
Preparing management accounts
This is the primary role of an accountant. Fintechs may outsource this role. But in many cases, they employ a senior accountant to prepare their financial statements in a management report. This report is submitted to the chief financial manager who in turn presents it to the board.
Compliance Management
Compliance management is also separated from internal control in a big fintech. The activities of the employees here are to ensure that the company and all staff comply with regulatory requirements. Here, lawyers, bankers, and accountants manage the job.
Financial analysis & planning
Fintech always wanted to measure their target using specific KPIs. Since a tech company has large amounts of transactions, data analytics skill is required to be a good financial analyst with your accounting qualification. More so, financial planners spearhead short-term and strategic planning.
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