Part two of our focus on fintech looks at how technological advancements have changed the way we operate our businesses and raise capital, redefining the old ways of commerce for a brave new world.
The economic landscape of today is unpredictable at best and tumultuous at worst, with the rise and fall of numerous financial and economic trends. A growing onslaught of startup’s and small to medium-sized enterprises (SME’s) have taken over the business scene which can be taken as a positive sign that the landscape is ripe to nurture new and burgeoning business however with the added on tools of e-commerce, technological advancements, key data research and the introduction of smarter and efficient systems, the traditional methods of operating a business have become defunct. Growth and change are commonplace in today’s business ecosystem and not adapting to these evolutions could be detrimental to a newer business.
According to a study done by Fundera in 2018, 82% of businesses failed due to cashflow problems. A solution that many turn to is alternative financing and Asian countries like Singapore and China have adopted or created methods that align traditional finance providers with the growing alternative finance industry. Singaporean regulators alone have placed around MYR 932 million aside to fund and develop their local FinTech companies and China building their peer-to-peer (P2P) market to become the largest in the region.
Edward Law, the Chief Executive Officer and Executive Director of Securemetric, Southeast Asia’s leading digital security company, elaborates. “The world has changed the way we usually do business and gain capital. Globally we are moving towards a digital economy transformation especially if we look at Southeast Asia, all the countries are trying to push towards a digital future. While we see many benefits and opportunities towards such transformation, there will always be an increased risk as people, businesses, devices, processes and data are now highly interconnected. It also means higher exposure to cyber attacks as cybercriminals can reach out to them easily. It is important to pay more attention to the area of cybersecurity while delving into the new methods of making capital.”
When asked about the longevity of traditional forms of raising capital, Edward opinion is that, “Traditional methods of making capital will surely be around, at least for a little while longer. When looking at China which has the most used e-commerce market in the world where most people do their shopping and food deliveries online, there are still more and more shopping malls being built across the country. The thing I have noticed about those malls is that they focus less on retail and a lot more into food and beverages to entertainment people whenever they wish to spend their time ‘offline’.”
THE PATH OF TRADITION
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE