How leveraging technology can help businesses to weather the economic storm

How leveraging technology can help businesses to weather the economic storm

By William Dale, Regional Vice President APAC, Mambu

The looming spectre of a recession is a very real threat in Australia right now, with rising inflation and the soaring cost of living having an enormous impact on individuals and businesses alike. Already we’ve seen significant, wide-scale lay-offs across all industries, multiple interest rate rises and a general slowing in overall economic activity and growth.

However, unlike previous recessions, many businesses today have access to innovative technologies that can help them to weather the impact of this economic storm.

Tech-enabled lenders ensuring the flow of credit to businesses

Financial institutions and other organisations offering credit will always be in demand during tough times, as businesses seek short-term solutions to keep the lights on and the doors open. Having access to credit is vital for the global economy, and ensuring this credit is flowing appropriately is a critical role of the lending industry.

Technology plays a significant part in ensuring credit gets where it’s needed, whether that’s through simpler digital application processes offered by tech-enabled SME lenders, AI-driven credit reporting, easier access to account information via mobile apps, or the ability to rapidly launch new products or features to meet the changing needs of customers.

Technology also enables faster approval times for businesses and individuals seeking loans, which can provide a much-needed cash injection just when they need it.

Next-gen tech powering banks and financial service providers

Having next-generation technologies at the heart of a financial institution can make a significant positive difference to the bottom line when times are tough. Modern, cloud-native technologies that are charged on a per user, SaaS (Software-as-a-Service) basis can be incredibly cost-effective, with organisations only paying for the service that they use. This can enable financial institutions, lenders, and others providing financial services, to scale efficiently – both up and down – as the market dictates. 

As an example, Mambu’s composable, cloud-native banking and lending platform enables greater flexibility while also effectively lowering technology costs, which can have a significant, positive impact on operations during tough economic times.

In any business, we know that the key benefits of technology are increased efficiency and productivity – reducing costs and increasing output. Leveraging the power of technology like cloud, data and analytics, artificial intelligence and machine learning can help to streamline processes, speed up decision-making, and lower overall operational costs.

Tough times encourage innovation

While times are currently tough for many businesses, it’s important that organisations are also aware of the potential opportunities that these testing times can deliver. Changing customer needs and behaviours, combined with slowed market conditions, can be an ideal catalyst for innovation and new ways of thinking.

By understanding your customers and acknowledging their specific pain points, banks, financial institutions, fintechs and many other organisations have the opportunity to develop unique solutions that meet the specific needs of their customers in the current economic environment, while also opening up new revenue streams.

As the macroeconomic climate continues to present challenges, businesses should leverage the power of technology to develop new and innovative customer-centric solutions to ensure their survival.