Flexible Billing in the Highly Regulated FinTech Industry

According to PricewaterhouseCooper, 46 percent of financial services consumers use only digital channels – a drastic increase from the 27 percent that was seen only four years before. Moreover, 82 percent of Millennials do their banking transactions entirely by phones. These trends have caused a global FinTech explosion in which organizations within these industries are getting ready to scale, enhancing their offerings and laying the framework to grow their global customer bases.

As we’ve seen over and over, however, planning for this kind of growth requires organizations to build a foundation of systems that are powerful enough to scale and flexible enough to support the agility required of a growing company. But in FinTech, more than any other industry, scaling is complicated by the need for airtight data security and regulatory compliance. There is a delicate balance between customer experience and fraud management.

When customers’ financial information is on the line, there’s no room for error.

That means that, in billing especially, FinTech organizations should be looking for billing engines that can power large-scale growth while keeping them audit-ready and compliant. Unfortunately, the legacy billing systems that may have provided airtight data security and accuracy in the early years often start to buckle under the weight of the increased complexity and volume of transactions, causing data gaps, security vulnerabilities, and costly slips in compliance.

A growing FinTech company needs a powerful, intelligent billing platform that offers real-time visibility into accurate and secure transaction data no matter the volume, automating revenue recognition rules, and ensuring ongoing compliance with ever-evolving regulations.

Here are three ways the Gotransverse platform is designed to keep FinTech organizations flexible within the highly regulated industry.

Easily Accessible, Up-to-Date Information

Things like digital payments, cardless transactions, mobile deposits, and other self-service options are what the majority of the population appreciate most which need to be easily accessible and frequently updated. As a FinTech organization, when someone asks for information — whether that’s a customer asking for an invoice clarification or an auditor looking for complete financial history — it’s important that that data is accessible, clear, and accurate.

An intelligent billing platform like Gotransverse provides a single view into customer information, keeping all the important details at hand to ensure the organization is audit-ready at the drop of a hat. This transparency has powerful implications for back-office operations as well as customer experience, but it’s also critical in ensuring things are running smoothly from a security and compliance perspective.

Automated Revenue Recognition

When an organization starts building new offerings and monetization structures into a legacy system, this often requires a lot of manual work to push usage events through the billing process, calculate charges, deliver invoices and track payments. The result is often a rabbit trail of data that makes it difficult to trace the source of revenue, resulting in compliance errors and revenue leakage.

But when the usage, rating, and revenue recognition processes are automated and rules based, as they are in an intelligent billing platform, it’s easy to trace back exactly where the money is coming from. Fortunately, intelligent billing systems like Gotransverse are equipped to handle complex, compliant revenue recognition without the logistical headaches or risks of human error that come with manual recognition processes.

Read more automating revenue management through intelligent billing.

Industry-Standard Security Certifications

While homegrown, legacy billing systems require a billing specialist every time a regulation is revised or introduced — not to mention significant efforts just to ensure ongoing compliance with existing regulations — organizations using a cloud-based intelligent billing platform can rely on their vendor to ensure ongoing, up-to-date compliance practices.

Additionally, these platforms are equipped with industry-standard security measures such as minimum 256-bit encryption, hardened networks and firewalls, and even ongoing vulnerability checks by an independent auditor. And all of this is built into the platform and its vendor-side maintenance, meaning organizations no longer have to dedicate their limited time and resources to keeping up with changing regulations and security requirements, so both the organization and its clients can have peace of mind.

Just because the FinTech industry is highly regulated, that doesn’t mean that flexible billing is out of the question. In fact, it’s critical for organizations that want to grow and scale without being encumbered by antiquated billing systems that protest every strategic or operational change.

If your FinTech company is ready to grow, we’d love to talk to you about how to master the balancing act between rapid scale and reliable compliance. Request your complimentary, personalized demo today!