Can FinTech Revolutionize the Logistics Industry and Introduce Much-Needed Change?
One of the most unique things about FinTech is how technologies gradually trickle down into other industries. While FinTech is now dabbling in smart specialized algorithms to automate the delivery and use of financial services, many of its innovations can be extremely helpful when applied to ageing industries such as logistics.
Logistics has always been plagued with inefficiencies. However, recent developments have shown that you can teach an old industry new tricks. Lately, we’ve been seeing the logistics industry make large moves towards a FinTech-centered future, adopting many new innovations and technologies to drastically speed up the efficiency of supply chains and also open unique options for payment options and billing choices.
With more people working in the logistics industry as freelancers, new payment options are essential
With so many drivers trying to compete for work in the industry, it’s become incredibly important to streamline payment options and billing choices. Thankfully, FinTech has stepped in to help solve many of the industry’s past inefficiencies.
These days, drivers are able to receive and track payments on their smartphones. This has helped to speed up the payment process to ensure that drivers get paid on time. This makes them happy and it also means less work for logistics companies that no longer have to keep track of paper trails.
FinTech offers financing options that bypass banks
Thanks to its relationships with banks and financial institutions, FinTech can help mediate transactions between drivers and businesses. Right now, FinTech allows businesses to make large purchases of equipment and inventory without needing to use a bank to mediate transfers. FinTech still allows companies to run credit checks before a company decides to offer financing options.
FinTech also offers much faster payments which means less time waiting around for companies to complete deals. There’s also the option to use third-party companies to move freight, acting as a broker for finance. This is much cheaper than generic financing options and is more convenient for all involved parties.
Coping with large orders and inventory resupply
With explosive eCommerce growth taking over the logistics sector, being able to quickly finance and reorder inventory has become essential. FinTech innovations allow businesses to quickly pre-order stock with predictive algorithms that account for sales numbers. This allows business owners to take a hands-free approach to restocking their inventory and ensuring that their customers are always able to order their products.
With this new development in FinTech, it’s become clear that automation is now entering the fray and will be a key component in both the logistics and eCommerce sectors. Automated resupplying and inventory orders will make things a lot easier for the entire supply chain, and this is thanks to innovations in FinTech.
FinTech is certainly transforming the logistics industry and it’s about time that change is taking place. As an outdated industry, FinTech is the magic bullet that it needed to make things more efficient, speed up processes, and make everyone happy. We’re excited to see future FinTech innovations continue to trickle into the logistics industry.