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How can HRD pave its way in the evolving world of FinTech?

Indian FinTech companies have consistently shown that the companies are either on Merchant Payment, Consumer Payment, Lending and finance, or Personal Finance. In India, the FinTech differs from HR. It is the necessity of all the organizations that their income and expenses are accounted for. Many Indian companies rely on Tally software because of its simplicity and affordability.

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In India, FinTech is increasingly becoming an unavoidable part of day-to-day transactions. In a broader sense, it serves as a critical cause for finance in the country by opening money-making opportunities for all people classes. It is pretty evident from the evolution of digital payments that it has been pretty beneficial for individuals and businesses. The public companies and the self-employed, small borrowers, rural entrepreneurs, and SMEs and MSMEs are all included in the term businesses. With the world’s second-largest population, FinTech in India plays a critical role in overcoming barriers such as financial unawareness, costly traditional banking services, and other obstacles that stop a large population from being a part of the economic landscape. The Indian FinTech industry is focused on the unbanked population. It aims to convert more and more transactions to online cashless transactions from the traditional offline and cash-based. 

Companies utilize FinTech to help them, business owners, and customers to manage their financial operations. FinTech does this with specialized software and algorithms that are used on computers and other smart devices. It includes the development and use of cryptocurrencies like bitcoin. In a broader sense, the term FinTech can apply to any innovation in how people transact business. Financial technology has grown extensively as a courtesy of the smart-phone and internet revolution. With this, the meaning of FinTech has evolved from being just banks and trading firms using computer technology in their back office to now being a wide variety of technological interventions into personal and commercial finance. Finetech is enabling consumers to take control of their financial lives. This control is leading to much bigger financial literacy than ever before. It breaks down the old beliefs and helps progress the consumers’ financial situation and results by investing in advanced technology. FinTech can be divided into various categories called verticals. These categories can be International Money Transfers, Personal Finance, Consumer Banking, Lending, and Payments. 

HR plays a crucial role in assisting the companies in dealing with a rapidly changing business environment and a greater need for quality employees. The presence of an HRD is a necessary component of any business, regardless of the organization’s size. An HR department is delegated with increasing employee productivity and safeguarding the company from any issues that may grow within the workforce. HR responsibilities include compensation and benefits, recruitment, termination, and compliance with the current laws. In simple words, the HR department takes care of the organization’s most valuable asset – its employees. The compound duties of Human Resources have bit by bit led to creating more well-defined HR departments and functions. In several cases, the name HR has even been replaced with talent management. 

Indian FinTech companies have consistently shown that the companies are either on Merchant Payment, Consumer Payment, Lending and finance, or Personal Finance. Here, the FinTech differs from HR. It is the basic necessity of all the organizations that their income and expenses are accounted for. Many Indian companies rely on Tally software because of its simplicity and affordability. Still, HRMS software companies are making their way into the market by providing much more than just the accounting software. The most crucial link between HR and FinTech is the salary processing and payroll. The HR and FinTech work towards the same ultimate goal – achieving a higher performance level and profitability. In the traditional business discourse, HR is concerned only with the Human Capital. This myth is busted in modern times, where many HR and Finance activities overlap each other irrespective of the traditional concept. Both HR and FinTech are facing the evolution of their business terms. With this in mind, it is highly appropriate that the two terms’ roles and functionality evolve with the changing business context. 

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How are HR processes being affected by FinTech? 

Technology is one of the challenging fields for both human resources and FinTech. Every industry is facing a rising concern about how to organize HR in the technological world. But this concern is mammoth in the case of the banking sector. The HR managers promote the most effective practices that would embrace the innovativeness due to developing Fintech. As a result, the workforce is encouraged to implement self-improvement. 

The technological development always means change and capability for such change. The human resource manager must prepare the team and handle the change procedure. HR’s key driving force is setting up its values and mission to form a unique culture in the workplace. The organization can achieve anything with a strong culture as the employees provide consistent and robust support. 

The question that arises is, what is organizational culture? One can define it as a set of standards and values shared by the people within the organization. The company’s team interactions and behavior depend on the organizational culture. The supply challenges like absenteeism, labor wastage, etc. are eliminated by the modern digital workforce by setting culture as the primary task for HR planning and FinTechs. 

Managing changes is one of the main challenges in the technological world, as discussed previously. This is a big deal, especially among the FinTechs. It is due to this reason that the startups and SMEs must not conserve HR. Given below are some tips to manage these changes. 

The most influential role models are the team leaders: 

It is self-evident, but it is necessary to remember that the ideals should set a positive example. These are the people creating the organization’s culture with their narrative and conduct. Due to this reason, the top management must remember that, besides being the face of the CEO or CFO, they are the face of their organization’s culture as well. 

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Update the Social Processes:  

Focus on implementing new beliefs in team activities. The creation of symbols, rituals, and traditions must replace the previous, outdated ones. A game characteristic must be applied to day-to-day tasks to make the workplace a little more interesting. 

Face Termination:  

Goodbyes can be challenging. But if you are willing to walk hand in hand with innovation and change, you have to let go of the outdated obstacles that come in your way. In a positive sense, getting rid of the obstruction is just removing the party’s beliefs’ mismatch burden. A famous American singer and songwriter, Rosanne Cash, once said, ‘The key to change is to let go of the fear.’ The fear of being changed or the fear of change at work must be removed to move forward with the change. 

Replace the Spoken Rules with Formal Ones:  

It is good to have transparency and clarity in terms of communication of the rules and regulations. However, it is better to have a formal, written set of rules for the team members to follow. 

Conclusion 

The economy keeps changing, and technology keeps updating. It doesn’t stop waiting for any one of the companies to catch up with it. It keeps on going ahead. It is on the part of the organization to maintain its pace with such an ever-changing environment. Having the HRD integrates with the FinTech evolution, the company increases its chances to become the ace in its industry.

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(Featured image by bongkarn thanyakij via Pexels)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

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Divyang Metaliya is a Business Consultant at FactoHR, an India based HR and Payroll Software Solution Provider. He is a creative business strategist with more than 8 years of experience.