{"id":2245,"date":"2020-02-07T04:50:57","date_gmt":"2020-02-07T01:50:57","guid":{"rendered":"http:\/\/kusuaks7\/?p=1850"},"modified":"2024-01-15T13:23:26","modified_gmt":"2024-01-15T13:23:26","slug":"automated-factoring-for-banks-is-custom-software-development-worth-investment","status":"publish","type":"post","link":"https:\/\/www.experfy.com\/blog\/fintech\/automated-factoring-for-banks-is-custom-software-development-worth-investment\/","title":{"rendered":"Automated factoring for banks: is custom software development worth investment?"},"content":{"rendered":"\t\t
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\n\t\t\t\t\t\t\t\t\tFactoring financing relieves small and medium enterprises from the financial pressure by offering a chance to delay payments. It appeared long before venture capital, credits and equity investments, later lost its popularity for some time and then resurrected by shifting to online.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tAt the current moment, factoring is tied up to flexible product offerings, improved turnover, optimum productivity, and increased profitability.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tFor example, factoring expansion data gathered in the EU clearly shows that factoring is growing significantly faster than the entire EU economy. According to the FCI<\/a> report, in the past decade, the annual eight-percent increase resulted in \u20ac1.7 trillion factoring turnover in 2018 and it keeps growing. Roughly 80% of the turnover is represented by the domestic factoring, which clearly dominates the market now.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tExperts consider factoring a secured short-term financing tool, which reflects the real needs of the economy.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tAt the same time, one can suppose that factoring automation makes it easier and less time-consuming for all parties, and can substantially increase the volume of factoring contracts.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tDespite the domination of stand-alone factoring fintechs, banks don\u2019t even think about giving up in the competition.<\/a>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\nDigital factoring in banking becomes a powerful tool for banks as factors, helping to give their receivables finance business a brand-new look. Supply chain networks are working faster so automation is a matter of time. Great, if your bank is going to be next.\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Electronic factoring in banking: how can it look like?<\/h2><\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tThe two primary tasks of factoring automation are to speed up the process and to cut costs. Moreover, centralized and more rationalized document storage can help \u201ccut corners\u201d: reduce paperwork and employee costs, increase the turnover and boost the bank\u2019s revenue, as a result.\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\tFactoring automation in banks implies:\n