30 November 2022 |
S3 Ep14: How Dani Fava Feels About Embedded Finance And Carving Out Her Own Place in Fintech
What does embedded finance mean to Dani Fava? It means providing a more secure future for millions of Americans. Find out how.
Dani is Group Head of Product Innovation at Envestnet, transforming the way financial advice and wellness are delivered. Their mission is to empower advisors and financial service providers with innovative technology, solutions and intelligence to make financial wellness a reality for everyone.
Nicole and Dani talk hacking software to buy back 20 minutes of her day, how financial micro moments could change the future, and how Dani carved out her own space in the innovation niche.
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You can keep up-to-date with everything Humans of Fintech at https://workweek.com/brand/wtfintech/
And if you’ve enjoyed Humans of Fintech why not try: Chicks of FinTwit, Tech Unlocked, Breaking Banks or Fintech Insider
01:44 The Incredible Origin Story
04:31 Being Your Own Biggest Believer
05:55 Failure Is An Option
12:20 Infiltrating The Institutions
15:14 Equity At All Levels
23:44 Proximity: One SIngle Word
25:56 The Embedded Finance App
30:15 Being The Change In Fintech
31:43 Staying Visible
3 Benefits of Embedded Finance For Organizations
In a digital world, the role of finance is more important than ever. Finance departments are playing a key role in embedding insights into our organizations and driving sustainable performance.
A company’s embedded financial management system is one where financial information is accessed directly from business processes, rather than having to be retrieved from separate data systems. Embedded finance solutions are fast becoming essential for many businesses as they provide a number of benefits that can help you make better strategic decisions, boost efficiency and reduce costs. In this blog post, we take a look at the benefits of embedding finance for your organization.
Save Time and Money
The data needed to report on the business performance, forecast future cash flows and make investment decisions is being extracted from the core business processes themselves. This means that the analysis and reporting can be done in real time, without the need for manual collection of data from separate systems.
Thus, finance departments no longer have to spend valuable resources manually extracting data from different systems and generating reports to support management decisions. This will save time and money spent on IT resources, data management and analysis. Embedded finance solutions can help finance departments make better use of their human resources. They provide finance teams with the information they need to support business decision making in real time, which will also free up time for finance staff to focus on other areas of the business that might be under-resourced or overlooked.
Enhanced Organizational Visibility
Embedded finance solutions will provide a single source of data to support strategic decision making across the organization. They give you access to real-time data across your entire business, so that managers can make informed decisions based on accurate information. This information could be anything from revenue forecasts, inventory levels, costs and revenue recognition policies — anything that is relevant to your organization’s core business. That way, you can avoid having to depend on various data sources for information that is often out of date.
And you can also encourage collaboration across different departments, as managers will be able to access the information they need in real time. This comprehensive insight into your organization’s performance will allow you to spot opportunities or problems in the business earlier and make better informed decisions.
As discussed previously, embedded finance solutions will integrate data from your core business processes to support better decision making. This will allow managers to make decisions based on up-to-date financial information. During the procurement process, for example, you can use forecast data to determine which suppliers offer the best value for money.
Additionally, you can use data from your order management system to identify which suppliers are in line for future business. You can also use information from your revenue recognition policy to determine whether an invoice should be recognized as revenue — and how much revenue it should be recognized as. This can be particularly helpful if your organization has different revenue recognition policies for different product or service lines.
Improve Operational Efficiency
Another benefit of embedding finance is that it can help improve operational efficiency. This is because embedded finance solutions allow you to integrate different systems and create a single view of your entire business. This will help you identify inefficiencies across your business and take steps to eliminate them. Inventory management is a key example of how embedded finance can help improve operational efficiency.
A single view of all your inventory data across your organization will allow you to identify whether any items are under- or over-stocked. It will also allow you to see whether any items are out of stock and need to be replenished. This information can be used to create more efficient supply chains and manage inventory levels more effectively. And as inventory data is being integrated, you’ll also be able to identify if any items are at risk of being expired or returned. This will allow you to take action to reduce inventory levels and improve operational efficiency.
Track Financial Risk Exposure
Embedded finance solutions can also help you to gauge your financial risk exposure. This will allow you to identify areas of your business that might be exposed to financial risk. For example, if you are using a percentage of your forecast to support your cash forecasts, you might be exposing yourself to greater risk.
Or if you are unable to forecast the demand for a particular product or service line, you might not be able to meet customer orders. This is because many financial indicators, such as inventory levels, forecast accuracy, and revenue recognition policies, can be monitored and evaluated in real time. This information can be used to identify potential issues earlier, which will give you time to take corrective action.
Embedded finance solutions provide organizations with a holistic view of their performance and can help them save time and money. They are a great way to benefit from the insight and control that comes with combining your financial data with other relevant information such as sales, inventory, and procurement. Embedded finance solutions will allow you to make better strategic decisions and improve operational efficiency. Ultimately, they will help you track your financial risk exposure and improve your organization’s performance.