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How Fintech and Manufacturing can learn from each other.

How Fintech and Manufacturing can learn from each other.

There is a couple of revolutions happening right now. The revolutions are not seen in the streets but behind the walls of offices and factory gates.

Revolution 1: Banking

Traditional banking is changing, even money itself

Traditional banking is changing, even money itself

Banking throughout most of the world has had a role to service trade and personal wealth transactions in a post barter age. The service facility created the platform for society changes and philosophical influences across the planet.

The times have changed. Worker business hours have extended or become irregular, bank branches have not been as accessible and we all know the experience of call centre services to extend this “customer facing support” to depositors .Indeed can you recall the last time you had a great customer experience at either? The impact of the “finance” crisis also established a lack of trust from customers towards the banks and thus a new wave of technological alternatives has grown.

The birth of Fintech

Online services grows within every part of our lives.

Online services grows within every part of our lives.

We see examples of the speed in new payment methods for example the launch of Apple Pay, Google Wallet, and here in Denmark MobilePay already enabling transactions on a day to day business.

In 2013 I did not consider I would be able to pay for the new pet dog or make a furniture rental service payment through my smartphone – but they worked seamless during 2015.

The Danish government is reviewing how to change regulation and allow many retail stores to make none cash payments for goods with consumers. The birth of Bitcoin has created a new alternative currency uprising that could have more global impact than even the Arab spring and Occupy movements.

Fintech business solutions today cover a range from desktop to mobile device solutions. New market areas have been currency exchange and authentication methods using biotech on smartphones. New growth areas to replace or support banking services through apps, relationship management and savings portfolio developments will create exciting opportunities.

A key strength for Fintech is how scalable the sector can be applied in many developing nations with no bank site legacy. This has allowed leading examples in Africa to help make education, energy, medical payments through the use of mobile phones to speed up transactions and increase security for the transaction participants.

Revolution 2: Manufacturing

Robots welding in a manufacturing site

In manufacturing traditional skilled processes have been evolving with ever more complex and reliable automated machine tool solutions. Production at factories, able to run 24hours a day 7 days a week, with less production staff have been designed mostly with large serial runs of products and a modest but manageable product variation to satisfy various market opportunities and needs.

We see in car adverts the grace of robots performing rapid flowing graceful lines when painting or the fast but delicate movements when welding the car panels to form the vehicle. The increase of automated processes has demanded improved monitoring and methods of passing from one machining function to the next process.

The birth of 3D printing

3d printing

The rise of 3D printing technology facilitates new production techniques, small production batches and increased bespoke products: - Perfect for prototyping ideas and testing field feedback before full production takes hold. 3D printing has the ability to mix materials and vary density properties in new formed methods producing minimal waste by products and consistent quality.

The reduction in tooling costs to create products is possible one of the most significant advantages of 3D Printing, allowing increased flexibility to the product development cycle.

So what can each of these revolutions learn from each other?

Fintech can build into the design of their services and code a seamless front end service level to the customer whilst at the data process end being able to plan, use predictive analytics, identify customer behaviour and create anticipated financial solutions in advance for the customer. This “production planning” is capsulated already within manufacturing through the need for process control, cost reductions and process uptime. It is manufacturing that has contributed to LEAN thought and been a leader of business intelligence integration.

The manufacturing sectors have proven to be more adaptable than the banking sector to focus on customer needs (internal and external customers). The advent of 3D printing is changing the way that logistics solutions, process flow and time from idea creation to execution delivery of a product in small scales. So, using Fintech’s ability to innovate continuously, challenge industry norms and seek new market value can deliver favourable change.

Conclusion:

Performance areas common to both industries remain to monitor the desires, behaviours of customers and the market. By using ever integrated business intelligence software from machine installed energy sensing devices to sales activities, the power of predictive analytics will also be able support and facilitate the revolution that is needed in the future.

No matter the industry standard benchmarks it remains important to seek for potential black swan events with a positive responsive attitude. Industry disruption may be uncomfortable but it remains very human and natural for steady evolution and sudden disruptive actions to stimulate progress.

Fintech and manufacturing should seek from each other and into other sectors methods to establish new performance goals and measures,  maximize the value from technology such as business intelligence through predictive analytics to secure their futures.

What do you think? What examples have you seen from industry cross overs? I would love to hear your comments and experiences.

Reference and Further Reading