Accounting, banking and technology set to converge, as providers aim to combat ‘app fatigue’ and give SMEs unprecedented visibility of their finances
28 June 2019: SMEs will soon be able to manage their finances from a single, central hub, according to a new report, which predicts the rise of the integrated ‘SME cockpit’.
Bringing together services currently performed by banks, accounting platforms, and cash flow tools, the cockpit will reduce the need for businesses to juggle numerous apps, while providing an accurate real-time view of their finances.
Blurring Lines, a report from Hokodo, the API-based insurance platform and Practice Ignition, the smart contracts and payments provider, analyses how trends such as app fatigue, connected data, PSD2 and API technology makes the emergence of the SME cockpit inevitable.
Based on interviews with over 25 accounting platforms, neobanks and fintechs, it discusses how different players across accounting technology, banking and fintech are vying to win the race to take on this central role. It also highlights the impact this industry disruption will have on traditional accountants and bookkeepers.
Highlights of the report include:
“The SME finance space is undergoing enormous disruption, as a multitude of apps and cloud services cater to businesses’ every accounting and finance need” commented Louis Carbonnier, Co-Founder and Co-CEO at Hokodo.
“While SMEs are currently drawing on an ecosystem of providers, ranging from online banks, to bookkeeping software and cash flow management apps, there are signs that app fatigue is starting to set in, as businesses struggle to manage numerous different providers. This, combined with the rapid evolution of technology, means it is only a matter of time before the best services converge, making the SME Cockpit a reality.”
Trent Mclaren, Global Head of Accounting & Strategic Partnerships, Practice Ignition, commented: “SMEs have long relied on specialist accountants and bookkeepers to keep their finances in check. However, the rise of new technology means that an increasing amount of this ‘heavy-lifting’ can now be automated, giving SMEs an unprecedented real-time view of their finances and cash flow , along with cleaner, more accurate data. This enables better decision-making, improved success and enables accountants to advise their clients more effectively.
“This is great news for SMEs and technology providers, but raises concerns for traditional accountants, as machines take on much of their workload. They will need to start thinking seriously about how they will continue to add value to their SME clients, with a greater focus on advisory and by working alongside the technology available to offer a fully integrated offering.”
To download the full report, visit Hokodo here