How Indian FinTech companies are solving cost control in the face of rapid scaling

The Indian FinTech market is all set to record 10x growth achieving $200 Bn in revenues, as per an EY study. This growth stems from an accelerated push for digital adoption in the financial sector. India exclusively has seen a trifecta of government facilitation of a digital economy, technological advancement in terms of computing power, and cheap and democratized internet access to everyone. These developments have ultimately helped diverse businesses across industries to manage business finances and cash flow efficiently. The rapid adoption of emerging technologies has enabled financial technology companies in India to launch tailored FinTech offerings for businesses.

Behind the meteoric growth of the FinTech ecosystem in India, you can see a glaring gap in access to technology and financial products for smaller and newer players. Financial technology companies in India have successfully ensured businesses leverage automation and emerging technologies to streamline aspects like cost control.

Cost control – the outlier of financial discipline 

Typically, cost control is a business strategy to keep business costs and expenses within budget through effective management, regulation, and restrictions. It helps you identify and eliminate unnecessary expenses and other overspending issues to ensure financial stability within the organization.

Advantages of financial technology companies in India for cost control

Cost control is an essential financial strategy for companies that want to ensure the overall health of an organization and gain a competitive edge. Additionally, with robust cost control measures, companies build resilience to navigate market uncertainties, economic downturns, and other disruptions with minimal to zero effect. For businesses that are working towards scaling their operations, having cost control strategies is critical. Let’s quickly discuss how financial technology companies in India help businesses with cost control.

1. Anticipating future expenses

FinTech companies allow businesses to implement robust cost control strategies that will help businesses identify expense trends, and predict upcoming costs. With FinTech solutions, businesses could generate reports and analytics, empowering them to collect and study historical data and other relevant factors. Using these insights, businesses can prepare to mitigate potential challenges and manage future expenses.

2. Budgeting with precision

FinTech solutions help companies build a centralized hub of financial information by integrating tools across accounts payable, payrolls, vendor management, and accounting. With this, leaders can visualize the financial outlook and cash flow of the business. By studying these insights, leaders can develop budgets with accuracy after understanding future costs.

3. Identifying cost drivers

With automation introduced by financial technology companies in India, businesses could quickly collect, analyze, and report key drivers of costs. Once this information is reported with accuracy, business leaders can spin up targeted cost control measures. You can also identify cost-saving opportunities in the form of contract renegotiation, exploring alternative and cheaper vendors, and optimizing processes.

4. Fraud detection and compliance

Most companies even fail to realize that they’ve been defrauded until much later when following manual management processes. With financial technology companies in India, you can proactively detect and prevent fraud. For example, Zaggle Zoyer uses OCR technology to convert paper-based invoice details into digital format, which is then verified against the purchase order to verify the legitimacy of the invoice.

5. Strategic Decision-Making

FinTech platforms are capable of processing a vast amount of information and then making informed predictions. After studying the data, the tool will suggest strategic decisions that align with your business objectives, making it easy for you to make complex financial decisions. These decisions are based on different rules, data points, and analytics instead of gut feeling.

Achieve cost control in its true form with Zaggle

The FinTech revolution has been a longtime phenomenon, but it’s only recently that businesses have been using automation and digital platforms introduced by financial technology companies in India. These solutions have been changing the way businesses approach services of payments, lending, expense management, and spending analytics. 

Although most companies have been building an end-to-end platform, Zaggle took a slightly different approach. Zaggle, a Hyderabad-based FinTech, has been designing automation platforms across channel partner incentives, employee rewards, flexi benefits plans, and expense management solutions. The wide suite of products allows companies to pick the solution that suits their requirements.

You can get a detailed overview of our solutions here.