Businesses often strive to place operational efficiency as a priority because it translates to faster production of goods or services, organised stock management and perhaps most importantly, better customer service.
For Vaughn Hechter, Head of Customer Services at Altron FinTech, the pursuit of business efficiency is at the heart of his day-to-day business strategy and operations.
“For me, it’s always been about providing efficient means to help customers thrive in their respective businesses,” Hechter says, whose history in customer service spans three decades.
There are challenges, however, which small-to-medium micro-credit providers face, in their desire to drive business efficiency, and Altron FinTech aims to assist those businesses in overcoming them.
How efficiency can remain central in a hyper-competitive industry
“The credit landscape has become increasingly competitive,” says Hechter, “with more than 8300 registered credit providers, according to the NCR website. Many businesses are made up of several branches or outlets offering the same or extended service.”
To swell the ranks, there are thousands of other credit providers that operate within the informal sector as unregistered and unregulated entities.
This only adds to the need within the fintech ecosystem to assist businesses in adopting innovative methods and solutions to compete in a landscape that is quickly becoming saturated.
However, the Altron FinTech team has a unique approach to navigating this hyper-competitive, compliance-driven credit environment.
“Offering ‘efficiency’ as a solution is no longer enough,” Hechter says, explaining that for him, customer service needs to be hands-on.
“To remain relevant and trustworthy in what many may call a precarious environment, we focus all our energy on the customer through meaningful, one-on-one engagement.”
Trust is the key to unlocking efficiency
Trust in the credit industry through systems enablers, that is especially rife with competition from both the formal and informal sectors, has been the differentiator that Altron Fintech has embraced fully to asist their clients to stand out and remain relevant.
“Not only is the volume of transactions relevant to showcase the level of trust we have within the fintech community, but through the types of customers we attract, which include well-known brands within the retail and food industries, banks who trust us as technical service providers, Smal micro credit enterprises as well as many others,” Hechter says.
In addition, Altron FinTech’s well-respected position within the fintech space, has also helped align the company’s partnerships within the South African National Payment System and transactional switching industry.
Hechter says, “Customers are not just here to buy a product or service. It goes beyond the transaction. We listen to their needs, and through this interaction, we incorporate new innovative ways to adjust our value proposition so that their businesses can remain both competitive and compliant.”
Regulations, regulations, regulations
When it comes to compliance as a credit provider or any business within the financial sector, the Financial Intelligence Centre Act (FICA) dictates that such businesses must be compliant in order to prevent and combat financial crimes such as money laundering and terrorist financing.
The Act further stipulates that all accountable institutions must file a Risk Management and Compliance Programme (RMCP) document to ensure such institutions are fully compliant with the FIC.
“Although these compliance requirements can be stringent, and in my experience often neglected, especially with regards to due diligence in screening for Politically Exposed Persons (PEPs) & Prominent Influential Persons (PIPs) together with Sanction screening, our strong relationships with our customers have enabled us to build a robust and automated system in which we can configure all of these concerns and compliance requirements in real time so that our customers never have to worry about compliance, financial crimes or risk” Hechter says.
End-to-end touchpoints
By building an end-to-end solution for fintech customers, Altron FinTech is leading the way in offering a fully automated process in which its customers can carry on with business as usual without the hassle of navigating compliance and regulations.
The team has developed a comprehensive configuration that tackles the very obstacles that hold back so many credit providers from becoming future-ready and scalable.
“Automation is the way to becoming a seamless operation that is ultra-efficient, but if this means losing the intimate relationship with the customer, trust will inevitably drop,” Hechter says.
“Without trust, the conversation with our customers will cease, which will dismantle the innovative and potential improvements we can offer in the future.”
“This is why we remain committed to an approach that is customer-driven; without it, we cannot create better ways to improve and innovate on business efficiency.”
Other innovations
Market competition and regulatory factors are the primary factors that influence pricing and fintechs are “price takers”.
“Through innovation and offering sound solutions for our customers, we have found beneficial ways to adjust pricing strategies in order to remain competitive while still remaining compliant,” Hechter says.
The Reserve Bank – some good news for fintechs
In a publication in December last year, the South African Reserve Bank (SARB) announced its plans to include fintechs in the country’s national clearing and settlements system in order to incorporate the unbanked or underbanked and to speed up innovation in the payments indutry.
“This inclusion is essential,” Hechter says, “it will help the under-served communities, who form a very significant portion of the fintech market to simplify transacting efficiently, securely and effortlessly at a more affordable rate.”
Looking ahead (and possibly driving down prices)
Hechter envisions a payment ecosystem in which transactions flow freely between organisations, reducing touchpoints and allowing for further innovations and financial inclusion.
At present, there are multiple touchpoints, which all attract their own fee structure. Where some of these may be necessary, others can certainly be negated through innovative solutions.
Hechter is excited about the future, especially in light of SARB’s new position in bringing fintechs into the banking ecosystem.
He believes that this move will drive fintech efficiencies to consumers, which will ultimately lead to financial inclusion and reduced cost for all people in South Africa.
“The future is bright, and with efficient business strategies, the opportunities are endless. Through greater education about these innovative and more efficient processes, we can expect to see more and more communities included in our economy, which can only mean one thing: an improved living standard for all,” Hechter concludes.