Considering that human society is built on the concept of the exchange of money for value, monetary issues can generate far-reaching implications on the health and general well-being of society. Entrepreneurs like David Kezerashvili the CEO of Infinity VC a venture capital firm believes innovative technology is the way forward in resolving Europe’s nagging monetary issues. The prevalence of innovative technology in FinTech can potentially serve as a launchpad that will ensure the technology revolution in other industries which then can help to ensure efficient monetary flow across Europe which would elevate trade and improve the living standards across the continent.
3 ways technology can ease the monetary flow
The innovation and upgrades in technology are not just for easy work life but also for easy monetary flow. Technology has in fact helped the economic situation of many states. Below are specific ways technology can help ease the monetary flow.
A key attribute of technology is that it can provide a channel that can ensure greater access to services and other beneficial resources both for producers and consumers. In any economy, monetary flow is dependent on the activities of consumers and manufacturers. Innovative technology therefore can serve as a platform that will help to ensure proper communication and synergy among the stakeholders involved in national and international trade. In other words, innovative technology can help resolve supply chain issues. This is because it creates a platform for manufacturers to liaise with suppliers of the raw materials used in the production of their goods and this communication can be more rapid and vivid because technology can bridge the gap between them. When supply chain issues are resolved there will be a rise in the volume of supply and demand and this can boost financial transactions and significantly increase monetary outflow nationally and internationally.
Significant progress has been made concerning the decentralization of financial transactions. However, innovative technology can further boost trade and industry by providing platforms through which FinTech service providers can reach prospective entrepreneurs and existing ones alike to finance their business endeavors. This can help reduce the stress in assessing credit facilities for entrepreneurs especially startups and likewise increase their chances of success and survival in the harsh business environment. Through this, the FinTech companies would be directly and indirectly creating more jobs and enhance the spate of growth and development of the European continent. This will in turn generate a circular flow of money from the manufacturer to the buyer and then to the government in terms of tax and other levies. These revenues can then be used by the government to finance infrastructure projects that will ensure make life easier for their citizens.
Cyber crime represents a serious threat to business transactions as it can diminish trust between buyer and seller and thereby restrict the volume of transactions and subsequently the flow of money. Cyber crime is consequent upon clandestine individuals leveraging their knowledge of technology to swindle unsuspecting individuals of their money. Innovative technology can therefore provide the escape route by the creation of strong internet safety protocols that will reduce the prospect of scammers succeeding in their acts. This will help restore trust in the seller and buyer and improve the monetary inflow and outflow.
Money is arguably the most important extrinsic motivator, hence its proper distribution or imbalanced distribution can make the difference between calm and disquiet in society. The setback created by the coronavirus across Europe affected the economy and even as the continent and other parts of the world gradually recover from the virus, innovative technology will have a great role to play in ensuring a quick recovery. Europe is like the center of global trade and steps must be taken to ensure that money flow within the continent is optimized. To this end, it is recommended that governments of nations in the continent synergize and collaborate on how to encourage innovation that will help boost trade and industry and then monetary flow in the continent. This can then serve as a template for other continents to imbibe in occasioning the growth and development of their territories.