Digitalization has been rapidly shaking up many industries. In particular, fintech has been able to improve the efficiency and customer satisfaction of businesses across verticals, spanning from retail, to manufacturing, banking, insurance, and technology. Fintech notably has the ability to drastically transform a company’s operations, making it simpler to streamline the financial and transactional component of a company’s offerings.
While the aforementioned industries tend to be on the innovative and early adopting side of digitalization, healthcare has always slower to innovate where administrative technology is concerned. Until the early 2000s, the health sector was among the slower industries to utilize tech to improve internal operations. While the industry has taken major steps toward modernization over the past decade, there is plenty of room to grow where financial management and transactions are concerned.
With over 46% of people using digital channels to manage their finances today, the healthcare market would benefit greatly from the adoption of fintech. This is especially pertinent when considering the costs of a legacy payment system that may be slower, more inefficient, and may require more resources.
An immediate benefit would be improved data security. In one of the most sensitive industries, data protection is always paramount, but can be equally challenging. In utilizing innovative fintech offerings, security can be improved by leveraging blockchain technology and creating secure environments around patient financial information.
Another benefit could be seen in accelerating payment processes. This would minimize human error while also providing greater transparency of payments and transactions, benefiting both the practitioner and patient alike. Other important advantages of leveraging fintech in the health sector concern creating improved accessibility by making payment plans more accessible, providing better financial solutions, and leveraging new technology to help the less fortunate. From using fintechs to establish easy extended payment options, to helping users better manage finances to pay for healthcare, to providing access to quicker loans at lower rates, there is an integral benefit in making treatment accessible to those in need, no matter their circumstances.
The healthcare industry is predicted to reach $6 trillion in spending by 2027 and fintechs will likely play a major role in accelerating the cost efficiency of this process, netting more money for hospitals and greater patient satisfaction overall. Most importantly, providing improved financial infrastructure to increase affordability will ensure that treatment and subsequent transactions are more secure, accessible, and efficient.