Financial technology (abbreviated as Fintech) is an innovation that applies technology to compete with the traditional financial method and improve the delivery of services or activities with the use of computer programs.
The COVID-19 pandemic that affected the whole world (and is still spreading) became a catalyst to the adoption of tech alternatives globally. Online activities and transactions are now matters of necessity not of convenience.
Fintech has significantly shaped various areas, enabling the launch of digital channels into various sectors including, banking, entertainment, insurance and investment. Improving the daily lives of people and driving growth.
Some application of technology in the financial sector has enabled mobile payments, crowdfunding, rob-advisors, insure-tech. Fintech has great potentials that if tapped into can help address challenges in the entertainment industry such as transparent funding.
Here are just a few of the opportunities the industry can and may have already began to explore:
Low-cost Streaming Payments.
The two high profile transactions made recently in the music royalties business, Stevie Nicks of Fleetwood Mac-fame sold an 80% interest in her catalogue (estimated to be valued at $100m) to primary wave. Secondly, Bob Dylan sold rights to 600 of his songs to Universal music group for $300m.
Recent dealings point out the rising value of music in the streaming era. While listeners are enjoying the content instantly, artists, musicians and songwriters all have to wait for longer periods to receive any type of payments.
The demand for transparency and faster payments of royalties are becoming complex as the needs of artists, content creators and songwriters. With Fintech such transactions are made easy.
Production Cost Control.
The tedious operational way to which funds for movie productions from investors to third parties assets is co-ordinated or put in check is possible when there is acceptance for financial technology (fintech)to ease off the long process of getting them done.
Misuse of Funds.
Holding physical cash is not unusual with film or musical shoots, considering cast and crew members to be paid and large amounts required for production purchases such as costumes, lighting and makeup e.t.c.
Fintech makes it possible for producers to go cashless on location, avoiding any form of cash embezzlement and misuse of funds. “Having large sums of cash in one’s possession and the ability to keep the money safe can be a nightmare,” says Simon Liddell, director of music, film and entertainment at Centtrip.
In conclusion, adopting Fintech solutions will enhance transparent funding for the entertainment industry. With COVID-19 situation, more physical services are going digital. Incorporating these innovations will improve the engagement of stakeholders in the industry.