Tag: fis

California’s FIS Will Take Longer and Cost More than Estimates

In our Financial Information Systems class, we have been discussing why it is imperative for companies to maintain a FIS and why many don’t have one. One huge barrier to entry is the sheer cost and complexity of transitioning to a FIS. Fi$Cal, California’s planned FIS demonstrates this.

California began transitioning its accounting system to Fi$Cal in 2005, eleven years ago. As the system serves an entire state, it’s reasonable for it to take a long time, as CA needs it to be functional at all times despite the ongoing transition. However, according to state auditor Elaine Howle, the project will take at least another two years and an extra $237M, putting total costs above $900M. Clearly, costs (opportunity and financial) are much too high for every company to afford.

Although it is costly and daunting to switch to a comprehensive FIS, I am proud of California for staying on top of its financials and utilizing the technological expertise of the state. The costs of installation are massive, but the rewards and utility gained are even more so once fully installed. I’m curious to see how California’s reporting and management of assets will change after the FIS is installed.

Source: http://www.sacbee.com/news/politics-government/the-state-worker/article124839264.html

Belgium and London working together on FinTech

After the Brexit vote in 2016, which caused the United Kingdom (UK) to separate from the European Union (EU), many European countries are attempting to dethrone the UK from its top status as a financial technology hub. FinTech, as it is now colloquially described, is technology that assists in transacting financial services. According to Innovate Finance, a UK non-profit organization focusing on the development of FinTech, although financing for FinTech companies has grown by 150% in the first two quarters of 2016, the UK’s FinTech funding fell by 33%. Belgium, however, would like to develop FinTech with London and the rest of the UK and support FinTech startups.

Despite VC’s witholding their funding from the UK, the Belgian government gave its support to a Brussels-based hub for the FinTech platform called B-Hive. The association has garnered the attention of more venture capitalists and funding. With London’s previous status as an attractive destination and hub for FinTech, further development is likely between the two countries. Not only will this association assist the UK in gaining back some of their FinTech traction, the UK’s goodwill will help Belgian companies to grow as well.

Source: https://www.cryptocoinsnews.com/belgium-london-work-fintech/