Last week, I touched a bit on the impact the ongoing digital transformations may have on "net job creation" for the years to come. There is another aspect of "all things going digital" that I recently got interested into : Small and Medium Enterprises (SMEs) are moving their accounting and financing to online solutions at a rapid pace, into the "cloud".
You may see me coming already : There is a lot of basic accounting that is simple math, and large data sets reconciliation. A lot of this can be automated. But more interestingly, it must not be very difficult to use historical data sets and predictive modeling to predict cash flow, and hence the need for further working capital if you start running short.
So this startup idea is about the "Automated CFO", an algorithm that fetches your business bank account (e.g. via Yoddle) and your accounting software (eg Xero,..) to predict when you may need more cash, for ex. to bridge for late invoices payments. And which then connects to a SME financing marketplace (eg to get a loan,..) as a business model.