Onderzoek: onze paper

New technologies on their way to new markets

Onze excuses, deze pagina is momenteel slechts beschikbaar in het engels

Dinalog and Holland FinTech collaborate on innovation in an ambitious program: Logistics and Fintech. Together with several parties we aim to share knowledge and seek collaboration throughout the logistics value chain. For sustainable, collective solutions that support the continued development and application of fintech in logistics.

What is Fintech?

Fintech stands for financial technology, a much-used term for large IT services providers in the financial industry. Recently the word Fintech was being used to refer to a new group of organizations; the so called Fintech start-ups. These firms are relatively young and small and focus on specific financial services, offering digital solutions to the financial industry or independently offer financial services to consumers or organizations.

Ultimately, Fintech consists of start-up companies and established financial and technology companies trying to replace or enhance the usage of financial services of incumbent companies. Fintech services may not be well-known to the general public, but are already widely used and accepted.

The state of logistics

The logistics industry can be characterized as an extensive chain of companies where goods are moving from one physical party to another. On one hand, logistic service providers operate on water, air, on the (rail) road and include parties like producers, shippers, warehouses and transporters. Logistics is often described as a fragmentised industry, with a slow adoption for trends. On the other hand, the Netherlands has a good reputation when it comes to logistics. Our country is a major global hub. This creates significant added value, and over 813,000 jobs in the Netherlands.  The total production value of Dutch logistics sector adds to EUR 125 billion a year.

Fintech for logistics services

How is technology making life easier for all parties down the supply chain and how does it improve co-operation between parties for mutual benefit?

We see three relevant areas for opportunities

Administration, working capital & supply chain finance

Provision of working capital

In many supply chains there is not yet room for SCF arrangements to leverage the creditworthiness of big buyers. In those cases logistic companies can solve their capital needs through other supply chain finance schemes.
Several banks and Fintechs specifically designed complete packages including a platform, a legal structure and supplier care.

Optimizing administrative processes

  • Increase the pace and compliancy of approval processes
  • Improve the quality of information about delivery
  • Lead to better matching between invoices and contracts
  • Share clear and direct information on approval of clients
  • Create digital connections between companies

International business, borders and trust

International supply chains are more complex than regular supply chains due to the large number actors involved. Working in multiple jurisdictions, tax regimes and dealing with customs is a hassle, with lots of paperwork. Besides that, the actors further down the line are often unknown and require measures to secure payment, like LC’s and guarantees.

Equipment, inventory and real estate

The increase of available data (especially when equipment and shipments are connected by the Internet-of-Things) provides investors and insurance companies with more and more accurate data about logistics processes, logistics assets and financial and operational risks. This allows financial institutions or investors to generate more thorough risks analyses of companies or business opportunities. The increase of insights in the particular situation of customers allows Fintech service providers the opportunity to delivery customer-specific or asset-specific financial arrangements.

What is next for Logistics & FinTech?

The fragmented and dynamic arena of Fintech products and services is expected to increase in volume and complexity in the coming years. A guiding To encourage collaboration between logistic companies and innovative Fintech solution providers, Holland Fintech and Dinalog will:

  • Create awareness and mutual understanding between parties by sharing comprehensive knowledge
  • Invite logistics companies, startups, banks, insurers and all others to explore together relevant new solutions and their application in logistics specific use cases
  • Support matchmaking and set-up of pilots or other collaboration initiatives to test the application of Fintech solutions in logistics
  • Engage stakeholders in identifying existing challenges and new ambitions (described in a white paper).

These efforts are aimed to trigger action from within the industry in order to enable the Netherlands to become the world’s best logistics sector by 2020.

Albert Veenstra, Executive Director, TKI Dinalog

Don Ginsel, CEO & Founder of Holland FinTech