blog series dedicated to cash people
We have been able to centralise cash and digitise payments from India or Brazil to Finland for ages, but predicting cash is still done by spreadsheets which is expensive, slow, and sensitive for human errors. As the result, extra euros are lying on the bank accounts and wide spreads are paid to the lenders as risk premiums only because of limited predictions.
This blog is about how to turn cash data into superior predictions, which not only give us peace of mind and but turn cash data into euros.
What is the problem of using limited cash predictions?
Cash prediction causes stress to finance people. Smart people spend multiple painful hours predicting futures cash. After all the hard work done, extra cash buffers are needed on the euro accounts, and extra risk premiums are paid due to limited predictions of the cash risk.
Network effect turn customer behaviour into superior prediction
Traditional capital markets are utilising the network effect. The forces of supply and demand that determine prices are sporadic and depend heavily on the number of users.
In cash, outgoing payments can be predicted, but incoming cash is the problem as customer behaviour is sporadic: customers buy and pay differently to different sellers, and their behaviour changes.
Utilising network effect, you can turn messy customer behaviour into tangible and superior predictions, which leads to a lower risk. Using network effect, we can turn cash data into euros. The more users, the better are predictions.
Turn cash data into superior predictions and become unstoppable
When having superior insights about customer’s payment behaviour also to the others, we can tell that to the lenders, who can use that prediction in seconds on the risk assessment. The more insights lenders have, the easier is the risk assessment and the lower is the risk premium.
Using automatic, effortless cash 101 KPIs we also can continuously improve our cash. We not only can trust, that we’ll always get funding when needed, but it also has a positive impact on the risk premium and pricing we’re paying for the external funding. In the end, turning cash data into superior predictions is the road for futures cash people to become unstoppable.
riskrate turns cash data into euros and superior 30–90 days cash predictions using the network effect.