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How Cities Can Leverage Fintech to Boost Bond Performance, Increase Revenue, and Plan for the Future

Writer's picture: Claudia HuertaClaudia Huerta

Updated: Dec 7, 2024

Managing city finances is tough in any climate, but the recent economic challenges—rising inflation and tighter household budgets—have made it even more daunting. This year, cities, counties, and school districts across the U.S. faced a tough crowd at the ballot box. Tax initiatives and bonds that might have sailed through in the past struggled to gain traction. Voters, hit hard by inflation, decided to vote with their wallets, saying “not right now” to additional taxes.


But here’s the good news for cities: a “no” today doesn’t mean your community won’t support your city's goals tomorrow. While cities plan for the next election cycle, now is the perfect time for them to explore fintech solutions that can stretch their dollars, increase efficiencies, and bolster revenues in creative ways.



Rethink Revenue Strategies with Fintech

Cities and counties can turn to financial advisors and wealth managers who specialize in fintech tools to bridge the gap between budget constraints and community needs. These tools can help cities identify efficiencies in their current operations and even find new revenue streams.


For example, instead of issuing new bonds or increasing taxes, cities can optimize their existing portfolios. Finance pros like Morgan Stanley, LPL Financial and Goldman Sachs have developed digital platforms to provide advanced solutions for managing city investments, helping municipalities allocate reserves intelligently and forecast cash flow needs with the aid of AI-driven tools. These digital platforms offer robust data analytics, risk management, and financial insights that are particularly valuable for identifying alternative strategies to optimize cash flows and increase revenues without relying on new tax measures or needing to issue new bonds. They can help cities explore options on how to reallocate assets, reduce expenses, or make strategic reinvestments into more profitable investment options. Together, these platforms demonstrate how technology can streamline municipal finance and amplify returns while maintaining fiscal responsibility.


Use Fintech to Build Voter Confidence

This election cycle taught us that timing matters. Voters didn’t reject city or school district initiatives because they don’t care; they simply prioritized their own financial well-being during a period of high inflation. Cities can use fintech not only to stretch their budgets but also to showcase fiscal responsibility to voters. Transparency-focused platforms like Neighborly Software allow residents to track how their dollars are being used, building trust and goodwill.



When the time comes to reintroduce a tax initiative or bond proposal, cities can point to tangible results achieved during the interim. For example, leveraging fintech tools to fund infrastructure or green initiatives without new taxes demonstrates innovation and resourcefulness.


Embrace Innovation to Prepare for the Next Cycle

Voter fatigue around taxes is real. From citywide measures to school district bonds, taxpayers often feel overwhelmed by the sheer number of requests, particularly during times of economic uncertainty. This period of recalibration is a golden opportunity for cities to adopt fintech-driven innovations that can reduce costs and improve outcomes.


Whether it’s blockchain-based bond issuance to lower costs, AI-powered cash flow tools to optimize spending, or community bond platforms to engage residents directly, fintech offers cities a chance to adapt and thrive. By working closely with wealth managers and exploring fintech money management platforms cities can reimagine their financial strategies and create a compelling case for future voter support.


Remember, a setback at the ballot box isn’t the end—it’s a chance to rethink, rebuild, and innovate. With fintech solutions in a city's toolbox, they can create a smarter, more sustainable future for their community and budget.




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