How we live and conduct business is being fundamentally altered by financial technology or fintech. I personally witness every day, as the founder of a fintech company, how financial technology is enhancing the lives of business owners and giving them a competitive edge. Fintech offers a wide range of advantages, but at its foundation, it always prioritizes enhanced accessibility and speed. Fortunately, technology has greatly simplified business management.
New developments in financial technology are assisting small businesses in starting up, growing, and succeeding. Small businesses now have more alternatives than ever for funding, payment processing, money transfers, and other services thanks to fintech. According to CNBC, global funding for fintech reached a new high in 2018, rising to $39 billion, an increase of 100% from the previous year. Here are some examples of how fintech is assisting small businesses.
Let’s know what is FinTech first.
FinTech software solutions, which stands for “financial technology,” is an acronym. FinTech was once perceived as a techpreneur counterculture movement meant to overthrow the rigid restrictions and significant resistance to change in traditional banking and lending. It made reference to the backend procedures used by conventional banking organizations to set up their servers and software programs. Making it simpler to transmit and receive money was the aim.
Here are some ways that fintech can benefit businesses.
Streamlining Complex Procedures
According to Bain & Company, one impact of the epidemic has been a decrease in corporate productivity. Additionally, spend reconciliation, an area where innovation has lagged, is one method for finance teams to improve efficiency. Spend reconciliation and payment authorization are still labor-intensive processes in many businesses that take up a significant amount of accounting time.
Financial processing made easier
Online payment options are essential for opening online stores. Many processing companies have been collaborating with small businesses like Paypal to aid in their digital transformation. Customers and clients can transact with the company much more easily by using cards, whether they are debit or credit cards. Without the usage of fintech solutions, this would not be possible. It’s also a good idea to have shipping choices for small businesses that are affordable and suitable for the demands of the enterprise available.
The main goal of a fintech solution provider is to speed up and streamline conventional financial procedures. This is accomplished by cutting out the middleman and automating everything, which reduces costs, makes staff happy, and improves the customer experience. One misunderstanding about fintech applications is that they solely help financial institutions. That’s not really accurate. Fintech is now being used by small enterprises in addition to banks and lenders.
According to market research, costs have historically been the biggest obstacle to entry into the banking sector. The Fintech effect on business has enhanced the PoS (Point of Sales) system, reduced costs for businesses, and given them access to sophisticated analytics data to better engage their audience by making financial services available on smartphones, which millions of consumers own.
The infrastructure surrounding capital markets has experienced fast changes as a result of the growth of fintech, particularly in the way technologically enabled platforms have emerged in conventional over-the-counter exchanges. The legal framework created in the wake of the financial crisis and the potential benefits of economies of scale has both contributed to the “electronification” of previously OTC products. Regardless of the sector or type of business, the latter typically lowers costs and occasionally raises revenues and profits.
Data and software may now be accessed online from any device at any time, anywhere thanks to the cloud. Business owners can maintain contact with their data and accountants thanks to online accounting. Real-time comparisons between your progress and your predicted cash flow are possible. This makes it possible for you to immediately and accurately anticipate the future cash position. Cloud accounting software is a great investment if you want to help your company operate more quickly and intelligently.
Customer engagement and privacy
Invasion of privacy due to data breaches is one of the main risks that businesses face. Small businesses need to be vigilant every day to protect their data, especially financial and customer data. Fintech eliminates this worry because it offers a variety of security packages that give companies a line of protection against cyberattacks. Customers who subscribe to the business and make purchases from it may feel more at rest as a result of this guarantee. Fintech can provide business owners more than just increased security and secure transactions; it may also deliver insightful data.
Fintech has provided the business sector with a host of new opportunities, enabling them to offer more cutting-edge services and generate higher profits while spending a fraction of the money they were previously investing. You need a trustworthy app developer to turn your concept into reality once you’ve decided how your financial app would assist business owners and entrepreneurs. IBR Infotech is the ideal partner for you because of its significant experience in designing mobile financial apps. Call IBR Infotech right now.