Fintech is a term loosely thrown around, usually by a godson in IT, or corporates who have traded in slacks for sneakers, but the average Joe remains oblivious. So, what is it really? In a nutshell, it is technology related to financial services, and it is redefining the financial sector as we know it. The worldwide boom in technology and online shopping has created an increased demand for convenience, and fintechs are at the forefront of meeting this need.
Fintechs are the greatest innovators of the 21st century
Cracking the nutshell open, fintech aims to simplify and streamline the way we do our banking. By offering innovative and accessible digital alternatives you can have an entire bank in the palm of your hand. Using mobile devices, we are all a few quick clicks away from making payments, accepting payments, applying for credit, sending money to loved ones and more – all without needing cash, or a bored bank teller.
SMEs re-imagined: Innovations have eliminated inconveniences
Fintech has opened a whole new world of opportunities for small businesses. The solutions fintechs are creating are helping people find a way through the many roadblocks they encounter when opening a new business by speeding up banking processes, providing accounting solutions, enabling easier access to micro loans and other services that usually wouldn't be available to them.
Accounting technology is a complete game-changer
The success of small businesses depends on owners being able to track taxes, expenses, payrolls, contractor payments, deductions, and accounting software. These services can, unfortunately, be prohibitively expensive for a new company.
The apps available these days make tracking expenses and invoices easier, meaning you don’t need to have advanced accounting or IT skills to use them. Digital accounting services also provide a virtual space for documents to be stored, offer specific tools for managing accounting and tax, and even advise on where and how you can save money.
Cross-border payments made easy
The costly and time-consuming nature of sending money across borders has changed. Businesses often need to pay overseas suppliers, transfer money to foreign employees, pay for international factory and operational fees and more. These costs are a frustrating barrier to small businesses dealing with tight cash flows. Fintech solutions that provide innovative cross border functionalities are helping SMEs overcome this by making these processes more affordable and accessible, enabling money transfers to be sent and received immediately, and allowing users to transact from anywhere at any time.
More convenient online shopping
The ability for small business owners to have a fully-fledged online business is now possible through a number of e-commerce platforms, such as Shopify, and, thanks to fintech solutions, merchants can accept card and mobile wallet payments via these platforms. Due to the integrated capabilities offered by fintech solutions, business owners have started to see an increase in transactions, resulting in growing revenues for their business. Speed, convenience and accessibility are the order of the day, and online shopping businesses that offer these benefits are ahead of the game.
Greater customer engagement and insights
One of the most valuable benefits of financial technology for business owners are the rich insights it brings to their customers. Fintech solutions can detect patterns to provide useful data about customer interests, wants and needs. SMEs can use this information to improve their marketing for leads and find solutions to problems like poor service, out of stock products, lack of follow up, long wait on calls, and more.
Fintech innovations have not only changed the way the financial services industry operates and handles legacy systems, but also the way small business owners can open, run, and operate their businesses. The modern businessperson wants flexible ways to operate their pride and joy, and fintech solutions are offering this, putting effective solutions, convenience, and control right in the palm of their hands.