Now is one of the best times to open a business, but also the toughest – competition is fierce, and spending is threatening to fall to an unprecedented low. Business improvement is a key part of success in challenging times, on both fronts. One of the principal ways in which a contemporary business can improve its chances is by leveraging innovation in fintech – but what is it, and how could it help?
What is Fintech?
Fintech, or financial technology, is an umbrella term for the sector of businesses that offer products and innovations directly relating to digital finance. There are multiple avenues within fintech, from retail consumer services to business solutions.
One of the most well-known fintech brands in the consumer space is Monzo, an alternative banking solution with an intuitive app and some unique ways to handle personal finance – such as savings ‘pots’, where any purchase made via Monzo is rounded up and the ‘change’ sequestered in a pot separate from the main balance.
With regard to business solutions, companies like EML offer open banking solutions, that enable businesses to administrate transactions quickly and seamlessly. Whether pre-paid debit cards for expenses, bespoke apps for customer payments, or B2B transaction management, EML and others like it represent full-service fintech solutions for the growing business. But how exactly could invest in fintech help your business?
Streamlining Transfers
Whatever the business, financial transactions are a vital function – from transferring money between accounts, between businesses, and across borders to facilitating consumer transactions on a mass scale. Payroll, management of overheads payments, expenses, stock purchasing: all of these and more are regular transfers that a fintech company or product can help manage a little easier, and also offer additional perks that reduce the cost of business.
For example, international custom might result in extensive exchange fees for currency, either on your or on the customer’s part; fintech development has lessened these costs, which intermediary companies can also handle transactions and also swallow the exchange fees, making cashflow a much simpler affair.
Loans and Financing
Financing your business is also a crucial part of growth, but finding new finance streams to fund expansion or improvement can be a time-consuming process. Fintech innovations are changing this for the better, though. alternative lenders are implementing AI technology to assist with the analysis of business data, and automation plays a part in expediting the process of approval for funding.
Newer fintech organizations are also disrupting the lending market by offering alternative means of gaining funding – crowdfunding platforms have been in a constant state of refinement, while pooled funding platforms allow growing businesses to be matched with investor funds for quicker cashflow.
Ecommerce
Perhaps most important to B2C businesses in the digital age is the facilitation of customer payments in a simple and comprehensive way. A number of fintech platforms offer a package of customer payment solutions, enabling payment via a variety of services through an easy payment portal. Utilizing one of these packages can make all the difference in customer experience, and hence all the difference to business growth.
Fintech Companies Post Higher Profits Than Big Banks – How Did It Happen?