If you happen to own a business, you must have been in dire need of finances at some point in your life. The traditional loan agencies are not very cooperative in such situations. Luckily, things are not the same anymore ever since fintech has emerged on the scene.
Fintech is the cocktail of two words, namely, finance and technology. It is a technology that comes up with innovative financial solutions. As for small businesses, fintech has wholly transformed their face.
Except for loans, small businesses confront several challenges worldwide. Fintech has not only helped them to survive but thrive. Here are some of the ways fintech has stood up and proved to be a game-changer for small business owners:
- Easy business loans
The conventional method of borrowing has discouraged so many people from setting up their own little business. The process of the loan was such that it considered too many factors before someone was qualified for a loan – credit history, current financial standing, and so on.
No wonder, many people were denied for their required loan and those who were lucky enough to get the money were liable for a staggering interest rate. Either way, the borrower suffered.
But now lenders and borrowers are brought very close to each other through the internet, and various lending portals are available. Since then, may traditional lenders which were earlier part of the loan process seem to be out of shape.
Small businesses fill the gap where large industries can’t reach. So it is crucial for a country that its small industries should prosper. Undoubtedly, fintech has been playing a pivotal role to achieve that goal by timely funding. At times, it takes barely 3 minutes to get access to the loan amount.
Transparency has always been a big elephant in the room. Fintech relies on online banking solutions which do not only reduces the costs on transactions but also gives little to no chance to ignite a crime. This “cashlessness” also makes the tax evasion almost impossible. As a result, the customers also feel secure because a business ecosystem can hardly get any robust than that.
- Better account management tools
Even if you sneak your way to getting small business loans, it does not guarantee success in the long run. For any business, it is vital to collect payments, pay its employees on time, and pay its vendors. These features are the matter of survival for small businesses in particular because they can’t afford too much burden of payments.
Fintech has taken all this headache away from the business owners – thanks to its advanced features. Invoice apps are in place; most of them work free of cost, to ensure timely invoices to the customers.
Earlier, small business owners had dozens of petty things to worry, which did not allow them to look beyond and focus on expanding their businesses. Moreover, there is always a possibility of human error when someone is occupied with too many things. Considering all these factors, automation through fintech has come up as a real rescue.
- Increases profit
Through the help of fintech, business owners have been able to cut their costs in various ways. Unlike how things stood in the past, retailers never knew what awaited for them in the future. They were always uncertain before but today, they can make business forecasts and unearth new trends effortlessly.
- Customer insights
No business can progress until they know their customers upside down. It is the hallmark of a good brand to keep tracking its customers all the time. Unless you know the needs and desires of your audience, how can you come to terms with them? Trends come and sometimes disappear unexpectedly. You can’t afford to rely on old data and have a sort of laid-back strategy.
That’s where fintech comes handy and provides you rich customer insight, which helps a great deal to personalize marketing campaigns for you. Statistically speaking, 91 percent of the customers are more likely to shop from the brands who offer personalized deals.
- Enhances Cybersecurity
While the internet may be appreciated with a lot of positive things, it has also made the security of business a bit vulnerable. In the recent past, security breaches have become all too common.
Now and then a security mishap takes the world by storm and, all of a sudden, customers feel very insecure about operating with online businesses. It takes time to restore their dented trust in technology. Unfortunately, these hacks are not entirely avoidable. However, their frequency can be decreased to a great deal using fintech.
There are various packages for business owners, and they can apply for them accordingly. What’s more, even if you don’t happen to be a tech-savvy person, it is not tough to use these applications such as Keeper, CA Technologies Secure and AirWatch
- Easy to receive payment
Before fintech, it was considered challenging to expand one’s business outside its respective country. The reason being, the foreign transaction was liable to a hefty fee. Money transfers came with staggering costs, so companies had to limit themselves inside the country.
Needless to say, after the emergence of fintech, it is a different deal altogether. Now accepting money from overseas customers is fast, accurate, and economical.
It is also the chief reason why 61 percent of the Americans are paying through debit and credit cards. So the customers are not entitled to carry cash anymore.
As we can conclude from the above discussion, financial-technology has changed the face of business entirely. Especially small companies could not ask for anything for better than that; their costs have reduced, and profit has maximized. To sum up, it is essential to stay in touch with the latest inventions in the field of fintech so that your growth does not become stagnant.