Financial Technology Innovations for Businesses

Most businesses feel panic about receiving payments from customers, updating payment records for different purposes, and keeping these payments. Conventional banking has no such options for businesses to provide services within business territory and on very low charges but Financial Technology become Innovations for Businesses.

FinTech changed the game, they are providing facilities for payment and receipt to both customers as well as businesses at very low rates. These FinTechs can be linked with the software of the businesses easily, which can update records of customers and purchases automatically. Businesses don’t require any safety and panic of theft.

To know the details of how FinTech changing the game for businesses, read this article with your full focus.

1. Access to Capital

FinTech made the process of microfinance, immediate lending, conventional loans etc which was very difficult with the conventional banking system, where a lot of documentation, sureties, and bonds are necessary.

These FinTechs provide different types of loans to their business and individual customers on their transaction history. As much your accounts have balance and transactions history, as much amount as loan you can receive. These FinTechs also provide discounts on charges and interest rates to high-rating credit customers.

Businesses don’t require sureties for repayments for getting loans from FinTech.

2. Data Insights

On the app and website, you can access different types of data of your account, with the help of charts, bars, tables, and statements to make the decision of future about your business. You can also calculate your inward and outward transactions with another date for your specific period in your required formats.

These FinTechs can be linked with your financial software; you aren’t required to post an entry in your system separately. You also don’t require making reconciliation statements on the required period, FinTech and your system will generate it automatically.

So, FinTech is changing the game for business to reduce the time that you or your team was spending on data management, making different types of reports & returns, and analyzing.

3. Speed and convenience

When a customer purchases one or more items from the business outlet, the receptionist prints the bill or sends the bill to the customer’s mobile in soft, the customer scans the barcode with the FinTech app and payment is complete. The receptionist doesn’t need to count the cash, check its legitimacy, keep it in a safe place, post transaction entry in software, reconcile etc.

Businesses don’t require transporting cash safely to the bank for deposit. Payment with cross cheques to suppliers was also a time-consuming process but with the FinTech app, you can pay them online immediately. Your suppliers don’t wait of payments for a few days.

FinTech enhanced the speed and also made the easier process not only for businesses but also for laymen.

4. Cheaper Deals

A few years ago, banking facilities were not possible for laymen, because banks charged high fees, and also required a lot of documentation and sureties for different services. FinTech made it easy, you or your business are not required to visit a bank or submit surety and documentation but only fill out online forms, upload a few documents, and verify with your face and fingerprints.

Banks were also charged fees on online payments into other accounts, which businesses require daily but FinTech made it easy, you can send online payments to your suppliers, and partners, with mobile apps.

Keeping cash in safe custody, transporting it to the bank, and depositing it in the bank were also very costly processes, but FinTech made it cheaper too. You can skip this process if you have the best FinTech facility.

5. Risk Management:

FinTech is game-changing for businesses to manage risk. Businesses, especially small businesses expend a lot of money on managing, transporting, and depositing cash. They required security guards, security companies, safes, lockers, etc.

Now due to FinTech, businesses don’t require any above-mentioned activity. They can manage the risk of cash with the help of a mobile or laptop.

6. Automation of Financial Processes:

With the previous systems, every business posted different entries into their different ledger separately. But now FinTech software automatically can be linked with the software of businesses. Therefore, they don’t require posting a separate entry in their management or financial software.

Only generating an invoice and then receiving the amount from FinTech is enough. Latest systems will post it all around the ledgers, reports, tables, and graphs.

FinTech automates financial processes. Therefore, everyone should use it.

7. More Personalized Products

FinTech companies collect a lot of data from customers, their choices, passions, preferences, likes, etc. and they decide on products on the data. These products can be modify, amended, and updated according to the business, and customers’ requirements.

They don’t require to separate platform for different customers, but they added different types of products in one FinTech platform.

8. Greater Choice

Now customers don’t visit stores for groceries and other purchases, they select groceries on mobile apps, pay bills and receive them in their homes. Customers and businesses are not required to visit each other locations for payments. It was not possible a few years ago.

They can cancel payments, watch history, graphs, reports, statements etc. whenever required. They can transfer their amount and purchase to any other FinTech and purchasing platform.

9. Adaptive Security and Biometrics

You don’t need to remember passwords and pins to log in and payments on the FinTech apps. FinTech apps will recognize, and verify you and your mobile number, locations etc. with the help of fingers, face, and eyes.

It verifies multiple sources within a second and pays the bills. You don’t need to be anxious about wrong payments.

For example, when you scan a QR code of an invoice for payment, you are not required to enter the account number, or amount, and then extract the account title in the FinTech app. You are only required to scan and verify it with your finger and payment will be made.

10. Streamlined Payments:

Businesses don’t have to wait for clearance cheques to receive payment. It happens in seconds. They also don’t require paying high transaction fees of cash and cheques, these FinTech platforms charge less than banks.

Businesses also manage their cash flow easily with the help of FinTech. Previously they waited for a receipt to pay another. Now, it’s easier and game-changing for businesses.

11. Improved Accessibility

FinTech made it easy for everyone to open an account and pay money online, which was not possible in the usual banks. They require a lot of documents and sureties to open an account and for other transactions. People also can’t able to access their statements and reports for different purposes. To receive a statement they have to write an application, and then also verify it.

Now, every individual, and business can open accounts, pay and receive cashless payments, and access reports and returns easily. They don’t require writing applications and providing other documents for it.

Conclusion

FinTech is changing the game for business. Businesses are saving their time in posting entries in different ledgers and also cash management. They are also saving money that they expend on the same process.

Businesses require taking as much benefit from technologies as possible for if not many other businesses and startups are ready to take over them. They will vanish like many other companies that ignore technology.

What Are Some Current Dynamics Affecting the FinTech Industry?

Illiterate Business managers and also individuals are hesitating to adapt their business from cash to online transactions. They want to receive payment by their hands and feel satisfaction. But they don’t know the technologies can calculate, save, receive, and pay their money more accurately than them. It is the main difficulty that affects the FinTech industry. So, FinTech companies should build trust in the general public with different sources.

What Is the Current Interplay Between FinTech Startups and Traditional Financial Institutions?

FinTech startups and traditional financial institutions are linking each other to survive, they want to collaborate and coordinate to expand their businesses. Many traditional institutions that don’t adopt modern technology were destroyed or will be destroyed in the future.