Although FinTech seems to be present almost everywhere in 2021, it is important that we remember it is still in its infant stages and is actually a very young industry with massive potential and expected growth in the coming years. Remarkably, for something so young, Fintech is already responsible for the rise of mobile banking, peer-to-peer payments, and multichannel payment processing which benefits both the everyday person and businesses alike. Today, we have a look at financial technology’s ever-growing presence and role in the business landscape, so strap yourself in and read on to find out more!
1. Transcending Borders With FinTech
It doesn’t take insider industry experience to tell you that we live in the internet era. With the exponential growth in online shopping, more people taking Masters in Financial Technology courses, and the rise of Amazon, eBay, Shopify, and other retailers, being able to pay for items and send funds over international borders in the quickest and most efficient manner is a vital part of our everyday lives. FinTech has made it possible for businesses all around the world to trade beyond their shores, thus creating a massive boom in overseas business over the last 10 years. Regardless of the size of a business, keeping up to date with financial technology is absolutely vital in order to scale a business and ensure that overseas transactions and purchases are not to be missed out on.
2. Business Funding and Advances
Financial technology is especially valuable for small businesses as it enables such organizations to acquire the funding they need to expand and grow their businesses. Thanks to peer-to-peer lending websites such as LendGenius, Kabbage, and Funding Circle that provide flexible microloans for business owners, it is now easier than ever for a business to access funds that would otherwise be impossible prior to the introduction of financial technology. Requirements for advances are often much less restrictive than commercial banks, attract lower interest rates, involve close to no paperwork, and do not require collateral. As such, small businesses are able to carry on their operations unhindered by the burden of funding which is in all honestly truly life-changing.
3. Leveling Up Customer Service
We all know how crucial customer service is for any business as it has the ability to truly make or break a business. Thankfully, FinTech can also be leveraged to improve customer service experiences for businesses of all kinds. Through artificial intelligence (AI), Fintech gives businesses a chance for better, faster, and more efficient communication with customers, clients, and users through real-time data exchange. One great example of this is Portfolio Planner (also known as robo-advisor), which takes information about an investor and their investment goals, then maps that into a model portfolio almost in an instant. It is predicted that AI will drive 95% of all customer interactions by 2025, all thanks to FinTech.
4. Automated Finances
Another incredible way that financial technology removes the barriers that many small businesses encounter during their expansion is that it provides them with real-time, reliable expense monitoring solutions that are flexible enough to allow them to meet their business needs. Fintech firms such as Xero, QuickBooks, and Sage offer tools that small to medium-sized businesses can utilize to manage all expenses and income on a company’s accounts. This data helps business owners understand how much money they have at any point in time, as well as how that money is being spent. With a clear picture of its finances, a business is then set up to make better informed financial decisions that contribute to the longevity and success of an enterprise.
For something that is still so relatively new, FinTech has already made its mark in the field of business. The ease in which organizations can access funding, conduct business, and track have significantly enhanced their ability to keep their finances in check, achieve growth, and measure results effectively, all thanks to FinTech. One thing’s for sure — we cannot wait for what the future of this budding industry has in store for both consumers and businesses alike, so be sure to watch this space.