Thinking about technology may appear to be costly for start-ups, but it isn't. As entrepreneurs, we must be conscious of the emerging technology that the outside world provides to help our businesses grow.
Fintech is an emerging technology that refers to financial technology. Examples include online payments, real-time transactions, online bank movements on your devices without the need to visit the bank, or whenever you use your card for payment, order online, or create vaults using Revolut, Google Wallet, or PayPal. That is why it is critical to understand because it is a part of our daily lives.
Fintech is already reshaping the small business sector, and there's no doubt that more will follow. In fact, fintech has been rapidly expanding. According to the report Global FinTech Market Size, Status, and Forecast 2018-2025, "the global fintech market will reach $124.3 million by 2025 at a compound annual growth rate (CAGR) of 23.84 percent."
Payments in Digital Form
Digital payments are the most important branch of the fintech industry because they have made it easier, faster, and safer for customers to process financial transactions all over the world.
Digital currencies, online payment systems, and e-wallets are examples of digital payment solutions. PayPal and Payoneer are two well-known platforms for digital payments.
Banking on the Internet
The go-to option has made it simple to conduct business from the comfort of your own home, business. You no longer need third-party assistance to complete a financial transaction because you can use digital-only banks and online mobile to do so quickly.
Because of increased competition, traditional banks have developed fintech apps that customers use to conduct banking transactions. You can now get a contactless debit card and a mobile app that allows you to use a PIN to verify transactions, access cryptocurrency exchange and perform global purchases and international money transfers.
How might fintech advancements benefit my company?
Certain firms, particularly small businesses and start-ups, can benefit from more flexible alternatives, which can mean the difference between success and failure. Using fintech platforms to access finance has a lot of advantages, including payment processing, money transfer, funding, accounting, and e-commerce. We are now looking at fully integrated solutions that combine different sections of a business into a single centralized management function.
Reasons for using Fintech as a Startup:
1. A high adoption rate
Almost all smartphones have at least one fintech app, and traditional financial players such as lenders, banks, and insurers are rapidly adopting fintech.
2. No cash needed
Consumer's use of cash fell dramatically during the pandemic, and this trend appears to be continuing. Customers' use of financial technology has increased in recent years, forcing many financial service providers to adjust their money interchange by utilizing new payment methods.
3. Consumer behaviour
Customer experience is even more important in today's dynamic environment, where technology has accelerated countless changes.
Financial technology provides firms with detailed information on their clients. Payment processing Fintech reveals customer patterns and gives data on interests, wants, and needs to businesses. Using the data supplied by Fintech, small businesses can improve their lead generation campaign and discover a solution to current consumer issues such as bad service, out-of-stock products, a lack of follow-up, long call wait times, and more.
4. Expand territory
Financial services have never been more accessible thanks to today's incredible technology, which includes the power of the internet and excellent mobile connectivity. No matter where you are, you will most likely only need a WIFI connection to enables start-ups to participate in international money transfers, offshore payment acceptance, and foreign exchange services. The procedure has become inexpensive and simple.
5. Secure and transparent
Fintech is built on technology, thus it can readily implement cybersecurity precautions. With such strong security measures in place, there is less danger of data leakage. With services like 24/7 dedicated customer assistance and real-time updates, this enables greater transparency.
6. Online sales
Start-ups can very easily set up online stores which are open 24 hours a day, seven days a week, and allow clients to shop from the comfort of their own homes without having to stand in huge queues. There are many of eCommerce platforms with specialised assistance available to small businesses.
7. Accounting
Fintech innovation in mobile and digital technology has resulted in a major migration in payment goods and services for small and medium-sized businesses (SMBs) that aid in capital access and management. Specifically, how they are paid, how they pay others, and how money is moved about.
There are a few free apps that have introduced expenses and invoices for small enterprises, and using these apps does not require sophisticated IT skills or accounting experience. Sage Accounting, FreshBooks, and QuickBooks Online are all basic digital accounting applications that assist small business owners in organizing and accessing their money from any device.
Small company owners typically do not start a business because they are specialists in financial services or payments; they start a business because they are enthusiastic about an idea and identify market potential. While passion is essential for success, start-ups survive and adapt by embracing new technologies and fast learning the financial tools that enable them to develop the business without detracting from the task they were enthusiastic about in the first place.
In conclusion, Fintech offers numerous benefits to ambitious firms and traders seeking to expand their reach with a few clicks, as a start-up, you can use financial technology to make procedures more efficient, save money, and better serve your consumers.
Author: Noemi Najera
Bibliography
Startup Info. 2022. A Complete Guide on How to Start a Fintech Startup in 2022. [online] Available at: <https://startup.info/a-complete-guide-on-how-to-start-a-fintech-startup-in-2021/> [Accessed 23 February 2022].
Excelente información
ReplyDeleteExcellent information
ReplyDeleteInteresting and complete info
ReplyDeleteEcelent info
ReplyDeleteVery interesting article. I am hugely interested in Fintech and did a project on the subject in my master’s degree. Your information is extremely accurate Fintech is on the rise. I work in a local supermarket and Digital payments from smartphones are more regular than cash payments. I also was able to observe the demographic of those who use digital payments. Previously it would have been younger people who mostly used them but older people have now started using it too which reveals to me that digital payments are becoming more trusted even to older generations who would not be as tech savvy. Fintech has also had a huge effect on traditional forms of banking. There is no longer a need to go into a bank to transfer money manually you can simply to it from home which has led to many banks like Bank of Ireland shifting to financial forms of banking. Bank of Ireland themselves have closed many branches across Ireland which makes you wonder how much Fintech contributed to that.
ReplyDeleteI really enjoyed this article! Fintech truly is an emerging technology that is empowering both the consumers as well as startups entering competitive marketspaces. To me, fintech is an essential technology in order to challenge big corporations with monopoly over the market space such as big banks with high loan interest and inconvenient service hours. But it could also be utilised to challenge other traditional corporations, fintech could be the extra usp that allows the startup to deliver a fantastic customer experience.
ReplyDelete