The Benefits of FinTech For Your Small Business
Whilst the concept of a ‘small business’ can be subjective, the fintech industry certainly is not. Whether you are aware or not, as a business owner (or business owner to be), you are most likely working with FinTech to some degree.
It is time, however, to stop working passively with the FinTech industry and start actively using it to increase the productivity and ease of your process. Regardless of what your small business does, or what you want it to do, you can potentially improve your structure for both yourself and your customers by considering these factors.
What is FinTech?
To begin with, however, we should start with a definition. FinTech, or financial technology, is the conjoining of two industries to promote ease and access amongst business services. FinTech is booming and is now almost everywhere. From paying online with e-commerce to doing your banking through an app, you are most likely utilising it.
Other places FinTech is prominent include pocket investing apps, cryptocurrency, digital wallets, and peer-to-peer lending for services such as no credit check loans. Within recent years, FinTech has only gone from strength to strength and may continue to do so, meaning now is the time to get involved.
What can FinTech do for you, as a business owner?
Progressing technology has always done good things for businesses. The emergence of FinTech platforms has done wonders for companies that operate on a highly time-based structure, as it removes all sorts of transaction obstacles.
Ease of money related transactions is one of the biggest bonuses for the business owner and the customer. Provided the service is not a scam; cash is moving from point A to point B within a day or, dependent on banks, even minutes, which allows for businesses to expand their consumer base across countries with ease. FinTech also permits the business owner access to details of their cash flow and performance without having to go into a bank or employ an accountant.
For tiny businesses, FinTech can eliminate some of the need for extensive staff. This is as a lot of jobs that previously required the human mind to complete, can now be done with e-assistants and computer programs. In some cases, this may mean you will not even require an office space. Which can save you money in the long run if it means less rent and fewer wages. This can be especially useful in the establishment phase, but beyond this, FinTech can aid in scaling your company and truly helping it to thrive.
What can FinTech do for your customers?
The flip side of the coin, then, is how FinTech can aid your customers and consumers. The majority of FinTech’s benefit to your customers is to do with convenience and timesaving. Customers are focused on the ease of moving money, accessing insurance, and managing their investments. They want to be able to get their weekly jobs completed from home, rather than going into branches or stores and dedicating vast amounts of time to repetitive tasks.
For example, they want to be able to relocate funds quickly, conduct their e-commerce and view the cash entering and leaving accounts. Because this is useful for monitoring and maintaining budgets. Whilst this will not apply to all consumers, it will be a priority to a large portion. Therefore, if you cannot keep up with these needs, your customers may potentially reject your business.
Conducting your business online is enticing to consumers; they may look forward to the efficiency and the lower costs that you can give them as a result. Therefore, if your small business cannot offer these services, you may be losing money.
How do you use FinTech better than your competitors?
Whether you can use it ‘better’ or not may be up for debate. You can, however, grow your understanding as best you can so that it appears you have a more streamlined utilisation. As the industry is only relatively young, many people are trying to figure out how to wield FinTech to benefit themselves and their business structure. Staying up with the times is the best way to ensure your business remains relevant.
This means you should be actively contributing to the industry’s growth rather than merely boarding the bandwagon. With much of the population owning a mobile phone along with other portable technology, being technologically up to date has never been more imperative.
If you are a business that considers yourself in competition with the fintech industry, the best option for you may be to co-operate with them. Sometimes working with the opposition is more beneficial than trying to maintain your current business structure.
To wrap up…
FinTech is disrupting the financial sector and ushering in a new era of money management. Your relevance as a business depends on whether you can change and adapt. Some industry structures, such as the traditional banking method may battle against becoming obsolete.
The time of cash-in-hand is ending, and whether you like it or not, transactions are moving online, fast. Therefore, if you are establishing a business, you should be well researched and prepared to utilise fintech to the best of its ability. If you are a business that is considering how to remain relevant in the coming years, it may be time to evaluate how your structure will adapt.
If you are a self-owned and run business operating out of a market stall on the weekend, the changes may only be small, but useful, nonetheless. Catering to those who do not carry cash by purchasing your point-of-sale machine to potentially increase your profits, is one such change.
If you are a larger small business, then this may mean expanding your consumer base into your neighbouring country through the benefits of e-commerce. Any step you take to join and utilise the FinTech industry is a step towards staying relevant and profitable in this ever-changing market. Investigate further and identify what FinTech can do for your business.