Fintech is shaping the Game for Small Businesses

Banking CIO Outlook | Tuesday, July 30, 2019

Fintech has unfolded a whole new world of possibilities for small businesses, and can now offer better services at a reduced price.

FREMONT, CA: Artificial Intelligence (AI), Machine Learning (ML) and big data will transform financial services and small-business. Bigger banks and fintech providers are working on solutions that will dramatically change the options for small businesses. Innovation in financial services will lessen the friction and obstacles in small-business lending. The fintech ecosystem is an economic evolution in itself. Right from funding transfers to personal loans and from account management to asset management, fintech is swiftly making its way into the lives of the tech-savvy microentrepreneurs. Fintech is all set to revolutionize the world of small business owners. There are a few ways in which fintech is boosting the growth of small businesses. 

•  Digital Lending

Microbusinesses need microloans to start, run, or scale up their business. Entrepreneurs have probably experienced the difficulty in dealing with traditional financial institutions for getting a personal loan for businesspeople. Micro and small businesses have always played an essential role in the economy. Fintech is helping businesses of all sizes by bridging the gap between banks and companies with technology. Fintech innovations have annihilated inconveniences by making the lending method a lot convenient. The personal loan method is online, paperless, instant, and convenient.

•  Tracking Expenses and Monitoring Cash Flow

To thrive in business, small enterprise owners must be able to draw their wages and also keep a check on their accounts. It is, therefore, essential to have an accounting system in place that monitors their cash flow in real-time. This will ensure that the business is running smoothly. Few fintech companies have introduced expenses and invoices apps for small companies, which is free and doesn't require advanced IT skills and accounting knowledge.

•  Business Beyond Boundaries

Gone are the days when accepting overseas payments were costly for small businesses as credit companies charged a considerable amount of fee. There was a substantial cost associated with money transfers across borders too. Fintech has changed all of that. Accepting abroad payment and wiring money overseas have become affordable and easy, increasing the ease of doing business abroad

Fintech has opened an entirely new world of possibilities for small businesses. They can now contribute better services at a reduced price. It is necessary to embrace the technology if entrepreneurs want to not only sustain but succeed in business and stay up to date with the latest fintech developments. 

See Also: Financial Tech Review

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