When discussing the merits of fintech, it’s not uncommon to focus on the way in which fintech products and services benefit consumers.
While it’s true that fintech has made it much easier for consumers to complete essential financial tasks, they are not the only group taking advantage of these new innovations. Business owners throughout the world have also benefited from fintech in many ways. The following are just a few of the more noteworthy:
Paying Employees More Efficiently
It’s crucial that business owners pay their employees in a timely and consistent manner. When employees don’t receive payment according to the established schedule, they’ll become frustrated and disengaged—and eventually seek employment elsewhere.
Fintech products can help ensure businesses pay their workers on time, every time. That’s what happening at Casual Dining Group. This restaurant group is just one company using fintech products to pay employees, even in advance. It’s easy to imagine the impact this has on worker engagement.
Additionally, many fintech payment apps help business owners pay workers who may be working remotely from around the world. In the digital age, when remote work is becoming more and more common, this gives budding entrepreneurs a scalable way to grow their teams. Instead of paying the overhead costs associated with maintaining office space, business owners can now recruit employees from anywhere in the world, using fintech to ensure they receive payments.
Paying employees isn’t the only payment solution fintech products offer. Thanks to advances in payment processing and electronic invoicing, it’s also become much easier for businesses to request and receive payments from their clients.
Also, many of these fintech solutions require less human involvement than traditional methods of invoicing. This allows employees who would normally handle such tasks to focus their efforts on other work. As a result, businesses that leverage fintech for invoicing get a competitive edge.
Fintech lending companies have provided a very important service to small business owners. In the wake of an economic downturn, many traditional lending institutions have been cautious about approving loans when they don’t have enough information about an applicant.
Fintech lending companies have stepped in to fill the gap. Because they use technology to access online data that traditional lending institutions may not have access to, they can take a holistic approach to reviewing an applicant. This has helped many small business owners to grow their business, particularly in underbanked communities.
Many fintech products serve a simple purpose: they allow business owners to accept debit card, credit card, or app-based payments via mobile device.
This might not seem all that revolutionary at first. However, when you consider the degree to which this improves the mobility of business owners, it’s clear that these products offer substantial value.
Merchants are no longer restricted by technology when they want to make sales. With the right tools, they can easily bring their products to trade shows, local events, and numerous other locations, where they can accept payments easily.
This is another example of fintech reducing overhead costs for business owners. Instead of leasing a physical location, merchants can travel to various locations to sell their goods. The reduced costs free up more money to purchase inventory, pay employees, and grow their business.
Offering Personalized Service
Fintech products succeed simply because they leverage technology that other financial services providers do not. Consider the example of artificial intelligence (AI). Through AI and machine learning, a fintech-based e-commerce app could “learn” about a particular customer’s tastes and behaviors every single time they use the app. As a result, every time the app opens, the experience will be tailored to that consumer’s preferences. This is particularly important in an age where more and more consumers have expressed a desire for personalized service. Businesses that take advantage of the right fintech solutions are able to offer that kind of service.
Budgeting is one of the most important responsibilities a business owner has. Unfortunately, it can be among the most tedious.
Or, at least, that used to be the case. Just as there are fintech products that help consumers set their personal budgets, so too are there products that help business owners create and stick to their budgets. This frees up more of their time to focus on other tasks.
Of course, the impact fintech has on businesses will continue to expand as fintech innovations continue to develop. These examples, while significant, represent merely the tip of the iceberg.