The progression of technology has had a huge effect on daily life. Innovation drives these advancements forward. Most businesses have benefitted from adopting technology-based solutions, which led to a specific set of products known as financial technology or fintech. The truth is that fintech has revolutionised the way in which businesses operate. Let’s explore.
What is FinTech?
Fintech is a term that encompasses a number of things. It refers to technological innovation, computer science, and systems or solutions which are designed to offer a new approach to financial services rendered both professionally and personally. Older methods are all but obsolete, which is why it would be nigh on impossible for a business to thrive without taking advantage of some forms of fintech. The solutions that you choose will depend entirely on your needs. For example, a business has very different needs from a family or an individual.
Money Management
Fintech obviously has a myriad of uses when it comes to money management. For example, online banking is an example of fintech that has made life easier for a lot of individuals and even businesses too. For businesses, money management couldn’t be easier – even for those with only rudimentary financial knowledge. The digitalisation of financial practices has been revolutionary; a job that used to warrant full-time staff, all of whom had qualifications and extensive knowledge, can now be done in a couple of hours by almost anyone.
Obviously, this does largely depend on the solutions that you have chosen and your strategies. For example, automation has made things a lot easier. As has the development of fintech business software, especially for smaller businesses that perhaps don’t have the same budget or capabilities as bigger companies. Payhawk has this software that is designed to streamline all financial processes for a business, from corporate credit cards, invoicing, expense tracking, and reimbursements. This isn’t to mention the resources that they have, which include a blog, help centre, podcasts, and eBooks too. All of this can help you manage the finances of your business and gain back control.
Payment Management
Obviously, credit, cash, and debit continue to reign supreme as the most widely used forms of payment around the world. Offering consumers payment options is important; it helps attract new customers and ensure that you can cater to existing ones. Buy now, pay later schemes have been around in some iterations for decades; however, fintech has allowed this process to become digital. Retailers can offer a number of payment plans using software to keep track of the figure owed and allow consumers to log in to make a payment without contacting the store at all.
That being said, this could all change just like the use of cheques has dissipated, cryptocurrencies have recently begun to gain traction, and it isn’t unreasonable to think that their use will grow over the years. Fintech programs have started to emerge to address this possibility and ensure that it can be accommodated. The payment management solutions tend to look for ways to accept, sort, and store payments electronically. The approach tends to be multipronged.
The first piece to the puzzle is a POS or point of sale system. They intend to merge several different operating systems, inventory tracking, ordering, sales, and pricing. The POS system often has elements of hardware, software, and even virtual technology, all of which are combined together to form the system. The insights gained through a POS system can allow you to maximise the profitability of your business.
Next is automation. Paying bills and staff can take up a lot of time if it all has to be done and authorised by a single person. Setting up standing orders or direct debits from your business account can mean that it is one less thing to think about. If you keep a lot of cash on-site, it is also worth looking into smart safes or smart till draws which effectively count themselves as removing human error; they also tend to produce their own records too.
Debt Management
Fintech services have also helped to overhaul the way in which small businesses find and secure funding. More and more lenders and cash advance businesses are emerging designed to help small businesses get off the ground. However, when it comes to accepting financing, you should always read the terms and conditions and have a lawyer look over the contract to ensure that you are not being taken advantage of in any way. There are also solutions when it comes to dealing with your debts, from consolidating loans to refinancing, which again has been made easier by fintech solutions.
In The End
When it comes down to it, fintech itself is an emerging concept that continues to evolve. As technology changes, the solutions offered by fintech are likely to change as well. Realistically, fintech simply offers businesses a better way to harness the technology that surrounds them and use it to their advantage. This is why it would be inordinately difficult for a new business today to thrive or even survive without it.