Trends in Fintech that may shore up your business capabilities and profitability
The rise of the digital era has significantly changed the way businesses operate, forcing business owners to evaluate their business processes continually. It is vital that business owners do not lose sight of the possible value that new technological tools can create in their businesses.
Many might roll their eyes at yet another latest new term doing the rounds. But should they? Fintech is the tech-savvy word for Financial Technology, and it is very hot topic!
Fintech enhances and automates the supply and utilisation of financial services in your business. Small tech startups have caused a lot of disruption in the financial services industry, with one goal in mind: To shore up your business capabilities and profitability. The result? SMEs are able to keep costs low and save time.
Fintech companies afforded tools and applications within easy reach of business owners, making their products and services much more accessible to a wider range of industries. But the benefit goes further – business owners are able to also gain valuable insights into the financial health of the business to easily steer it in the right direction.
Fintech trends have indicated that people are more comfortable running their business online and utilising online tools to manage business and personal finances. Mundane tasks are swept effortlessly from their plates. Suddenly, the slow pace of the traditional way of doing things is no longer acceptable.
So, how can fintech be of any help to your business? Let’s find out:
In the ‘good all days’ we had to navigate countless excel spreadsheets on historical information that was not aligned with the current growth trajectory that your business is facing, resulting in meaningless budgets.
Most of the cloud accounting software, like Xero, seamlessly integrate with automated budgeting tools to easily keep track of actual income and expenditure against budgeted results. This will enable you to efficiently run your business and identify inconsistencies.
Gone are the days where you have had to prepare a mountain of documents, like business plans and forecasts to apply for business finance. Long application processes can put a lot of strain on your business’ cashflow as you do not know when you can expect funding or whether you will get funding at all. Due to constant innovation in the fintech space by improved processes, a fuss-free application process for funding is the result. It can be as simple as to link your cloud-accounting software, like Xero, or bank accounts to financiers. Application processes are an easy online process and you can have access to your desired amount of funding within 24 hours.
Cloud-accounting apps, like Xero, enable businesses to link their accounting software with their bank account, saving time in accounting for transactions. Finance automation tools like Hubdoc and Receiptbank integrate with cloud-accounting software, which makes going over receipts and bills and playing catchup a thing of the past.
This technology has the ability to process and publish these expenses automatically by simply taking a picture with your mobile phone or emailing it to the app. This will not only save time and minimise errors but will also give real-time views over and insights of the business finances, anywhere, at any time. Real-time accounting is also key in cashflow management, which can also be done with a little help from an app.
Conventional banks have dominated the payment sphere for a very long time, but innovation is on the rise. Innovators like Snapscan, Zapper, Payfast and Yoco are just some of the roll players providing new generation payment services, due to excessive fees and the exclusion of thousands of entrepreneurs from the formal banking sector by conventional banks. These online payment services enable businesses to pay and receive payments for items with a secure internet connection or mobile device, allowing customers to access and buy your products faster and securely. Furthermore, you can also gain valuable insights into stock movements and revenue on some of these apps.
It is never easy to teach an old(er) dog new tricks, but Fintech tools are both designed and developed around the prospective user. This means that training is minimal and that on demand support is at your fingertips.
By adopting fintech tools into your business, you will not only gain valuable insights into your business and where you are heading, but you will also free-up some valuable time to focus ON your business, while fintech pushes all the mundane tasks to the background, making it a thing of the past.
If you are not already utilising it, you should!