Businesses worldwide are looking for tools to help them improve their processes, strategies, and results. Technological resources are presented as an excellent alternative to facilitate the work of all entrepreneurs. It is expected that by 2025, global spending on digital transformation processes will reach 2.8 trillion dollars, according to figures from Statista.
A great ally for digital transformation in companies is the use of services and products offered by the fintech industry. The global market for these technologies until 2020 was 110.57 billion dollars and is expected to reach 698.48 billion dollars by 2030, according to data from Allied Market Research.
One of the most relevant aspects of fintech firms is the ease of obtaining financing without so many requirements for small businesses compared to traditional banking. One of the most significant advantages of fintech companies is that you can get unsecured business loans (financing without collateral). But before delving into this aspect, learn what fintech is and the different ways they help businesses around the world.
What are fintech, and why should small businesses care about them
The Fintech concept refers to companies that use technology to provide financial services simple, fast, and efficient way. This offer is presented digitally through websites, software, platforms, or apps. It is a great attempt to democratize financial services since they are just a click away from the consumer.
These companies not only focus on financing but also offer other services that can be extremely useful for any entrepreneur:
- Customer assessment and risk profiling
- Fraud prevention and identity verification
- Business intelligence (use of big data and analytics)
- Payment methods and transfers
- Credit products such as small business loans
- Accounting and billing software, platforms, or applications
- Business and personal finance managers
- Financial product comparators
- Financial education platforms
- Automated financial planning and advice
- Automated investment services
- InsurTech (Insurance Technology)
- Cryptocurrencies and blockchain
- Banks and digital financial institutions
Benefits of using fintech for small businesses
Using the services and products of the fintech industry opens the panorama of opportunities for all small businesses. Here are some applications for the daily operation and management of a business:
Access to financial services
According to information from the Small Business Majority website, four out of 10 businesses do not have access to loans or lines of credit with traditional financial institutions. Within the fintech industry, some online lenders offer small business loans without collateral and minimum credit score, with competitive interest rates and fees in the market.
Variety of payment methods
82% of Americans use digital means of payment, according to McKinsey. No business can afford to lose sales for lack of tools, which are easy to get and hire.
Saving time in financial processes
Using fintech services such as accounting and invoicing apps or software will save a lot of time and free managers to focus on other tasks. Additionally, these tools offer financial data to help you identify capital leaks.
Facing theft, fire, and earthquakes is one of the greatest fears of an entrepreneur since they can lose their assets from one moment to the other. InsurTech’s services provide simple and low-cost options for taking out business insurance. Mind peace is priceless.
How fintech can help your business grow
The applications of the fintech industry for your company are limitless; using these products and services is a step forward into the future of business. Whether to get small business loans, accept more payment methods, make digital transfers and deposits, invest in cryptocurrencies or stocks, or even generate crowdfunding, using these tools will bring you closer to the customers of the new generations. Suffice it to say that 46% of those considered digital natives use exclusively digital channels for financial needs.
Fair and equitable access to financial products is one of the greatest needs worldwide. For many years, traditional banks unilaterally decided who would have the possibility to grow and access social mobility. According to Fortune data, approximately 90% of Americans use fintech, with baby boomers (over 56 years old) showing the greatest increase in their use. Don’t wait any longer and take your company to the next level; use fintech and offer benefits to customers, staff, and your economy.
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