How Fintech as a Service is Empowering Entrepreneurs in the Digital Age

What is Fintech and how can it empower entrepreneurs to improve business operations, cash flow and customer service? Let’s find out.

Photo by Edi Kurniawan on Unsplash

 

Fintech has opened a whole new world for entrepreneurs and small business owners, allowing them to offer better services at lowered costs. 

 

A couple of years ago, you could only start a business by approaching a bank or investor for financial assistance. With Fintech as a Service solution, micro and small businesses no longer have to go through traditional ways to get loans to start running. 

 

Fintech companies, along with their range of financial products, are offering more effortless and more affordable options. 

 

What is FinTech

You probably heard about the term, but what exactly is FinTech? In a nutshell, it is the abbreviation for “financial technology.” It’s also the backend process for setting up servers and software applications on the front end of traditional banking institutions. The ultimate goal here is to send and receive money faster. 

 

However, it can be challenging to define it since it has since expanded. It’s continuously evolving and an umbrella term for businesses that utilize technology to automate, change, and enhance financial services for both companies and consumers. 

 

Here are the ways how FinTech as a service is helping entrepreneurs and small businesses: 

 

1. Making Financial Services More Accessible

Entrepreneurs, first and foremost, need capital to grow and run their businesses, and obtaining financing can be challenging. Most people would seek out banks. But they often have strict eligibility requirements, limiting the benefits of newer businesses with limited financial capacity. Furthermore, the underwiring process can take up to 90 days. 

Consequently, applying for a loan from a bank can take time and effort. 

That’s why many entrepreneurs are taking advantage of funding opportunities from fintech companies. These online lending platforms allow you to apply for and receive loans online conveniently. 

 

It also speeds up loan approval, giving businesses more flexible financing options. Entrepreneurs can use alternative lending options like merchant cash advances and invoice financing. 

 

2. Optimizing Financial Operations

Accounting solutions allow businesses to streamline their entire financial process. Aside from that, it offers real-time insights and financial data so that you can make better business decisions. 

 

The software will automatically categorize the transactions, create financial reports, and reduce the risk of bookkeeping errors. The accounting software can also be used to send invoices and payment reminders. 

 

It will integrate with other software like payroll and inventory management software. That way, you won’t have to worry about managing two platforms. 

 

3. Improving Data Analytics

Fintech has smart information displays through data analytics and real-time updates. With this information at their fingertips, business leaders quickly gain unparalleled business insights. 

 

It’s easier for them to update their marketing strategy, take advantage of the latest trends and marketing conditions or move to an entirely new tactic. 

 

4. It Helps Provide a Better Customer Experience

One of the main benefits of FinTech is that it gives you rich customer insights, inspiring entrepreneurs to do better. For instance, payment processing fintech allows businesses to consumer patterns and offers data about customers’ pain points, interests, wants, and needs. You can use this data to enhance your marketing strategy for your leads and existing customers. 

 

Businesses can incorporate some marketing features with the FinTech payment process, like customer feedback requests on Facebook and automated email campaigns. Usually, traditional POS systems don’t have these kinds of features. 

 

FinTech offerings allow entrepreneurs to bring new access to their customers by providing intuitive software interfaces, fast internet bandwidth, excellent user experience, and so much more. 

Customers can access financial information and transactions in real-time through their computers and mobile devices. Such innovations have given birth to omnichannel payment processing, peer-to-peer payments, mobile banking, and other ways of evaluating credit applications. 

 

5. Track Your Expenses and Monitoring Cash Flow

Small business owners must draw their salaries and keep track of their current expenses to thrive in a highly competitive industry.

 

That’s why they need an accounting system that monitors their real-time cash flow, ensuring their business runs smoothly. Several FinTech companies have introduced invoices and expense apps for entrepreneurs and small businesses. Most of these apps are free. 

 

Thus, users don’t need to have advanced IT skills or previous knowledge in accounting to use these apps. 

 

6. Enabling Global Business

Before FinTech came into the scene, overseas payments were generally costly. That’s because credit companies are charging hefty fees. 

 

A high cost is linked with money transfers across borders as well. Fortunately, FinTech has changed all of that. These days, transferring overseas payments and sending money overseas is relatively cheap and easy. It also enhanced the ease of doing business overseas as well. 

 

7. Quick Access to Powerful Financial Tools

FinTech is the ultimate equalizer. It allows businesses of all sizes and industries to conveniently access a few financial tools. 

 

One can easily access feature-rich financial software and managed services through quick internet connections, big data, and mobile connectivity. 

 

Back then, these setups will cost you millions of dollars in equipment, fees, licenses, trained technicians, and dedicated IT professionals. 

 

8. Improves the Ecommerce Experience

Fintech services have also enhanced the eCommerce experience by reducing friction during the shopping and checkout. Now, it’s much easier for customers to pay for goods and services online since businesses accept various payment options. 

 

In the same way, inventory management tools simplify tracking inventory management levels, automating the entire order fulfillment process. Furthermore, logistics and shopping solutions keep shopping costs low, allowing customers to track packages using real-time shipping updates. 

 

Over to You

So there you have it. Those are some of the ways in which FinTech as a service is empowering entrepreneurs in today’s digital age. There’s no doubt that FinTech has opened a whole new world of opportunities for entrepreneurs. It’s now easier to provide more and better services at reduced costs. FinTech solutions have helped businesses enhance their cash flow, invest in new opportunities and access various resources to scale. 

 

However, to succeed, you must embrace technology and stay current with the latest trends and Fintech developments. Good luck!