4 Ways Fintech Technology Is Benefiting Small Businesses

The fintech phenomenon is a spectacular collision of two dynamic worlds – Finance and Technology.  Fintech technology has seen an amazing journey – from being a promising finance trend to becoming one of the biggest financial revolutions of the century. 

Rooted in the consumer market, fintech has successfully spread its branches to influence fields such as insurance, healthcare, banking and finance. 

Fintech industry stands today as a highly potent banking alternative because they have changed the way people bank, borrow, invest and pay.

Fintech offers easy finance options and that’s exactly what startups and small businesses were waiting for! 

Traditional banks are governed by strict eligibility criteria. It is therefore difficult to get a loan from them to finance your business venture, especially if you are a new entrepreneur. 

Most entrepreneurs with brilliant ideas abandon their dreams to settle down with a career they are less passionate about because getting a loan from banks is extremely challenging.   

Now, thanks to fintech, small organisations and startups have a chance to realize their dreams and benefit from the various high-end solutions and have access to tools that they could never afford. 

Let’s take a dig at how small businesses are benefiting from fintech technology:  

1. Flexible lending alternatives 

Fintech is a real banking alternative in the lending space for small businesses and MoneyTap is a perfect example. MoneyTap is one of the instant personal loan apps, which offers personal loans for business purposes. Some of the features of MoneyTap that small businesses can benefit from are: 

• Shorter application time – A simple online procedure
• Reduced paperwork – eKYC
• Easier eligibility criteria – Not based solely on credit score. Other aspects are also considered while reviewing the loan application.

2. Better customer experience 

Not so long ago, traditional banks enjoyed the monopoly as entrepreneurs would turn to them if they needed finance to get their business off the ground. With no real competition, these banks ignored customer experience and that resulted in poor customer support. 

Fintech companies have improved customer experience by acknowledging the diverse needs of small businesses and offering them customized services. Through better user experience and intuitive user interface, they make every customer interaction count. 

3. Innovative financial tools and services

Because of life-changing tech, small businesses can now benefit from innovative services without investing in expensive infrastructure or needing a lot of resources. Here are some of the innovative solution fintech offers to small businesses: 

Mobile payments. As the years go by, it has become increasingly evident that cash payments are going to be obsolete very soon. People today prefer to use cards or their smartphones to make payments. Mobile payments have become tremendously popular as fintech technology has come to the fore to make it possible for merchants and consumers to incorporate mobile payment systems on their phones. 

Data analysis. Fintech companies are offering small businesses the tools they need to gather big data and analyse it in whichever form they want. This helps them in making strategic decisions. 

Accounting software. Fintech has managed to make accounting accessible to small business owners through the power of cloud computing. The technology has replaced exhaustive paperwork with tools that are so intuitive that beginners can use them without any hassles. 

4. Top of the line security system

When technology and finance come together, concern for cybersecurity is inevitable. But, fintechs have taken care of that too. 

Fintechs use AI to detect customer patterns and behaviours. AI is accurate and fast to detect signs of malicious activities.  

The latest addition is biometrics. This security system verifies the customer’s identity before they make any transactions. This reduces the risks of unauthorised activity. 

Another technology advancement is blockchain. This technology reduces digital security risks and protects customer data. 

What we see today is just the tip of the iceberg. The fintech industry is going to evolve and it is going to present small businesses and startups more opportunities so that they can take benefit from them to thrive and grow their business. 

One of the opportunities fintech has offered small businesses is access to instant credit with a simple tap on an app. Want to experience fintech through MoneyTap? Get the app today.