We live in such technologically advanced times that we often forget how things were drastically different just a few years ago. Banking experience has gone from having to stay in line at a bank to process something or waiting for ten to fifteen business days to determine whether a bank process has succeeded in receiving the results in mere seconds.
This is all thanks to the wonderful innovation that is financial technology, or fintech. While it might be a new buzzword to many, the developments it has created are familiar to everyone. As a matter of fact, most of us use it in our everyday lives, from minor actions such as checking your balance to something that qualifies as a transaction, such as purchasing something online.
Financial Technology and Small Businesses
Small businesses make up a large percentage of business and employment rates, but it’s not safe from financial troubles and woes. Many small businesses find it hard to keep up with the rapidly evolving market, with new technology and trends showing up faster than ever before. Financial technology is among the new concepts that many small businesses have to deal with, and many are using it to their advantage.
While financial technology has been developed for major companies and their large numbered transactions, the innovations and developments aren’t exclusive. As a matter of fact, many of the technology developed has become entrenched in the everyday lives of both consumers and producers. But what does this mean for small business owners? Financial technology obviously spells something good even for small scale enterprises, but to what extent does it help, and how can you maximize its benefits?
The E-Commerce Boom
Among the greatest achievements made in financial technology is remote transactions. Buying and shopping from the comforts of your home have always been a fantasy for the business industry, with some meager attempts through telephone sales and home TV shopping.
Thanks to the Internet and the innovations that allow us to make easy transactions via graphical user interfaces, we can buy whatever we need to get through our smartphones or computers.
Online transactions are slowly overtaking physical stores, and in 2019, they grew 15 percent. Every year, e-commerce grows exponentially.
Businesses are jumping to the online platform by the dozen, and even those with brick and mortar shop still have an online option available for their clients. Setting up your own online store with an efficient payment scheme is now very accessible, with the proliferation of online shopping medium that offers accounts to business owners. It’s highly beneficial for your small business to offer payment options or even shopping options like this as online transactions are the new normal, and we can only expect it to grow soon.
Fund Your Dreams
A few years ago, acquiring a business loan meant having to go into a bank, bringing in your paperwork, and then going through an elaborate review procedure that may or may not accept your application. However, gone are days like this as financial technology has made acquiring the money to fund your dreams easier than ever.
You can now apply for loans, be it personal or for small businesses, using your smartphone or computer. You’ll also find out whether your accepted or not in a matter of minutes. If you have a particularly unique idea that you think will warrant some interest, you can try crowdfunding. Crowdfunding is among the most popular developments to come out of financial technology, and it has been met with continuous success. It generates 17 billion dollars annually throughout North America, and the rest of the world seems to be paying attention. Consider financial technology when you’re thinking of either expanding your business or starting one.
It Helps with Accounting
A good financial operation is important to any growing business, most especially for your small businesses. Understanding how finances will improve your chances of expanding and keeping track of your accounts is necessary to achieve this. Fintech also helps even in the accounting side of things. Although different accountants are available, small to medium businesses can cut costs by using financial technology solutions to keep track of expenses, taxes, and other finance-related matters. There’s a wide variety of software available, and most can be linked to devices used for your business. This makes keeping track of your accounts very convenient and more accurate.
Of course, a dedicated accountant, whether you’re a truck driver, a plumber, or a vendor, is still crucial. But having software that makes all of your accounting data accessible is convenient. These tools will let you be on top of your finances, making you more aware of how your business is going.