Fintech is an emerging method of business finance management, offering many advantages including enhanced efficiency and streamlining operations.
Small businesses and startups typically employ finance teams with the task of overseeing payroll, accounting, invoices and other financial operations. Unfortunately, this process can often prove cumbersome and time consuming.
Fintech platforms such as payswix offer an easier and simpler way of managing accounts and processes, along with flexible financing solutions like invoice financing or revenue-based loans.
1. Automated Payroll
Small businesses play a significant role in economies through employment and contribution to gross domestic product, yet face several obstacles that limit their success. These include limited financing opportunities and information asymmetry with lenders; FinTech innovations have since emerged to address such challenges and promote entrepreneurial spirit.
Automated payroll processing can be an invaluable asset to small businesses, streamlining the payroll process while eliminating errors and providing real-time visibility into financial data. Some systems even help ensure employee benefit withholdings are paid accurately.
FinTechs have also opened up new channels for small business funding, such as crowdfunding and peer-to-peer lending platforms. These methods offer faster and more convenient services while using alternative data sources to assess creditworthiness; thus enabling small firms to pursue growth aspirations more easily. Furthermore, FinTechs have enhanced cash flow management by offering digital payment options to customers.
2. Global Payment Systems
Financial technology enables firms to use real-time insights for monitoring cash flow and making data-driven decisions, while simultaneously creating an enhanced customer experience and building loyalty among their client base.
FinTech also allows companies to reduce fees associated with services like credit card payments and bank transfers, wealth advisory fees, search costs for loans and foreign currency exchange rates – significantly improving efficiency by increasing liquidity, investing more and growing revenue streams.
FinTech firms provide various financing solutions, such as merchant cash advance – wherein money is advanced in exchange for a percentage of future credit card sales – or invoice financing, which enable small businesses to gain funding quickly and more easily than through traditional means. It is important, however, to understand how the design and configuration of FinTech platforms influence borrower decision-making processes more in-depth – further research could explore this topic more deeply.
3. Account Management
Account management is a strategic approach to developing and nurturing long-term relationships with key accounts, from providing customer service to addressing improvement and expansion opportunities, increasing average recurring revenue (ARR), and increasing retention rates.
Fintech has revolutionized banking by streamlining processes, lowering costs and making services more available to small businesses. Furthermore, fintech has significantly enhanced financial inclusion through various services offered such as credit scoring to peer-to-peer lending as well as budgeting and investment apps.
Organizations need a firm grasp on all FinTech solutions available to them so as to select those most suited to their individual needs and requirements. Gartner recently assisted 3pillar Global, a custom software development firm, identify that its account management team was spending too much time on service delivery and retention rather than growth, with Gartner helping restructure teams so client growth rates increased every year.
4. Identity Management
Finance companies frequently struggle to offer customers an excellent customer experience, which has inspired numerous startups to introduce innovations that disrupt traditional methods. Examples include credit cards that allow consumers to access account information instantly online; merchant cash advance products offering funding based on future credit card sales or peer-to-peer lending solutions; these innovations and others have transformed financial services, opening new avenues for innovation.
FinTech companies can also assist small businesses in overcoming any potential hurdles they encounter by increasing access to financial services and resources. FinTech solutions enable businesses to expand with greater ease by providing efficient operations and flexible financing solutions such as mobile wallets, e-wallets, invoice trading platforms and platform-driven supply chain finance platforms. Identity Access Management (IAM) technology also allows them to securely authenticate and authorize users across platforms, while improving organizational productivity. This is accomplished using passwords, tokens, one-time personal identification numbers (OTPIDs), biometric data collection devices or biometric signatures – making IAM an indispensable way of combatting fraud as well as improving operational performance by detecting anomalies.