5 Financial Problems Fintech Can Solve

Fintech is a broad term referring to the many creative ways in which technology is being used to develop, deliver and transform financial services and solutions around the world. Fintech is revolutionizing the global financial landscape by pushing traditional financial firms to rethink their outdated business models and come up with more efficient, customer-centric and lower-cost solutions.

From robo-advisors to pure online banks to savings apps and more, the first wave of fintech apps is targeting customers. However, the industry is increasingly focusing on small businesses, offering innovative strategies for a variety of financial tasks.

So, what does this mean for businesses? To be sure, not all fintechs are created equal. At their core, however, some businesses are providing ways to automate previously manual tasks, get personalized financial products, and scale financial operations — all without hiring more people.

Here are five ways fintech can boost your business:

1. Easier access to funding

Many small business owners need capital to start and grow their business.

In the early days, you could only get business loans through traditional means. Long waits at the bank, lots of paperwork, looking into your credit report, and sometimes, startups don’t meet the bank’s requirements.

Fintechs, however, now have easy access to loans. The fintech industry has rolled out solutions that connect startups with potential lenders to facilitate corporate financing. These applications can be easily done online, and in most cases, people are approved within a few days. Borrowers get money at a lower rate than bank loans, and lenders get paid — a win-win situation for all.

2. Transparency

Due to the increasing penetration of the internet and mobile telephony in almost every corner of the globe, fintech companies are very active in developing financial solutions that harness the power and utility inherent in these innovations.

Traditional banks charge high fees for remittances, which over time can cause considerable losses to all parties involved. Mobile and online banking solutions developed by FinTech minimize the cost of transferring funds between parties while also eliminating the need for paper money in financial transactions. This increases the transparency of a country’s financial system by curbing crime (it is a “pure cash” business), preventing tax evasion and opening up the “shadow economy”. It also strengthens the market environment and makes it more sustainable from a business perspective.

3. Simplify the payment system

Any company that wants to survive and prosper needs a good money management system. It should be able to use the system to receive payment on its invoices; otherwise, it risks losing revenue (and therefore profits) as well as accumulating bad debts. In the long run, this may make the company’s operations unsustainable. In addition, the company must be able to pay its creditors, employees, distributors and suppliers. Failure to do so could result in legal consequences as well as a negative impact on the company’s reputation in the marketplace.

In the pre-fintech era, the payment and collection process was difficult to handle, took a long time to complete, and was mainly cash-based in countries with poor financial infrastructure. Additionally, the existence of geographic borders makes cross-border remittances and payments costly. Fintech has changed everything, making these questions almost obsolete. The combination of financial services and technology has led to the development of online and mobile-based payment systems, enabling businesses to charge for services provided to customers and pay vendors/suppliers for services received, regardless of location or currency .

4. Automated accounting

Any business needs financial operations and support, but they are especially important for small and growing businesses. If you have a clear picture of your financial situation, you’ll be better able to decide when and where to spend your money, whether a loan is a good idea, and whether you can afford your next hire. Despite this, almost half of small businesses do not have bookkeepers or accountants. Fintech is filling these gaps. While they’re not a complete replacement for the experience of a real-life expert, they can help reduce the workload in the finance department.

Many new technologies include online tools for invoice processing, accounts payable, payroll, expenses and even cash flow forecasting. Small business owners have many options. Big-name industry players like Intuit, maker of Quickbooks, are doubling down on their efforts to offer more tailored services to SMBs.

5. Improve overall customer experience

Fintech helps businesses, including start-ups, engage with customers through mobile phones.

There are fintech apps with engagement features that allow business owners to connect with customers through automated emails, private messages, and more.

Additionally, fintech helps businesses learn more about their customers. For example, fintech payment processing provides information about customers, such as their interests, demographics and needs, making it easier to understand your consumer behaviour and improve your business to meet their needs.

in conclusion

Almost every company in the world depends on its customers and customers to survive. FinTech solutions delight end users with intuitive product design, ease of use and 24-hour accessibility. They also minimize human interference as “middlemen” and speed up the transaction process. Businesses are happy because such products and services allow them to measure and reduce business risk, expand their customer base, and create personalized offerings for customers. In other words, fintech helps small businesses increase sales and profit potential by improving customer acquisition, engagement and retention.

At HUBFX, we provide businesses with money transfer and payment solutions where you can make and receive international payments, converting in any currency and in any country. HUBFX is a reliable and low-cost option for sending money across borders. It also provides secure online data access, easy reconciliation, short transaction times and hassle-free transfers.

Bulk Payment is a comprehensive institutional network provided by HUBFX. Using this configurable solution, companies can easily process and monitor large remittances in multiple currencies to multiple beneficiaries. Users can avoid the bank’s high currency exchange costs and obtain better exchange rates by using Bulk Payment, thereby avoiding potential major losses caused by market and currency fluctuations.

Chat with us to find out how HUBFX can benefit your business by simplifying your payments within a single online platform.