Financial technology or Fintech is a comprehensive classification that refers to the innovative use of technology used for applying and receiving financial services for businesses. Fintech apps cut the effort half for managing business finances and making the lending process simple for both small business owners and lenders. Financial technology is playing a crucial role in the exponential growth of small businesses.
The traditional way of lending requires businesses lots of paperwork, one-on-one meetings, and much more, but with the financial technology, business owners can save their valuable time and can get the funding in a hassle-free manner.
Financial technology is helping businesses in lots of ways, from state-of-the-art accounting software to business finance management, insurance as well as business valuation services. In a recent report of Business Insider intelligence, they say that the lenders using financial technology have underserved small businesses, but the truth is that they are finding innovative solutions to serve even the smallest businesses profitability.
- Maintain Complete and Updated Profiles
Due to lots of disconnects in the way of getting information regarding any business, lenders can’t get each and every detail about their customer. Financial technology has made the record management process easy for businesses. From inception of your business to date, you can manage all your financial records financial technology. Additionally, startups can maintain their financial records digitally and can tap into their records online making it easier to access the information from almost anywhere.
- Accept Payments Digitally
Due to the advancement in the financial technology, business looking for services of a credit company, need to prefer a company that is using financial technology because this has made the whole payment process digital, easy and inexpensive. Especially companies who are conducting business overseas, the digital payment system is blessing. One of the best example of digital payment system is Stripe.
- Making the Lending Innovative
Small businesses looking for some funding program knows the complex nature and process of traditional funding. The major problems related to traditional lending is their long-drawn-out approval process and funding speed.
However the financial technology is the new alternative for banking and has changed the whole picture of lending by eliminating the obstacles between applying and getting funding. By using a digital lending platform, you only need to provide your personal and business credit scores throughout the approval process. If your lender require something different, the financial technology helps them to get the required piece of information immediately. This indicates that the businesses looking for funding can get the funding in no time.
- Monitor Your Business Financials
Financial technology applications such as Intuit QuickBooks is automating the process of payroll and other processes and saving you time that you can invest in other productive things. Financial technology help businesses to automate the expense tracking and invoicing and get paid instantly. The technology minimizes the human interaction throughout the invoice process. It also helps you to save cash for other business processes. There are some other business related processes where technology can help reduce the manpower as well as cost, which include account management, cyber security as well as lease and rental management.
Financial technology has made it easy to get instant access to business’ cash flow, customer data and financial statements providing business owners a better picture of their business’ financials that will help them to make smart decisions and productive moves. Businesses that were limited previously, have the opportunity to flourish with the help of latest financial technologies.