3 Ways Fintech Can Help Your Organisation
In case you’re unfamiliar with it, the fintech industry is all about advancing financial processes through technology, and it’s played a huge role in the growth of online business since the turn of the millennium. It holds more significance today than ever before, in fact, due to the broad repercussions of the COVID-19 pandemic. It’s tech that’s supporting the ailing global economy.
Accordingly, it’s worth asking: how are day-to-day operations being affected by this vital field as we go through such a foundational adjustment? And how can you use fintech to help streamline processes and achieve better results in your own organisation?
1. Fintech can help you balance your accounts
Smart technological investment in general has the effect of making business tasks of all kinds substantially cheaper. Project management tools take much of the time-consuming work from the area of assigning and tracking tasks, for instance, while workload automation smoothly deals with repetitive actions and frees up human resources to go towards more creative efforts.
Even things like IT and cybersecurity can be outsourced more cheaply. Sets of cloud tools sourced via cloud solution distributors (such as Inty) can be deployed within hours, with tools licensed only as needed and updated automatically with no further effort.
What’s more, the cost of many new tools are lower than ever before. Many prices are down due to the COVID-19 pandemic, with SaaS businesses looking to expand their customer bases and able to charge less due to demand.
Fintech, then, is putting the icing on the cake — so to speak — by helping regular companies balance their lightened accounts. Once you’ve slimmed down an operation to make it as efficient as possible, you can do the same to your process of financial management. Receipt loggers such as Zoho Expense can reduce the time spent logging transactions, for example.
Furthermore, fintech geared towards legal compliance (overlapping with ‘regtech’) can eliminate or reduce the need for hiring a legal consultant – take Libryo as an example.
2. Fintech can make payment processing easier
Online payments are absolutely crucial in this digital world. Just as credit and debit cards came along to render cash functionally obsolete in many parts of the globe, digital wallets (whether used through online portals or contactless payments) are now in the ascendancy, and it’s making payments easier for many businesses to manage.
Today, there are many viable online payment gateways to choose from (with many payment methods natively supported), and online sellers can draw upon them to ensure that they have fast, simple and secure payments — with security being a major concern given how uneasy customers can feel about sharing their financial details online.
Given how many companies are relatively unaccustomed to online operation, having pivoted due to the COVID-19 lockdown, the presence of these easy-to-access services has proven absolutely essential. Without them, it would have been vastly harder for business owners to adapt to the challenging circumstances, and many more companies would have failed.
We should also factor in the existence of other fintech tools that can improve the internal running of businesses, such as Hastee, an tool that allows employees to access their pay in the way that best suits them. When employers improve their systems of paying their employees, they find it significantly easier to retain them.
3. Fintech can provide more investment options
Making money is the core goal of most businesses, and for obvious reasons: if you’re not yielding any profit or at least covering all your costs, you can’t keep your business going.
Beyond that, though, comes the question of what to do with the money made. Investing it back in the business makes a lot of sense — but what are the options?
You can spend more on the foundational aspects, buying new hardware and software that might be useful or hiring new employees to take things to the next level. Alternatively, though, there’s the basic matter of financial investment. Like individuals, businesses can often benefit from setting up financial investment portfolios. It’s a good way to maintain emergency funds and make some extra money in the process (assuming all goes well).
This is where fintech wealth management comes in. The rise of robo advisors such as Moneyfarm has massively affected how companies view investment, because it’s no longer strictly necessary to hire investment firms and trust in human investors who can react emotionally and make irrational decisions. AI investors won’t always come out ahead, but they’ll always have comprehensive reasons behind all their actions — and this can be reassuring.
The result is a potent option that falls between leaving money to stagnate in a low-yield savings account and putting it at major risk as part of a manually-handled portfolio. For small business owners with limited time, it’s a huge boon. The more tasks they can handle automatically, the more they can relax and focus on what they bring to their companies, such as leadership, creative direction, and professional networking.
Fintech is a huge field that extends into many parts of the business world, and it’s all but impossible to helm a modern business without relying heavily on some core fintech tools for things like financial management and payment processing — particularly now that the average business has moved into the digital landscape.
If you run a business and you’re not making good use of fintech, think carefully about how you could deploy it to make your operation more efficient. It might take time and effort initially, but the payoff is often well worthwhile.
About the Author
MicroStartups is a business community that celebrates inspiring startups and small businesses of all shapes and sizes. Follow them on Twitter at @getmicrostarted.
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