Fintech was treated as both an opportunity and a threat since it appeared in the society and it started being used at a greater level.
In reality, the benefits it brings are far more numerous compared to the downsides. The global investment in fintech tripled in the past year and this is a sign that it started to expand to the business sector. Actually, businesses are the ones who can benefit from financial technology the most.
The payments within fintech can lead to an economic growth due to the fact that they are produced fully electronic. Financial experts observed an increase that tends to grow higher and higher each year due to the implementation of fintech.
Businesses are encouraged to include financial technology intheir activity to increase sustainability and scalability. Fintech can improve cash flow, can help with supply chain management and logistics altogether. Businesses can expand their capabilities from multiple points of view by using electronic invoicing and open APIs.
This way, a company can operate at its maximum efficiency and at an easy-to-manage scale. The scale of the fintech industry grows each and every day and start-ups are adopting it more often. Financial technology has a direct impact on business development, on institutions and on individuals at the same time. Here are five trends that can revolutionisebusiness:
1. Finance goes mobile
Most businesses no longer use cash for their transactions. They use credit cards or other services to make transactions virtually. Lately, mobile wallets gained popularity in both businesses and in the case of individuals. Using a phone for making most of your transactions, regardless of their type, is much more comfortable compared to using a computer or going to the bank for this one purpose. The benefits of handling your finances by going mobile are numerous. First of all, the accessibility is visibly increased.
The payments are done nearly instantly and the taxes are reduced, making transactions very easy to handle for businesses. Plus, mobile financing offers businesses the possibility to make payments in multiple ways (NFC, QR code, P2P, SMS payments etc.). Mobile finance is also secure, unlike the general opinion. An expected trend with fintech would be achieving parity when doing transactions. This way, your company can avoid conversion fees, which are quite considerable.
2. Banking is globalized entirely
The first major trend that could influence the way you handle your business is represented by the globalization of banking. Even though banks are quite left behind considering the fact that alternative banking brings more benefits compared to traditional banking, the trend is adopted by them too. Achieving growth and going international fully depends on the capacity of the banks to expand and activate globally. Fintech can help with this by moving banks in the online field. The need of going physically to a bank and solving your financial problems is no longer efficient.
Since Internet access is now a condition for any business that wants to automatize its workflows, using online banking now represents the norm. Previously, fintech was in direct conflict with other financial services, such as the traditional ones provided by banks. The forces are now collaborating, making banks more accessible. This integration directly affects businesses in a positive manner by offering them 24/7 accessibility with little effort involved.
3. Networking and businesses
Fintech encourages a collaborative culture, meaning that businesses can network easier witheach other. The cross-industry barriers that are present between international companies can now be destroyed. By recognizing the necessity for effective networking in business, companies can expand internationally without encountering the problems they used to deal with before.
Fintech is the key to a mutually beneficialcollaboration for all businesses that have a similar purpose. By using regulatory sandboxes, accelerators or even dedicated incubators, fintech gives businesses the possibility to expand their market size. Moreover, businesses that collaborate in terms of offering reciprocal help to each other are more cost-effective compared to the ones that don’t. Fintech can help this collaboration and the whole networking process by offering easy access to financial transactions with the lowest costs.
4. Frictionless payments
Fintech comes with borderless innovation. Fintech start-ups that support the idea of immediate, frictionless payments started to be more and more popular giving the benefits it brings to the table. Businesses can start focusing on alternative banking and other payment solutions compared to the ones they were previously using for a boost in terms of performance and profitability. Frictionless payments, combined with mobile fintech could lead to great results in the business industry. Contis Canvaswas already nominated as one of the best mobile payments initiatives.
The payment platform of any existent business can be transformed from scratch by using mobile fintech solutions, and all with less effort involved. For businesses which require faster transaction completion, white label solutions are the best possible option at the moment. Fintech encourages frictionless payments that don’t involve the requirement of possessing extensive knowledge in the field. Alternative banking that sustains the fintechrevolution is going to make quick progress easier to master.
5. No third parties
The biggest advantage of the fintechrevolution refers to the fact that no third parties are involved in completing a transaction anymore. Card issuers and payment processors are no longer part of the financial process. This is very convenient, considering that a lot of companies encounter issues with their workflow due to delays caused by banks. Alternative banking offers you the opportunity to complete transactions without involving the third party that may slow down the process in the first place.
Fintech comes with superior solutions and the economy in the business industry has a lot to gain from using them. The traditional legacy systems are going to be replaced with innovative ones that boostthe efficiency of any company that includes fintechinits activity.
The structural changes in the market will improve the way transactions are completed. By the year 2030, all companies will adopt cashless payments. Big data imposes the use of alternative payment modalities and overcoming the limitations set by traditional banking.