With everyone always looking for an easier way to do things, businesses and finance areas have recently been penetrated by the use of Fintech. Hardly will there be any conversation bordering around finance, banking and business transactions that the mention of Fintech will not come up. What is Fintechs? In what areas can it be applied and has it helped people carry out better business transactions?
What is Fintech?
Fintech (short for Financial Technology) are emerging technologies and innovations that aim to replace traditional ways of handling financial transactions and businesses. Business transactions can now be completed without leaving the comfort of one’s home. Never again do people have to queue up in banks to get loans. Banking transactions can now be done via mobile phone, all these are possible thanks to the evolution of Fintech.
Ways in which Fintech is being used
Insurance, trading, banking services and risk management have all been automated using Fintech. Smartphones are now being used for mobile banking; I can get my statement of account, transfer funds and pay bills and even do remote check deposits via my mobile banking app.
Innovative trading platforms can now be used to facilitate online and real-time trades. There are AI financial advisors that help in managing investments with little or no human intervention.
In essence, Fintech has been used to replace all areas where we needed local intervention like brokers, insurance companies and bankers. With new and emerging technologies every day, people can now do better businesses and handle financial transactions with ease.
How has Fintech helped improve business?
Imagine having to make an early morning deposit for a client who wouldn’t send your goods till he receives payment and you have your customers on your neck. You wake up early in the morning and dash to the bank; not neglecting how risky it is to carry around huge amounts of cash. You get to the bank and are told that it is not yet time to begin transactions for the day. You wait and when the banker eventually starts attending to you, she complains that there is no network and you are asked to either deposit the funds in the hope that the network will improve later in the day or worse yet, are asked to return later in the day to complete your transaction. There is a deadline and you are running out of patience but you have no option but to take the risk of making that hopeful deposit.
The above scenario sounds familiar, right? Well, it doesn’t have to be the case anymore with the intervention of Fintechs. Now, you can have your customers transfer funds into your account and you can do the same for your customer, all via your mobile app. You are notified when the funds have been received by the client and you both keep your end of the bargain. Who wouldn’t want the ease that Fintech is bringing into finance and business? Below are some of the other ways that Fintech has helped people do better businesses:
- Lending processes have now become easier, instant, paperless and more convenient as opposed to the earlier days of bulky paperwork and having to deal with bank monopoly.
- Business and personal taxes, payroll, contractor payments and expenses can all now be properly tracked by using accounting Fintech solutions.
- E-commerce stores have emerged and online transactions can now be done with ease without the need for the seller and buyer to meet. Payments can be done online via escrow services or even through Cryptocurrencies.
- Payment processing is now easier as most customers now prefer using Debit/Credit cards for payment. There is no longer a need to move around with large sums of cash, as Point of Sales terminals (P.O.S) are now available, all thanks to Fintech.
- Expense and Invoicing technology have helped business owners keep track of their cash flow and expenses. This accounting technology does not require high I.T knowledge or technical know-how.
Financial Technology is here to stay and provide easier ways of doing business. If you are unsure as to how to proceed with your e-commerce business, this blog on Instagram commerce will assist you.