15 Ways Fintech Can Change Your Business And Personal Finances.
Fintech has been driving the financial market into the future with new technological innovations that enable faster payments, better safety protocols, and new ways of thinking about money. It is easy then to see how these technologies can be used to push modern businesses forward. Here are some benefits that will come with adopting financial technology in your business.
1. Improved efficiency of your business systems, making it possible for you to access an increasingly digitized customer base. Through digital marketing and mobile apps, businesses are able to acquire new customers as well as retain the old. It also enhances business interactions with employees, suppliers and customers.
2. Streamlined operations. If you incorporate the right technology, you will not need to juggle multiple software systems for Inventory, Human Resource, Finance, Customer Relationship Management (CRM), Sales, and Marketing because it can all be integrated into one system. Customized Business Systems Management Software can be designed for your business by software engineers, like our team at Kanzu Code.
3. A smarter way of managing your accounting, making the process less tedious and more efficient. With specific technology, your accounting team will not need to manage different licenses. It will provide a way to easily generate comprehensive financial statements.
4. An easier banking experience owing to a simplified process of accessing funds. It saves on the time spent and costs incurred on trips to the banks for routine procedures.
5. New revenue streams with e-acquiring platforms. Fintech will make it possible for your business to sell products and services online and to then receive and make payments digitally.
6. There will be plenty more ways to borrow needed funds for supply chain financing by opening new credit options.
7. Sped up transactions, which will make it easier for your business to send electronic invoices, give alerts as well as receipts. In this way you can pay and get paid faster.
8. In the event that your business is a fintech startup, you will be placed within major investor networks, offered mentorship opportunities as well as have easier access to cutting edge innovations.
With all these benefits outlined, I can only hope that knowing how much fintech can streamline the systems in your place of work will be an incentive for you to keep up with it. However, fintech is not only helpful to your business, but also your personal finances. Explained below are some ways you, the individual, can greatly benefit from adopting these fintech alternatives or solutions in the management of your personal finances.
4. In a few years, your bank as you know it today might not exist anymore. A third of millennials in the US don’t think they’ll need a traditional bank in 5 years’ time. Instead, they are counting on tech startups to replace traditional banking functions. With the increased inclusion of Fintech in developing economies, we might not be too far behind. FinTech’s appeal lies in its value for money services and a wide range of innovative solutions to everyday consumer needs.
5. Fintech makes financial inclusion a reality. Between 2011 and 2014, 700 million people became account holders, but not through a bank. Mobile-led FinTech has benefited significant numbers of consumers in Sub-Saharan Africa, where mobile money accounts drove the growth in the overall number of account holders from 24% in 2011 to 34% in 2014.
6. Financial literacy because the app on your phone will give you advice on how to manage your money. Financial management apps use transactional data or even behavioural information to provide insights, plans and prompts to help consumers manage their money and even ensure bills are paid.
7. Makes it harder to lose your ‘wallet’. Cash-free transactions world-wide have increased by half in the last decade meaning that because you are not physically handling your money, you cannot lose it.
Despite the numerous benefits that fintech offers, fintech solutions have their limitations. They do not offer a personalized approach in their dealings with customizers, which is frustrating when one needs a complex solution; particularly among the more financially successful members of society.
Finally, the major trade-off that comes with adopting fintech is losing privacy. FinTech mostly relies on collecting in-depth information about consumers and their behaviours in order to best position their service to suit the demand from society. This has led financial services to become the most intensive user of data.