How Fintech has changed the way the SME sector conductstheir business?
Post the financial holocaust that gripped the US and the demonetization era, this led to the rise of the technological innovation sector – Fintech. Fintech aka Financial Technology is one of the most heard about word in today’s world. What exactly is it, is still a question for most. How has its importance changed the way entrepreneurs were conversant with finances for their business start-ups. Read on to know more and understand its total profoundness. There are lots of Fintech companies in the world.
Fintech is basically the use of technologies that are applicable in the financial services sector. Fintech is mainly used on the back end by financial organizations. But as the presence increases of Fintech with newest technologies, it is completely disrupting the traditional financial services platform and bringing a sea change to fundraising, asset management, money transfers and mobile payments the world over.Nearly 70% of Fintech companies are backing by financial lending majors. fintech stock is very useful for finance company.
According to the KPMG Pulse report on Fintech, worldwide Fintech funding went up by 120 percent from $50.8 billion in year 2017 to $111.8 billion in year 2018. This trend doesn’t seem to waiver off or slow down for years to come. Fintech is here to stay. It is not only imbibed in the financial services sector, but also in every industry sector touched by financial services. Fintech’s are small, nimble start-ups that have the ability to innovate the way of providing financial services for the SME business sector and disrupt the traditional working methods of the gigantic and magnanimous traditional financial institutions. What is fintech & how it is important for us. Mtoag is leading Website development company also provide fintech solutions.
The effect of Fintech on SME consumers
Fintech has equally had a profound effect on SME consumer expectations and behavioral acumen. Consumers have become so used to conveniently accessing information about anything from any location of the world that they now need to be able to fine-tune their financial portfolio or financial transactions on the go. Consumer expectations do not differentiate between company sizes because they presume the same level of service to get from them. Do you want about fintech jobs then keep reading this blog.
Benefits of Fintech
Simplicity to conduct Overseas Business
Fintech has helped to conduct money transfer transactions through its peer to peer services the world over. Overseas trading and cost of overseas fund transfers have lessened considerably due to it. In traditional banking systems, the charges meted out to customers was exorbitant in lieu to the services provided by them.
Budgeting solutions and tools
Businesses need not engage in manually calculating their business budgets anymore. Thanks to the latest Fintech budgeting technologies, accounting software are incorporated with them and positioned at one sole spot so that you and your accountants can easily keep a watchful eye on your business transactions and avoid mishaps in budget planning in future. fintech startups are going on boom now these days.
Lending has become simplified
In the past if an entrepreneur had a eureka idea and wished to start his business venture, there was an arduous path that he would have to walk upon. He would need to visit his local bank and apply for a loan or go door to door finding a traditional investor. Thereafter the lengthy process would start of paperwork, collateral security, equity capital and what not. The entrepreneur would be so harried that he would naturally rethink upon going on with his business idea.
Convenience in Bill Payments
If a business wished to cash on the credit card payment module to enhance their sales, they would first require installing landline and card equipment plus hold an account with some of the leading credit banks and financial institutions. But now Fintech has revolutionized how small start-up companies and organizations conduct their day-to-day business of accepting credit/debit card payments, wallets app, going global and expanding their business reach all thanks to Fintech services such as mobile payments, money transfer facilities to name a few. Companies such as Paypal have eased and paved the path for small businesses to increase their business volume locally and internationally with complete payment security. Fintech companies engaged in international money transfer services provide nearly 90% discount as compared to traditional financial institutions.
Automated Financial Investments
Robo Advisory aka wealth management solutions are gaining acceptance and tractions in the financial services sector. They also involve Artificial Intelligence (AI) and Machine Learning (ML) which are programmed to offer quick investment solutions.
Blockchain will enhance better underwriting and security of financial data that will help to curb manipulations by fraudulent borrowers from credit bureaus (silos).
UPI – Unified Payments Interface will see a significant increase in the current year. The financial services sector will increase its digital footprint to provide convenience to the end user.
What is crowdfunding and how cans a start-up or small business enterprise benefit from it? Crowdfunding is the quick and cheap process of raising startup capital for your business idea from people the world over whom you have never physically met. Even if you do not have collateral or funds to take a traditional loan, crowdfunding is the convenient method of getting funds for your startup in just a matter of a few weeks’ time. Get update with us for fintech news.
Ease of receiving global business payments
Gone are the days when it was fanciful to wave a credit or debit card for making payments, Fintech consumers have now become adept to make payments through their smart phones. Fintech companies are not bogged down due to regulatory processes and traditional internal structures of financial assistance and financial management. Users find digitalized business transactions are a more harmonious and congenial process of conducting monetary transactions through the facility of your smartphone.
Future of Fintech
Fintech is here to stay. The traditional financial industry needs to change with the times. The rapid shift has propelled a drastic need for them to embrace latest technologies while they still have time on their hands before they start losing business. Fintech companies are programmed to deliver the best of services at conveniently lower price bands; those with the cutting edge solutions will outlast their competition. Those who stay stringently traditional will eventually lose opportune clientele and see a cut in their market share.
Mtoag Technologies has been engaged in the web and Custom Mobile App Development Company industry and the ecommerce sector since more than a decade. We make it a point to bring insights and help our readers get an informed view of the latest innovations and trending news in the industry.