5 Ways how FinTech is Transforming Micro Business

Fintech is not waging traditional methods and transforming corporate businesses but it also sets its sight on small businesses. Why fintech should not? While only in the U.S there are 27.9 million small businesses. Fintech is revolutionising the entire process of how people borrow, how they bank, how they pay and how they invest. After barriers elimination, this process is not only for small businesses but it’s the natural progression. The main purpose of fintech for small businesses is to let them regulate their cash easily. San Francisco-based startup, Bento for Business is now offering a suite of services for small businesses. Even small businesses are facing employee theft and a higher risk of failure that is a real problem fintech is providing more control to businesses. Big data, Artificial Intelligence and machine learning are transforming small-business and financial services to combat their problems because key to the United States economy is a small business. Small business is able to remove barriers and reduce friction with innovation in financial services that let them thrive more. Fintech is making its way to microentrepreneurs in the form of personal loans, asset management, money transfer and account management. A very hectic task to start a small business was to approach an investor or bank for financial assistance. Fintech changed the entire game, now there is no need to follow traditional methods to start, run business and get microloans. Fintech companies are providing a variety of financial products with affordable options to small business owners. Here is how fintech is evolving small businesses.

Here are 5 Ways how FinTech is Transforming Micro Business

Cybersecurity and privacy:

Data leak is a real threat for all types of businesses, they can’t be secured completely. Data of customers, vendors and business must be secured in any condition. Fintech makes it possible, many software packages are available to secure data of small businesses. These softwares are KYC compliance and using electronic KYC compliance that is safe and trusted can add an additional layer of security.

Digital lending:

Difficulty to get a loan and deal with a financial institution, you can understand if you are an entrepreneur. Microloans are required to microbusinesses to start or scale up their businesses. Due to inconsistent activities and small amount of loans, financial institutions or banks don’t lend small businesses. Conventional loan applications require too much time, a huge amount of documentation and numerous visits to the bank. Gap between the banks and the businesses has been filled by fintech. Now process is instant, convenient, paperless and online to personal loan.

Electronic invoicing:

No matter where the money is coming from, fintech can reduce cash flow challenges and have the ability to automate these payments over the globe. Global payment made getting payment instant and simple. Fintech reduced human interaction in the process of payment this saves cost to the department of accounts in a small business, Less personnel means less cost.

Business beyond boundaries:

Fintech reduced a lot of load on small businesses. Before fintech, it was very challenging for small business to accept overseas payments due to the huge amount of fee by overseas credit companies. An immense cost was associated with overseas payments due to which small businesses were unable to do business across border. Fintech has evolved all methods of payments and now sending and receiving payments across the border is very easy and cost-effective that increased clientele of small business by dealing across border.

Automate monthly payments:

Monthly payments for subscriptions is very easy with the help of fintech. Fintech automated the process of taking fixed and membership payments. This process will smooth the process of payment by removing the possibility of payment delays and human error. With the help of fintech, a business can serve their customer no matter where they are in the world, a business can manage inventory, accept payments while spending less money to pay employees.

Conclusion:

Fintech is changing the world and thriving globally without slowing down. Many fintech innovations are intertwined and it seems impossible to run a business without them because it opened many new opportunities to boost their business by reducing cost. So if a business wants to succeed it must embrace new technology and latest fintech developments.