FinTech solutions to all business
The opportunities brought by the new technological era have changed the way businesses work, products and services are perceived, and the way consumers take part in this process. Financial technology, also known as FinTech, is making this transformation easier and smoother. The dramatic impacts of FinTech and it’s potential to give full swing to a new era of competition, innovation and productivity in the economy is unlimited in this context, and worth being encouraged. When speaking about FinTech, one should understand that is it not only about digitising money, but more about monetising data. In other words, FinTech is about the way we create and understand the value add from data that was previously limited by the technology available in past. Today, businesses have a well-structured access to almost unlimited data, especially with the development and popularity of social media that sophisticated algorithms of which are able interrogate very quickly and become new services and products. The potential of FinTech solutions offers an impressive amount of benefits to all business, especially new and existing small businesses. Small and medium sized enterprises play a crucial role for economic growth and jobs, but some of them can find it difficult to secure the financing required for them to survive and grow. In addition, the FinTech solutions are efficient at lower scale, thus providing small businesses with increased access to a lot more funding options. Modern FinTech products can be better suited to the needs of small businesses. And here we speak about marketplace lending, invoice finance, e commerce finance, online trade finance and online supply chain finance. Besides getting financing and access to capital, FinTech companies can also help all types of businesses via modernised payments systems, customer relationship management and invoicing, and much more. It is also worth mentioning that FinTech is allowing people to manage and control their transactions through their smartphones or tablets, therefore improving productivity and effectiveness as well as the customer experience. The same way the internet has empowered people all over the world through access to unlimited information, FinTech offers more balanced information in the marketplace and helps to reduce risk and achieve more effective allocation of scarce resources. FinTech can also improve the traditional financial services and promote disruption with the help of innovative products and services. This can offer advantages to consumers and other sectors of the economy. If you need more information on Fintech Fixes & Fortunes, see what Dan Rosen, General Partner, Commerce Ventures, explains on the topic.
