By Charndré Emma Kippie
FinTech is booming in South Africa! We’ve all heard the buzz surrounding ‘Financial technology’ (popularly termed ‘FinTech’ these days), and how its innovative edge continually impacts our lifestyle and business practices. FinTech has elevated many business sectors, and is fostering financial inclusion and resilience.
The Most Important Industry Right Now
FinTech provides a vast variety of benefits, including increased access to financial products and services, speed and convenience. Additionally, FinTech has made managing a business easier – for both small and large entities.
With the awesome digital amalgamation of ‘always-on’ Internet connectivity, advanced mobile devices and Big Data analytics, business organisations are able to use innovative financial software and services to run and manage their day-to-day financial operations. This saves time, resources and money.
If you haven’t already made the move to adopt FinTech software and services into your business, and are unsure as to why this would benefit you in the long run, here are 5 ways FinTech can improve your business.
More Access To Funding
FinTech allows small businesses, especially, to bypass traditional avenues (prolonged loan application processes and meeting with lenders) for acquiring loans intended for scaling and improved operational capacity. FinTech bridged the gap between borrowers and lenders, improving the overall business ecosystem. With more options, such as Peer-to-Peer (P2P) lending platforms and crowdfunding portals, there is increased opportunity for lenders to earn an income, better access to capital at lower interest rates, and improved synergy between all entities involved.
Smart Invoicing & Automate Payments
Financial Technology software has evoked a rise in the use of online accounting systems, making business accounting less of a stressful, cumbersome task for business owners. One can now monitor cash flow (in real-time), eliminate guesswork, automate recurring payments for business expenses and make ‘cashless’ and ‘cardless’ transactions. With FinTech, focus can be shifted from spending time mirco-analysing the smallest details and numbers, to growing your business model and customer base.
Maximise Your Profits
Thanks to the lucrative nature of FinTech, capital markets have experienced many infrastructural changes, especially with regards to how everything has become digitalised and electronified. The combination of technology and finance has led to the emergence of more and more trading platforms, such as Saxo Bank and eToro, which accumulate and analyse data, track market trends, and provide statistical reports that can be used to improve profitability for firms and traders.
With the help of Blockchain technology, business transactions have become more transparent for business owners. Blockchain’s distributed computing can be defined as a ‘digital ledger process’, where all system participants are included in the financial transaction process. All participants share the same level of access to the system and its transactions. This means that every participant is made aware of every step of the transaction journey, and should any changes need to take place permission must be granted from each participant. This process meticulates all data in the Blockchain, provides consistency, and transparency throughout the transaction journey.
*Interested in learning more about women and the tech landscape? Check out the 16th edition of the Standard Bank Top Women Leaders publication on Issuu – Digital Publishing Platform – here.