Freddie Achom on How Fintech Is Creating Opportunities For Entrepreneurs and Start-ups
Fintech has undoubtedly marked the beginning of financial evolution. The interesting fact is that it is just the beginning. Whether it is money transfers, personal loans, account management or asset management fintech is changing it all. Financial technology which is also called fintech is technically the boom of the financial industry. The literal meaning of this buzzword is the use and application of technology in the financial industry. It has revolutionized the way the financial world was conducting its operations before. Fintech involves the use of technology which is disrupting traditional financial service.
Since fintech is creating a global impact it is also affecting the way businesses are being established and conducted. It is really impacting the tech-savvy entrepreneurs of today. A few years back the only way to start a business was to approach a bank or an investor in order to obtain financial assistance. With the advent of fintech it became easier for entrepreneurs to obtain financing and get rid of conventional methods to obtain loan.
Fintech start-ups are offering a wide range of easy and affordable financial products, in order to make it convenient for business owners to start and conduct business. Let’s see how fintech is helping entrepreneurs to become successful.
1. Digital Lending
To start, run or upscale business it always needs loans. Entrepreneurs often face difficulty in dealing with traditional financial institutions, struggling to get their application approved for loans. This is because traditional financial institutions are not very keen on lending to new or small businesses because amounts required are meager and their activities are inconsistent.
Additionally, the turnaround time of application, documentation requirements, plus numerous visits to the bank can be a big turn off factor for entrepreneurs. The rapidly developing technology industry has potentially ended the monopoly traditional banks have enjoyed since time immemorial.
Fintech is helping businesses of all sizes by bridging the gap between banks and businesses through technology. Fintech innovations have been able to eliminate inconveniences, by making the lending process a lot easier. The fintech personal loan process is instant, online, convenient and paperless.
2. Track Expenses and Monitor Cash Flow
In order to thrive and succeed in business, business owners also need salaries while also keeping a track of expenses being incurred. Therefore, it is essential to have an accounting system in place which monitors the cash flow in real-time to ensure that business runs smoothly. Some fintech companies have successfully introduced expenses and invoices apps for businesses. These apps are free, with the advantage of being simple to manage and maintain
3. Business Beyond Boundaries
Before the advent of fintech, accepting overseas payments meant incurring huge costs businesses since credit companies charged a huge amount of fee. Moreover, there were gigantic costs associated with money transfers across borders too. Fintech changed it all. Accepting overseas payment and transferring money overseas has now become cheap and easy. Thus, increasing the opportunities and ease of doing business at a global level.
Fintech has opened a whole new world of opportunities for entrepreneurs and businesses equally. This has enabled them to offer more and better services at a reduced price. But, in order to sustain but succeed in business, it is important that entrepreneurs embrace technology while also staying up to date with the latest Fintech developments.