Fintech otherwise known as Financial Technology is the term used to define any technology that delivers financial services through software, such as online banking, mobile payment apps, and cryptocurrency. Fintech’s main objective is to eradicate traditional financial methods to serve consumers better.
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For small businesses to grow, they need financial technology. Fintech has been known to make the world easier and more convenient for those in the business/financial world. It will help small business increase their efficiency in providing services and give consumers utmost satisfaction.
Empowering a small business with fintech is in the hands of the business owner. The business owner must decide to adopt fintech. The following are the ways to empower a small business with fintech;
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Change In Payment Method
A business owner must decide to change his/her payment method. The traditional payment method is making physical payments either by the company or by its customers but with fintech, mobile payment methods have been made available. To avoid the risks of carrying cash around and improve the proficiency of small businesses, mobile payment is the best payment method to adopt.
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Change In Accounting
Accounting is a major aspect of finance. One has to keep records and ensure that all transactions made are being accounted for for the sake of references and smooth business running. The work of an accountant is not in any way easy as humans are prone to making mistakes. To avoid human errors and prevent the company from experiencing a huge loss due to this, a business owner has to employ financial technology to be in charge of accounting with fintech accounting software.
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Change In Security
Every business either on a small or large scale is prone to experiencing cyber-attacks or threats. Cyber theft is very risky as one can lose important financial data and even customers. One can also lose top business secrets. With the help of fintech companies like Aspiration, the company’s data are safer and free from cybercrimes.
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Increased Consumer Engagement
Traditional methods do not show consumers insights about their purchasing habits and give them highlights of what and how to purchase goods. Fintech apps such as Facebook and Instagram however show consumers their level of engagement and present alternatives on how to get better through their engagement insights.
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Having A Loan Source
It is against the policy of loan companies to give out loans to small businesses, which makes it hard for small businesses to run their activities smoothly. Every business needs a money source for specific times as business is not a jolly ride (It has its good and bad times). Fintech companies however do not discriminate when it comes to giving out loans to businesses. This makes it important for a small business to adopt fintech.
With empowerment, comes an alliance which is why small-scale businesses need to embrace financial technology as it comes with a lot of benefits that can make the business stronger and better.
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This article was first published on 24th March 2022
chidiogo-akaelu
Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.
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