Advantages SMEs Have in Today’s Age of Wi-Fi
This is an article “Advantages SMEs Have in Today’s Age of Wi-Fi” by Marc Primo
Financial technology (FinTech) is fast becoming more adaptable since the pandemic has shaken up global businesses and the way everyone handles money. At the heart of the disruption are streamlined online processes that are made possible by artificial intelligence (AI), machine learning (ML), and the magic of Blockchain that all aim to benefit businesses everywhere, big or small.
FinTech practically redefined how we all do our shopping, bill payments, money transfers, and loan applications among others. In the age of Wi-Fi, it only takes a few clicks to get yourself insured before you rent a car, a simple app to send money abroad without worrying about expensive foreign exchange rates, or a platform that allows you to authorize payments even if you’re on a beach somewhere in quarantine.
Last year, over 55% of businesses all over the world have adopted cloud technologies according to the 2020 IDG Cloud Computing Study, with most companies allocating a huge 32% of their information technology budgets for the innovation. With many startups mostly aiming to facilitate safe online transactions and multi-account access, all via pay-as-you-go packages, anyone doing business can make things a whole lot easier with the use of a mobile app. In short, even small and medium enterprises can now enjoy the many benefits of FinTech without having to worry about high costs for services.
Here are the top reasons why SMEs should bring their businesses to the cloud and leverage the advantages that FinTech offers:
You have full control and management of your cash flow
Even SMEs have to deal with multiple accounts payables and balancing sheets per month which can be too much to handle for only one or two accountants on the staff. Considering you have to pay for bills from your suppliers, utilities, and other service providers, not to mention preparing payrolls on a monthly basis, a single FinTech platform can help integrate all your money matters into one versatile platform.
Plus, thanks to FinTech startups that pursue more collaborations with established financial institutions like banks and legitimate money lenders, SMEs now have more alternatives to avoid late fees, tax penalties, and get loans. No doubt these apps serve as a one-stop shop where business owners can fully control and manage their money without the usual hitch of dealing with payables manually.
You get things done faster and more securely
Most FinTech apps for businesses today boast high-level encryption security that makes it easier for account administrators to track cash flow and generate error-free invoices whenever they need it. With dedicated dashboards that are both user-friendly and easily accessible via the cloud, small business owners can now manage their accounts anytime, anywhere to cut down on workloads, make processes faster, and perform secure transactions online with the use of apps and eWallets.
FinTech apps for business rely on cloud technology which makes them accessible to users anywhere on the planet where the WI-Fi signal is on. With cloud technology as the main technology for its services, money apps are on their way to reach a compound annual growth of 23.84% and it’s so easy to see why.
With secure digital channels that are always on 24/7, FinTech apps allow for faster approval processes on payables and disbursements, which can be done on any mobile platform. It certainly improves the way business owners handle payment cycles while throwing in essential tracking tools and schedulers that ensure safer and prompt transactions. With less paperwork or back-and-forth email trails, users can focus on more important business facets than waste time dealing with their finances.
You get to set up your own rules
FinTech apps that deal with payments, money exchanges, and issue transaction cards to users are covered by the Payment Card Industry (PCI) and the International Organization for Standardization (ISO). Same with how these service providers follow rules, you also get to set up your own payment rules on your dashboard to avoid unauthorized transactions.
With multiple authentication processes and strict encryption rules, you can ensure payment ceilings on specific payables and set up your authorizations for disbursements with a few clicks. Of course, such technological features on FinTech apps should be compliant with policies imposed by federal governments, especially on how they create an impact on financial markets and systems. Transparency always dictates how FinTech apps work making no room for any monkey business for anyone trying to circumvent the rules you set up. What you get is a straightforward payment and collection process with controlled rules that you manage for your protection.
You get high-level data insights
Small businesses always work to develop new best practices that can improve their work and cash flows, and FinTech apps offer great advantages through analytics to achieve this. Data remains as one of the most important commodities today and with features that sort out databases for employee payrolls, customer management, and business directories, you get to have a good overview of the various financial segments you’ll have to deal with within your dashboard.
By collecting and analyzing these data, you can improve the way you do things, settle your payables, or even offer your services to your target markets via digital marketing. For example, the Facebook SDK tool can track offline event purchases when you link your FinTech app. This makes it possible for you to determine your customers’ lifetime value or turn to lookalike audiences who have previously shown interest in your services. Such useful insights gained from FinTech apps let you develop more feasible business models that could lead to business expansions or other offshoot services.
Though FinTech is still young, businesses can expect more advantages that money apps can offer in the future. With more investors jumping in on bigger industry opportunities, SMEs can rely on more efficient and convenient accounting processes that allow them to automate bank reconciliations, manage multiple accounts, and track their financial health. Things they could have also done back in the days of traditional banking but with more cost, time, risk, and effort.