In today’s society, small businesses are extremely vital as not only do they provide unique services but also provide employment opportunities for people from all economic backgrounds. In light of the FinTech revolution over the past few years, there has been a particular rise in the number of small businesses at a global level. This is mostly due to the rise of FinTech services as companies like mytalu provide a platform which enables small businesses to thrive, and this is explored further in this blog post.
1. How it has changed over the years
Small businesses have always faced a number of setbacks over the recent years whether it be economic challenges with start-up costs or more recently, the effect of lockdown. However, the advances within FinTech at the time allowed small businesses a chance to shift their services online and explore the benefits of e-commerce. Ultimately, this all worked in their favour as globally, small businesses have learned to adapt to new patterns.
2. Ensured safety
The main benefit of small businesses working with fintech companies is due to their very strict security regulations such as the KYC (know your customer) onboarding system which therefore gives small business the confidence to put their trust in digital banking services and fintech companies as they know their funds will be fully secure. These safety measures generally make it easier to detect fraud and malware.
3. Managing finances
One of the crucial ways in which FinTech helps small business is by allowing them to easily manage their finances by being able to track their expenses. FinTech makes this process simpler to use through accounting technology apps which are accessible across multiple devices. Overall, this makes everything much more efficient and more credible.
4. Issue of loans
Additionally, the issue that small businesses struggled with the most is taking out loans and this was largely due to banks being reluctant to approve them for such small organisations. Fortunately, with the use of FinTech services and digital lending/payments, this not only makes it more cost-effective but also makes the overall process of taking out loans a lot more efficient as they would get approved much quicker.
5. What the future holds for small businesses and FinTech
Given the aid of FinTech services to small businesses so far, it can only progress further. If small businesses keep using advanced accounting technology as well as the use of blockchain in order to make procedures more productive, this exposes how much these businesses can thrive in the next few years to come.
Overall, regarding the issue of small businesses, the main takeaway from this is how versatile FinTech services are and this is seen through the numerous ways they help. From digital loans to increased security to the option of e-commerce, this can only mean that small businesses are set up to stay more significant than ever within society.