Whether we like it or not, fintech is a big part of our daily lives. From handy online banking to budgeting software and even using Apple Pay, fintech is all around us.
As well as being readily available to make our daily lives better, fintech has also been monumental in helping small businesses. If you’re one of the 5.6 million businesses in the UK, read on to find out how you can harness fintech to reach your business goals.
Firstly, it’s important to understand what fintech actually is, and to understand how it can help your business. Fintech is short for ‘financial technology’. It is an umbrella term to describe all kinds of tech that aim to simplify, disrupt or digitalize traditional financial services.
It’s thought that around 27% of Brits have a digital-only (or challenger) bank account to help with their daily money management. But how can fintech help businesses?
Fintech can be extremely helpful for businesses when it comes to simplifying complex procedures. Open banking platforms can seamlessly simplify and automate many processes that cause headaches for businesses. From approving invoices from customers to calculating travel and expenses, fintech gives businesses additional visibility and control over their finances.
With cybercrime continuing to rise, security is on the mind of many of the UK’s small businesses. The good news is that fintech companies are increasing their cybersecurity measures to protect against imminent cyber threats.
Traditional banks are traditionally slow to adapt to current trends. As such, traditional banks can be slow to adopt new cybersecurity measures. However, challenger banks are normally hot when it comes to adopting new security measures.
Although it must be said that fintech companies do have vulnerabilities, their focus is on improving technology to make banking experiences better. This means that they are more likely to be able to deal with cybersecurity issues than traditional banks.
Fintech looks like it’s going nowhere. But what exactly does the future hold for fintech?
Although nobody can simply whip out their crystal ball and tell you with 100% certainty, it’s thought that many exciting things are happening in the sector. Rumors say that AI, blockchain, and cloud computing are all set to grow within the sector.
Like many industries, the past few years of the pandemic impacted financial services. Thus, leading to an increasing online presence. As businesses develop and go online, fintech is helping them build a secure future. Especially as the world looks beyond the pandemic to the future.