Financial Technology, often abbreviated as Fintech is definitely transforming the way in which financial services are availed and provided. Recently, there have been many positive changes in the finance sector that have helped the Small and Micro Businesses. Fintech allows you to serve the customers in a better way and make managing finances, accepting payments, and find funding for your small firms that are often overlooked by the banks. These revolutions in Fintech industry can bring about a drastic change in the financing and funding for your SMBs.
- Online business lending: Every business irrespective of the size and field needs a constant flow of funds to keep it running and growing. From micro businesses, start-ups and the like to huge multinational companies, every business requires funding. There are times when the funds are not available to the business owners, and this is when external finances, lending, and business loans come into play. When it comes to small and micro businesses, getting a loan from banks can be a difficult task. Most of the SMBs will not have a high credit score and getting an SME finance approved can be almost impossible. One easy way to avail business loan is the online business lending options. The field has seen a lot of disrupting players in the field and the SMBs are the most benefitted lot. Speed, ease, and convenience are the factors that led to the success of such online business lending options. The online lenders offer borrowers flexible lending options to meet their financial business needs. This option is attractive for companies and businessmen with a not so great credit score. With lots of such Fintech companies, borrowers can expect faster and safer ways to acquire finance and funding.
- Crowd funding: Scarcity of funds can affect your idea of reaching the desired stellar heights. Crowdfunding is another latest revolution in the Fintech industry. The basic idea of crowdfunding is to let potential investors invest in projects and ideas they support. This has introduced new opportunities for many enterprises to raise capital. Through crowdfunding, entrepreneurs can raise capital funds from groups or individuals who believe in their idea and are ready to support. Crowdfunding is mostly done through online platforms where entrepreneurs can express their idea in detail and full glory to their visitors, who are their potential investors. This will also provide an opportunity for the visitor to know about the idea or project in greater detail. It is a great way of connecting potential investors with struggling entrepreneurs who are stuck due to the lack of funds.
- Digital transactions: There has been a recent boom in the digital transaction sector of the Fintech industry. This colossal shift can be attributed to the aftermath of the demonetization policy and the subsequent efforts to make India go as a cashless economy. Though digital transaction existed long before the demonetization, there has been a considerable increase post demonetization. When 86% of the cash was withdrawn without a prior notice, the business world came to a standstill for many. There wasn’t means to engage in financial transactions and they could not accept or pay their customers. This paved the way for the increasing digital transactions. Digital transactions used to be limited to card swiping and net banking. But now, every now and then, a new app gets launched to make business transactions easier, simpler and safe. The one core reason that makes digital transactions widely accepted is nothing but convenience. With the help of only a smartphone, you can buy things, transfer money, receive money, and apply for a personal loan– everything with the click of a few buttons.
These evolutions in the Fintech industry have not only revolutionized the Finance sector, but it has also made the lives of many businessmen, entrepreneurs and small business owners, a lot easier. This has also given new entrepreneurs a chance to turn their ideas into a reality by providing them easy access to funding and connecting them with investors who are waiting to provide all the support for giving a start to such entrepreneurs.