What Is Fintech for Small Businesses?
Fintech, simply put, is an amalgamation of the finance systems of the future. More accurately, they are the tech systems that are used to optimize financial processes and enhance security. In the past, fintech was used to describe more behind-the-scenes operations in which lenders and banking institutions used digital means to enact back-end transactions.
Now, fintech has extended to the consumer with technologies such as mobile applications and online platforms. This type of hands-on tech has allowed people to manage their daily finances without going through big banks in person—or even at all. Today’s customers have more freedom and control over their money. Examples include mobile apps such as Venmo and PayPal or automated stock platforms including Robinhood.
When it comes to the future of financial services, fintech is advancing to meet the needs of more savvy small businesses. By leveraging fintech, small business owners can enjoy more secure transactions on a smaller scale. This, in turn, provides a more enjoyable customer experience. Let’s take a look at the six overarching technologies that are poised to change the fintech future—for small businesses and beyond.
Artificial Intelligence
Artificial intelligence (AI) has long lived past its buzzword days. In fact, small businesses will soon see AI integrations in almost every part of their financial processes.
Similarly, robotic process automation (RPA)—the automation of financial processes and accounting reconciliation for financial institutions—will help small businesses in the following areas:
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Accounts receivable and payable
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Fund appropriation at shared service centers
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Employee timecard and pay adjustments
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Financial records
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Tax reporting and other treasury processes