FinTech is not a new concept, and now it has become a dominant player in the commerce industry. Comparing the current scenario with the past, there has been a drastic innovation in the FinTech industry, and most of them are pretty surprising.
People run various types of businesses, and they all want to introduce the same level of technology that help them do their work with ease. It is not just about online lenders or banking institutions but all businesses because finance is a part of every business.
Even if you are running an ecommerce store, you need to upgrade yourself to the payment modes to provide your customers with a certain ease.
Now for all types of businesses, FinTech is becoming a competition because it is hard to imagine a business running smoothly without embracing adapting to FinTech innovations.
FinTech innovations that are making the business easier
Here are the FInTech innovations that have exemplified the trend:
- Stripe Connect
Regardless of the type of business you are running, accepting payments can be a severe challenge. Though a variety of payment modes have come into the picture, managing all of them is quite a herculean task. Different technical issues add up the complexity.
Innovation includes the introduction of simplicity to complexity. Payment challenges from different modes encouraged to bring in simplicity that resulted in a new simple payment mode for every type of business.
One of the examples of such kinds of inventions is Stripe Connect. This can easily integrate payments into your software system. Once the integration is done, you are all set to go from accepting payments to global payouts.
This offers four ways to accept payments:
- Online and mobile payments
- Subscription and billing
- Point-of-sale payments
Your customers can accept payments in over 130 currencies.
The payment methods are not just credit cards and debit cards but Apple Pay, ACH, FPX, Alipay, WeChat Pay, OXXO, and BECS Direct Debit. Pre-built and customisable UI components are what makes Stripe Connect stand out. This sort of flexibility makes the technology accessible to a wide variety of businesses.
- Perx - leveraging loyalty and customer engagement programmes
As a business person, you must be aware of the fact that acquiring new customers is more challenging than retaining new customers. Still, most businesses fail to retain customers because they keep wasting their time and money in marketing to disloyal customers who will never stick to your brand.
Most of the businesses have a challenge in finding loyal customers and leveraging their loyalty to make money. This is why some companies have come up with software Perx that is believed to analyse data of the company’s marketing campaign to provide actionable recommendations.
This technology cannot just help you acquire new customers but let you gain an insight into who will likely be a loyal customer to help your business grow. This kind of technology can help all types of companies to identify and target their customers immediately. It comes with several engagement methods that let you leverage customer loyalty to make revenues.
- P2P (peer-to-peer lending)
One of the best FInTech innovations is that it has provided alternative funding sources. It means now you do not need to rush banks or online lenders when you have to borrow money. You can seek alternative funding sources, also known as peer to peer lending.
A pool of individuals does this lending, and they generally lend a small amount of money at competitive interest rates that you can borrow to fund emergencies.
Peer to peer lending itself has become a large wing of the financial industry, although people were relatively slow to embrace it in the beginning.
However, now people have gained confidence, and therefore, there has been an increase in the number of people funding their unforeseen expenses with alternative financing options.
However, in some areas, pawnshop loans are also available. Still, unfortunately, the trend of these loans seems to fade away because they are not unsecured like peer to peer loans and interest rates are also unattractive.
- Leveraging AI to pool talent
Recruiting is time-consuming, undoubtedly, and it involves a lot of money spending. Sometimes, it takes so long that it shatters the company’s budget and is then funded with no guarantor loans. Recruiting the right talent is extremely important because you would not like to spend more and more money hiring people who are a square peg.
This is why some companies have now introduced software solutions featured with AI decision-making power, such as ZipRecruiter. Now you do not need t post a job ad and wait for the right people to apply. It uses AI-driven technology that just targets relevant people for the vacancy.
Now you do not need to go through all applications that you receive because the AI-driven technology will shortlist the best applications that perfectly match the job criteria. In this way, you can just approach the best candidates. This will not only save your time but money as well.
- Cloud-based payroll solutions
Managing payroll is not a cinch as well, especially when you have different departments and multiple branches. It is extremely challenging to have all data in one place and then figure out the pay based on their leaves.
Human errors are so common, and rectifying them when everything is done is more problematic, but cloud-based solutions can make it faster and easier.
Even if you are not an expert at payroll, you can easily manage it because the software will automatically do more than half of the work. Now you can get separate information about leaves, expenses, employee records, incentives and much more.
The bottom line
FinTech is nothing but the use of technology in managing finance. It is a part of all types of businesses because all businesses need to manage finances. These innovations can truly help your business grow. Investing money in FinTech will definitely help you in the long run.