The year of 2005 gave rise to a new technology that would take the financial sector by storm. Fintech was the buzzword of that year, with companies either uttering it out of fear or jubilation at what was to come. This breakthrough in technology saw technologists in t-shirts and jeans competing with the suits in the highly corporate banking sector to offer the same services at a fraction of the cost. Consequently, Fintech services are changing how many industries conduct their business, from loans to investments and so much more.
Imagine a scenario where you need to urgently buy a home appliance but you do not have the full amount at once. Your options are to either take out a loan or go to the store and pay for the goods at unfathomable interest rates.
Some B2B Fintech companies have come up with an innovative solution to this. They enable online retailers to instantly offer monthly repayment plans for goods at checkout on a shopper’s existing credit card. This bears no risk to the seller as customers use their current credit cards.
Also, breaking up payments into smaller installments attracts more customers to you and your net sales will increase. Fintech services such as these are proving to be quite disruptive to the market.
2. Money Transfer
In this digital age, it’s no longer a viable option to have to wait days or even weeks to send money overseas, nor can you incur such high costs. Without banks as the middle man, Fintech companies have come up to fix this problem by offering affordable rates for sending money and also fast transfers – in a matter of minutes!
Send money in your currency and the recipient receives it in their currency.
Let’s face it, paying off loans is not a bed of roses. Half of the time, you do not know what your repayment rate is and the other time, you spend dreading to go to the bank to repay your loan or even find out how much you need to pay. Fintech companies like CommonBond have come up with an innovative way to help students get out of this fix.
They pay off the borrower’s lender and then deal with the students at a more personal level. This works well the borrowers as they are assured of the whole repayment, and the borrowers can easily get all the information they need about their loans.
CommonBond also offers other services such as funding students in need and helping them identify job opportunities.
4. Mobile Payment
So you are a small business and have no idea how to go about receiving payments from your customers. How are you ever going to consolidate all those payments? Well, not to worry, Fintech companies are now helping small businesses operate like large companies all from the comfort of your tablet or phone.
They let you accept both card and cash payments once a customer has browsed your products, chosen what to buy and is at checkout. The customer then proceeds to receive a receipt either physically by mail or printed.
Have you watched one of those movies where you see stock traders huddled in a room trading and making lots of money from it? There are several Fintech companies that enable you to trade via their platform from your laptop or phone.
What’s better, is that they give you information on trading trends at the click of a button so you can have information on all the stocks you are trading and users can slowly build their portfolio.
Fintech is definitely here to stay. The rise of Fintech services is sure to grow in the next couple of years and we will see many businesses adopting Fintech services due to their accessibility, low cost and efficiency. This is good news for both business owners and customers, as they will be able to offer their services and goods at reduced costs.