Many businesses have seen the worst period in their operations this year due to COVID19 read about this here, it has resulted in global economic recession meaning a significant reduction of markets and consequently revenues, this has contributed to a good number of businesses shutting down while others restructuring their operations. Small businesses experience the worst from COVID19 effects because of their low capital and wobbly position in the market, however, some are adopting new technologies that present them with the opportunity to grow even in the worst business environment, one of such technology small enterprises are adopting is the fintech learn more about fintech on this page. The use of fintech or financial technology in small businesses has enabled them to promote speed, secure and efficient transactions the qualities responsible for developing a positive user experience that prompts customer loyalty to the businesses. There are many advantages of using fintech to small enterprises besides positive user experience, this article outline some major benefits small businesses will enjoy if they use fintech appropriately.
Among the major benefits of fintech to small businesses is its ability to promote business efficiency in its day to day operations, the effectiveness results from increased speed of transaction, a considerably high numbers of transactions per given period, and reduced chances of human errors among other things, the consequences are low running costs, increased savings and high revenue generations something small businesses seriously need to survive the current cruel economic conditions and for future growth.
The other reason why small businesses need to use fintech in their business approach is the ability to collect critical data, fintech makes it possible for small enterprises to access data that can be analyzed to give marketing insights and show how the business is performing at any given moment, this information is important because it can be used to identify new marketing opportunities, spot high risks investments and assist in designing new marketing strategies for small businesses, the information fintech collects helps managers make informed decisions which make the always ahead of their rivals.
Fintech has promoted ease of access to credit to many small enterprises something they need to facilitate their growth, support their daily operations, and compete with major businesses in the market, the ease of access to credit has been made possible by the banking sector massive investment in financial technology that allows small businesses to access credit fast, with bank sector using fintech, the speed of credit processing has been made digital and processing time has been reduced drastically facilitating quick access to needed finance, with internet small businesses can access credit from the bank from anywhere on earth an efficiency that has made a good number of small businesses to integrate fintech in their business model. Those are some reasons small businesses should use fintech.