Financial technology platforms are assisting small companies in all ways possible, may it be delivering advanced accounting software, providing insurance and business valuation services, or even financial management. A survey by Business Insider Intelligence states that small businesses, owing to smaller revenues, have hardly benefitted from the financial service providers. However, fintech providers are stepping up in serving the small businesses.
The tools that these fintech platforms offer are equipped with big data, artificial intelligence, and biometrics, and are relieving entrepreneurs of their financial worries. As a result, small businesses instead of being restrained by the lack of funds now get more time to expand their business. In addition, the reforms with regard to open banking rules have ensured the fintech startups with access customer data. This facilitates them to build new applications by leveraging the existing customer bases.
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Funding Circle, a fintech solution provider, claims to have financially helped 45,000 businesses across the UK, United States, and Europe since its inception in 2010. Also, an independent survey conducted by Cebr economics consultancy shows that 21 percent of the borrowers on the fintech platform were of the view that they could not have secured finance anywhere else. Although fintech solutions are believed to have an impact on traditional banks, trading of data between the two can facilitate innovation resulting in enhanced products for small businesses. The ability to make optimum utilization of this data can ensure a seamless loan application process for businesses along with better insights for fintech providers into the finances of their customers.
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