With a never ending stream of FinTech stories making the headlines we look at what it is and how it can benefit your business.
What is FinTech?
FinTech is the blending of the words Financial Technology. With technology in the name, FinTech is all about providing digital solutions to analogue problems.
For example, before digital remittance services like TransferGo existed, the primary means to send money abroad was to pop into your local bank branch and arrange the transfer through there.
Fully autonomous and far cheaper and easier than visiting your bank, the above example is just one of the many reasons why the FinTech sector is booming.
How will FinTech help my business?
At a very fundamental level, if you are a retailer or business of any size you most likely already use FinTech. From debit and credit card terminals to online payments for instore items, FinTech in practice is really nothing that new.
However, with the advent of Mobile Phone payments, crowd funding, the huge growth of app usage and big data, there is a lot you can do to help your business grow and make it future proof.
Fintech for Funding
One of the hardest things to do when starting your business is raising enough capital. In the past your first point of call would have again been your local bank. However, with crowdfunding platforms like crowdcube, you can now secure investment from fellow professionals, as well as members of the public if they see your business taking off.
According to Crowdcube’s online statistics, businesses from the tech, food and drink and retail sectors have all benefitted from £186,253,025 across 301,236 investors. The FinTech company Monzo raised £1 million in just 96 seconds.
FinTech for Customer Experience
As more and more shoppers leave the high street for online, you need to make sure that your retail experience is as enjoyable and efficient as possible.
Making use of burgeoning mobile payment applications such as Apple Pay and Android Pay as well as ‘buy now pay later’ systems that companies like Uber use is one way to cater for those who don’t like to carry cash or pay by card.
FinTech for Data Insights
One of the big bonuses of FinTech is access to big data. Looking at who uses or purchases your products at what time, from what location, from what device and what they do after is all gold dust that can massively help you re-organise your business.
You may find a new opportunity that you never would have, without access to the big data that FinTech solutions provide.
FinTech for savings
After Brexit led to a fall in the value of the Pound Sterling, it became clear that having savings in different currencies is a wise business strategy. Coinbase.com is a great FinTech application that allows for the buying and selling of digital currencies such as Bitcoin and Ether.
It may prove a sound investment to invest cash reserves into those or any other digital currency, many years down the line.