Fintech is the term used to describe financial technology, which includes technological innovations in banking, insurance, and healthcare. Fintech has emerged as a major driving force for value creation and transformation in the world economy. The state of fintech today is not just limited to banks or big companies but is gradually making its way into small businesses as well.
Whether you are a budding entrepreneur or an established business owner, it helps to know about fintech resources that can help you find ways to transform your small business.
Look Beyond Your Industry
There are many different ways in which fintech can be used for businesses of all sizes, including peer-to-peer lending, crowdfunding, and various apps. But you should also look beyond your industry for new ideas. If you’re attentive enough, you can tap into new trends and ideas that could impact your small business. For instance, if you are a construction company, you might want to research crowdfunding platforms that could fund a project you have been working on. If you’re an insurance company, you can explore how blockchain technology could transform your industry. Similarly, if you are an online retailer or even a brick-and-mortar store, consider how financial technology could assist with tracking products throughout their lifecycle and helping ensure they reach the correct customer.
Understand Industry Verticals
Fintech is all about technology, big data, and information. The field focuses on leveraging technology to create value for your company. A good place to start when looking at a new technology that may be beneficial for your business is to identify which industry vertical you want to work within. Because different industries have different characteristics, they might use different types of fintech products and services.
For example, if you’re in the consumer goods sector, fintech can help with supply chain management and operations. Small changes can make it easier to streamline processes, reduce costs, speed up delivery time, or improve customer service. If you’re in the financial sector or another sector that involves transactions between two or more parties, then applying fintech could help with trade solutions and cutting transaction costs.
Once you’ve identified which industry vertical would benefit from fintech the most, it’s important to identify any pain points that need to be resolved. Of course, you should also look at potential opportunities.
Consider Your Business’s Future
While your main focus might be on using fintech to help you with your business today, it also helps to peer into the future. With more and more data science students pouring into the workforce, and entrepreneurs such as Kirk Chewning offering fintech consultations, the field is guaranteed to evolve further. You should look at what financial options should be available to you later on so you can prepare now. This way, you can keep your services up-to-date and get ahead of your competition
Fintech has the potential to transform business, economics, and society. It offers a variety of solutions and services that are more efficient than traditional methods, which can be difficult for small businesses to adopt on their own.