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Fintech in Business: What Services Do Companies Need and Why?

Pay for gasoline without leaving the car? Add a donation to purchase in an online store? There are many scenarios for online financial transactions, and the business that is the first to offer them to customers will gain an advantage in their niche.

Therefore, the traditional concept of “finance for banks, and banks for finance” is losing relevance. Today, the monetary functionality is turning into a basic add-on, and non-financial companies offer their own fintech solutions like lending and insurance.

Read below how fintech as a service can increase business monetization and strengthen customer loyalty.

photo credit: Edi Kurniawan / Unsplash

How Exactly Can a Business Use Fintech Solutions?

Splitting

Splitting allows automatically distributing money between sellers, whose goods and services the buyer pays for in one window. This helps to optimize the unit economy, simplify the work of accounting, and automate document flow. Suitable for marketplaces, aggregators, as well as companies with several legal entities, such as franchises.

Loyalty programs

If you complement the process of paying for orders with cashback, bonuses, and other elements of loyalty programs, customers are more likely to pay for purchases online and continue to buy from the brand.

Lending

The deferred payment method is more of a convenient service than a solution in case of a shortage of funds. As a result, the end-user gets favorable conditions and a new payment experience, and the seller gets an increase in conversion, the number of purchases, and the average check.

Acceptance of payments from legal entities

Fintech services will help avoid a hassle in the case of B2B payments as well – with their help, a business will be able to accept online payments from corporate clients and partners as easily as from individuals. This will increase the conversion of payments and optimize the accounting work.

Online tips

The functionality of non-cash tips can be useful for offline and online businesses: catering, beauty salons, food and grocery delivery services, taxis, and so on. This allows you to motivate employees and increase customer loyalty.

Remember, fintech can always adapt to the tasks of a particular business.

What to Choose – an Intermediary or Fintech Solutions Within The Company?

You can do almost everything yourself: brew coffee, paint walls and negotiate with regulators. In the case of financial technologies, the choice between insourcing or outsourcing depends on the needs of the business, its resources, and time. It is necessary to take into account not only the costs of IT infrastructure, licenses, personnel, but also the time spent on developing a solution, as well as the benefits lost due to deviation from the main course.

Let’s be honest: in-house fintech is expensive; so much so that even Apple implements financial solutions in partnership with Goldman Sachs. However, for hypothesis testing, as well as for deployment, especially with a guarantee of stability and reliability, it is better to look at the provider or reliable fintech software development company.

photo credit: Tezos / Unsplash

Final Thoughts

So, let’s summarize – how is fintech useful?

Scaling

At some point, the business audience will grow or you will need to add related functionality. Then it is important not to lose the speed of all processes – especially payment processing. Technological services will help with this and make scaling relatively cheap.

Acceleration

In today’s market, a quick start is very important: reducing time-to-market, that is, the time from the development of an idea to entering the market, determines the success of a business. Fintech is significantly accelerating this process.

Fintech brings many benefits to businesses. But to use them, you need to clearly understand what kind of results you want to achieve. Do you need to activate your client base? Contact a specialized supplier and implement a bonus program, rather than transfer your business to the distributed ledger. Do you want to radically change the approach to business management and go digital? Solutions in the form of a new payment form or the targeted introduction of digital services, most likely, will not give the desired effect.

Fintech is not a panacea, it will not help a company grow if there are fundamental problems at the core of the business. But competent integration of financial solutions can strengthen certain aspects of a business, and sometimes transform it completely.

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