FinTech is a form of service that leverages technology, software as well as hardware, applied to aid financial services. FinTech is transforming the financial sector all over the world. Financial technology is often more efficient, unobtrusive, less expensive and better performing than traditional financial services. FinTech is transforming payments and payments processing with frictionless transactions–opening new doors for global remittances; boosting the efficiency of financial institutions; streamlining business processes with digitisation; broadening access to financial services for the unbanked.
GCG Asia’s fintech expert Dato Josh Choo predicts that FinTech will play an important role in every aspect of our lives in the future–from how we buy products and services to how we invest and how we manage and store our money. “FinTech is a term that describes the use of innovative technology in financial services to increase user experiences, improve the regulatory environment as well as increase efficiency across all departments in the financial industry,” GCG Asia’s Dato Josh Choo says. FinTech is a blend of diverse techniques such as FinComputer software, blockchain technology, Internet of Things and cyber security. All this has been combined with modern communication methods such as social media and blogging which has allowed FinTech to keep up with both the latest trends and techniques in development.
“While FinTech companies have brought to the forefront innovative FinTech solutions to real-world issues, a majority of these FinTech companies are not providing broad-reaching financial products. Not all FinTech providers target small/medium-sized enterprises (SME) or non-profits, and not all focus solely on increasing their customers’ revenue for current purposes but also tend to focus on innovation in customer experience and enhancing business operations,” says GCG Asia’s Dato Josh Choo. He explains that while some FinTech companies help SMEs and non-profits, they tend to operate on a much smaller scale than the larger FinTech companies and thus, the FinTech industry is going through some changes. “Not only are the giants’ starting to take notice of the little start-ups, but the ventures are also beginning to collaborate to drive innovation and become more than just one-dimensional providers. This collaboration is providing a broader variety of financial products and services. Instead of focusing on large enterprise customers, these FinTech companies are now targeting small and medium-sized enterprises (SMEs) and non-profits as well,” explains GCG Asia’s Dato Josh Choo.
GCG Asia’s Dato Josh Choo notes that small businesses are now embracing FinTech as they look to integrate digital procedures, secure processing, payment solutions and network support. Today’s FinTech revolution is a boon for businesses, and particularly those that don’t have access to traditional banking services. Small businesses need FinTech to compete with larger businesses in the marketplace and attract customers and leads for future marketing campaigns. While FinTech has long been used by big businesses, the evolution of the sector over recent years has seen applications such as Beam, Square, Skip and PayPal become prevalent in small businesses. “Small businesses are seeing financial products as a competitive advantage at a time when demand for FinTech products is seen to be increasing across companies of all sizes and industry sectors,” explains GCG Asia’s Dato Josh Choo.
FinTech is no longer just for big banks and mainstream companies. Start-ups and smaller competitors in a variety of industries are jumping on the wave of innovation with FinTech. The FinTech trend is set to continue to grow and thrive with more people and companies joining our ever-growing FinTech lists. With new FinTech start-ups cropping up almost weekly, it’s easy to get overwhelmed with all the opportunities available. FinTech has become an indispensable part of just about every business.
“FinTech is not a magic bullet and shouldn’t be treated as such. A management style that emphasizes a solid foundation, onboarding customer effort leading to exponential growth and continual data harvesting and analysis is essential if you want your FinTech start-up to succeed,” GCG Asia’s Dato Choo says.
Small businesses need access to the information necessary to optimize their activities. FinTech is a great way to facilitate this access. From internet-based financial portals to mobile banking apps, FinTech has made a huge impact on every aspect of how small businesses operate today.
Small businesses are the heartbeat of local economies. Not always the biggest, but often the most important in terms of driving employment and community spirit. The FinTech sector is increasingly becoming aware of this important role played by SMEs. This is being reflected in new services and offerings designed to help small businesses thrive. Here are just three examples that GCG Asia’s Dato Josh Choo thinks show how Fintech can help support small businesses and local economies.
1. Lending and funding
FinTech corporations allow start-ups and small businesses to raise money with ease. FinTech is a new way of raising money for your start-up. Not just traditional banks or venture capital firms, but also angel investors, co-working spaces for start-ups, and many more have begun to participate in financing start-ups. FinTech is a type of technology designed to increase the speed at which new money is accessible via crowd-funding, loans, or advances towards a project. FinTech can vary in terms of its service but an important characteristic is the transparency it provides. In contrast to traditional loans or deposits which are subject, according to GCG Asia Dato Josh Choo, a start-up may be too small or just spending too much time on paperwork, which is how FinTech companies can come to the rescue. These companies have provided so many valuable services that are now available to small businesses around the globe.
2. Payments just became easier
Payment gateway solutions have become an essential part of any business that operates globally. Payment gateways simplify the way companies collect funds from their customers for their commercial and personal activities. They enable smaller companies to handle multiple payment card numbers for customers, allowing them to process a diverse range of financial transactions in a simplified manner. Payment gateways work by collecting information from your customers about their payment methods and placing the proper information on a single interface.
That means your website becomes a gateway for all your customers wishing to make payments easily using secure digital methods such as e-wallets and mobile payments. GCG Asia’s Dato Josh Choo recommended that your business should also be ready to accept other forms of digital payments such as wallet payments and mobile payments. The use of FinTech tools will help you in setting up these systems. If you run an offline small business, then the latest FinTech tools can help you get rid of old and bulky payment machines. FinTech is a relatively new term that refers to the use of innovative new solutions and techniques leveraging technology and digital solutions to solve problems using the blockchain network.
3. Connecting with stakeholders
FinTech generally refers to the use of financial technologies such as mobile payments, loyalty programs, or online bill paying to improve a company’s bottom line. Among many other things, FinTech helps consumers get access to better products and services than what they get from brick-and-mortar stores. It does this by using data and analytics to inform customers about the best options available for them. The FinTech revolution has changed the way that companies interact with their stakeholders, but it isn’t just companies that are benefiting from FinTech. Consumers are too. Small businesses don’t always realize how useful it is to ask their peers for feedback or to engage with their customers in new ways. While FinTech is helping small businesses grow globally, GCG Asia’s Dato Josh Choo tells us that streamlining communication, reducing costs and increasing accessibility to consumers all around the world is now possible.
“Technology can be an important part of every small business; it can be used for better customer service, it can be used for cross-selling, and it can be used to help the business grow faster. However, just like everything else in life, there are two sides to technology. On one side, you have FinTech — applications that help entrepreneurs and small businesses with their finances. On the other side, you have traditional banking that offer commercial services that come at a higher cost. Keep in mind both pros and cons of each,” advises GCG Asia’s Dato Josh Choo.
In sum, GCG Asia’s Dato Josh Choo concluded that FinTech has opened a whole new world of opportunities for small businesses. They can now offer more and better services at a reduced price. “But, if you want to succeed in your business, you must embrace technology and stay up to date with the latest FinTech developments. It is one thing that many businesses struggle with and can make it hard for your business to grow or stay competitive, something which not many people take into consideration,” said GCG Asia’s Dato Josh Choo.