Paying for petrol without leaving the car? Add a donation to buy from an online store? There are many scenarios for online financial transactions and the company that first offers them to customers will gain an advantage in their niche.
Therefore, the traditional concept of “finance for banks and banks for finance” loses relevance. Today, the monetary functionality is turning into a basic add-on and non-financial companies are offering their own fintech solutions such as loans and insurance.
Read below how fintech as a service can increase companies’ revenues and strengthen customer loyalty.photo credit: Edi Kurniawan / Unsplash
How exactly can a company use Fintech solutions?
Splitting allows the automatic distribution of money between sellers, whose goods and services the buyer pays in one window. This helps to optimize the unit economy, simplify the work of accounting and automate the document flow. Suitable for marketplaces, aggregators, but also for companies with multiple legal entities, such as franchises.
Complementing the process of paying for orders with cashback, bonuses and other elements of loyalty programs increases the likelihood that customers will pay for online purchases and continue to buy from the brand.
The deferred payment method is more of a convenient service than a solution in case of lack of money. This gives the end user 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 also help avoid problems in the case of B2B payments – with their help, a company will be able to accept online payments from corporate customers and partners as easily as from individuals. This increases the conversion of payments and optimizes accounting.
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 way you motivate employees and increase customer loyalty.
Remember that fintech can always adapt to the tasks of a particular company.
What to choose – an intermediary or Fintech solutions within the company?
You can do almost everything yourself: make coffee, paint walls and negotiate with supervisors. In the case of financial technologies, the choice between insourcing or outsourcing depends on the needs of the company, its resources and time. It is necessary to consider not only the costs of IT infrastructure, licenses, personnel, but also the time spent developing a solution, as well as the benefits lost due to deviation from the main course.
Let’s face it: in-house fintech is expensive; so much so that even Apple is implementing financial solutions in conjunction with Goldman Sachs. However, for the testing of hypotheses, as well as for implementation, especially with a guarantee of stability and reliability, it is better to look to the provider or the reliable fintech software development company.photo credit: Tezos/Unsplash
So, let’s summarize: how is fintech useful?
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 help with this and make scaling up relatively cheap.
In today’s market, a quick start is very important: shortening the time-to-market, that is, the time from the development of an idea to the market, determines the success of a company. Fintech speeds up this process considerably.
Fintech offers companies many advantages. But to use them, you need to clearly understand what kind of results you want to achieve. Do you want to activate your customer base? Instead of transferring your business to the distributed ledger, contact a specialized vendor and implement a bonus program. Do you want to radically change the approach to business operations and go digital? Solutions in the form of a new payment form or the targeted introduction of digital services will most likely not have the desired effect.
Fintech is not a panacea, it will not help a business grow if there are fundamental problems at the core of the business. But competent integration of financial solutions can strengthen and sometimes completely transform certain aspects of a company.
This post What services do companies need and why? was original published at “https://www.noobpreneur.com/2022/03/11/fintech-in-business-what-services-do-companies-need-and-why/”