In the last almost decade, financial technology has been a significant change-maker in the overall economy. For one, “fintech” has substantially made making payments and managing financials convenient for most customers, and had been a key contributor in making the resulting travel restrictions and community quarantines from the recently concluded Covid-19 pandemic much more tolerable.
According to the World Bank, the pandemic had led to a significant increase in the use of digital payments. In low and middle-income economies, over 40% of adults who made merchant in-store or online payments using a card, phone, or the internet did so for the first time during the first year of the global health emergency.
On the other side of the coin are the businesses who, through including online or mobile payments as a means to be compensated for their products and services, have opened up themselves to a larger market just by digitizing how they are transacted with. But that’s not all.
Through platforms like Black Banx, businesses are able to make transactions beyond the countries they are based and operate in with ease. Via the borderless banking solutions from the London-based company, they can open their business to international markets, hire talent overseas, and opt to work with suppliers that offer them more affordable pricing.
As previously touched on, there continues to be a global shift toward digital transactions, and businesses, including small and medium enterprises, will need to offer fast and efficient payment methods to customers to remain competitive.
In fact, according to recent findings by Pew Research, 41% of Americans say that they don’t purchase anything with cash within their typical spending in a week. This is up from 29% in 2018 and 24% in 2015.
By working with platforms like Black Banx, who allow form transactions via 28 FIAT currencies and 2 crypto currencies (and counting) SMEs are able to lean into this continued shift to digital, and begin to include digitally inclined individuals to the total customers they serve.
Apart from reaching out to a large target market who may prefer making digital payments, fintech services like those of Black Banx’s also significantly improves the e-commerce experience for existing customers by reducing friction during the checkout process. It’s easier than ever for customers to pay for goods and services, and businesses can accept a variety of payment methods.
Often a step ahead, Black Banx is one of very few banks who continue to future-proof digital payments. The company offers crypto currency as a payment and deposit method, so that customers who prefer paying with digital currency or companies who want to be paid in a similar manner, can send or receive it in that exact manner without the stress of converting the money to of from traditional currency themselves.
Inventory management tools make it easy to track your inventory levels and automate the order fulfillment process. Shipping and logistics solutions can help keep shopping costs low. Plus, customers can track their packages with real-time shipping updates.
Receiving payments and making transactions digitally, accounting is another. With that, fintechs also provide solutions that can help businesses streamline their monetary processes. Additionally, and just as important, fintech platforms like that of Black Banx also offer real-time financial data and insights that can prove invaluable in business decision making processes.
The software can track the status of incoming and outgoing transfers in seconds, assign multiple company users to manage and access accounts, automatically categorize transactions and create financial reports, and simply reduce the risk of errors in your bookkeeping. SMEs can also use accounting software to send invoices and payment reminders to clients.
Newly established and small businesses require capital to grow, and it is often challenging to obtain financing from traditional banks. In fact, according to a recent report from the Boston Consulting Group, SMEs worldwide have an estimated $5 trillion in annual unmet credit needs.
This is seemingly to change, as the same report sees B2B (business-to-business) solutions dominating the growth of the fintech industry in the next several years just as customer payments had in previous years. Among the B2B solutions expected to be increasingly available are loan and capital offerings with more flexible limits, making them ideal for SMEs who cannot meet the minimum amounts required by traditional banks.
For now, companies like Black Banx enable business account holders to set their own account and card limits, empowering them with a monetary flow that allows them to operate their business with little hindrance to needed expenses.
All in all, the impact of fintech on SME will become increasingly evident in the near future.
As fintech has transformed the way businesses obtain money, manage their accounts, process payments, and make data-driven choices, companies like Black Banx who continue to push the envelope in fintech innovations are ready to ensure that companies are ready to keep up with any and all the upcoming changes.
All they need to do is embrace the opportunities presented by the likes of Black Banx and harness fintechs transformative potential to generate growth, improve customer experiences, and establish long-term success.