Article by BizX co founder and CEO Bob Bagga featured in the Bankless Times.
The Top 3 Financial Technologies Disrupting Small Business Markets
Most of the fintech innovations we read about on a day-to-day basis only concern major financial firms, banks, and stock markets. There is, however, another side to financial technology, which some would argue has a greater impact than its enterprise-level counterpart.
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In most cases, these financial technology solutions are created by entrepreneurs who have recognized an unmet need in their own business and go on to launch a new venture to meet that need for more than just themselves. And cash flow, in particular, is a big unmet need for small businesses.A U.S. Bank study indicated that 82% of businesses fail due to problems with cash flow. But today, new financial technology solutions can help businesses grow their customer base, increase their cash flow, and perform as their larger competitors do.
Here are the top three financial technology solutions that are disrupting the small business market in a greatly advantageous way.
1. A Platform for Trading and Cash Flow
While cryptocurrencies are all the rage, very few business owners can practically leverage these new forms of money because they still require an infusion of cash. However, business owners can make use of private currency, an alternative currency innovation.
Private currency is an amazing revolution because it makes it possible for business owners to get things they need with what they already have, often using things they have in excess.
By accepting a shared currency as payment, participants in the network can generate incremental revenue. This revenue is, in turn, spent within the network on other things the business needs.
2. Reduced Fee Payment Systems
Payment giants like Amex were first to market with mobile payment solutions built for small business owners. E-Commerce solutions like PayPal also worked quickly to create ways for small to midsize companies to transact with customers and vendors. However, these early entrants charged exorbitant percentages and fees to process transactions, reducing their usefulness for small businesses.
3. Enterprise Platforms at Small Business Prices
There are also a growing number of financial, accounting, and operational technologies launching platforms that can help businesses monitor and track every aspect of their operation, much in the way that enterprise-level competitors do. A small boutique on Main Street can now have tools similar to the big box retailer at the other end of town.
The Future of Fintech for Small Business
We can expect to see a continued investment in technologies that enable small businesses to grow their operations. As the number of small businesses using these technologies grows, it will drive an increase of investment capital and continued innovation into the space. Best of all, as small business owners and innovators work together to improve their industries, the benefits will be experienced by everyone.
See how BizX is helping to drive that innovation to improve Fintech.
