Fintech, or financial technology, is a relatively new industry quickly gaining traction worldwide. Fintech companies are shaking up the traditional banking system with innovative new payment solutions that are more convenient and cost-effective for businesses. Let’s look at how fintech is disrupting banks for the better.
Business Payment Solutions & Cutting Out the Middleman
This is one of the most significant benefits of fintech. Banks have long been in the middle when it comes to transactions. Still, fintech companies can do away with this part of the financial system by creating automated peer-to-peer payment systems through secure APIs—and yes, these capabilities are already available in innovative new business payment solutions.
Fintech companies can offer their services with increased security because they leverage reliable encryption and secure communication and storage protocols. Fintech companies have experts in web security instead of employees manning banking branches, so they can make good use of their expertise to ensure that sensitive financial data is always safe and easy to access. Banks offer security by virtue of their status and vast resources, and they make secure payments as a part of their traditional service model; banks are the legacy version of secure ledgers.
Lower Fees for Companies & Consumers
Fintech companies can offer their innovative payment solutions at a much lower cost than banks because they don’t have the infrastructure and overhead that banks do. Instead of having branches worldwide or needing employees to staff these branches, fintech companies use internet technology for both customer service and transaction processing.
Payments companies like Pateno handle the automation and secure API protocols that banks would typically accomplish themselves as trusted intermediaries. But security and automation capabilities bypass the need for banks’ traditional transaction security. Doing so allows fintech companies to slash prices for that essential service.
Market Development & Efficiency in Financing or Operations
Efficient Access to Capital for Small Businesses
Fintech provides even more improvements to businesses because the companies in this industry have created new ways for small businesses and startups to access capital. Loan management systems can bridge businesses and lenders with automated and secure repayment channels.
They can more efficiently manage principle or interest payments brokered or owned by different banks and other types of lenders. That means personnel using company time for communication with borrowers less, and less time out of your day with multiple banks.
Faster Transactions & Deeper Analytics
These innovative technologies are also able to improve transaction speed, and transaction records access for businesses. Because fintech companies can use technology for both transaction processing and data access, they can offer their services quickly and transparently—and this is a big deal for businesses seeking competitive advantages in the marketplace.
Fintech companies have several unique strengths that give companies more options than over-reliance on traditional banking.
It’s important to note that companies like ours aren’t here to subvert banks. Many of our solutions integrate banks’ essential services. Our fintech solutions streamline traditional services to make your payments more manageable. Fintech companies, in general, can create new ways for businesses to access capital and improve operations with their transactions and financial analytics, granting a competitive advantage versus less technically advanced competitors.
Pateno is the only business payment solution you will ever need. Our innovative payment solutions ensure a more streamlined, secure, and flexible way to transfer money. Via our API technology, you can initiate payments from existing web pages, portals, and apps, scaling your capabilities as your industry changes. From tip disbursement to loan management payments, our highly intuitive and simple-to-use system can be easily integrated, instantly enhancing and streamlining your money transfers. Contact our sales representative to learn more today.