Fintech: revolutionising the way we do business

 

 

Fintech might be still a relatively new phenomenon, but, already, it has radically changed the way we do business and in the coming years is set to do much more.  

The accelerating uptake in mobile banking, peer-to-peer (P2P) and omnichannel payments are all prime examples of how fintech firms, such as KoalaPays, are offering businesses and their customers much more when it comes to managing their finances.  

And, this is only the beginning. Hardly a month goes by when we don’t see a new services and innovations being brought to market by fintech firms committed to adding value for businesses looking to succeed in the marketplace. 

 

 

Cross border payments 

 

One of the biggest pain points for businesses has been the costs and inconvenience of sending and receiving cross-border payments, especially in different currencies. Fintech is providing more end-to-end services that are making this easier, cheaper and faster. Finally, the constraints of time zones and normal business hours have ended. Now it’s possible to do business with whoever you want, wherever you customer is, around the clock.  

In the case of KoalaPays, we constantly strive to give more choice, flexibility and functionality to our business customers. We already offer our clients the ability to hold more than 20 currencies at once, and we’re always looking to add more. 

 

 

Business has never been so efficient 

The two big benefits being offered by fintech are ‘accessibility’ and ‘speed’. That means efficiency, and an efficient business is a cost-effective business. Compared to older slow, expensive and bureaucratic banking systems, fintech is giving businesses the opportunity to automate labour-intensive tasks, cut costs and save time on a host of business processes. 

Additionally, by reducing or completely eliminating the need for bricks and mortar premises, fintech is allowing small businesses to access and compete in global markets. 

 

 

Upwardly mobile  

But probably the biggest innovation as a result of fintech has been the rise in mobile payment apps, along with scan-and-pay features. While this has been good for consumers, it has been even better for businesses who are able to give their customers more options when it comes to payments. As a result, they’ve seen sales and revenues accelerate through this ever-growing niche of e-commerce. A recent survey showed that mobile payments crossed the $1 trillion mark in 2019.  

Millions of people around the world may not have a bank account, but they have a Smartphone and this enables them to purchase and pay, opening up huge new markets for businesses in every conceivable niche. 

Fintech has become a key game changer for start-ups and entrepreneurs, making it easier to secure loans, manage payroll, and process payments.  

What does fintech have in store for businesses down the line is anyone’s guess, but here, at KoalaPays, we’re always looking at new ways of adding value for our business customers. Right now, we’re already looking at a new generation of features that will make it even easier for our customers to attract business, take payments, provide better customer service and manage every aspect of their business finances.  

How Blockchain technology is revolutionising financial services

 

 

Blockchain is affecting almost every industry sector. One area in which it’s having a bigger impact than most is banking and finance – especially when it comes to the new wave of innovative FinTech companies. 

To understand why, it’s important to understand how Blockchain technology works. Originally developed for Bitcoin in 2008, at its most basic, Blockchain is a digital ledger of economic transactions that can be used to record anything of value. Data is distributed across thousands of computers or ‘nodes’, and continually updated as transactions occur. Every node has an administrator, but because the database isn’t stored in any single location, the records are publicly accessible and verifiable.  

Significantly, the records can’t be controlled, or manipulated, by a single entity, so they can’t be hacked, or corrupted. And it’s this resilience and transparency that gives the technology its potential, especially when it comes to financial services.  

 

Four big benefits for banking and financial transactions 

Cost 

Traditionally, banking transactions involved intermediaries. Not only did this slow down the process of carrying out a transaction, it also meant that an extra layer of bureaucracy was added, which resulted in additional costs. Blockchain eliminates intermediaries meaning the cost of performing transactions is lower. 

 

Speed  

One of the other primary advantages of transactions being processed without intermediaries is speed. Fewer intermediaries along with fewer processes means faster transactions.  

 

Security 

Each transaction is recorded as a ‘block’ with an identifying ‘hash’ referring to the previous block. As each person in the network has a copy of the data, once data is recorded, it can’t be altered or erased without verification. This greatly reduces the risk of fraud. 

 

Efficiency 

Blockchain data is accurate and reliable. It removes the duplication of processes and paperwork, as well as the risk of error. Every process throughout the journey from payment to settlement becomes more straightforward and efficient. 

It’s for all of these reasons that Blockchain has become one of the key technologies fuelling the rise of FinTech and allowing the disruption of the traditional financial services sector. While these new FinTech firms have already developed the systems to benefit from Blockchain, traditional banking and financial service institutions don’t have the infrastructure. Most are playing catch up and are still at the early stage at adoption while firms such as KoalaPays are creating the next generation of products and services in order to bring better value to customers.  

 

Here are some ways that this is happening: 

Cross border payments 

Blockchain is not restricted by geography. It’s everywhere. This means a number of advantages when it comes to cross-border payments. With financial entities all over the world integrating Blockchain into their systems, it’s much easier to process FX and foreign payments. These have now become faster and less expensive than traditional cross-border payment systems such as Western Union. And because Blockchain does not require third party authorisation, the process is vastly accelerated.  

E-commerce 

Blockchain has big advantages for businesses too. Trade finance typically involves a lot of paper work such as purchase orders, invoices, credit notes, etc. While there are software packages designed to automate much of this, a lot of it still has to be done by hand. This can be extremely time-consuming and Blockchain eliminates a lot of this bureaucracy. Since it’s all done online, the need for duplication of admin and documentation is gone. All of the information can be integrated into one document, updated in real time and accessed by all parties on the network.  

ID verification 

One of the most tedious, but necessary, parts of online transactions is identity verification. This can involve a number of security protocols, such as getting an SMS from the bank, or having to undergo a visual ID check by video-call. However, Blockchain makes it possible to re-use identity verification for a number of services at once, reducing the need to set up new checks. Once you’re identified on the Blockchain, you shouldn’t need to perform another ID verification with someone else on the network.  

Blockchain isn’t just disrupting traditional banking, it’s creating a whole new type of banking that’s faster, costs less and is a whole lot more efficient.  

 

Here at KoalaPays, we recognise the importance of being at the forefront of tech, and we continue to improve our systems and services to be able to provide the most efficient solutions to our clients. 

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