Which Fintech solutions can SMEs use to grow

The modern fintech solutions leveraged by small and medium enterprises (SMEs) to expand and automate their business.

The idea of financial technology, commonly referred to as Fintech, was conceived way back in the 1950s. It has expanded, diversifying into various branches in its own right by constantly evolving from that time on. Throughout the decades, Fintechs kept a keen eye on what the market needed in each phase. Thereupon, they responded by innovating tools and technologies to back these needs.

Owing to their advanced operation mode, modern-day innovations like Fintech and eCommerce have faced defiance from their respective traditional alternatives such as banks and physical retailers. Over time, it becomes more and more apparent the need to integrate technology into their everyday grind to improve their flexibility and their clients.

The Fintech revolution

XanPay - which fintech solutions can SMEs and ecommerce leverage to grow their business

Today Fintech trends are targeting small businesses to revolutionize their way of operation by providing several innovative solutions to finance-related matters. Since 2013, small financial technology firms with less than 100 workers have raised more than $30 billion. In 2020, global fintech investment reached $44 billion, a 14 percent growth from 2019. That is an attestation that the Fintech market is expanding at a tremendous speed and the fantastic news for SMEs yet to board is that it still has a lot of potential opportunities.

What does it mean for SMEs and eCommerce? Undoubtedly, not all Fintech solutions are evenly created. However, at the very heart, Fintech firms provide modus for automating initially manual procedures, accessibility to customized financial products, and scope for handling financial activities without an additional workforce.

With improved access to business banking, small businesses and eCommerce stores can leverage Fintech to minimize expenses, maximize ROI and grow your business with a long-term vision. Here are five ways SMEs and eCommerce platforms can make the most of financial technology solutions.

1. Extending financial options

SMEs require funds to start and expand. In fact, almost 50 percent of all small business owners in 2018 stated that they needed external funding for their businesses. Banking institutions and Fintech firms have sought to address this immense market through diverse ways such as traditional SME loans, equity fundraising, revenue-based financing, and small business-fixed credit cards, which make it easier for small business owners to know their options.

Alternatively, Fintech firms have introduced other innovative methods for businesses to raise capital. Online financing might be the most significant game-changer for SMBs. In any case, demands for funding can occur abruptly and with utmost haste. Fortunately, the SMB and online financing landscape are enormous, and there are various Fintech solutions designed exclusively for this purpose. Leveraging AI and ML technologies, Fintech applications can efficiently facilitate loans for SMEs without a credit history. This allows startups to expand and develop further.

2. Online money transfer

Effective payment solutions have been demonstrated to be the core element in enabling small businesses to put on a solid challenge against their rivals. SMEs are no longer limited to only supporting certain types of payment methods. Today, regardless of whether you are running a food truck or selling handmade art, you can quickly and simply process online transactions using smartphones.

Initially, there used to exist a universal sense of cynicism against online payments. Most users could not comprehend how money could be sent through an online ecosystem. However, digital payment providers have managed to create solid trust among users through effective marketing techniques. Today, a considerable percentage of traders and business owners depend on Fintech platforms to complete transactions online. Owing to financial technology, customers now enjoy the convenience of transacting anytime from any corner of the world. XanPay's architecture allows your business to transfer money online in a seamless manner.

3. Automated accounting

Seamless financial operations and backing are crucial for the growth of any business, especially for developing startups. Precise knowledge of your funds enables you to make better decisions during budget allocation, taking a loan, or the possibility of making additions to your workforce. Regardless of this, nearly 50 percent of all small businesses lack an accountant. Fintech solutions have been developed to close up this gap. Although they cannot wholly handle a professional bookkeeper's tasks, they can minimize the accounting work volume.

Most advanced solutions come with automated softwares that manages invoices, payrolls, expenditure, and liquidity predictions. The sector is overcrowded with a variety of options for SMBs. For example, TeamPay is a Fintech firm that enables businesses to offer their workers virtual credit cards, monitor, and approve expenditure in real-time. Besides, the data collected by these Fintech platforms can help companies to learn consumer habits, and they can use it to drive powerful marketing campaigns.

4. Point of sale management systems

With lightning-fast data transmission accessible nearly everywhere, it is the perfect time for small businesses to integrate point-of-sale solutions that can tremendously boost their ROI and efficiency. The primary goal for any company out there is to generate profits. Some of the best POS management systems come with various advanced features that can help drive profitability. All products sold can easily be tracked from the time it was bought, location stored, and whether they are available through online or physical stores.

An efficient POS management system also helps cultivate a strong relationship with the customers. Retail is always a competitive business venture, and clients will choose a smooth shopping experience as much as they prefer fair pricing. Satisfied consumers are the main drivers of sustainable success; hence, business owners prefer a point of sale management tool that allows them to interact with the clients. A sound POS system will enable you to monitor Key Performance Indicators like the mean client sales, stock turnover, and the sell-through rate.


There are a variety of Fintech tools online to choose from, and obtaining many of them not only raises your expenditure, but there is a high possibility they will not be utilized to their maximum potential. For this reason, it is essential to determine your major business priorities and pick the most appropriate Fintech solutions.

It would be best to involve your staff when choosing these tools, provide training on utilizing them, and observe whether your business uses the tech and what advantages it presents. As technology advancement continues to balance things for small businesses, it's crucial to dedicate time and evaluate how Fintech can tackle various needs in your business and implement them to your advantage.

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