The entry of fintech into the SME sector started with the introduction of automation tools to get basic tasks done. For example, financial bookkeeping or transaction record-keeping were some of the things which were digitized, thanks to the new fintech tools. Most SMEs slowly started embracing more fintech innovations primarily because they were cost-effective and helped with data accuracy.

Let us look at how fintech has revolutionized scale in the SME industries.

1. Facilitating Bank Lending

Traditional banking processes for loan disbursements take time. But ever since the introduction of technologies like internet banking or P2P lending, micro-entrepreneurs can secure bank loans more seamlessly.

2. POS Management

The Point of Sale (POS) management system is by far the most innovative and helpful solution, which helps SMEs manage their accounting, sales, and transactions. It allows business owners to collect valuable customer information besides facilitating a smooth sale.

3. Cloud-Based Cash Registers

SaaS and cloud-based cash registers are less expensive and bulky than traditional billing systems. It makes the entire sale experience smooth for both the seller and the customer.

4. Mobile POS Solutions

The introduction of mPOS or mobile POS machines has made payments hassle-free for customers and businesses. This means that a farmer can also purchase grains and fertilizers through a local distributor using a Smart Card without having to withdraw cash.

5. Enhancing Customer Service

Innovating software to enhance customer experience is slowly making its way into the SME sector. Direct payments from the customer to the business’ bank account are a great example.

6. Solutions Promoting Loyalty

Innovative technology, machine learning, artificial intelligence, and gamification have made customer loyalty possible. For example, chatbots or customer chat services that allow instant resolution of queries significantly improve customer experience, promoting loyalty.

7. Going Digital

Everyone in the 21st century relies on online data for making consumer decisions. Fintech has helped SMEs shift to digital solutions. Be it online shopping or banking; these solutions focus on bridging the divide between the consumer and the business.

8. Omnichannel Banking

The omnichannel banking experience allows SMEs to leverage multiple banking channels like print, mobile phone, or desktop applications. They can check and manage banking information at the tip of their fingers.

9. Digital Lending

Fintech has revolutionized digital lending. Who would have imagined that you could apply for loans in a few steps sitting in the comfort of your home? It is now possible to do that and much more, thanks to innovative fintech solutions in the lending space.

10. Data Sharing

APIs or Application Program Interfaces have a huge role when it comes to fintech companies contributing to SMEs. APIs allow service providers to share relevant data to enhance customer experience. It also promotes open banking ecosystem platforms.

Here, we have listed just a few contributions of fintech to the SME sector. Fintech has caused a revolution, thanks to innovative tech solutions, which aim to change the face of financial solutions and steer the growth of SMEs in the long run.