Answer one question in all honesty. Would you buy something online from a store that has no online payment system in place and you will be required to actually go to an institution to make the payment after which the product will be dispatched to you? Would you?
This question was posed to 980 followers of my blog on finance and technology and the majority of them declined. Obviously, because today technology especially that is related to financial process acts a great leveler. As a result, the consumer today does not care if the organization he is dealing with is a small one, medium one or a larger corporation; he demands the same thing from a small business as he expects to form the larger one.
The mobile phone:
Another catalyst of the Fintech movement is the mobile phone and the various applications that it feeds on. Today, it is so easy for people to access a hell lot of information relating to their financial portfolio that was hitherto not available at their fingertips. A routine visit to the bank, financial institution or a financial consultant was the order of the day while taking out a perfectly working day but today people can choose their own financial portfolio, check their balances, open accounts and even transfer big sums of money while doing mundane jobs.
For instance, I indulge in small trading of the things that I handcraft from home and while my customers pay me online to my mobile wallet I pay my suppliers through instant online transfers that help them get cash in real time. I do all this even while my dishes are being washed in the washer and the food is getting cooked in the oven!
Did you know that businesses that do not accept online payment can be out of the league soon?
Surveys have conclusively affirmed that small businesses who have still not adopted online payment methods cite cost as a primary barrier to card payment processing. Such businesses that do not follow the latest trends are at a risk of being eliminated because they will miss out on a lot of customers who today insist that payments be made online only.
We are at the threshold of change!
Fintech is only in its nascent stage now. We have a long way to go still. Having said that it is a welcome change that transfers and other financial processes are now not only easy and convenient but also cost effective!