Fintech can support businesses with faster payments and better use of data, says Khalid Talukder, co-founder of DKK Partners
Geopolitical tensions, rampant inflation and heavily disrupted supply chains are among just a few contributing factors that have left businesses across the globe facing uncertainty and instability. Particularly in the UK, the toxic climate has dried up funding opportunities for SMEs and businesses face a difficult landscape to navigate.
While businesses attempt to remain robust, rapid technological developments offer hope to businesses. They act as useful tools that can open up opportunities, drive revenues and ultimately, improve international relations.
For the UK economy to stabilise and grow, international trade and cementing fruitful overseas relationships will play a key role. To achieve this, a healthy and attractive marketplace should be showcased to the rest of the world. And an open and inclusive global financial landscape should be developed.
The fintech industry can facilitate both SME support and international trade. It can help businesses that are getting to grips with accessing, analysing and using data. And also assist less developed countries when finding their feet in the world of technology, to create an ecosystem that is financially inclusive and supports the payments sector while promoting international trade.
Data democratisation
Data is fast becoming an essential business tool. It offers the ability to analyse trends, forecast and make informed business decision. While it offers huge benefits, the vast plethora of data often means accessing, using and analysing information is a difficult task for individuals who are not technically trained.
The fintech industry can offer support and guidance to SMEs who may not have the expertise in data handling. This will allow them to improve expansion plans, understand global trends and receive insights into potential threats.
Ultimately, data can be used to identify and mobilise new revenue streams meaning businesses can better prepare for the future, which is even more important during times of economic uncertainty.
By allowing businesses access to data that can help inform their future decisions, SMEs can remain robust and support economic growth, attracting overseas investors and promoting international trade.
Financial inclusion
Not only can the fintech industry support SMEs, but it can also lend a hand to the less developed countries who are coming to terms with emerging technologies and the benefits they offer, for example improved financial services.
For international trade to improve, developing a worldwide ecosystem that speaks the same technical and financial language is vital. Financial inclusion is needed. And this means supporting countries that currently lack access to the same financial services that more developed countries enjoy day to day.
Integration across payments systems, better access to investments and general improvements in access to financial services will give businesses in other corners of the globe the opportunity to be involved in the worldwide business landscape.
Enabling payments
The fintech industry has been disrupting the payments sector for some time. The technology that is now at our fingertips can support this further, allowing businesses to trade more effectively by allowing global payments transactions to be sent and received seamlessly.
Managing payments when doing business internationally presents a barrier to trade and can often involve expensive fees. Lengthy settlement times can also leave merchants waiting to receive their money while customer delivery of goods is delayed.
Fintech providers that support open banking and embedded finance can help to develop an improved payments sector, bypassing card fees and lengthy settlement times while facilitating cross-border transactions.
In doing so, international trade can be promoted, creating a more seamless process for all involved. Ultimately, the fintech industry offers a variety of benefits for SMEs within the UK, as well as those worldwide.
Not only can fintech providers help support businesses looking to use technology to boost their operations, but they can help to improve the worldwide financial ecosystem, offering a more inclusive landscape by improving access to financial services and enhancing the payments sector.
International trade plays a pivotal role for governments and businesses worldwide and the fintech industry should be recognised as a key player in promoting international relations. Their technology and expertise should now be leaned on to create an improved and more seamless business landscape, worldwide.
Image: DKK Partners