{"id":2287,"date":"2017-08-07T16:08:07","date_gmt":"2017-08-07T20:08:07","guid":{"rendered":"https:\/\/www.sage.com\/en-us\/blog\/?p=2287"},"modified":"2026-02-12T05:40:20","modified_gmt":"2026-02-12T10:40:20","slug":"the-small-business-owners-guide-to-fintech","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-us\/blog\/the-small-business-owners-guide-to-fintech\/","title":{"rendered":"How fintech is helping small businesses grow"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tMoney Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tHow fintech is helping small businesses grow\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"\"\t\t\t\tCarolina Sanchiz<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n

The fintech industry is a hot topic right now in the business world. Despite the popularity, it\u2019s a term many people don\u2019t quite have a handle on.<\/p>\n\n\n\n

Technology companies that are disrupting financial sectors such as mobile payments, money transfers, loans, fundraising and even asset management are part of the fintech ecosystem. Financial services doesn\u2019t just involve the tech world it is making its way into the lives of the tech-savvy and sophisticated customers of today, and this is what fintech does.<\/p>\n\n\n\n

Why does Fintech matter?<\/h3>\n\n\n\n

Fintech is an area that is drastically changing how we live and how we do business. The traditional model of a new business turning directly to its bank and\/or a conventional investor is no longer the only way to start a business.<\/p>\n\n\n\n

Thanks to new fintech companies, there are several affordable options for entrepreneurs to set-up their business and scale-up.<\/p>\n\n\n\n

Crowdsourcing, for example, allows people with big ideas to get funds fast and efficiently from people they have never met. Transferring money across borders is another area that is being reframed by innovators. Those are just a couple of ways in which fintech has made it easier and cheaper to do business. Now let\u2019s take a deeper dive into how fintech is changing the world of small business owners.<\/p>\n\n\n\n

How Fintech changing the small businesses world<\/h3>\n\n\n\n

Despite their important role in the economy, SMBs used to be considered unqualified for funding by financial providers. Traditional banks can be opposed to lending because the loan amounts are small and the activities can be inconsistent. Small businesses can handle financial affairs much easier nowadays and fintech companies have become the bridge between the SMBs and the banks. They can serve SMBs with innovative products and service offerings. In serving small businesses, fintech companies provide the technology and transparency that banks don\u2019t have.<\/p>\n\n\n\n

The fintech boom for small businesses is just getting started. The primary barrier to entry into processing card payments has a cost. A recent study from Visa found that if small businesses in 100 cities switched to all-digital payments, these cities could generate $312 billion in revenue per year. By turning a mobile phone into a point of sales system, millions of businesses and individuals now have the chance to manage their cash flow better and take payments.<\/p>\n\n\n\n

Four ways fintech can benefit your small business<\/h3>\n\n\n\n