Web: How FinTech is Changing the Game for Microbusinesses

November 2018 by: From The Web

The FinTech ecosystem is a financial evolution in itself. Right from money transfers to personal loans, from account management to asset management, FinTech is rapidly making its way into the lives of the tech-savvy microentrepreneurs of today. Just a few years ago, the only way to start a business was to approach a bank or an investor for financial assistance. Thanks to FinTech, the micro or small businesses now can choose to no longer go through the conventional methods to get microloans for starting, running or scaling up their businesses. FinTech companies with their range of financial products are offering easy and affordable options to them. Let’s delve deeper into how FinTech is all set to change the world of small business owners.


3 Ways FinTech is Boosting the Growth of Small Businesses


1. Digital Lending


Microbusinesses need microloans to either start, run or scale up their business. If you are an entrepreneur, you have probably experienced the difficulty in dealing with traditional financial institutions for getting a personal loan for businessmen.


Micro and small businesses have always played an important role in the economy. Ironically, traditional financial institutions are not very big on lending to them because the amounts they require are small and their activities are inconsistent.


Additionally, the conventional loan application process requires an endless list of documentation with high turnaround time, plus numerous visits to the bank. The advances in technology have potentially put an end to the monopoly these banks have enjoyed since time immemorial.  


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