Since the Covid-19 pandemic, the world has made a radical shift to digital processes, even when it comes to fintech as a service. Due to the global drive for everything digital, many nations are aiming for a totally cashless society.
They are making use of these digital purposes, including financial technology, to achieve this purpose. Financial technology, aka Fintech, is a new technology developed to help financial services achieve their objectives.
In this post, we’ll take a look at what Fintech is, and how you can save money by outsourcing work through Fintech.
Let’s get right into it.
What Is Fintech?
Fintech aims to help consumers or financial institutions deliver financial services in newer, faster, and smoother ways than what was traditionally available. For instance, in the past, if a boarding student needed money from their parents, they would need to write a letter or a telegram.
Then they would wait for the parent to receive their letter, and then send the money through a relative or through the post. But today, a student in need only has to call their parents, and who would then transfer the money to the student. That’s a very simple picture of what Fintech can do.
With Fintech tools and services, companies and businesses are working on improving, automating and streamlining their financial processes. From innovative payment technology to virtual cards, fintech is moving forward. So because of this progress, many business owners have chosen financial outsourcing as a needed business strategy at this point. So while they focus on making innovations to grow the business, the outsourcing fintech team can handle the financial operations.
One reason to outsource work through Fintech is that it will save you good money. But if you’re not sure how to save money on outsourcing work through Fintech, we can help you. In this post, we will tell you how you can save money on outsourcing work through Fintech.
Three Ways to Save Money on Outsourcing Work Through Fintech
You can boost your business performance by getting a proper Fintech outsourcing partner. When you do this, you can save yourself some money. Here are three ways that you can save money on outsourcing work through Fintech.
#1. Employing Gig Workers and GigPay
In the digital world we’re in, Gig workers are beginning to occupy a large space in the global workforce. Thanks to the pandemic, people have discovered a way to remotely work and earn good money while paying attention to the home front.
Gig workers prefer to get paid immediately when they finish their work. Paying Gig workers in real time creates the needed incentive that pushes them to work better. This increases productivity in the business. Thus, many business owners have found it more profitable to do the following:
- Hire Gig workers
- Partner with a third-party digital platform
- Focus on building the other aspect of your business
#2. Use Real-Time Payments
Real Time Payments (RTPs) give businesses and consumers immediate access to their funds and does so without risk. With RTPs, you can reduce the expense you incur than if your business employed older forms of payment.
RTPs involve the immediate transfer, access, settlement and reconciliation of funds. Older payment methods like cheques, ACH, and EFT take longer to reconcile or incur high costs for processing. But RTPs are different. They give your business immediate access to their funds immediately; without risk.
RTPs are easy to access, cost effective, and are not too difficult to use. With RTPs, you can be one step ahead of the competition, and this brings a lot of benefits to your business. You can learn all you need to know about RTPs and why they are a powerful tool for your business from a previous article.
When a Fintech platform implements real time payments into your business’ payment ecosystem, it provides an easy-to-use platform that gives immediate access to funds without heavy fees. With RTPs, you also get rid of the unattainable minimums, and lengths of time and processes that it takes to access funds under the older, traditional forms of payments.
#3. Integrate a Buy Now Pay Later Model
Did you know that about $34 Billion worth of merchandise got abandoned in carts in 2018? With statistics like this, it means that most consumers who feel like they cannot afford any product do the next best thing they feel they can do – abandon the product. So how can your business get past this problem? Adopt a Buy Now Pay Later (BNPL) model.
Many consumers have complained about the high interest and debt products that traditional products like credit cards bring. Thus, Fintechs platforms have come up with a solution that deals with these growing concerns by providing alternative lending options. This is where the Buy Now Pay Later (BNPL) model comes in.
BNPL helps consumers to manage financial strain and gives them quicker access to bigger ticket items. It does this by cutting the cost into installments. So where consumers would have abandoned the product, BNPL allows them to purchase the items they want, and budget installments or repayments until they pay off the full cost. This helps them to manage cash flow and avoid costly interest rates and penalties for late payment that are close to credit cards.
If your business partners with a BNPL fintech lender, it will give your business access to a larger customer base, thereby increasing your business sales.
If your business is a startup company, you want to focus on handling your business operations. This is why you should consider outsourcing work to payment platforms that will use Fintech tools and services to improve, automate and streamline processes related to finances for your business.
At Berkeley, we are a payments-as-a-service platform that provides Fintech Enablement services. We can take care of the backend tech payment needs of your fintech business so that you can focus on other matters. We will enable all the financial services capabilities that you need to issue cards, transfer funds, and load accounts – all in real-time.
With competence, we will ease the workload from you and supply the labor and competency to handle your business’ payments technology. We will counsel you on all you need to know about Fintech and recommend the best suite of capabilities that meets your business needs.
Need help with launching your fintech? Contact us now!