#SME&U

11 Mar 2019

How Can Fintech Benefit SMEs?

by RAKBANK

What's the buzz about Fintech? It's the coming together of finance and technology to improve, simplify to offer new ways for digital banking, ATMs, wire transfers, mobile apps, e-commerce, cryptocurrency and alternatives for loans.

 

Fintech is not just for large companies, banks or finance companies, but can empower SMEs to work more efficiently, save money, raise capital and grow faster.

 

 

Problems Faced by SMEs

 

According to the World Bank, over 50 percent of SMEs in the emerging markets lack access to finance. This number balloons to 70 percent if micro SMEs are included. The total credit gap for formal SMEs is estimated at $1.2 trillion.

 

SME face difficulties in getting business finance for working capital or cash flow, acquiring equipment, vehicles, improving buildings or buying land from traditional financial institutions and banks. 

 

Traditionally, SMEs have relied on bank overdrafts, lines of credit and loans to gain access to finance. The time and cost involved in applying for finance have been high due to operating overheads.

 

For starters, here are things that SMEs can benefit using Fintech:

 

 

1. Smarter Accounting

 

Fintech helps manage your accounting smarter. Digital archives can increase the accuracy and timeliness of bookkeeping, while more accessible and reliable accounting can now allow for smarter business decisions. No more paper-based book-keeping or clunky desktop software. Cloud-based software like Sage, Xero, Wave, Zoho and others, automatically import bank transactions, file expenses, reconciliation, forecasts and manage costs - anywhere via a mobile.


Sage Accounting helps businesses effectively manage their finances and cash flow by offering easy control of their business and data at any place and any time. RAKBANK in its endeavor to expand its product offering have entered into a strategic tie up with SAGE to support requirement of SME's for Accounting Solutions. RAKBANK Business Banking customers can now avail the accounting software through Sage on preferential terms.  

 

 

2. Cloud Computing

 

Up to date information can reduce the operating costs and cash flow management can become accurate.  Run your company efficiently without different software for different departments. With a new breed of 'ERP in the cloud' like Zoho, Odoo run your company from a mobile app. Integrate, finance, operations, inventory and CRM. Pay and get paid faster, anytime, anywhere in any major currency with mobile payments and electronic invoices. Track reminders, receipts and more as a customer and peer-to-peer transactions completed in seconds online.

 

 

3. Crowd and P2P lending

 

The scale of lendable funds will increase, and international investment will lower funding costs. Operational costs can also decrease, while hedging costs are eliminated as lending becomes local for local.

 

Fintech is an alternative for a business to borrow money. Peer-to-peer and crowd-based funding allow you to borrow collectively from hundreds or even thousands of individual users/investors - each contributing a small part of the overall sum. With Liwwa and Beehive, you can do so regionally. If it's a new idea or concept, raise funds via Indiegogo, Kickstarter, and many popular funding platforms. Billions of dollars are being raised each year through crowd-funding/P2P platforms - all powered by Fintech.

 

 

4. Compare better

 

Your insurance needs are covered, too! No more calling for quotes and waiting for days. With Fintech, get multiple quotes for medical, life, staff, car, office or general insurance - compare policies, apply and pay online in a breeze.

 

 

5. Digital banking

 

Society could soon shift to a cashless economy. Mobile banking via apps and social media (paying via What's App or buying directly from Instagram for example) - another Fintech outcome - saves trips to the local branch, writing cheques or counting currency. Operational costs will also decrease across the financial sector, and lean branches allow for reductions in operating expenses to SMEs.

 


Think outside the box and see how Fintech can help your business. To know more about our strategic partnerships, speak to your Relationship Manager or email us at businessbanking@rakbank.ae

 


Tags :




How Can Fintech Benefit SMEs?

11 Mar 2019

Tags :

What's the buzz about Fintech? It's the coming together of finance and technology to improve, simplify to offer new ways for digital banking, ATMs, wire transfers, mobile apps, e-commerce, cryptocurrency and alternatives for loans.

 

Fintech is not just for large companies, banks or finance companies, but can empower SMEs to work more efficiently, save money, raise capital and grow faster.

 

 

Problems Faced by SMEs

 

According to the World Bank, over 50 percent of SMEs in the emerging markets lack access to finance. This number balloons to 70 percent if micro SMEs are included. The total credit gap for formal SMEs is estimated at $1.2 trillion.

 

SME face difficulties in getting business finance for working capital or cash flow, acquiring equipment, vehicles, improving buildings or buying land from traditional financial institutions and banks. 

 

Traditionally, SMEs have relied on bank overdrafts, lines of credit and loans to gain access to finance. The time and cost involved in applying for finance have been high due to operating overheads.

 

For starters, here are things that SMEs can benefit using Fintech:

 

 

1. Smarter Accounting

 

Fintech helps manage your accounting smarter. Digital archives can increase the accuracy and timeliness of bookkeeping, while more accessible and reliable accounting can now allow for smarter business decisions. No more paper-based book-keeping or clunky desktop software. Cloud-based software like Sage, Xero, Wave, Zoho and others, automatically import bank transactions, file expenses, reconciliation, forecasts and manage costs - anywhere via a mobile.


Sage Accounting helps businesses effectively manage their finances and cash flow by offering easy control of their business and data at any place and any time. RAKBANK in its endeavor to expand its product offering have entered into a strategic tie up with SAGE to support requirement of SME's for Accounting Solutions. RAKBANK Business Banking customers can now avail the accounting software through Sage on preferential terms.  

 

 

2. Cloud Computing

 

Up to date information can reduce the operating costs and cash flow management can become accurate.  Run your company efficiently without different software for different departments. With a new breed of 'ERP in the cloud' like Zoho, Odoo run your company from a mobile app. Integrate, finance, operations, inventory and CRM. Pay and get paid faster, anytime, anywhere in any major currency with mobile payments and electronic invoices. Track reminders, receipts and more as a customer and peer-to-peer transactions completed in seconds online.

 

 

3. Crowd and P2P lending

 

The scale of lendable funds will increase, and international investment will lower funding costs. Operational costs can also decrease, while hedging costs are eliminated as lending becomes local for local.

 

Fintech is an alternative for a business to borrow money. Peer-to-peer and crowd-based funding allow you to borrow collectively from hundreds or even thousands of individual users/investors - each contributing a small part of the overall sum. With Liwwa and Beehive, you can do so regionally. If it's a new idea or concept, raise funds via Indiegogo, Kickstarter, and many popular funding platforms. Billions of dollars are being raised each year through crowd-funding/P2P platforms - all powered by Fintech.

 

 

4. Compare better

 

Your insurance needs are covered, too! No more calling for quotes and waiting for days. With Fintech, get multiple quotes for medical, life, staff, car, office or general insurance - compare policies, apply and pay online in a breeze.

 

 

5. Digital banking

 

Society could soon shift to a cashless economy. Mobile banking via apps and social media (paying via What's App or buying directly from Instagram for example) - another Fintech outcome - saves trips to the local branch, writing cheques or counting currency. Operational costs will also decrease across the financial sector, and lean branches allow for reductions in operating expenses to SMEs.

 


Think outside the box and see how Fintech can help your business. To know more about our strategic partnerships, speak to your Relationship Manager or email us at businessbanking@rakbank.ae