Financial Technology companies, or “Fintechs”, that have risen up in the past decade have been changing the landscape of the world of finance and challenging traditional ways of banking. These new firms are utilizing the latest technology to sell financial services and money management solutions to a range of customers. For example, Robinhood allows regular people to trade stocks, ETFs, and options, Acorn specializes in micro-investing, and Chime offers online no-fee banking. In recent years, fintech companies that support small businesses have been cropping up and developing. Especially during a pandemic as we are now, the services these firms offer are invaluable and could prove to be life-saving for many small businesses across the country. As in-person business decline and online shopping along with delivery services rise, fintech firms are able to step in to fill this need. The company Square, for example, offers a variety of services suitable for small businesses such as secure online payment, egift card services, delivery options, and an online store to sell products. There are now over 140 fintech startups serving small to medium-sized businesses through addressing needs including expense-tracking, accounting, insurance, investing, payment processing, and financing loans. In our quickly developing world, fintech services can be a valuable tool for many small businesses looking to grow and optimize operations.
Barefoot, J. (2020, April 07). How fintech can save small businesses on the brink. Retrieved July 20, 2020, from https://www.americanbanker.com/opinion/how-fintech-can-save-small-businesses-on-the-brink
Macri, K. (2020, February 28). Fintech focuses on small businesses, ramping up competition with big banks. Retrieved July 20, 2020, from https://www.bankingdive.com/news/fintech-SMB-small-businesses-competition-big-banks/573205/
Square. (n.d.). Solutions & Tools to Grow Your Business. Retrieved July 20, 2020, from https://squareup.com/us/en