Financial technology, or Fintech, is no longer limited to select online banking channels and robo-advisors. Today, fintech apps offer the best solutions for small business units’ financial tasks. According to US financial reports, businesses with less than 100 employees have raised $100 billion in the last 7 years working with fintech companies. Fintech apps for small business can be a true asset for growing companies.
How does a Fintech app help your business?
A fintech app can help your business in several ways – from helping you secure funds to processing financial transactions with ease. Fintech apps have amazing, innovative financial solutions for your business needs.
Smart funding alternatives
The US Small Business Fintech Report has revealed that close to 50 percent of all business owners needed additional funds in 2018. Startup companies require external funding for starting operations and covering maintenance costs. Established businesses need funding for expansion purposes. Fintech companies have helped both by introducing quick, easy online loan procedures.
The fintech industry has also opened up alternative funding channels for small business owners. Smart data management and advanced algorithms have helped businesses that are ineligible for loans from banks and private finance companies find suitable investors. Today, small businesses can secure cash advances by signing away a percentage of their future earnings.
According to a study conducted by Clutch, 25 percent of small businesses still record their financial information on paper. Also, about 50 percent of small businesses don’t have an accountant. Every business requires expert financial guidance to make the right decisions. In the absence of a living, breathing accountant to fulfill this need, the fintech services are of great value to small businesses.
With fintech apps managing the payroll, invoices, expenses, and predicting cash flow, small businesses can get by without making financial errors until they’re doing well enough to afford an accountant.
Fintech has revolutionized the way small businesses make monetary transactions. Services like online money transfers and affordable ecommerce platforms have enabled small businesses to compete with the industry bigwigs and expanded their reach.
How to choose the best fintech app for your business?
Finding the ideal fintech app for your business needs can be tricky. With dozens of seemingly excellent fintech app ideas to choose from, it’s best for you to decide based on performance. Here are the 10 best fintech apps for small business:
MoneyLion is a lending app, savings app and wealth management app rolled into one. Small businesses can simplify financial management by integrating their investments, banking, and loan accounts with the app. MoneyLion also offers credit builder loans of up to $1000 without any hard credit check. You can have a portion of the loan amount paid to you upfront within 48 hours of applying. The app has a monthly subscription fee of $19.99.
- Zero fee account with no minimum account balance requirement
- Zero percent APR cash advances of up to $250
- Instacash of up to $50 at zero percent APR
- Automated investments
Robinhood is a free online platform for trading stocks, Exchange Traded Funds (ETFs), cryptocurrencies and options. This user-friendly app is ideal for new investors and small businesses that want to trade in small amounts. The basic app is free to download. The gold version lets you trade on margin and has a monthly subscription fee of $5.
- No fee brokerage account
- No minimum balance needed for opening account, no annual charges
- Instant access to your deposits.
- Free trading for all available ETFs
Mint is a financial monitoring and management app that helps aggregate your accounts in one place, setting and tracking financial goals and budgeting. This user-friendly app is highly intuitive and has simple, flexible budgeting tools that anyone can utilize. Mint also has efficient tax tools that are integrated with TurboTax. Most of the app’s services are free. The premium version comes with a credit monitor tool and has a monthly fee of $16.99.
- Customizable reports for your earnings, spending, debts, and assets
- Excellent mobile support, including Apple Watch compatibility
- Integrates the value of your physical assets to give an accurate estimate of your net worth
- Automatic download and categorization of your transactions from all US financial institutions
Chime app offers a secure, transparent, and easy means of managing your finances. Its services include savings and checking account, no fee overdraft facility, daily balance alerts, real time transaction notifications and simplified budget tracking. Chime has an automatic savings feature that rounds up your transactions to the closest dollar and saves the rounded up amount in your in-app savings account. The app has no monthly subscription fee.
- Pay through Apple Pay and Google Pay
- No hidden charges, free foreign transactions
- Zero monthly fees and no minimum balance requirement
- Direct deposit feature that allows you to get paychecks up to 2 days in advance
N26 is a digital banking platform that helps you manage finances in a smooth, fast way. The app has a streamlined interface that lets you monitor all your accounts and move your money into categorically created sub accounts (Spaces). It also offers automated budgeting breakdowns. The standard N26 app is free for all users. Business users traveling overseas are exempt from foreign transaction exchange charges.
- No minimum deposit requirement
- Excellent in-app security features, including full online control over your Mastercard
- Contactless payment through Google Pay and TransferWise
- Instant transfers between N26 accounts through MoneyBeam
Nubank is a digital banking platform that simplifies traditional banking activities to make them quicker, more transparent and secure. It tracks your financial transactions and invoices, and classifies your expenditures by categories. This free app even has a copy and paste option for codes for making transactions.
- Nubank’s free Pix service allows you to send and receive money without the need to fill in all the bank details
- Instant money transfers between two Nubank accounts
- Free electronic transfers to all banks
- No expiry reward points that can be redeemed for common services and products
Coinbase is a secure, user-friendly app that serves as a mobile wallet for storing cryptocurrency. It supports almost all types of cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. The free to download app allows you to track all your cryptocurrency transactions on the go. You can also trade in cryptocurrencies using your bank account, debit card or credit card.
- It enables small businesses to accept cryptocurrencies as payment for their services and supplies
- Supports wire transfers, PayPal, cryptocurrency withdrawals and deposits, credit, and debit cards
- No fee for transactions between Coinbase accounts
- Excellent knowledge base and customer support
About 25 percent of small businesses are using fintech technology for banking and other financial needs. If you don’t already belong to that segment, it’s high time you switch to fintech apps and secure a bright future.