Running a business today without the help of financial technology is like using a flip phone in the age of smartphones: it works, but just barely.
Nowadays, there’s no way to stay relevant and competitive in a dynamic market without extra help from smart tools. After all, why would you still do things the old-school way when you can have an AI-powered system taking care of all the tasks that eat away your time and energy?
If you’re ready to boost your business productivity and revenue, you can’t ignore the growing market of cutting-edge financial technology. Here’s why:
Tech Tools Streamline Operations
According to Asana’s Anatomy of Work Index, employees spend 60% of their time doing work (aka unproductive tasks). While these tasks are important (every business needs invoice processing and payroll management), they are also perfect candidates for automation.
We now have access to smart financial tools, like accounting platforms or payment management systems, that can take over mind-numbing assignments. Plus, they eliminate human error and speed things up, which helps improve internal operations.
The automation of business operations can boost productivity by up to 40%, according to a recent McKinsey study. It also helps reduce operational costs and increase efficiency overall. Not to mention that it frees up resources for strategic growth initiatives.
AI-Powered Budgeting Tools Cut Costs
In business, if you don’t know where you spend your funds, you’re in trouble. You can’t be successful without a solid budgeting strategy that helps you allocate resources efficiently, set financial goals, and monitor progress.
The good news is that you can forget about complex spreadsheets and mountains of receipts. Instead, you can use smart budgeting tools powered by AI algorithms to allocate funds effectively and access actionable data for smarter decisions.
Today’s budgeting tools can forecast cash flow, automate expense tracking, and optimize resource allocation (among others). With their help, it’s easy to identify which areas deliver the highest ROI and which need fewer resources.
Upgrade Your Investment Strategy
Smart investments are crucial to drive growth and sustainability because they support innovation and technological advancements and keep your businesses competitive.
So, how can you make sure your investments will pan out?
By making informed decisions based on data-driven insights and advanced analytics. Also by diversifying your portfolio, mitigating risks, and capitalizing on emerging opportunities. But to do so, you need reliable tools that give you accurate and up-to-date information.
These tools allow even people who don’t have an advanced financial education to get their foot in the door. For instance, you can use a trustworthy copy trading app to mirror the trades of seasoned investors. You don’t have to waste time studying their moves; you can just copy and paste their strategy and learn on the job.
For broader portfolio management, robo-advisors such as Betterment and Wealthfront provide tailored investment plans using AI algorithms. They balance risk and return based on your goals, reallocating funds efficiently as market conditions shift.
Enhance Decision-Making with Data Analytics
Good business decisions are based on accurate and factual data. However, in the age of Big Data, there’s no way to keep track of every bit of information that comes your way. This is where data analytics platforms come in handy.
The right tool will help you uncover trends, track performance, and forecast outcomes. Advanced Business Intelligence platforms take things one step further with customizable dashboards that let you visualize key metrics at a glance.
Additionally, conversational analytics tools allow your marketing teams to analyze customer interactions and learn more about their preferences and pain points. As a result, your team can take proactive steps to improve customer satisfaction, resulting in increased company profits.
Future Financial Technology Trends
As technology improves, the way we do business changes rapidly. If you don’t pay attention to the trends, especially in finance, you risk losing your grip and becoming irrelevant.
Here are a few trends to keep an eye on in the upcoming months and years:
Here is a list of financial tech trends that will impact SMBs:
- Cloud solutions for financial management: More businesses are adopting cloud/SaaS solutions for financial management. These platforms offer real-time data access and integration capabilities, making them ideal for growing businesses.
- Alternative financing options: Alternative financing models such as crowdfunding, peer-to-peer lending, and revenue-based financing are gaining popularity. These options provide more accessible and flexible funding sources compared to traditional bank loans.
- Digital invoicing and payment solutions: These tools improve cash flow, enhance efficiency, and provide a better customer experience by streamlining payment processes.
Wrap Up
Embracing new technology is not just about going digital; it’s the competitive edge your business needs in today’s fast-paced market. By automating tasks, optimizing investments, and leveraging data analytics, you can streamline operations and focus on scaling smarter. The future belongs to those who innovate, so why not start now?
