Banking
April 6, 2023

Small Business Transactions: The Role of Technology and Fintech

Small Business Transactions: The Role of Technology and Fintech
Banking
April 6, 2023

Small Business Transactions: The Role of Technology and Fintech

Ignacio Gassó
Co-founder & Chief Operation Officer
Share on social media

In the past year, technology has played a significant role in the way small businesses handle their transactions. Heather, a small business owner, acknowledges that the process used to be quite manual, but things have changed. With the help of technology, small businesses can now increase the volume of transactions they handle.

However, banks have been slow in adopting new technologies. They have been known to resist change and have a reputation for being slow in embracing technological advancements. Therefore, we cannot expect significant changes from banks in terms of technology.

But, Heather is hopeful that things might change for the better with the new rule changes put out by the SBA. The SBA has allowed fintech and other non-banks to begin applying for non-bank lending licenses for the first time in 40 years. Previously, there were only 13 licenses available, which meant that non-bank lenders had to buy one of those licenses. With this new change, the door is open for more fintech companies to enter the market.

It will be interesting to see how fintech companies will leverage technology to serve small businesses more quickly and efficiently. They may find some unique niches that traditional banks have overlooked. This shift can be a game-changer for small businesses, as they may have access to more options and be able to conduct their transactions more efficiently.

In conclusion, technology has made a significant impact on the way small businesses handle their transactions. While banks have been slow in adopting new technologies, the new rule changes by the SBA may pave the way for fintech companies to serve small businesses more efficiently. This change may bring forth innovative solutions that will benefit small businesses in the long run.

The latest Cofi Insights, straight to your inbox

By clicking below, I agree to Privacy policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Start enjoying Cofi Now

Contact us today to see how the Cofi platform can help your organization leverage data to shift performance.
‍‍

Get Started