In recent years, the popularity of consumer fintech has increased amongst lakhs of people. Why? These B2B fintech start-ups have dramatically improved customer experience across several different financial applications.
Until recently, the focus was on consumer fintech, but the fintech business (B2B) is starting to play a key role.
Fintech B2B, as we know it today, started 20 years ago with companies that only focused on two main areas: banking as a service and payments.
In the years 2010, the concept of fintech 2.0 was developed. As part of mainstream fintech, we looked at banking as a service and payments continue to rise thanks to various companies. Thereafter, the business continued to grow as the number of fintech companies focused on loans and many e-commerce infrastructures increased.
There are major chances that Fintech 3.0 will expand even further in the 2020s to include the major players in fraud, risk, and identity, many of which are already under development. We also expect growth and big winners in many related fintech areas such as privacy, security, and compliance.
Today’s B2B fintech start-ups are common in the credit sector and banks as a service but are related to banks. Several companies make it easier for people to manage cash flow.
By providing working capital loans to companies and obtaining cash for services, and then consumers paying in instalments, these lenders are using financial technology to change the entire ecosystem, and companies or consumers do not have to rely on traditional credit. During a pandemic with so many problems, it is especially useful to give consumers the flexibility to pay for purchases. This is an important reason why many B2B Fintech companies continue to perform so well.
Now, let’s understand how AI & Blockchain impact B2B Fintech:
- Impact of Blockchain-
Blockchain is a distributed network that can record payments and other transactions quickly, transparently, verifiably, and permanently. It uses cryptocurrencies like Bitcoin as a medium of exchange. B2B Fintech users have limited understanding of blockchain functions. It has a wide range of uses, but compared with artificial intelligence, its popularity in the field of financial technology is much lower.
Most small businesses are lost in a confusing world of payment providers, where merchants can choose from a variety of indistinguishable platforms. Many small businesses cannot get paid on time and deal with the risk of fraud. Independent software vendors and small retailers prefer tools that are easy to implement, choosing simplicity over speed and profit.
- Impact of AI-
The term artificial intelligence refers to “any human-like intelligence displayed by a computer, robot, or other machine.” This refers to the ability of computers or machines to imitate human thinking abilities.
Respondents are most likely to be familiar with artificial intelligence because it has brought revolutionary changes to all walks of life. In the field of financial technology, this technology creates deep personalization and helps build customer relationships in real time.
Thus, with the continuous development of B2B financial technology industry, it is becoming easier for even the smallest companies to implement the automated workflows and procurement processes that large companies are currently using. This will make it easier for them to compete with large companies and create a level playing field.