Op-Ed: The Role of Fintech in the Future of Small Business

This article was authored by CLA member company Boss Insights.

Businesses are inundated with needs as they work to grow their vision.  There was a time when businesses had one relationship to address those needs.  These needs have not always been met by banks.  That’s because historically banks have been able to have unique offerings for large businesses and for retail customers.  Since covid there has been a fundamental shift where more businesses are launching than ever before.  This has been a catalyst that has led to many new offerings. In the past few years, fintechs have come on to the scene making it possible for businesses to have personalized products catered specifically to meet their needs.  

While it’s been possible for businesses to utilize these offerings, it’s led to a new challenge.  Businesses now have many financial relationships leading to a fragmented overall picture. 

From day to day, businesses have access to a lot of information.  They have access to financial statements, to sales reports, to tax information, banking information and yet, a true full picture of their business seems to be just beyond their reach.  

Recently, at the American Bankers’ Small Business Banking conference, it was incredible to see how financial institutions are moving to create unique offerings for small businesses.  The role of the financial institution has moved to one where they build each and every product to one where they are the overall relationship manager selecting the best fintechs and providing a clear picture of financial health empowering businesses to grow. They recognize a fundamental need for SMBs that are unique from other types of customers.  

Historically, financial institutions have interacted with businesses asking for financial details based on the products businesses require.  However, what businesses truly hope for is a relationship with a financial partner that will help them grow. 

A key issue for many businesses is providing cash flow insights.  The simple act of using the financial statements, sales, banking and tax information to show a businesses where they stand from a cash flow perspective and projecting where they will be is something that financial institutions could do to empower businesses.  It’s a win – win proposition where the financial institutions give businesses the key insights they need to understand what they should do to continue to build on their vision.

It’s inspiring to see so many financial institutions and neo banks offer a digital experience tailored to their business customers where there is one central location SMBs can go to to see not just their products, or their financial information like a bank balance, but rather an overall picture with key insights on their value, their growth opportunities and suggestions on the products that will take them to the next level. 

About Boss Insights

Boss Insights is an award-winning leader in open banking, linking fintechs, neobanks, and financial institutions to their business clients’ financial accounting, banking, commerce/sales, KYB, payroll, tax/IRS data, and more. Boss Insights has earned media coverage by American Banker, Forbes, Bank Innovation, Open Finance World, and The Financial Brand. Boss Insights has won multiple awards including Money 20/20 Rise Up, CB Insights’ Top 35 Future in Fintech, Corporate LiveWire’s Lending Technologist Of The Year, Open Banking Excellence’s SME Award, Women In Payments’ Unicorn Challenge, Corporate Vision’s Most Innovative Leader In Lending Technology & Canadian Lenders Association’s Executive Leader In Lending.