Running a business in the financial industry can be quite a challenge. This is especially true for owners of small FinTech companies, which require special attention and appropriate management skills. However, as a result of technological changes, innovative solutions are being developed that translate into efficiency in business management. In particular, tools in the form of web and mobile applications are in high demand. In the following article, you will learn which of them can effectively benefit small businesses.

What obstacles must small FinTech businesses overcome?


Financial management is a real nightmare for many companies. With limited resources, some institutions are unable to effectively track cash flow, invoices, all kinds of expenses and other unmentioned areas of daily operations. Such a large accumulation of problems in a company can translate into inefficiency, the appearance of errors and, consequently, financial instability. The solution in such cases may turn out to be appropriately selected tools, which are able to streamline financial processes and lift the company out of the problems plaguing it. So what is able to turn the prevailing realities in the company in favor of the FinTech company?


Cloud-based Accounting Software


Accounting software has proved to be a revolution for financial management in small businesses. The advent of a cloud-based tool has meant that access to a user's necessary financial data is now extremely easy and only requires an internet connection. Through this dedicated solution, many financial processes have become automated. Both invoicing and expense tracking have translated into time savings and a reduction in previous errors resulting from manual customer service.


A new dimension of invoicing


Invoicing is a process that can sometimes be time-consuming and error-prone. Small business owners who generate and send invoices on a daily basis are especially aware of this. The digitization of businesses has contributed to the fact that even this activity can be properly automated. Accounting services related to invoicing, thanks to special software, not only reduce time, contribute to the reduction of existing costs, but also reduce the number of errors. FinTech services related to invoicing translate into financial management and guarantee timely receipt of payments.


Mobile Payment Solutions


Mobile payments are another branch of opportunity offered by innovative financial applications. Small and medium-sized businesses are trying to be attracted to attractive solutions. Therefore, convenient payment options are another benefit worth considering when making changes to a company's existing operations. After all, payments via smartphone and many other mobile devices are becoming an everyday occurrence. For small businesses, such an option can be a game changer of sorts.


Invoice Factoring


Invoice factoring is an innovative solution that can help small businesses turn unpaid invoices into instant cash. Such a facility makes small FinTech companies sell their invoices at a discount to a larger third-party entity known as a factor. The factor is then responsible for enforcing receipt of payment from the customer. As a result, small businesses get a reliable and fast source of cash, which they use to pay bills, make investments in new projects, or at least cover unexpected expenses. The factoring described here is a solution that reduces cash flow problems, giving an immediate cash injection without the need for debt.


Digital Receipt Management


Among the solutions that support small business operations, digital receipt management should not be overlooked. This is an option that allows you to observe and manage receipts from an electronic device. E-receipts do not pose a problem for owners in terms of data storage. Additionally, any institutions involved can have receipts in the cloud without the need for manual data entry and physical archiving. Digitizing receipts also translates into tax accounting and financial reporting.


Online Payment Gateways


The last of the most popular facilities in today's financial applications are online payment gateways. This is a solution that is dedicated to small businesses that use the web as a channel for selling products and services. These online payment gateways provide the ability to accept payments from customers via credit cards, debit cards, as well as all kinds of electronic payments. Online Payment Gateways provide a secure yet reliable way to process transactions, which translates into reduced fraud and chargebacks. An additional benefit of online payment gateways, for example, are subscription billing and recurring payments, which help small businesses automate billing and cash turnover.


Examples of digital solutions to support small financial firms


There are a number of digital solutions whose role is to support the operations of financial companies. In order to increase competitiveness and grow their existing business, some companies are taking a step towards FinTech applications to facilitate their work and at the same time unite the customer community around the services they provide. Here are examples of financial apps that have translated into the quality of services provided by small and medium-sized enterprises.



A finance platform for fast and secure invoice financing that complies with UK legal guidelines.


Hydr is a financing platform that has been developed to provide fast yet secure invoice financing taking into account all legal regulations found in the UK. The developed software allows the company to conduct a multi-step onboarding process for better customer verification. This functionality has translated significantly in the existing invoice decision processing time from about 2 weeks to less than one day. In addition, the Hydr application has been integrated with 7 third-party tools that provide higher security standards, reliability in credit checking and better customer verification. The UK FinTech company's software is highly automated, so there is less need for analyst involvement than there was before the application went live.


Transformify (TFY)


A global payroll on-demand and vendor management system.


TFY has a unique approach to hiring freelancers, consultants and contractors across 184 countries. On top of that, TFY fully automates the billing, self-billing and payments to vendors and service providers across 184 countries offering numerous payment methods. These include but are not limited to, SEPA, SWIFT, local bank payments, e-wallet, debit cards, order-to-card (OTC) covering Visa and Mastercard debit and credit cards, 20+ cryptocurrencies.

The open APIs allow TFYs business customers to seamlessly integrate their in-house systems and process thousands of transactions at once.




Software to automate payroll generation for accountants, employers and employees within the UK


The FreshPay application has become a convenience for one small accounting firm providing its services in the UK from day one. By switching to a digital tool, the company's representatives can enjoy convenient access and flow of clients' financial data. Integration with the relevant UK financial institutions has translated into the day-to-day duties of FreshPay's employees, which have been significantly automated since the software's implementation. The application actively supports Cloud Payroll Software, through payroll automation.



To sum up, innovative financial management solutions can facilitate small businesses in overcoming financial management challenges and expanding their operations. Cloud-based accounting software, mobile payment systems, invoice factoring, digital receipt management, and online payment gateways are just a few examples of the solutions available to small businesses. Small business owners can streamline their operations, reduce costs, and improve cash flow by implementing these solutions, allowing them to focus on what they do best: running and growing their businesses.