Fintech – supporting business growth and recovery

As we emerge from lockdown determined to experience the things we missed the most, we can also be confident that some of the developments we saw during the pandemic will remain.

I was reminded of this recently when I heard some of Scotland’s business community share their hopes, aims and ambitions for a post Covid recovery, while being candid about consumer expectations and the efficiencies digital interactions allow. Recovery and development in the ever-evolving digital economy was firmly part of the discussion as well as the role that fintech can play in enabling both.

Fintech is a key component in a developing digital economy that demands services and products to meet consumers changing habits, and help businesses deliver efficient and cost-effective operations. It is the thread that financially connects businesses with customers and suppliers and vice versa.

What’s exciting is the range of FinTech businesses in Scotland who are all working in this environment and here already, working with commercial and business customers.

They enable business owners to make truly informed decisions, using technology to analyse business and financial data to provide an accurate and up to date (often up to the minute) picture of their business. Float helps businesses make informed decisions about their cash. It’s an online cash management and forecasting tool that helps business leaders manage their business and make decisions with confidence.

Other fintech are providing a range of new digital tools to help businesses when it comes to managing payments, revenue, invoices, suppliers, and creditors. Know-It enables businesses to automate their credit control processes helping to manage credit risk, reduce debtor days improve cashflow and the businesses understanding of its customers.  Optimum Finance another fintech uses technology and data to unlock cash tied up in unpaid invoices supporting business with flexible invoice financing options.  Modulr works to simplify business payments including staff payments, merchant services, supplier payment workflows or payments reconciliation, helping to improve operational efficiencies.

FinTech’s in Scotland are also creating an accessible and transparent alternative to bank lending helping the non-bank lending sector to grow.  LendingCrowd has been working in this capacity since 2014. Authorised by the UK financial regulators it supports ambitious SME’s to grow their business by providing a range of funding and lending options including working capital loans, growth finance and the recent Coronavirus Business Interruption Loan Scheme (CBILS).

I’m continually reminded of the dedication and profound purpose of fintech founders in Scotland. It’s even more apparent in the fintech’s focused on the business and commercial sectors. These fintech teams continue to inspire us at FinTech Scotland with their focus and determination to use fintech capabilities to help the business sector recover post COVID.