With digital transformation, fintech has altered the financial sector. The banks and NBFCs no more treat Fintech as a threat and rather consider collaborating with them for building trust and for serving customers better.
2021- the year of bank and fintech partnership
With disruption brought in by Covid 19 pandemic, the fintech with modern tools for automation saw an upsurge while the dominance of traditional financial institutions slowly started narrowing down. The innovation and dynamism of fintech industry when partnered with the experiences of traditional banking can empower the businesses across industries with strong financial foundation and growth. As the financial technology companies continue to offer advanced technological capabilities, and as traditional banks realize their importance, with customers’ evolving preferences, the trends, and developments in 2021, establishes well that it is the year of fintech-bank collaboration.
Why is bank and fintech partnership an emerging need?
- The consumer behaviour changed with digital disruption making mostly the millennial customers more inclined towards online financial transactions.
- Advancement in technology has enabled real time transaction, tracking and settlement and automation of payments and collections
- Data encryption has enabled stronger security
- Growth in smartphone usage has made banking possible on the go and accessing the financial detail, receivable, and payable reports from anywhere improves business capabilities of the business customers
- The amalgamation of technology and experience in the financial sector can bring growth to the business of all verticals. The trusted bank brands coupled with innovative services of fintech tools can redefine the financial and business sector of a country and pave the path towards stronger financial inclusion.
How is bank and fintech partnership beneficial for SME businesses?
Though a significant GDP contributor, the SME sector remains financially under-served. The life of the SMEs remain complicated with handling multiple ERPs and Accounts, multiple communication channels, multiple payment gateways, tedious reconciliation process, weak business insights and many more. The SME business payment and collection process and access to finances need to be re-imagined which are possible with SME and bank partnerships.
With fintech and bank collaboration, a new niche is developed on either side which ensures more reach-ability and better customer relationship mostly in the B2B segment. Digital banking, business insights at real time, easy access to business loans, automatic reconciliation, digital payments, and collections are some of the most important benefits drawn by any business out of bank and fintech partnerships.
Connected banking and connected ERP on Hylobiz
Hylobiz is an emerging Fintech catching eyes of SME businesses today and incubating SME growth. The fintech start up is partnered with multiple ERPs and banks and allows easy integration of existing ERPs and bank accounts enabling you to get real time access to cash flow and derive the benefits of quick settlement and automated reconciliation at real time and improves your working capital efficiency.
How is partnership between Hylobiz and banks/ NBFCs simplifying SME and other businesses?
- The real time dashboard, automated reports and automated reconciliations ensures you a transparent accounting and business process, helps manage audit trail better and to make long term plans based on valuable insights related to your business.
- You can automate your payment collections with automated invoicing (create/upload and send) and configurable automated payment reminders. The invoice linked payment links and static payment links helps you collect payments faster through multiple payment modes.
- You can pay out digitally over multiple payment modes without a delay
- You can manage your inventories digitally
- You can avail financial services like working capital loans, invoice / bill discounting, insurance from our lending partners
- Get easy access to business loans, utility pay outs, insurances. The lending partners like Bajaj finance and Neogrowth Credit Pvt Ltd offers working capital loans to small and medium businesses. Bajaj loan is now available on mobile app (Download the app: google play store or app store)
- Hylobiz in collaboration with HDFC offers credit through preapproved SME credit cards. Hylobiz in partnership with Kotak bank eases your digital bank account opening process with hassle free eKYC steps.
- The nil set up and integration fee and low transaction cost improves the efficiency of your finance and operations and reduce operational cost.
Hylobiz enables SME businesses to reach out to customers across the globe through digital store front feature, the digital ledger feature helps you build strong business relation with suppliers/ buyers and a lot more. Sign up for free and discover many more such features.
Bank- Fintech partnerships of 2021 across the globe catering the other segments
- Bank of America acquired Germany’s health care fintech to serve the health care clients(https://internationalbanker.com/technology/four-notable-partnerships-between-the-fintech-and-financial-services-sectors-in-2021/)
- Goldman Sachs and New York based fintech Esusu Financial INC. has partnered to serve the housing tenants.
- HDFC and Paytm in strategic partnership mainly serves the retail segment(https://inc42.com/buzz/paytm-and-hdfc-bank-announce-strategic-partnership-for-delivering-financial-solutions/)
- Ujjivan Small Finance Bank and Bangalore based Fintech, NIRA in collaboration offers personal loan and serves the salaried class.( http://www.businessworld.in/article/Ujjivan-Small-Finance-Bank-Partners-With-NIRA-To-Provide-Personal-Loans/14-04-2021-386537/)
Also, worth mention some of the other remarkable partnerships which happened prior to 2021:
- Federal Bank and Gujarat based Fintech Digivridhi serves the dairy farmers (ref: https://yourstory.com/2021/06/partnering-fintech-startups-helping-dairy-farmers-federal-bank/amp)
- HSBC US Commercial banking in collaboration with fintech platform NepFin serves the middle market segment (https://apnews.com/press-release/pr-businesswire/8266b81b9d0646e18064492f6a0003b5)
Hylobiz is proud to be a part of and to be a significant pioneering contributor in the financial partnership revolution taking place in 2021. We are in the process of partnering with more banks and NBFCs in the upcoming days. Our cutting-edge technology coupled with our partnerships with ERPs and banks are sure to show a new horizon in the B2B value chain in the years to come and boost the efficacy of the SME businesses.
Want to boost your business with better account management and better cash flow? Reach out to us on email@example.com