Starting a business
For all the talk about their tastes sounding the death knell for certain industries, Millennials sure are starting plenty of small businesses—according to Forbes, they’ve founded almost double the number that Boomers have. Starting your own business can be one of the most exciting moments of your life, and certainly one of the most stressful, so young entrepreneurs are taking things into their own hands. FinTech proves a natural fit for small business owners looking for adaptable, efficient, and inexpensive solutions.
“Smarter Connections” shows that Business Starters are among the most open consumers to using FinTech, especially seeking more efficient payment methods and account management tools. What do these services look like? Quickbooks and Intuit remain industry staples for Citi, American Express, and Chase customers (just to name a few), allowing customers to securely and reliably access account data. PayPal is one of the FinTech properties most familiar to the general public, and “Smarter Connections” showed 29% of Business Starters using that software, compared to 12% of non-business owners. But it isn’t just the realm of business: Payments is the area where people most express interest in FinTech—it’s used by 19% of consumers (30% in Singapore, 16% in the U.S., and 11% in Australia)—which includes peer-to-peer mobile payments, digital currencies, and international money transfers.
Today’s Business Starters, may be looking to keep overhead low and innovate their way to success in their own businesses. They might also look to PayPal and rising all-digital banks for solutions. Meanwhile, other FinTech services claim to offer lines of credit and loan management more simply than traditional banks. Kabbage, for instance, touts mobile loan management and no-fee applications as primary drivers for its small business loan programs. FinTech brands focused on small business loans stake their name on opening up access to capital for small businesses in ways that big banks can’t or won’t do—a lofty promise that will still take some bearing out in the real world, but one within sight.
However modern entrepreneurs choose to manage their small businesses, FinTech can help them streamline their efforts. It’s a new day for anyone wanting to start their own business, and FinTech is here to power the future of business with the future of banking.