SaaS, Fintech And The World Technology

Looking back at our lives ten years ago, it is surprising how much our world has developed. We evolved from doing things manually to having things done automatically. We evolved from spending hours at the bank to finishing a transaction within just one click. The world has been changing at a flashing pace. Following the world trend in technology, many SaaS and Fintech enterprises have been born and increased astoundingly during the Covid-19 pandemic. The number of SaaS and Fintech companies is also expected to continue to rise even after the pandemic. 

Since both types of business are leading trends in the market, in this article, we would like to introduce to you the relationship between SaaS (Software as a Service) and Fintech (financial technology). 

SaaS applications

1. What is SaaS? 

Together with the development of technology, SaaS (Software as a Service) has become a trend and is gradually replacing the existence of traditional SaaP (Software as a Product) due to its convenience, flexibility, fast implementation, and cost-saving benefit. 

2. How companies benefit from SaaS applications

SaaS allows businesses to access a particular service remotely through a web browser, using an internet connection. With SaaS, after implementing the application, companies just need to pay a certain amount to “hire” the service from the provider. They do not have to invest in setting up a server and other maintenance tasks afterward. Each amount of fees paid indicates a certain number of functions that can be performed. By this form of service, business owners can adjust which service plans are the most suitable for them. Hence they can cut unnecessary maintenance costs. 

With its specific benefits, SaaS is favored among big companies, as well as start-ups and entrepreneurs. By implementing SaaS, companies can spend more time increasing their revenue or improving their operating efficiency instead of focusing on handling, upgrading, and maintaining their system.

Moreover, nowadays, SaaS applications are specialized and can be applied to different departments in a company such as HR, Operations, Finance & Accounting, Sales & Marketing, Customer Service, and so on. 

Let’s take the following as an example. Shoeboxed is a SaaS company specializing in managing receipts for individuals and businesses (both small-size and big-size). (You can check out Shoeboxed here). All data on the receipts are scanned and stored in the system in both picture and data format. Users can then keep track of the payment history by exporting the file later. The receipt managing task is a big help for the accounting department in tax preparation and reimbursement procedures. Besides, since all the receipt data is well organized, it is easier for the Operations Team to consider which tasks need cutting off. It is useful for the Sales and Marketing Team to sit back and examine which marketing strategies are worth investing in.

See more: 5 Triangle SaaS Tools Keeping Small Businesses Organized.

Fintech and its growing trend 

1. Fintech definition

We believe that many of our readers have heard the word “Fintech” many times. It has even become a famous term and topic, especially among people in the IT sector. However, according to Statista, 67% of the US population said that they had not heard about Fintech, 21% have heard the word somewhere, and only 16% have clearly heard and understood its meaning. Despite those low numbers, the industry is still growing fast. So what is Fintech, and why do people talk about it?

“Fintech” is a short form of Financial Technology. According to the World Bank, it is a recently-created term that describes the new trend in the Financial and Banking area that “employs new technologies to improve or innovate financial service”, according to the World Bank. All companies that use the internet, cell phones, cloud computing technology, and other open-source software to advance the efficiency of the Banking and Investment business, can benefit from Fintech.

We can divide Fintech companies into two groups:

  • The first group is companies that focus on the end-users. Their main businesses provide digital tools that help improve the customer experience in borrowing, money managing, and start-up funding.
  • The second group is companies that play the “back office” roles in supporting other financial institutions.

So, is the e-wallet function on the mobile application of a banking institution called Fintech? Unfortunately, the answer is no. It is just an application of IT in the banking area.

However, for example, if Shoeboxed develops and applies a new data security technology to the e-wallet application of a banking institution to provide convenience and safety to the customers, yes, it is Fintech.

2. Fintech services

Fintech is now providing services in different areas such as banking technology, payment, financial management, cryptocurrency, … with diverse services including

  • Digital wallet (or e-wallet) – “a software-based system that securely stores users’ payment information and passwords for numerous payment methods and websites” (according to Investopedia). (Example: PayPal).
  • Distributed ledger technology on a blockchain platform. A distributed ledger is a database that is distributed to more than one computer or node. Each node maintains a ledger, and the ledger will be updated if there are any changes in data. A blockchain is a type of distributed ledger where every node has its own copy of the ledger. When data changes happen, it will also update all copies of the ledger. (Example: Bitcoin).
  • B2C e-commerce – online transactions between businesses and customers. 
  • mPOS – known as mPOS, a portable point of sale of a smartphone or tablet that acts as a register. This service is popular for businesses such as food trucks, convenience stores, supermarkets, etc. that allows the customers to complete payment transactions with just a touch.

Aside from the examples of Fintech products listed above, there are still a lot of services that might be a bit less popular such as:

  • Peer-to-peer lending (abbreviated as P2P lending) – a website that allows users to borrow and lend money directly. The P2P lending website helps to connect the borrowers directly to investors. In exchange for that, they control the transaction by setting the fee, interest rate, and other terms of conditions. 
  • Crowdfunding – a platform that allows start-ups to sell some of their future products to potential investors. If start-ups can fund enough money, they can start their project right away, and vice versa, if the amount of money funded is not enough, start-ups will return them to investors. 
  • Personal finance – a different branch of P2P lending that collaborates with banks to give end-users insights and advice about their bankings. 
  • Data management
  • Insurtech and so on

It is undeniable that Fintech has been encouraging a trend of entrepreneurship in Finance and Banking, the famous industries for their requirement of huge capital when joining the game. Thanks to this trend, a wide range of services are available in the market, yet the difficulties in management. 

However, if wisely used, Fintech can bring several benefits such as:

  • Improving customer satisfaction since the customers save time when completing a transaction
  • Analyzing customer behavior easier than before with reliable recorded data
  • Saving operating costs for business owners
  • Setting limits on manual inaccuracies

Following the Industrial Revolution 4.0, and now at 5.0, many traditional financial institutions are changing their ways of approaching more customers by collaborating with Fintech companies. According to PwC, 82% of traditional financial institutions plan to increase collaboration with Fintech in 3 – 5 years to avoid losing revenue.

Conclusion

With the explanation of SaaS and Fintech mentioned above, can we say Fintech is a type of SaaS? Or can we position Fintech as Saas? Well, IT DEPENDS. We say “it depends” because they have a lot of similarities in their purposes, ecosystems, applications, and so on. Therefore, it depends on the ultimate goals of the companies and how they operate their business.

As you can see, Fintech companies provide a wide range of services but mainly in the Finance area, while SaaS applications are broadly provided in different areas. Since the ever-increasing number of available services can make users unsure of what to choose, SaaS, Fintech, and other traditional business platforms should consider collaborating to introduce better and more compact services. The nuances of SaaS and Fintech can be hard to keep straight, but the value they offer to the world economy and the development of technology means they are here to stay. Therefore understanding their nuances is essential to thriving in today’s economy.

Tracking Business Expenses For Better Budgeting With A Simple Tool

If you’re looking for a way to manage your business expenses, you should consider using an expense tracking app. Tracking business expenses can be tedious and time-consuming without the right tools. With so many apps available in the market today, it’s easy to use one that suits your needs! In this blog post, we will discuss why businesses should look into expense tracking and how they can get started with an expense tracking app of their own.

Expense tracking apps can save you money on taxes

Whether it’s tracking receipts, mileage, or purchases, Shoeboxed offers the best options to ensure that everything is accounted for to save and maximize tax deductions. In addition, this expense tracking app goes into great detail about how much money has been spent per category so businesses can better budget their funds.

Tracking expenses with an app is much easier than using a paper journal

For small businesses, tracking business expenses with a paper journal is tedious, time-consuming, and can lead to errors. Expense tracking apps have improved over the years by offering robust capabilities that make it easy for businesses to keep tabs on how much they’re spending and where their money goes!

With an expense tracker app like Shoeboxed, you’ll never miss another receipt or misplace your mileage log again!

Tracking expenses with Shoeboxed is more intuitive than tracking on spreadsheets

With Shoeboxed, you won’t have to worry about formulas or remembering which cell is for what because it’s all set up in one place!

Excel lacks the ease of use and intuitiveness of an app like Shoeboxed. With this app, it’s easy to categorize your expenses into sub-categories (e.g., food, hotel) to better organize the data and see where all funds are being spent.

The best expense tracking apps will help you keep track of your spending and make it easy to categorize the different types of expenses 

Your receipts are about to get a whole lot easier on the eyes. As soon as your receipt has been scanned, Shoeboxed categorizes the information by business, the amount spent, date, etc., so that you can see all of this information at one glance – no more scrolling left-to-right through an endless spreadsheet! The data is searchable and editable whenever users need to make changes or add additional details after scanning their documents in real-time.

Tracking mileage

For frequent travelers, it’s hard to keep track of your work-related travel trips and make sure you’re receiving the correct reimbursement for your time. With our GPS-enabled features, Shoeboxed makes it easier than ever before to manage expenses through reporting on mileage driven, so no more guessing how many miles were logged while out running jobs and errands; It’s always accurate!

Expense tracking apps allow you to export data for tax purposes easily or send reports straight to your accountant if needed 

Exporting and importing data is simple with Shoeboxed. The expense tracking app allows you to export your expenses in various formats, including .pdf and .csv files, which can be used for tax purposes or sent directly to your accountant! This will significantly improve your mood and reduce stress during tax season every year.

For larger companies, like tech or software creators, their SaaS accounting teams will be able to easily sort through company/employee expenses.

You can send in images of receipts

Digitally archived receipts are safe from being lost in the depths of your shoebox. The IRS and CRA will accept digital images, so you don’t have to worry about losing any crucial documents during an audit!

Shoeboxed is an expense tracking app that makes it easy for you to create expense reports directly from your phone, export them right into the system of whoever needs those records quickly and efficiently without ever needing to type anything in or scan anything out. Now, with just the simple task of taking images of your receipts with your Phone camera than filling in forms by hand at home or even logging onto a computer within office hours for programs like Quickbooks — no longer do you have to wait days before getting any actionable data back about what’s happening inside your company where every dollar counts!

Shoeboxed lets workers work smarter rather than harder to spend less time inputting tedious information and more time helping to build your business.

Shoeboxed will sort through your receipts

Receipt management can take days to go through and organize everything properly. Suppose you haven’t calculated your expenses but kept all your receipts. In that case, as an expense tracking app, Shoeboxed can analyze your data and let you know how much money is left in each category to better budget accordingly.

All you have to do is gather all of your receipts in an envelope and send it over to Shoeboxed. The team will then manually sort through your receipts and convert your information into online data.

Conclusion

The best expense tracking app for small businesses will keep track of receipts, mileage logs, purchase history, and other categories like food/drinks or hotel stay to provide users with a complete picture of their expenses. With Shoeboxed‘s intuitive interface and features like exporting reports directly to an accountant, it’s easy to see why this expense tracking app should be on the list of considerations when looking at ways to streamline business processes!

At Shoeboxed, you can create an account and get started on the 30-day trial right away with your chosen plan. You’ll have 30 days to use the features of this subscription before deciding if it’s for you – no need to worry about getting locked in or wasting any time on a product that doesn’t serve your needs.