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.

5 Triangle SaaS Tools Keeping Small Businesses Organized

Check out these five Triangle software as a service (SaaS) tools that are keeping small businesses organized. You may find that your small business could really benefit from using one, or all of these tools!

This guest post is brought to you by BoostSuite, the easiest way to build more website traffic and get more marketing conversions.

Small businesses all across the country are popping up and doing great things, especially in the tech space. The Triangle (Raleigh, Durham, Chapel Hill) is no exception. In fact, Raleigh was just listed as the #3 best places for businesses and careers by Forbes magazine.

Startup incubators like The Startup Factory in Durham and H/Q Raleigh provide enthusiastic entrepreneurs with the resources they need to get their businesses up and running.

These small businesses often support one another by using each other’s services. This creates a healthy, self-sustaining business ecosystem that benefits all involved. I feel lucky to work for a small business in the Triangle. I’ve met tons of smart people who are game-changers, asking the right questions and constantly pushing the envelope of what can and cannot be accomplished.

Enough with the gloating already. Don’t simply take my word for it. Check out these five Triangle software as a service (SaaS) tools that are keeping small businesses organized. You may find that your small business could really benefit from using one, or all of these tools!

1. Shoeboxed – Digital Document Management Software

Organization is the name of the game for Shoeboxed.

Do you have an old shoebox full of receipts, business cards and other financial documents? Instead of keeping that disorganized, hulking mass, try Shoeboxed out for free. Their service is the fastest way to turn a pile of receipts into digital data to save you time, money and hassle.

Since 2007 the Shoeboxed team has been working tirelessly to keep their users organized and give them more time to focus on their business, their family or whatever it is in life they love to do. And with over 500,000 users in 100 countries worldwide, I think they’ve gotten pretty good at it!

2. BoostSuite – Website Marketing Automation Software

Researching keywords for your content marketing strategy and optimizing each page of your website requires a lot of time and organization.

Good thing BoostSuite is here to organize all of these things for you automatically.

BoostSuite automatically discovers new keywords from your search engine visitors and automatically determines their opportunity levels (based on search volume and competition levels). This saves you hours of time each month compared to doing this manually. BoostSuite also grades each page of your website and provides you with a prioritized to-do list of on-page SEO changes you can make using these high-opportunity keywords. No more guesswork or wasted time!

Sign up for free today and optimize your website properly and in a timely fashion.

3. Argyle Social – Social Media Marketing Automation Software

Argyle Social helps small businesses keep your social media marketing strategies organized by providing them with the tools needed to integrate all your social media accounts, schedule posts, engage followers, support users and customers, and measure the results of each campaign.

Argyle focuses on relationship management and finding qualified prospects for your business through social media. You can identify current prospects and customers on social networks by using the prospect list that already exists in your marketing automation software to help refine and target all your social engagements.

You can also compare individual posts or groups of posts via campaigns to determine your most valuable social content. Their Google Analytics integration gives you further insight into the minds of your socially savvy prospects.

Contact Argyle Social today to learn more about how they can help you generate more revenue through your social media campaigns.

4. ArchiveSocial – Social Media Archiving Solutions

Like email, social media creates business records. These records have to be maintained and organized. The way your business communicates with your audience has changed. What used to be an email to customer support is now a post on your Facebook page or a Twitter mention. There is no doubt that social media has become a key channel for business communications.

As conversations shift to social channels, it is important to remember that those communications constitute meaningful records just like emails and documents — records that could be critical for compliance, legal e-discovery and other records management needs.

ArchiveSocial preserves your social media content in a way that looks, feels and behaves like a carbon copy of the original social network. You can expand comment threads, view full-sized photos, play videos and more. Hence, you can actually make sense of your records.

Request a demo from ArchiveSocial today to see how they can help you out.

5. Adzerk – Online Ad Server

If you’ve ever run ads online, you know that it can be tough to keep everything organized. That’s where Adzerk can really help.

Adzerk’s adOS is the best solution for managing your site’s ads.

adOS is your ad management platform. You’ll have an advertiser portal to share logins with your advertisers, and adOS will even help you calculate earnings. Give advertisers the ability to upload creatives for you to approve. Their super easy three step process will have you serving ads in minutes.

Their simple user interface keeps your ad campaigns organized and allows you to easily measure the results. Sign up for free now.

I hope you take the time to try each of these awesome tools out. They’ll help you stay organized, saving you time and allowing you to take your small business to the next level!

I know there are a lot of other great Triangle-based tools out there that I didn’t mention in this article. If you know of any more, please mention them in the comments!

About the Author

ryan kettler

Ryan Kettler is Director of Communications for BoostSuite. Ryan is an internet marketing zealot, sports fanatic, devoted runner, avid golfer, beer connoisseur, and live music enthusiast. When he’s not helping BoostSuite customers he can be found running 5ks, sampling IPAs, and cheering on his North Carolina State Wolfpack.

Image via Wikimedia Commons

Shoeboxed is a SaaS Superstar!

At Shoeboxed, we offer a scanning service for receipts and business cards and online software to organize the information that we digitize. Though the scanning portion of what we do is clearly a service, it’s important to remember that the software is itself a service as well. We don’t give you the software and set you free, never to hear from us again. Shoeboxed tries to form a relationship with our customers so that we can provide them with more customizable experiences, customer support and anything else they might need to get their receipts and business cards organized as easily as possible. We are part of the emerging trend of companies that provide software as a service.

Companies offering software as a service (SaaS) are relatively new concept, and offer many benefits over traditional out-of-the-box desktop software. I was fortunate enough to talk about this emerging trend with some other representatives of SaaS companies yesterday.

You can read more about it and listen to the segment on Cloud Ave.