The Role of Fintech in the SME Industry

The Role of Fintech in the SME Industry
The Role of Fintech in the SME Industry
Posted by on June 26, 2024 in Article English
Oleh: Febrian Wahyu Wibowo, S.E.,M.E.

The Faculty of Economics and Business Alma Ata – Over time, the role of fintech in the SME (Small and Medium Enterprises) industry has become increasingly recognized by the wider public. Financial technology, commonly referred to as fintech, is the integration of technology with financial systems.

The presence of financial technology has had a direct impact on the SME industry. So, how exactly does fintech play a role in the SME industry in today’s era? Let’s take a closer look at the full explanation below.

4 Roles of Fintech in the SME Industry

Fintech exists to reduce cash transactions, thereby helping SME business owners grow their businesses. Here are some of the key roles fintech plays in Indonesia’s SME industry:

  1. Simplifying Financial Transactions Fintech helps make financial transactions easier for SME business owners. This is evident with the emergence of cashless payment technologies like QRIS, which can be easily accessed through mobile banking.
  2. Simplifying Access to Loans for SMEs Business owners who want to apply for bank loans can now do so more easily thanks to fintech. Fintech plays an important role in facilitating all online capital loan activities for SME businesses.
  3. Making Investment Easier As financial technology becomes more modern, it provides convenience for investors to place their funds in SME businesses. Through fintech, investment fund transfers are more practical and secure.
  4. Boosting the National Economy Fintech’s role in the SME industry, which simplifies a country’s economic activities, naturally has a positive impact on boosting the national economy. The country’s economy improves significantly by utilizing financial technology.

Security Guarantees for SMEs Using Fintech

Many SMEs today have already taken advantage of fintech as a way to grow their businesses. For those unfamiliar with it, it’s important to understand that using fintech is guaranteed to be safe.

Financial technology is supported by the government through the Financial Services Authority (OJK), which ensures the security of every online financial transaction. There’s no need to worry when developing your SME business.

Technological advancements like fintech have brought positive impacts for SME business owners. Now that you know the role fintech plays in the SME industry, it’s time to make the most of fintech to grow your business.

Source:

  • https://www.freepik.com/free-photo/fintech-investment-financial-internet-technology-concept_17124008.htm#fromView=search&page=1&position=2&uuid=4b2154ba-7bce-43cf-95ef-b1cc8ee85576

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