One of the industries most heavily impacted by the COVID-19 pandemic was hospitality and tourism. After years of steady growth, the pandemic’s travel restrictions and quarantine measures caused these sectors to face a decrease of 73% in arrivals between 2020 and 2021. The World Tourism Organization recognized 2020 as the worst year in tourism history. The hospitality industry was hit hard. Millions of people who depended on the tourist influx were left without a source of income.

One thing for sure is that FinTech remains pivotal in helping reduce costs while continuously elevating the customer experience. Here are a few points to note:

• Fintech can solve the expense headache: Fintech-enabled solutions can have a positive impact on the future of business travel, aiding organizations that currently deal with monitoring and reducing expenses. Fintech automation can drive cost savings while also increasing productivity among employees.

• Fintech can solve the expense headache: Fintech-enabled solutions can have a positive impact on the future of business travel, aiding organizations that currently deal with monitoring and reducing expenses. Fintech automation can drive cost savings while also increasing productivity among employees.

• Fintech can solve the expense headache: Fintech-enabled solutions can have a positive impact on the future of business travel, aiding organizations that currently deal with monitoring and reducing expenses. Fintech automation can drive cost savings while also increasing productivity among employees.

Conclusion
The changing expectations of end-users at a time when the travel industry is bouncing back from unprecedented restrictions means operators and agencies need to understand the importance of adopting the latest FinTech solutions. With the help of a trusted payment partner, travel and hospitality businesses have a unique opportunity to apply the most efficient FinTech solutions to minimize cart abandonment, enhance conversion and provide a frictionless payment experience.

1. Fintech is Safe and Secure
Some believe that FinTech services are not particularly reliable when it comes to security. However, this is simply not true. It’s actually traditional banks and financial institutions that can be more susceptible to security issues due to their slow nature in adopting the latest technology and cybersecurity measures.

Benefits of FinTech for Businesses, Consumers, Investors and Founders

2. Fintech Creates Financial Inclusion 
Fintech can be used anywhere, by anyone. Meaning it becomes accessible to people who may never have taken advantage of financial services before. Continents like Africa are particularly benefiting from fintech, as providers like Yo! Uganda revolutionise how people manage their money. Through access to basic financial services such as mobile money and e-wallets, fintech companies are helping lift people out of poverty and create a more financially inclusive world.

3. Fintech is a More Cost-Effective Option
Fintech companies can often deliver the same solution for a lower price compared to traditional financial institutions. By leveraging technology to automate tasks, FinTech companies can save money on employing people to do the work. They also save money by not having physical branches to service their customers. Overall, FinTech companies usually have relatively low overhead costs, which allows them to pass the savings on to you. Today you can find bank accounts with no fees and stock trading apps with no commission. That means more money in your pocket.

What Is FinTech And How Does It work?

4. Fintech Empowers Small Businesses
Large businesses used to have the upper hand when it came to using the latest technological and financial tools. Fast forward to today, and this is no longer the case. Now even a solopreneur can use some of the tools that the big boys use, whether it’s processing payments through Square and Stripe or efficiently managing your accounting through Xero or QuickBooks. Innovative FinTech products enable small businesses to expand their services further and operate at higher efficiency and scale.

5. Fintech Enhances Financial Capability
Whether it’s our personal finances or investments, fintech helps to simplify how we manage our money. Revolutionary startups are not only building the future of financial tools, but also promoting financial education and literacy. An improvement in people’s financial literacy will help more individuals reduce their debt, understand the value of budgeting and saving and the importance of investing for the future.

Fintech is largely associated with:

• Mobile functionality
• Big data
• Accessibility
• Simplicity
• Cloud computing
• Convenience
• Personalization
• Agility

While traditional banks are currently embracing some of these features, there remain considerable distinctions between them and fintech startups. Here are some of them;

While FinTechs continue to gain ground in the financial services sector, they have some shortcomings. For instance, check out the following;

1. The organizational structure of FinTechs have few barriers to change. As a result, they are responsive to innovation. Their structures can easily be torn down and rebuilt as contrasted with traditional banks.
2. The key feature that distinguishes FinTechs from legacy banks is that they focus on overarching customer experience management, unlike their counterparts that focus on risk management.
3. Key to the FinTechs is the readiness to embrace technology and innovation in the provision of financial services. It is important to point out that the financial sector is highly regulated, making it undesirable for legacy banks to fully embrace technology and innovation for fear of regulatory constraints. It is in this light that Stewart Bromley, of Atom Bank of the UK has stated that while FinTechs are usually associated with energy, freedom, pace, adaptability and customer centricity, legacy banks are keen on governance and risk management which effectively inhibits their innovativeness.
4. FinTechs offer convenient products to customers. You can transfer funds, make purchases or even take an insurance cover anywhere and anytime. With traditional banks, you need to go to the banking hall or an ATM lobby. With FinTechs, you can also obtain credit without having to go through a long and tedious process. No paper work, no collateral, simply a click of a button on your phone or PC.
5. Crowdfunding is a very unique aspect of financial technology. People need not meet physically to contribute to a cause. People in different parts of the world can make their contributions on the cloud.

While FinTechs continue to gain ground in the financial services sector, they have some shortcomings. For instance;

• Inadequate risk management expertise
• Lack of experienced leadership
• Inability to raise substantial capital
• Inability to gain consumer trust.

Clearly, both FinTechs and banks have strengths and weaknesses in the financial industry. It is for this reason that the World Fintech Report 2017 noted that the two will eventually coexist and complement each other.

In as much as this causes uncertainty for traditional banking, one thing that’s sure is that FinTech is here to stay. Yes, you read that right.

It is quite essential that companies understand the importance of implementing digital finance solutions to improve efficiency, service, and, ultimately, profitability. Below, we unravel the FinTech trends that are changing the face of finance forever.

1. Mobile Payments
Today, consumers don’t rely so much on physical cash as much as they used to. People now prefer instant, convenient modes of payment which exist largely in mobile banking.

A couple of companies, in fact, multimillion / billion companies are already making use of this mode of payment. Imagine these companies paying attention to mobile banking, you definitely have to get involved.

By offering easy-to-use mobile payment services, you can increase your market capitalization. Also, consumers have been conditioned to expect a few business days between requesting withdrawals from their digital wallets into their bank accounts.

This provides you with the chance to earn interest on those consumers’ funds in the interim.

2. Artificial Intelligence (AI)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. The term may also be applied to any machine that exhibits traits associated with a human mind such as learning and problem-solving.

Majority of financial companies are implementing and reconditioning their AI solutions, simplifying the extraction of information from their customers on a singular clamber.

The resultant effort will be introducing customized services to your customers, generated by a faster and more in-depth analysis only a machine can perform.

3. Robotic Process Automation (RPA)
Robotic process automation (RPA) is a software technology that makes it easy to build, deploy, and manage software robots that emulate humans’ actions interacting with digital systems and software. Just like people, software robots can do things like understand what’s on a screen, complete the right keystrokes, navigate systems, identify and extract data, and perform a wide range of defined actions. But software robots can do it faster and more consistently than people, without the need to get up and stretch or take a coffee break.

RPA is akin to a software robot, in that companies have a 24-hour digital worker that doesn’t make mistakes. They will only do what they are programmed to do.

This technology will, in fact is already having an impact on the financial sector as companies are using RPA to save time wasting by automating much of their business processes.

For instance, you can code it to manipulate applications to emulate how a human being uses an app. Doing this can help with error testing before launching your digital products to consumers.

Conclusion
Now that you know the most important financial technology trends, you need to keep an eye on the future. That way, you can position your company to get the most out of this evolving technology and adapt to consumer demands

According to the UN’s Food and Agriculture Organization, Uganda’s fertile agricultural land has the potential to feed 200 million people. 80% of Uganda’s land is arable but only 35% is being cultivated. In fiscal year 2020/2021, agriculture accounted for about 23.7% of GDP, and 31% of export earnings. The UBOS estimates that about 70% of Uganda’s working population is employed in agriculture.

Challenges
Agriculture plays an important role in providing food security and sustainability for the people in any country. However, lack of funding and limited distribution channels to reach customers are frequent problems faced by farmers to meet the level of sustainability.

Digital marketplace with Fintech enabled might transform agriculture’s business process into more sustainable in terms of funding and distribution. FinTech offers farmers convenient ways of getting sources of funding through crowdfunding and digital payment system. Thus, digital marketplace can act as a platform for FinTech to integrate the innovative financial solution into a broader agricultural ecosystem.

Government and Fintech
In order to boost agricultural production, government of Uganda should find a way to be able to tap into financial technology (FinTech) in linking farmers with financial services. The Fintech industry in Uganda has the potential to enhance agricultural productivity because of its enormous amplitude for financial circuits through making financial services and products accessible even to the marginalized farmers.

Through the use of modern financial technology, we could as well witness improved cost efficiency across the food supply chain in the country.

Access to agricultural financing plays a critical role in enabling the agriculture sector, including smallholder farmers and business enterprises, to adopt productivity-enhancing technologies and practices.

However, agricultural transformation also requires farmers to shift from traditional agricultural payment systems to using available digital money services to reduce their financial risks.

As of now, Yo! Uganda has partnered with United States African Development Foundation (USADF) to roll out Mastercard Farmer Network – a digital agriculture solution that digitizes marketplaces, payments and workflows within the agriculture sector.

The aim of the partnership is to create permanent links between key stakeholders in the agriculture sector, which serves as the largest employer in the Ugandan economy. It will create a one-stop digital marketplace, advancing digital inclusion and fostering wealth creation for both individuals and communities.

The implementation of this digital technology is already helping to bring more visibility to supply chains and help move farmers away from unreliable and risky cash-based interactions. The platform provides a digital marketplace for buyers who are looking for sustainable sources of quality produce at favorable market prices and a place for small-holder farmers to access reliable markets and fair prices.

However to be able to maximize these opportunities, there is a need to increase the awareness and knowledge of farmers on these kinds of platforms.

When fintech emerged in the 21st Century, the term was initially applied to the technology employed at the back-end systems of established financial institutions. ​Since then, however, there has been a shift to more consumer-oriented services and therefore a more consumer-oriented definition. Fintech now includes different sectors and industries such as education, retail banking, fundraising and nonprofit, and investment management to name a few.

Below are benefits that set fintech businesses apart:

1. Cost of transaction

Whether it’s processing fees or commissions, fintech businesses know that users today are particularly attentive to costs. That is why Fintech solution providers often refrain from charging additional fees, such as modification fees, cancellation fees and other hidden charges. Having a better visibility of the various costs incurred may represent considerable savings for a company.

2. Convenience

The COVID-19 pandemic has contributed to the rapid rise of fintech. With the currently limited cash transactions and more increased cashless transactions, fintech companies came out as one of the big winners of the pandemic. Their high level of connectivity allows them to reach a wide audience and allows their audience to reach them at the touch of a button. The flexibility they offer in terms of time and location make them entirely adaptable to their clients’ needs. Companies are also adopting Fintech because it uses technologies to give users a better and reliable customer experience.

3. Speed

In today’s fast-paced world, waiting for an international payment to go through, or a financial institution to grant a loan can sometimes take what feels like forever. That is why fintech companies rely on efficiency to set themselves apart. When you apply for any loan application online, it must be authorized by digital-only lenders that can provide same-day funding, which is only feasible because of fintech innovation. If you need a short-term loan or a payday loan, then with fintech it gets easier. You can simply discover many lenders online and get access to quick service.

Fintech companies have deeply ventured into block chain technology to deliver efficient processes, amplify consumers’ experience and reduce risks in business.

Fintech companies have enjoyed enormous growth over the last decade, and end users are also deriving the satisfaction of better transactions through fintech.

1. Fast service and convenience
Fintech companies provide much faster transactions, processes and systems in different sectors. Some fintech companies also provide avenues that facilitate end users to choose from a heterogeneity of conveyance options, most times, by the click of a button, you receive express delivery.

Meanwhile, this has cut costs of traditional forms of transactions where customers would either head over to their bank or agent, and some of these banks or agents are only open till a particular time. When it comes to fintech-enabled services, there are no such restrictions, transactions can literally be handled anytime from anywhere.

2. Reduced costs of transactions
Every day, every hour, a transaction is taking place locally. However, customers are paying a lot of hidden charges in the process of transacting.

Fintech solutions usually steer clear of additional charges like cancellation fees and hidden charges. Various tools are provided to help businesses send and receive money from their accounts over copious currencies without the burden of conversion fees.

Previously, customers would move distances to do physical transactions. With fintech, these extra fees have been eliminated because you can transact from the comfort of your business office, anytime and anywhere.

3. Increased transparency
Fintech has played a huge role when it comes to providing better transparency in the financial sector.

Irrespective of whether customers are sending or receiving finances via a specific payment solution, end-users of fintech solutions are often kept in a tight loop regarding their individual transactions.

Better still, fintech solutions operate 24/7 with real time updates and compact security procedures. This has ensured trust and reliability in fintech solutions.

4. Compliance and security
Fintech companies have specialists that invent solutions that easily negotiate the dissimilarities in national regulations and laws.

Take Yo! Uganda Limited for example. With the rising instances of cyber-security, we have invested laboriously on perpetuating a highly efficacious compliance department to ensure that every successful transaction is reviewed accurately.

5. Faster Rate of Approval
With fintech, the rate of approval has gotten much easier. You can clearly request the digital lender online and the application approval can happen in a day. The information of customers is processed and they can get access to all types of financial services they need. The credit for it goes to the automatic process powered by the use of AI within the banking sector which is expected to empower the process rapidly than what a human can do.

Fintech has definitely made things a lot easier for determined businesses looking to grow toward the edge. If you wish to know more about what fintech can offer your business, email us info@yo.co.ug and our team of experts will get back to you in no time.

Here, the bulk list is the list of beneficiaries that the creditor intends to pay from a single account. The creditor’s bank statement reflects this bulk transfer as a single payment.

Fintech players like Yo! Uganda have more user-friendly solutions for bulk payment processing. They are faster, highly scalable and offer higher security.

Today, we shall try to cover the different benefits of bulk payment solutions for businesses. To begin with, many businesses use bulk payments on a daily, weekly and monthly basis.

Employee Wage payouts
Businesses need to pay their employees on time. For employee satisfaction, this payment must be done timely and without any glitches. You may need to ensure that your employees can withdraw earnings to their bank accounts instantaneously.

Many businesses use Yo! Uganda to make payouts to employees. The partners can request a payout on their daily earnings according to their need. This leads to partner satisfaction and high retention rates.

Contractors payouts
Employees are a regular beneficiary of a company’s payout structure. However, things might get a little tricky when it comes to contractors.

Contractors may require instant payments. Here, businesses like yours cannot afford to be tied down to financial institutions’ working hours. Moreover, you may require to disburse payouts in different payment modes like bank transfer, or mobile money.

Pay vendors
You may also need to pay your vendors and ensure that the marketplace settlements run smoothly. Evidently, as businesses grow, so does the complexity of handling it.

You may need to automate vendor management. Moreover, you may need to split the payments in complex ways.

Refunds
Refunds are a part and parcel of an e-commerce system. You may require to process refunds automatically and efficiently to ensure customer satisfaction.

Of course, this is easier said than done. You may need partial or instant refunds services – a feature that is rather new in the payments space. Moreover, you might want to initiate the refunds from a dashboard where they can track their progress.

Prize money
Businesses and stores running contests need a bulk payment system to disburse the prize money. For instance, an online gaming company can disburse winnings to participants. Here, the payment disbursal needs to be seamless and fast.

A failure of this can result in distrust of users and thus damage to the company’s reputation.
Now that we have covered the various benefits, you as a business owner, may need to think about investing in bulk payment services.