Financial Technology (Fintech) companies have revolutionised the traditional banking landscape, redefining the way financial services are delivered and experienced globally.

So says Andrew Maren, founder and CEO of Fintech firm ProfitShare Partners, created to put access to finance within reach of small and medium-sized enterprises (SMEs).

“With innovative technologies and disruptive business models, Fintech companies have emerged as formidable challengers to established banking institutions, driving unprecedented changes in the financial sector,” says Maren.

“ProfitShare Partners understands that entrepreneurs and emerging businesses are the drivers of economies worldwide, but there is an obvious gap between what traditional financial institutions offer and what the SME needs.”

Now, traditional banks are facing mounting pressure to adapt to the evolving financial landscape shaped by Fintech disruption. Challenges include increased competition, rising customer expectations for digital experiences, regulatory complexities, and legacy infrastructure constraints.

According to Maren, to stay competitive, traditional banks are investing heavily in digital transformation initiatives and forging partnerships with Fintech firms to revamp their service offerings to meet changing consumer demands.

“As we see it, ProfitShare Partners’ real task is to provide access to capital and drive SME growth to the point where they qualify for traditional banking products and services, where we hand them over to these financial entities,” he says.

“By providing access to funds that enables SMEs to deliver immediately on purchase orders and contracts, we help them bypass cash flow constraints quickly and enable them to participate in larger markets.”

Advancements in Fintech

Ongoing Fintech advancements span various areas, including digital payments, lending platforms and artificial intelligence (AI) driven services.

“These advancements have significantly enhanced the customer experience by providing seamless and convenient banking solutions,” Maren asserts. “Fintech innovations have empowered entrepreneurs and small businesses with greater control over their finances while offering more agile and personalised services.”

Fintech solutions also offer SMEs access to affordable financing options, efficient payment processing systems, advanced analytics tools for decision-making and simplified administrative tasks.

The significant appeal of Fintech solutions for SMEs seeking to enhance their business agility and competitiveness is clear: “By leveraging Fintech, SMEs can streamline operations, optimise cash flow management and respond more effectively to market demands and opportunities, while driving growth and resilience in an increasingly digital economy.”

“Importantly, any growth in the SME sector translates into growth in the overall economy, along with job creation. Any time job creation is a final outcome, it’s a win for Fintech, communities and economies as a whole,” Maren concludes.