From Paper to Pixels: The Role of Fintech in Growing Digital Businesses

In today's fast-paced digital world, technology has revolutionised the way businesses operate, leading more to digitalisation as they seek to expand and reach new heights. Yet, despite the excitement around going digital, many Malaysian businesses still lag behind when it comes to implementing advanced digital technologies¹.

To combat the slow uptake of digitalisation, the Malaysian government recently announced numerous initiatives such as the Digitisation Grant Scheme, strengthening of the Digital Economic Centre (PEDi), and RM1 billion in financing from Bank Negara Malaysia to assist businesses² in going digital. Alongside government initiatives, businesses can also get the support they need from fintech companies, whose innovative solutions are instrumental in driving digital adoption.

By collaborating with fintech companies, businesses will be able to address digitalisation concerns through an improved digital journey enabling them to fully embrace  and access the solutions they need to remain competitive and reach new customer segments. Additionally, as the International Monetary Fund (IMF) forecasts global growth to slow to 2.7% in 2023³, and with inflation and cost of living pressures weighing on the region, businesses who partner with fintech's to go digital will be in a more advantageous position as they can future proof their business and persevere through  current economic headwinds.

Fintech solutions also unlock options for merchants and empower them by simplifying financing, offering greater efficiency, providing deeper insight into their business along with a higher degree of personalisation. In fact, according to an EY Business Pulse Survey, 77% of Malaysian businesses are prioritising technology in the immediate term⁴ as they fast track their adaptation to remain relevant in an era of technology and digital transformation. Investing in digital solutions allows businesses to reduce costs as previously manual processes are automated, in turn making overall operations more cost-effective, and allowing businesses to focus their efforts on growth.

As a regional full spectrum fintech player, Boost has always been at the forefront of providing cutting-edge technology and convenient fintech solutions that paves the way for merchants to enjoy unstoppable growth in their business ventures.

But, how is this possible?

Fintech offerings prioritise two essential elements: accessibility and speed. While the benefits of fintech cannot be understated for merchants, it has also revolutionised the way businesses operate. Merchant wallets encapsulate this as they not only encourage cashless transactions, but also make business-related payments frictionless, and allow easy access to funds for merchants. In the past, gaining access to financial tools would have cost millions of dollars to set up, taking into account the fees, equipment, licences and manpower required. Fintech have  simplified that process through the use of big data and mobile connectivity, so that  businesses can easily access complex, feature-rich financial software platforms, and managed services.

In keeping with the same line of thought, cost reduction is the most popular starting point for digital transformation. Something as simple as paperless transactions can cut expenses for businesses, as costs associated with purchasing paper and printing are eliminated. Moreover, by recording transactions digitally, all  data are stored in one location, allowing merchants to access it quickly and use it to build their file to apply for increased financing. Additionally, with cost in mind, businesses can tap into the advantages of going digital to improve asset efficiency, support worker productivity, reduce overhead and production costs, and streamline after-market service.

Digitalising your business also provides access to unparalleled business insights. Fintech innovation has enabled smart information displays with real-time updates and data analytics, providing businesses with direct access to this information. As an example,  merchants can stay informed of their daily sales, customer insights, and business performance analysis through the Boost Biz app to improve overall management processes and business operations. An added benefit for merchants using customer data insights is they can identify customer trends and behaviours, enabling them to better target customers. This leads to stronger sales and overall business growth, as well as showcasing how investing in digital solutions is beneficial to both the business and customer experience.

Additionally, by using innovative fintech solutions, businesses are also able to improve a customer’s journey by providing accessibility and convenience. Customers can access financial information and transactions in real-time via seamless payment processing and mobile banking. Such is the case with Boost, which provides their merchants easy access to accept cashless payments via the Boost DuitNow QR code, Boost Business Payment Link and International Cross-Border QR payments. Through this, merchants are not limited to serving local customers in-store, they are also able to expand their reach to customers across the region.

Overall, fintech solutions have certainly unlocked options for merchants to easily embrace digitalisation for business growth. In fact, according to an EY Business Pulse Survey, 77% of Malaysian businesses are prioritising technology in the immediate term⁵ as they fast track their adaptation to remain relevant in an era of technology and digital transformation. Investing in digital solutions allows businesses to reduce costs as previously manual processes are automated, in turn making overall operations more cost-effective, and allowing businesses to focus their efforts on growth.

The role of fintech in spurring the digitalisation of businesses has been crucial in enabling businesses of all shapes and sizes to actively participate in the digital economy. With the help of fintech players such as Boost, businesses are primed for endless growth and opportunities, which will further evolve with the fast-paced advancements of the fintech landscape. Furthermore, as businesses grow and increase profitability, they will have better access to capital and financing, helping them to further invest in other areas and become unstoppable.

References:

¹ Malaysia’s digital challenges

² Budget 2023 highlights

³ Global Recession Economic Outlook

⁴ The majority of Malaysian businesses are prepared to live with Covid-19

⁵ The majority of Malaysian businesses are prepared to live with Covid-19

This content is provided by BOOST Malaysia