Recovering after the pandemic
Opening a business can either be a win or lose—a fact that has been proven over the course of the pandemic. The outbreak of the coronavirus has shaped the lives of the entirety, and business owners were certainly no exemption. Many establishments were forced to close down as a part of the government’s steps in preventing further spread of infection. Although this was a step taken for everyone’s protection, it gravely impacted the business sector.
If large-scale businesses suffered from this crisis, you can just imagine how dreadful it was on growing businesses. Considered the “backbone” of the global economy, comprising approximately 70% employment rate and 50% of gross domestic product (GDP), MSMEs received the largest blow. In response to this, various solutions were made to help them survive, allowing them to continuously contribute to the country’s economy—digital banking being the most prominent.
Traditional banking schemes no longer work
Among the many problems that micro, small, and medium-sized enterprises (MSMEs) face is the matter on finances. Corporate banks have reached out and helped growing businesses through loans, to fuel their operations. However, whatever profit these growing businesses make amid the pandemic will likely be used to pay for the loan, with interest. This may keep growing businesses afloat in the present, but largely puts their future in uncertainty. Not to mention, there’s the matter of expensive fees for maintaining balances and making transactions.
In spite of the situation, many people ventured into entrepreneurship when the pandemic started. As the circle of MSMEs continues to expand, so did the need to support them. That’s where FinTech—and digital banking—stepped in.
How digital banking saved growing businesses
FinTech (Financial Technology) pertains to a new model of financial innovation that involves cloud computing, artificial intelligence, mobile networks, and more—directed towards improving financial services. Its birth gave way to digital banking where users can conveniently transact online. While not everybody is open to digitization, it has certainly smoothened things out for growing businesses.
Digital banking allows businesses to thrive because it’s very different from legacy banking processes. By going digital, we eliminate the bureaucracy we commonly encounter through overwhelmingly long processes and intimidating requirements. A digital banking solution like NextPay grants growing businesses better chances at forging success by giving the benefits of corporate banking at less cost and time to secure (just the essential) requirements.
What are the benefits of digital banking for MSMEs?
A digital banking solution like NextPay is ideal for any type of business, but is essentially tailor-fit to the needs of MSMEs, freelancers and professionals especially during their post-Covid recovery. Here’s how:
- It saves their time and energy. It takes less than 30 minutes to create a digital banking account at NextPay. No initial payments needed; just fill out the details and wait to get verified. There’s no maintaining balance either!
- They’re can give the best customer service and build strong business relationships. By having the flexibility to send and receive money from different payment channels, it becomes convenient to pay suppliers and customers to the bank or e-wallet of their choice! What if they don’t have a bank account? Not the end of the world. NextPay allows them to send payments through its partner remittance centers nationwide!
In the same way, they can give the convenience of collecting payments from customers by allowing them to choose from multiple payment options such as credit cards, debit cards, direct debit, e-wallet and more!
- It gives them peace of mind. NextPay allows them to set-and-forget payments. This is especially helpful in making sure they pay their employees and suppliers on time. The comprehensive dashboard and downloadable reports allow them to have a birds-eye-view of the ins and outs of their money, nothing is left unaccounted for. Best, these reports can be downloaded for bookkeeping purposes.
Digital banking will continue to be successful—even after the pandemic
With or without a pandemic, digital banking is no longer just a passing trend. It certainly changed the game for many growing businesses and expanded the world of financial inclusivity, enabling even the smallest business establishments to prosper amid their post-Covid recovery.
Let us help your business next. Register with NextPay today and explore a better digital banking experience!