3 Financial Trends Small Businesses should embrace
From our experience, one of the most common problems in building and growing a business is ensuring the correct amount of finance is accessed to support business growth. Despite there being a certain number of businesses with enough finance to balance their businesses, the majority find accessing this finance challenges. The financial industry in Kenya is one of the dynamic sectors of the economy; adoption of digital branches, the emergence of agency banking, internet banking, adoption of mobile banking, and the competition from mobile network operators, just to mention a few new and better ways to transform business using technology.
Financial trends to embrace as a small business owner.
- Agency Banking
Agency banking model is a function of certain commercial banks in Kenya. The activity is regulated by the central bank of Kenya, which allows banks to contract third-party retail networks as Banking agents. Upon successful application, vetting, and approval, these agents are authorized to offer selected products and services on behalf of the bank.
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As a small business owner, you can transact and get every financial service near you. Agents make work easier and time-saving. In most cases, services provided by the agents are free, no charges are needed.
2. Internet banking
Internet banking also known as online banking, e-banking, or virtual banking, is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution’s website. Banks and financial institutions in Kenya have internet banking, for example, the National bank of Kenya has categorized these services into two, personal internet banking, and corporate internet banking. Internet banking provides several services to its customers;
- As a client, you can access all information on the status of your account.
- Time Pin Authentication where you are allowed to have a pin to your account.
- Multi-format statement viewing and statement download; when you need your bank statements you can download or view them online through your account.
- Internal Funds Transfer (IFT); Allows small businesses who have several accounts with different functions and need to transfer funds.
- Electronic Funds Transfers (EFT),
The services mentioned above can be of great help to an SME owner who is ever busy and can’t access the bank directly. All you need is a laptop or phone and access to your bank’s website.
3. Mobile banking
Mobile banking refers to the use of a mobile device to carry out financial transactions. The service is provided by banks. Mobile banking enables clients and users to carry out various transactions, which may vary depending on the institution. The services that a small business owner can get from mobile banking are account information access, transactions, investments, support services, and content and news.
To date, many financial institutions and banks make use of both SMS and apps to keep their clients informed of their account activities or to send out alerts to clients regarding possible fraud or updates and maintenance of service.
Small business owners are now able to save time by making use of mobile applications to process their payments or even receive funds from clients directly to their phone numbers.
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Let’s take the example of EazzyPay from Equity Bank. Eazzy App is your Bank anywhere, anytime. It allows one to send money, pay for goods and services, accessing Eazzy loans, paying bills, checking the status of your account, or saving for your future goals, it is all in your hands.
The adoption of different digital branches and the competition from mobile network operators will increase the need to embrace new financial trends.
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