Financial technologies support online sales
The partnership between online sales giants and startups from the financial technology sector is becoming a source of strength in the modern economy.
Providing the possibility of financing purchases on favorable terms has long been a necessary condition for success on the e-commerce market. The current global trend is the partnership of online sellers with dynamically developing companies from the financial technology sector. It is interesting that very often these are not traditional banks. They see fast installment systems as too risky a market, while many small and medium-sized enterprises need financial products that offer real support to start selling online.
During a pandemic, customers visit traditional stores less frequently. But not only this is the cause of sales increases of several dozen percent in the e-commerce industry. It is also important that thanks to online sales, both parties — both sellers and buyers, gain significant economic benefits. Therefore, the innovations in sales techniques that we are currently observing will undoubtedly stay with us for longer. Reducing sales-related costs can be a salvation for many companies during the crisis and investment in digital sales channels undoubtedly allows you to optimize the sales strategy. Savings can come from the elimination of costly structures such as regional sales offices or the elimination of intermediaries. Thanks to this, the structure of the company is simplified and the entire profit remains in the company.
The American e-commerce giant — Amazon, is very actively developing the financial side of its business. These activities have three goals: attract more sellers to the platform, more buyers, and facilitate easy and profitable cooperation for them. The tools to ensure this are modern settlement technologies, deposit and loan products. Amazon has been consistently investing in financial technologies since the early 2000s. In 2007, he invested in TextPayMe and Bill Me Later. The first of them was an innovative service thanks to which it was possible to make peer to peer payments, the second was a provider of sales financing programs for retail networks. Later years saw the development of digital wallets and the Amazon Pay service operating not only on the Internet but also at traditional points of sale.
In turn, Provema, a Polish company from the financial technology sector, took the opposite approach. LoanByLink of the Katowice fintech company is an integrated plug-in that greatly simplifies the entire process of transforming a website into an e-commerce store. It is an answer to the needs of companies that need to quickly build an effective sales strategy on the Internet. The solution has extensive analytical functions that allow you to manage both the sale of products and services related to financing.
So far, Provema has focused on proprietary solutions using the potential of artificial intelligence. The fintech project based on algoryms has already been used, among others for credit risk assessment. As a result — the processes of granting loans were significantly accelerated and the risk of claims was reduced. Provemy’s system is able to handle up to 10,000 loan applications at the same time. Now the company has decided to use these experiences to build effective IT products for enterprises looking to develop online sales.