How Fintech is Disrupting the B2B Trade Industry
The B2B trade industry has traditionally been known for its cumbersome and time-consuming processes involving paperwork, manual reconciliation, and delayed payments. However, with the advent of financial technology (fintech), the B2B trade industry is and still undergoing a significant transformation. Fintech companies are leveraging technological advancements to streamline and automate various aspects of B2B trade, making it more efficient, transparent, and cost-effective. Want to learn more about how FinTech is disrupting the B2B trade industry? Keep reading while we explore the disruption in the B2B trade industry.
The Dawn Of FinTech— The Beginning, The Middle, and The Metaverse
Financial Technology which is commonly known as Fintech, refers to the use of technology to deliver financial products and services, transforming the B2B trade industry in various ways. Before the development of FinTech, the Trade industry has been tagged for their lack of access to services, especially in rural areas, issues of affordability, and poor user experience all contribute to the frustration consumers experience right across the customer spectrum.
In recent times, there has been a drastic improvement in the buyer/seller relationship due to the advent of the digital age. Companies should focus more on using more digital and collaborative tools as these digital tools help streamline communication, facilitate processes, and enhance collaboration, making it easier for businesses to achieve their goals.
This has created an opening that fintech has been quick to take advantage of, with many stepping up to develop solutions that can improve the process. Ever since, the establishment of the Fintech Association of Nigeria—a self-regulatory, not-for-profit, and non-political organization was incorporated to regulate companies in the FinTech business. There has been notable growth in Nigeria's Fintech Industry. In 2020, the Central Bank Of Nigeria (CBN) initiated Payment System Vision 2020 (PSV 2020) to fast-track the development of fintech in the country.
One Chain Man vs Supply Chain Finance
Supply chain finance, which involves optimising the flow of funds along the supply chain, is a critical aspect of B2B trade. Fintech companies are using technologies like blockchain, the Internet of Things (IoT), and data analytics to enhance supply chain finance and reduce risks. Bridger has been enhancing supply chain finance payment since 2021— you can use our extended payments feature which allows you to make transfers to the bank account of your customers now and repay later. With this feature, you can make urgent and fast payments to your customers without disrupting your cash flow.
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Disruption Or Simply Pure Chaos
Automating Payment Processing is revolutionising the way businesses conduct B2B trade in Africa, bringing efficiency, transparency, and cost-effectiveness to a traditionally complex and time-consuming process. With technologies such as payment gateways, digital wallets, and real-time payment systems, businesses can streamline their payment processes, making them more seamless and hassle-free.
On January 9th, 2023, the Central Bank Of Nigeria declared a cashless policy that disrupted the whole economy’s fiscal system which showed that while the Nigerian Fintech Industry is booming are not fully ready to take over the reins and move us to a cashless and automated economy.
Payment gateways are to act as a reliable online platform that securely transfers funds between parties, integrating various payment methods and providing features such as fraud detection and transaction tracking. Digital wallets offer virtual accounts that enable businesses to send and receive payments instantly, eliminating the need for physical checks or cash. Real-time payment systems ensure that funds are transferred in real time, reducing delays and improving cash flow.
Hence, The advent of Fintech companies in Nigeria was supposed to ease the frustration and inconvenience for customers relying on these Fintech platforms for daily transactions. The impact of payment processing automation goes beyond just saving time and effort. It also improves the accuracy and transparency of payments, reducing errors, delays, and fraud risks but more financial technology companies keep arising without solving the existing problem but leading us into an endless loophole.
If done right, payment processing automation could be a game-changer for businesses in Africa and could disrupt the whole system positively. It frees up employees from manual tasks, allowing them to focus on strategic activities that drive business growth. Issues like technical issues, Limited access to modern technology, and reliable internet connectivity in some regions can be a barrier to adoption. It's crucial to assess the availability and reliability of technology infrastructure before implementing automation solutions.
B2B supply chain automation has the potential to catalyze a "leapfrog moment" for trade in Africa. Automation technologies, such as blockchain and artificial intelligence, can enhance competitiveness in global markets by improving cash flow, reducing transaction times, and enhancing customer satisfaction. With more efficient payment processing, businesses can build better relationships with partners and customers, leading to increased sales and improved competitiveness in the global trade landscape.
How has Bridger disrupted the B2B trade industry
Now, if you are new here, you are probably wondering what is Bridger and what we do. Well, Bridger is the cloud-based supply chain platform that transforms the way B2B buyers and suppliers connect, transact and trade. Our mission is to bring Africa trade online. You can also read more about what we do here.