As fintech firms continue to explosively grow and bring services to market, Kevin Vendel, senior partnership manager at Spotcap, tells how synergy between fintechs and accountancy firms can help support the needs of growing businesses.
How does fintech financing work?
Fintech lenders have been offering business loans for a few years, due to demand from the SME market for new ways to access finance. Traditional sources involve a lot of paperwork and meetings, delaying the process of getting a loan. Fintech lenders offer an alternative that allows SMEs to spend time on growing their business and gives accountants an easy, user-friendly way to attain new business and service clients better.
How can a fintech lender support an accountancy firm?
A lot of accountants still rely on traditional ways of obtaining finance for their clients, or outsource this service to brokers. However, larger accountancy firms such as KPMG and BDO are taking the lead on moving away from this. They are taking advantage of the ease of use of fintech lending solutions to manage the sourcing of capital themselves. By offering the service in-house they are able to create a new revenue stream and improve the client-accountant relationship in the process.
UK accounting firms will miss an opportunity if they don’t explore the online financing solutions fintechs currently offer. It’s a path to business growth regardless of your size. Spotcap is currently partnered with over 300 accounting firms in five markets. They have all discovered that managing clients’ financing needs does not have to be a long process involving a large amount of paperwork. Instead the flexible and high-quality online solutions offered allow them to capitalise on a new path to business growth while helping clients.
What are the big benefits for accountants in partnering with a fintech lender?
There are a few key benefits. First, as mentioned, the online fintech lending solutions available today enable accountants to move the sourcing of capital for clients in-house, thereby creating a new revenue stream. Second, being able to provide an additional service and counsel on alternative ways to access financing helps build trust and strengthen existing client relationships. Third, providing access to financing can also help win new clients as it demonstrates a customer-centric service approach.
What should accounting firms be looking for in a fintech partner?
A strong track record of working with an accounting firms is key. Also, look for someone that can help you in your role as a trusted adviser, strategic counsel, and business partner to your clients. Does the fintech you have in mind provide materials, updates and services that support this?
Last but not least, what one piece of advice would you offer growing businesses looking to work with fintech lenders?
Get informed about fintech and explore what it can offer you. Also, make sure to stay up to date, because the market is growing quickly with new products and services, including lending, mortgages and insurance. They can all have a positive impact on business growth for accountancy firms but you need to spend time making sure the fit is right for your business.
Originally published on Economia, on 16 February 2017.
Originally published February 16 2017 , updated February 25 2020