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Resources   /   Glossary

B2B Fintech

Financial technology (fintech) describes new technology that seeks to improve and automate the delivery and use of financial services. B2B fintech, then, refers to the set of fintech-related products that serve the needs of B2B companies. As the demand for fintech has grown, more and more fintech companies have sprung up, each seeking to fill an existing gap in the market. Digital payments fintech solutions have become especially common in recent years as businesses have sought out ways to simplify digital payments. B2B financial services companies are increasingly turning to fintech products to automate and streamline the way they manage payments, which has made things easier for just about everyone involved.

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Although financial institutions are largely coming to realize the importance of the customer experience, consumers are demanding more. They want improved payment solutions and are tired of having to wait to receive support. They’re no longer willing to wait in line at the bank to make a transfer. Automation has become an expectation rather than an exception, and financial institutions that fail to implement automated solutions are likely to fall far behind the competition. This is why fintech companies are on the rise. They’re providing helpful, innovative solutions to meet the evolving needs of consumers.

AvidXchange offers AP automation solutions for the middle market, including those in the finance sector. AvidSuite for financial services allows users to get round-the-clock visibility into their workflows. As one of the leading providers of financial accounting software for financial institutions, AvidXchange’s solutions enable banks and credit unions to take greater control of their expenses. With AvidSuite you can implement paperless workflows using OCR technology and streamline your accounting process. In addition, AvidXchange integrates with all core banking systems, offering freedom and flexibility to users. These solutions can help you stay on top of your workflows and get things done more efficiently.

B2B Fintech Landscape

The B2B fintech landscape is constantly changing, but automation remains one of the most promising trends. Businesses are increasingly recognizing the value of automation technology and how it can simplify otherwise time-consuming workflows. B2B fintech companies are also prioritizing transparency. Buyers and suppliers alike want to be able to track payments so that they can quickly spot and resolve errors. As the global fintech landscape expands, it will become more important than ever that financial services providers offer consumers visibility and control to the extent that platforms like AvidXchange do.

In fact, AvidXchange is among the top B2B payments companies precisely because of the freedom and control it offers users. You can easily access online records for quick and efficient auditing. AvidXchange also helps users reduce risk, which is an important aspect of visibility—you want to be able to see into your system and check for any suspicious activity. Greater transparency can also lead to improved buyer-vendor relationships, which fintech products can facilitate. When considering the B2B fintech landscape, it’s important to think about the space from all angles. B2B fintech companies should consider both the buyer and supplier and how to serve each.

B2B Fintech Trends

There are multiple B2B fintech trends to be watching for in the immediate future. One of these is B2B banking as a service, or BaaS. Banking as a service connects crucial digital banking services to non-banks. Fintech is aiding in the progression of BaaS and paving the way for those outside of the financial space to offer banking services to customers. Fintech companies are also leveraging AI solutions to combat fraud. These trends and more are shaping the current B2B fintech landscape, transforming the way consumers and businesses alike handle transactions.

Cross border payments are benefiting from the rise of fintech as well. B2B cross border payments fintech solutions facilitate transactions between companies operating in different countries. Fintech is helping close the international gap, making it easy for B2B companies to do business with foreign partners. As fintech improves, companies can make seamless, secure transactions, something that wasn’t always taken for granted. Better technology often equals better security, and those in the fintech space are aware of the security challenges faced by businesses and are constantly working to address these concerns.

B2C Fintech

B2C fintech deals with those in the B2C, or business-to-consumer, space. Unlike B2B solutions, B2C fintech caters to the needs of individual consumers. B2C fintech companies offer products directly to consumers, bypassing any third-party middlemen. Consumer fintech companies typically offer solutions for checking and savings accounts, personal loans, investing, and retirement saving. B2C fintech companies are especially interested in targeting younger consumers, who show a particular openness to fintech solutions. For this reason, the fintech space is likely to see an increase in B2C products in the coming years as even younger people reach adulthood and begin using financial products.

So are banks B2B or B2C? The short answer is both. Financial products that are sold directly to consumers fall under the B2C umbrella, while items and services sold to other businesses are considered B2B. Many banks, for example, offer both personal and business checking accounts. Solutions for B2B fintech payments are often centered on automation, as it’s easier for businesses to manage their accounting processes automatically—having to make several different payments by hand can be extremely challenging. However, automation has become popular with the B2C crowd as more consumers have discovered the benefits of automating payments.

Top B2B Fintech Companies

The top B2B fintech companies are shaping the fintech landscape and allowing for even greater innovation in the B2B financial space. But what is B2B fintech, and how are the top fintech companies changing the way businesses make payments? Put simply, B2B fintech describes the fintech products and services designed for B2B companies. B2B fintech companies are changing the world of finance forever, offering more effective solutions to help companies build and deliver better products to improve business operations. B2B fintech is among the fastest-growing industries today.

To learn more about fintech companies and what they’re doing to improve the B2B fintech space, you might browse a list of the top 100 fintech companies. Top fintech companies include Grab, which offers mobile wallets and remittances, and Robinhood, a retail investing and crypto company. Fintech companies offer everything from real estate to regulatory and compliance solutions. They help other businesses manage their financial operations, leveraging special tools and software to simplify processes and get things done more quickly. Payments, for instance, can go through in seconds via electronic systems, whereas it can take several days to process paper-based payments. Fintech is developing solutions to automate payments so that transactions can be made as efficiently as possible.

B2B Fintech Market Size

The B2B fintech market size is increasing thanks to accelerating digital trends and a growing demand for new financial products and solutions. New B2B fintech companies are springing up all the time, and the global B2B payments market size is growing as well. For the near future, at least, the fintech outlook appears bright. More industries are showing interest in fintech solutions and are scrambling to implement them into their business operations. Fintech sub-sectors are also expected to emerge in the coming years.

Accounting software like AvidAscend is also rising in popularity. AvidAscend was built specifically for financial institutions and is designed to work with a variety of core systems. With AvidAscend, your accounting team can manage all types of payments, keeping tabs on the entire AP process and more. Some of the modules available with AvidAscend include Purchase Requisitions, Accounts Payable, Approval Workflow, and Vendor Management. The solution can integrate with any core system and is trusted by nearly 2,000 financial institutions. Financial solutions like AvidAscend are transforming the payments landscape and enabling users to get more out of their accounting process.

Future of B2B Fintech

There has perhaps never been a better time to enter the financial services space than now. The future of B2B fintech points to an extremely optimistic trajectory, with services such as B2B open banking becoming more commonplace. B2B cross border payments fintech services are also likely to enter the spotlight as a solution for international transactions. The B2B payments market map details some of the most important players in the space today, including e-commerce sellers, infrastructure and APIs, and bill payments and accounting software. Fintech is helping to meet the needs of businesses in each of these areas.

Platforms like AvidAscend are also becoming more widely used as financial institutions seek accounting management solutions. AvidAscends supports OCR invoicing, which can boost the efficiency of your invoice process. You can also customize your workflows so that, even if you choose to automate payments, you can maintain control of the process. AvidXchange’s OCR technology is capable of extracting invoice data and coding items electronically, eliminating the need to manually sort each invoice. Best of all, AvidAscend can integrate with your core banking system so that you can keep your existing systems and processes intact.

As the trusted partner of brands such as Symitar and Jack Henry, AvidAscend supports a variety of integrations to give users the flexibility to continue using the systems they have in place while accessing a more streamlined solution to help with their accounting needs.

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