A Vested Interest: Fintech and Financial Brokerage

  • One of the fastest growing sectors in the UK is the financial technology sector or fintech. Fintech companies are disruptors, offering an alternative to the services provided by traditional banking and financial institutions – who can be difficult to approach directly.

    Fintech companies, however, are more approachable, they are competitive, ground breaking and fast becoming indispensable.

    Many fintech companies are brokers, a label that has, in the past, been frowned upon, but now brokers provide expert navigation through the many financial aspects of business and of life.

    Invoice Finance Brokers

    Using an invoice finance broker, for example, is a lifeline without which many startups and more established companies would struggle to survive. Invoice finance brokers are able to release much needed capital to companies who have unpaid invoices and as a result find that cash flow can be an issue.

    Being able to access the capital from invoices in advance of then being paid allows businesses to retain liquidity and therefore able to do things such as pay bills, buy more stock or bolster marketing budgets.

    Mortgage Brokers

    Mortgage brokers aka independent mortgage advisers have been around for many years and perhaps helped pave the way for the new breed of “digital brokers”. Today’s mortgage brokers, however, also make good use of financial technology and are more “independent” than they once were.

    Not only will a mortgage broker now find you the best deal, they have the technology to implement the application on the customer’s behalf and what this means is no more lengthy application forms to navigate and complete.

    The service is faster, more efficient and more customer friendly.

    Trade Finance Brokers

    If a company deals in trading goods and the goods are bought and sold on from a company inside or outside of the UK, a trade finance broker could help the company thrive.

    Trade finance brokers offer up capital to be able to purchase the goods in advance of their resale. Such brokers could prove to be a particularly effective solution for startups who are struggling to raise the capital with which to start trading. Alternatively, companies who are looking to expand their activities can use a trade finance broker to help drive the expansion.

    The modern digital broker plays a much bigger role than that of a middleman, as they are micro-institutions in themselves, with a legitimate and vested interest in helping businesses and individuals achieve their goals and flourish.