October 14, 2020
The article below was originally published on LinkedIn.
While the global health crisis put a temporary cork in both life and business as we know it earlier this year, it also spawned an inevitable surge of industry innovation. The many branches of fintech have each had to respond to unique challenges, accelerating solutions to help those most affected by the pandemic. 2019 saw global fintech investment reach $135.7 billion, so the industry wasn’t just sitting idle before all of this. Yet the sudden, immediate need for seamless digital solutions in 2020 pushed through a ton of decision making and development in a matter of months. The pandemic also shone a light on some of the unsung fintech heroes and products helping to keep small businesses afloat.
Q2 2020 saw the birth of a new fintech Unicorn amidst all the uncertainty (Upgrade in the US). On top of that, just last month it was announced that Klarna has become Europe’s biggest fintech unicorn at over $10b valuation. It’s tough to scratch the surface of all the progress, partnerships and product launches in recent months. So I’ll stick to what we at YND have been busy with.
Banxware - Embedded lending for SMEs
The Covid crisis brought on a strong, sudden demand for quick access to loans in order to help protect businesses from long-lasting damage. This is precisely what Banxware helps with. Banxware’s solution offers rapid credit decisions for merchants in need.
With the rising demand for built-in fintech as part of the basic functionality of non-finance products, embedded lending is driving the next wave of disruption in fintech, and Banxware is at the forefront of this.
With Banxware's solution, any B2B platform can offer financial services to their customers. As well as being an additional source of income, embedded financial services are one of the most efficient customer retention tools. Merchants can apply for loans in real-time, and for lenders and bank partners, Banxware manages the loan throughout the entire lifecycle.
The current need for platforms and marketplaces to offer value added services in order to succeed has become imperative. The number of unanticipated companies that now need to enter the financial space require fast, turn-key solutions. Long-standing obstacles are receding and it is suddenly possible for new businesses to seamlessly enter a regulated market. Keep an eye on this startup!
MINI by orderbird - The small-business hero
Early last year, before any inkling of Corona, orderbird wanted to ensure small businesses were prepared for an altogether rather different event - Fiscalisation updates. Giving birth to MINI by orderbird, the smart, all-in-one mPOS, was no small feat. This ultimately evolved into something pretty inspiring.
With over 10,000 customers, orderbird is a market leader for POS systems in Germany, Austria and Switzerland. MINI by orderbird was developed specifically for retailers, services and crafts to offer intuitive POS software, card payments, mobile receipt printing, and of course, 100% tax compliance.
What makes this product so exceptional is its unexpected evolution into becoming one of the unsung (business) heroes of this health crisis. As Covid forced bargeld-obsessed Germany to adopt contactless payments - nimble, all-in-one POS systems like the MINI have become a goto solution for small businesses. From driving schools and florists to boutique hairdressers and food trucks, MINI by orderbird has enabled small establishments to get back to business, in the safest way possible. (Read more in our case study).
This is a fine example of some of the more positive advancements this year in society, specifically here in Germany, towards a more digital ecosystem, and we are therefore super thrilled to see more and more MINIs popping up all over Germany!
In a nutshell
The enormous growth in ecommerce recently has created the ideal environment for retail and hospitality companies to form new partnerships and have fintech built-in to their overall business. Take the increasing demand for BOPIS (buy online, pick up in store) for example, which requires the capability to manage order fulfilment, inventory management, payment processing and more. Post-Covid, people are looking to BOPIS for a multitude of products be it pet supplies, hardware tools, groceries or hygiene products. Now, in order for many industry players to stay afloat and be successful, they must have (fin)tech in their DNA.
We haven’t just seen a shift in infrastructure, but a shift in mindset. Hopefully this rate of development and fast decision making stays on the up. The products and services mentioned weren’t born from Covid, yet the health crisis has undeniably accentuated the overall need for future-proofing and forward thinking, as well as the need for a sterling network of partners to help achieve this. With that, I’d like to end with a shoutout to some of the absolutely exceptional clients and partners that YND has worked with on these ongoing projects. orderbird, Banxware, PAX, bambora, payworks, FinTechSystems, WebID, Mambu - we salute you!
If you have a fintech project bubbling away that you think YND could help you with, get in touch via the email address below.
This article was written by Philipp Nowakowski, Founder and CEO at YND. In need of some brain power? Reach out to us via email@example.com with questions about your projects.