Technology has increasingly become a powerful tool enabling small businesses to streamline processes, improve efficiency, reduce costs and extend customer reach, ultimately leading to growth and success. So much so that according to the US Chamber of Commerce, 93% of small business owners use at least one technology platform for their business, with the average business owner utilizing three.
Furthermore, 84% of small business owners who have adopted at least six tech platforms experienced increased profits, 74% saw their recruitment increase, and 82% saw increased sales.
We recently spoke with Quentin Martin, Director of Product at Capital On Tap, to discuss technology’s role in the firm’s success. Capital on Tap was created to make life easier for small business owners by harnessing technology to develop tools that empower owners and make business processes faster, simpler, and more rewarding.
In this interview, we explore Quentin Martin’s unique insights on how technology is changing the small business landscape and his advice to help small business owners maximize the opportunities technology presents.
What role has technology played in the success of Capital on Tap?
“At Capital on Tap, we use technology, particularly consumer data, to improve our crediting underwriting and user experience in our website and mobile app. It enables us to solve customer needs, particularly in fighting fraud and ensuring our customers are as secure as possible.
With data analytics, we can assess creditworthiness, reduce risk and offer competitive rates. Meanwhile, our mobile app allows customers to access rewards, make payments, and track spending. This use of technology has enabled us to scale up the business quickly and efficiently and provide valuable financial services to small business owners.”
“Technology has enabled us to scale our business quickly and provide valuable financial services to small business owners.”
How can small businesses use and leverage technology to drive efficiency in the financial space?
“I think the key here is for small businesses to focus on a problem that tech can simplify. If a business identifies a process that technology can speed up or a customer pain point that can be simplified, then that’s the area they should focus on to drive efficiency.”
“Focus on a problem that technology can simplify.”
There’s recently been a lot of talk about AI. What impact do you think AI is having on small business finance?
“While I’m very bullish about AI, much of it requires large, well-maintained data sets. This can make it difficult for small businesses to take advantage of as they often don’t have large customer bases. However, applications such as ChatGPT and Midjourney enable companies to generate content more quickly and apply data better.
And, through the application of third parties, good Software as a Service (SaaS) providers are available that enable small businesses to plug in an API to solve their fraud/security/CRM, etc. issues. So, I would recommend small businesses look to see what they can outsource, allowing them to focus on what they do best.”
Where do you see things heading when you look at small business finance and technology?
“I expect AI will continue to grow more and more. It’s already mainstream technology at 86% of US firms. We’ll see more companies focused on delivering better customer experiences, particularly in the Fintech space where incumbents don’t focus as much on the customer experience or have large cost structures that don’t enable them to pass on savings to the customers.
I would say we’re going to see a better user experience. We will also see artificial intelligence used more to fight fraud and money laundering and make banking and financial environments much safer.”
“We’ll see more companies focused on delivering better customer experiences, particularly in Fintech.”
What are the risks that small business owners should be aware of?
“Small business owners need to focus on ensuring their business is secure and staying on top of the data they gather and their data security. They should also focus on what their business does best and not get distracted by the potential to grow into other areas. Business owners can outsource and use technology to improve all the elements of their business, focus on delivering that core customer awareness, and reduce the risk for their business.”
If you were to recommend the ideal financial pack toolkits to small businesses, what would it be and why?
“I would be remiss if I didn’t recommend business owners look to Capital on Tap for their card and credit needs and to help them with their expense management and day-to-day cash flow. Beyond that, my advice is to keep it really simple. I think that’s about all you need to grow as you scale up. So, a package like QuickBooks is always useful, but only when you really hit 25- to 50-plus employees. And beyond finance, from a technical toolkit internally, I would always look at Jira and Slack as the go-to set-up for any tech-based companies.”
To conclude
Technology has become an essential resource for small businesses, especially in the financial space. With the increasing availability of technology, small business owners now have access to powerful tools that can help them streamline operations, improve data security, enhance the customer experience and improve overall efficiency.
