What is a BFM and what is it for?

Today there are many tools and software products dedicated to facilitating financial management and resource control for businesses. One of these tools is the BFM or Business Financial Manager, a type of financial analysis and management software for small and medium-sized enterprises.

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If you run a business and want to improve its financial management, this post may be of interest for you!

Financial management for business

One of the most delicate and important tasks that any business or company must perform is financial management. It is an activity that allows the organization of the company’s economic resources in order to face an effective financial plan and to make projections over time.

In this sense, financial management is essential not only for large companies and large companies, but also in the case of small and medium-sized companies and enterprises that seek to grow and improve their business performance.

To carry out this financial management there are different solutions, one of them is the financial management software or BFM. Its meaning could be defined as a programme that provides financial analysis and control services that adapt to the needs of the businesses that request it. Among its main advantages are the automation of data collection, the reduction in operating costs and the integration of open banking services.

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Small enterprises

Today, financial management is more accessible than ever: due to the multitude of IT and telecommunications developments, this market is constantly developing: according to a report produced at the end of 2021 by the Statista website, around 50% of small and medium-sized companies use this type of financial management software.

On the other hand, according to the report produced by the National Observatory of Technology and Society, the use of artificial intelligence systems is expected to exceed 9% by the end of the year, while database analysis accounts for around 11% of all systems in use. However, the most representative value is that of software with cloud services: 32% of the total in 2021.

What are the advantages of BFMs?

In general, this type of system seeks to strike a balance between flexibility of functions and tasks, on the one hand, and simplicity of interfaces and user experience, on the other. Therefore, it not only represents a substantial improvement in the processes associated with financial management and the balance sheet, but also reduces costs and streamlines operations without the need for a major investment.

Integrate the Business Finance Manager into your organization.

Banking integration

New generation BFM systems allow you to collect data from the different accounts and banking services with which the company operates and organize them in a single platform to integrate operations and obtain an overview of the accounts. It also makes it possible to link different providers to ensure the operation of APIs for open banking.

Implementing such IT solutions ensures that business accounts, credit facilities and investment instruments, among others, are managed together in a single interface that simplifies the organisation’s overall operation. As a result, balance sheet and accounting tasks are simplified, invoicing is streamlined and accounts are updated in real time.

This type of platform also assists decision making by enabling financial reporting, statistical analysis and long-term performance projections. Therefore, management strategies can be developed with more precise criteria based on financial data and economic needs.

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White label BFM

How can banks provide this BFM service without dedicated software?

Sometimes having dedicated software with a multitude of functions is not the best solution. For freelancers, freelancers and small businesses, your usual bank might be able to offer the basic functions of a BFM thanks to the integration of white label modules such as the ones we developed at Coinscrap Finance.

We tell you what a typical integration process of such a module would be like:

Identification of technology providers

The bank should look for technology providers that offer customisable and scalable financial management solutions for small and medium-sized enterprises. These providers should offer white-label modules that allow the bank to easily integrate the solution into its existing platform.

Negotiation of white label agreements

Once suitable vendors have been identified, the bank will negotiate a usage and integration agreement. These agreements would allow the bank to use the vendor’s technology under its own brand, enabling it to offer a customised financial management solution for its business customers.

Integration of the solution into the bank’s platform

Using the white-label modules provided by the technology provider, the bank can integrate the BFM solution into its digital platform. This may involve design adjustments and customisation to make the solution fit the bank’s brand and user experience.

Offering the service to business customers

Once the BFM solution is integrated into the bank’s platform, the bank can start offering the service to its business customers as an added value. Customers can access the tool through digital banking, enabling them to manage their finances more efficiently and effectively.

Ongoing support and maintenance

The bank and supplier must provide ongoing support and maintenance to ensure the smooth functioning of the BFM solution. This may include technical troubleshooting, software updates and the addition of new features as needed.

In short, by using white label modules, a bank can offer the BFM service for small and medium-sized businesses without the need to build dedicated software or charge a licence fee to customers.

This allows the bank to add value to its service offering in a simpler and faster way, while enhancing the financial experience of its business customers.

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