It’s so easy to get caught up in the advances of everyday traditional technology, like smartphones, virtual reality, and gaming, that we can easily lose sight of what’s going on in the world of financial technology.
No matter what it is you’re trying to do, there’s an easier way to do it.
Whether that means payments, loans, or financial strategy, the significant impact that technology has had on these sectors has spawned emerging trends that will revolutionize the way we handle money.
1. Biometric Payment Methods
Pin numbers and passwords play a crucial role in security, but they’re far from foolproof. It seems like new data threats are regularly discovered that make it easier and easier to infiltrate basic security technology.
With payment methods that incorporate biometrics, it’s a lot harder for malicious people or software to intercept and infiltrate personal information. It’s a lot easier to solve strings of numbers and letters than it is to mimic biometrics, and that’s why security savvy tech experts are implementing them into mobile payment methods.
The first Bitcoin purchase was for two delivery pizzas. Those pizzas were 10,000 Bitcoin in the year 2010. In today’s Bitcoin economy, those pizzas are effectively worth over $100 million. It just goes to show how savings and patience might have paid off.
The cryptocurrency market is so strong that major retailers have started to accept cryptocurrency as a regular payment method. Cryptocurrency has done more than hold its value – it’s grown. Since it’s easy to sell, trade and purchase with, the use of cryptocurrency is virtually becoming mainstream.
3. Universal Digital Wallets
Digital wallets are nothing new. What’s new is the added capabilities that allow advanced digital wallets to handle multiple currencies simultaneously.
This is something that may affect your business in the sense that your customers may use these wallets, but the benefits extend much wider. If you travel internationally for business, using one of these wallets will drastically simplify your life.
You won’t need to worry about currency exchange – you can make purchases and do deals directly from your multi-currency wallet at a moment’s notice.
4. Automated Financial Advisors
For newbies, working with a financial advisor seems intimidating. Now, they can work with an advisor without having to work with an advisor.
Automated financial advisors can generate custom investment recommendations and even take select actions based on the preferences of the user, all without a real person involved.
Thanks to apps and web-based platforms to promote easily accessible trading, robo-advisors are becoming the standard for individuals who are new to investing.
5. Virtual Lending
Since data collection and analysis is easier than ever, many lenders are able to make instant decisions based on the data they obtain. This makes the process efficient and consistent, giving it the opportunity to continually improve itself.
Virtual loans often create savings for lenders by reducing overhead costs, and occasionally, these savings are passed down to loan recipients. Small businesses often utilize these virtual loans, especially when they need a substantial amount of quick cash they may not be able to get elsewhere.
Fintech is changing the way that your customers want to do business, but it’s also changing the way that you’ll do business – especially b2b transactions. It’s time to ready yourself for some big transitions. It’s time to start making fintech an important part of your company culture. If you’re an early adopter, you’ll find yourself ahead in the game.
Kate Thora is a Senior Content Specialist for BizSet – an online business database. She is also an avid blogger and might often be found online, sharing her knowledge with business owners and entrepreneurs.