Money makes the world go round. Every day,
everyone from millennials to soon-to-be retirees go to work to make money to
pay their bills and better their lives. We also sometimes struggle with debt in
the form of bills, mortgages, and student loans. The good thing about our
relationship with money is that we have the technology to help us through both
the great times and the periods of hardship.
This brings us to financial technology, or
fintech. The industry is actively replacing the services offered at traditional
banks with applications that help us take control of our
financial lives. The benefits of fintech are plentiful. Tech
innovators can give us a more direct route to acquire loans, make it easier to
transfer money, and give us the tools we need to manage our finances, plan for
the future, and escape from pits of debt.
Here are a few insights on how fintech is
helping companies and consumers alike.
The Way We Manage Money Is
While we may not realize it, fintech has impacted our lives for years now,
and it literally changes how people go about their financial business. It might
be funny to think about, but in many cases, this technology takes the bank out
of the equation.
It begins with how we secure loans. Back in
the day, when we needed a personal or business loan, we would go to the bank
and present our qualifications. Now, crowdfunding has become the norm. Sites
like Kickstarter and GoFundMe allow entrepreneurs to make a pitch and then
collect money from the public. When they reach their goals, they are able to
obtain their money faster than they would with a traditional financial
Changes in fintech have also modified how
consumers move transfer money between each other. For instance, in the past, if
a small business or entrepreneur wanted to sell their product via credit card,
banks or large equipment was required. Now, mobile payment systems are allowing
these entrepreneurs to do their business on their phone or tablet.
The advancements of other online programs like
PayPal cannot be understated, and they benefiting small businesses like never before.
Many people are switching to such platforms because they can transfer money
freely, without the fees charged by banks, and they can often be accessed on
mobile devices. Even international banking is improving, allowing individuals
to transfer money overseas with substantially lower fees.
The Benefits of Cloud Technology
Cloud technology (storing and accessing data
online instead of on a physical device) is growing by leaps and bounds. In
fact, it’s one of the top trends in accounting, with 68 percent of businesses being close to full integration
with cloud technologies. A whopping 97 percent of those who have
implemented it have found the technology to be very positive. When the benefits
of cloud technology have a significant impact on finance companies, the wins
ultimately benefit the customer.
Financial companies that use cloud technology save money on equipment and utilities because,
instead of dedicating rooms full of machines to manage their data, they only
need the essential hardware and software. Pairing artificial intelligence with cloud technology
can also save money on staffing because, instead of having an employee work out
processes like credit scoring and fraud detection, the systems can now process
this information on their own. When the company saves money, these savings can
be passed onto the customer.
Financial institutions are also using cloud
technology to make their services more available to their customers than ever
before. The tech is leading to an increase in digital wallets, online fund
transfer portals, and payment gateways that ensure a smoother experience than
the customer might get when entering a bank. Perhaps most importantly, cloud
technology is helping banks to be more reliable with a decreased risk of losing
customer information due to the ease of complete system backups via cloud backup systems.
Mobile Apps That Help Real People
Manage Their Money
When it comes to advancements in fintech, it
isn’t only about business and industry; it is about how consumers can better
their financial situations. The needs of customers have become loud and clear,
and there is a slew of mobile applications available to help them with all
levels of financial advice and assistance.
Whether consumers find themselves in debt or
they want to avoid such an issue, they must be able to properly budget.
Advancements in fintech are bringing us new applications which allow the
customer to input all of their bills, including amounts and due dates. After
all necessary information is added, these applications remind the owner of when
bills are due, send alerts when the user gets off track, and even offer
On top of apps, as fintech advances, so does
the use of cryptocurrencies. Those who are new to this form of digital currency
often need assistance for the learning curve of this market. Enter the release
of tools like Coinbase, which is an app that provides the
user with education and trading assistance with the major players including
Bitcoin, Ethereum, and Litecoin.
It also allows you to set up pricing
alerts.Fintech has also provided new ways to work the stock market. Investment
heavyweights TD Ameritrade and E-Trade now have comprehensive applications where you can get
expert advice and trade as needed.
In addition to finance apps helping consumers
keep track of their finances, many businesses across all industries have begun
using application programming interfaces to create
easily accessible online content, including mobile apps. In addition to
allowing users to view content, these platforms can often be used to pay for
services, further streamlining budgeting.
As the world evolves, so do the financial
advancements that keep our economy moving and our debts in check. These new
programs and technologies are showing their worth every day for the companies
and customers who use them.
This article contains new, firsthand information uncovered by its reporter(s). This includes directly interviewing sources and research / analysis of primary source documents.
This Newsmaker has been deemed by this Newsroom as having a specialized knowledge of the subject covered in this article.