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Financial Education and Fintech: Empowering Consumers with Financial Literacy Tools

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On March 11, 2024

In FinTech, Jacob Parker-Bowles

In today’s fast-paced and digitally-driven world, financial literacy has become more important than ever. With the rise of fintech (financial technology) solutions, consumers have access to a wide range of tools and resources to help them manage their finances more effectively. From budgeting apps to investment platforms, fintech is revolutionizing the way people approach money management and financial planning. In this article, we’ll explore the intersection of financial education and fintech and how these tools are empowering consumers with the knowledge and resources they need to make informed financial decisions.

The Importance of Financial Education

Financial literacy is the foundation of sound financial decision-making. Yet, studies consistently show that many individuals lack even basic knowledge about key financial concepts, such as budgeting, saving, investing, and debt management. This lack of financial literacy can have serious consequences, leading to poor financial choices, debt problems, and limited opportunities for building wealth.

Financial education plays a crucial role in addressing these challenges by providing individuals with the knowledge, skills, and confidence they need to navigate the complex world of personal finance. By empowering consumers with financial literacy tools and resources, they can make more informed decisions about their money, set and achieve their financial goals, and ultimately improve their financial well-being.

Enter Fintech: Revolutionizing Financial Services

Fintech has emerged as a powerful force in the financial services industry, leveraging technology to deliver innovative solutions that streamline processes, improve accessibility, and enhance user experience. From mobile banking apps to robo-advisors, fintech companies are transforming every aspect of financial services, making it easier and more convenient for consumers to manage their money.

One of the key advantages of fintech is its ability to democratize financial services, making them accessible to a broader audience. Traditional banking and investment services were often reserved for those with significant wealth or access to brick-and-mortar institutions. Fintech has changed that by offering low-cost, user-friendly alternatives that cater to the needs of everyday consumers, including those who may have been underserved or overlooked by traditional financial institutions.

Empowering Consumers with Financial Literacy Tools

Fintech and financial education go hand in hand, with many fintech companies incorporating educational components into their platforms to help users improve their financial literacy. These tools provide users with valuable insights, guidance, and resources to help them make smarter financial decisions.

Budgeting Apps: Budgeting is the cornerstone of financial planning, yet many people struggle to create and stick to a budget. Budgeting apps like Mint, YNAB (You Need a Budget), and PocketGuard make it easy to track expenses, set savings goals, and monitor progress toward financial milestones.

Investment Platforms: Investing can be intimidating for newcomers, but fintech has made it more accessible than ever. Robo-advisors like Betterment and Wealthfront use algorithms to provide automated investment advice and portfolio management, making investing simpler and more affordable for the average investor.

Financial Education Portals: Many fintech companies offer educational resources and content to help users improve their financial literacy. These resources may include articles, videos, webinars, and interactive tools covering a wide range of topics, from basic budgeting and saving tips to more advanced investment strategies.

Credit Monitoring Services: Understanding and managing credit is essential for financial health. Fintech companies like Credit Karma and Credit Sesame provide free credit monitoring services that allow users to track their credit scores, review credit reports, and receive personalized recommendations for improving their credit profiles.

Peer-to-Peer Lending Platforms: Peer-to-peer lending platforms like LendingClub and Prosper offer an alternative to traditional bank loans, allowing individuals to borrow and lend money directly to one another. These platforms provide access to credit for borrowers who may have difficulty obtaining loans from traditional sources and offer investors an opportunity to earn attractive returns on their investments.

Cryptocurrency Platforms: Cryptocurrency has emerged as a new asset class with the potential for significant returns, but it also comes with unique risks and challenges. Fintech platforms like Coinbase and Gemini make it easy for users to buy, sell, and store cryptocurrencies, while also providing educational resources to help users understand the complexities of the crypto market.

In conclusion, financial education and fintech are powerful tools for empowering consumers with the knowledge and resources they need to achieve their financial goals. By leveraging technology and innovative solutions, fintech companies are democratizing financial services and making them more accessible to a broader audience. By embracing financial education and taking advantage of fintech tools, individuals can take control of their finances, build wealth, and secure their financial future.

FinTech Trends To Know About In 2024

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On January 31, 2024

In FinTech, Jacob Parker-Bowles

The financial technology (FinTech) sector has been a catalyst for transformative changes in the way we manage, invest, and transact with money. As we embark on the journey through 2024, the FinTech landscape continues to evolve, promising innovations that will redefine the financial industry. In this article, we explore the key FinTech trends set to dominate and reshape the financial landscape in the year ahead.

  1. Decentralized Finance (DeFi) 2.0: Decentralized Finance, or DeFi, has been a revolutionary force in the FinTech space, and 2024 is poised to witness the evolution of DeFi 2.0. As the ecosystem matures, DeFi platforms are expected to address scalability challenges, enhance security measures, and offer more sophisticated financial products. Smart contracts, lending protocols, and decentralized exchanges are likely to become more user-friendly, attracting a broader audience and fostering mainstream adoption.
  2. Central Bank Digital Currencies (CBDCs) Take Center Stage: The concept of Central Bank Digital Currencies (CBDCs) has gained momentum, with several countries actively exploring and implementing their digital currencies. In 2024, we anticipate an acceleration in CBDC initiatives globally, marking a significant shift in the traditional financial landscape. These digital currencies, backed by central authorities, aim to streamline payments, enhance financial inclusion, and provide regulators with more control over monetary policies.
  3. Integration of Artificial Intelligence (AI) and Machine Learning (ML): The marriage of FinTech and artificial intelligence is set to reach new heights in 2024. AI and ML algorithms will play a pivotal role in enhancing data analytics, risk management, fraud detection, and personalized financial services. Advanced predictive analytics will empower financial institutions to offer tailored solutions to individual users, providing a more seamless and efficient customer experience.
  4. Rise of Embedded Finance: Embedded finance, the integration of financial services into non-financial platforms and applications, is gaining traction. In 2024, we can expect to see an increased collaboration between FinTech firms and non-financial businesses, such as e-commerce platforms, ride-sharing apps, and social media networks. This trend allows consumers to access financial services seamlessly within the applications they already use regularly, blurring the lines between traditional banking and everyday activities.
  5. Sustainable and ESG Investing: Environmental, Social, and Governance (ESG) considerations are becoming integral to investment decisions, and FinTech is aligning itself with this trend. In 2024, we anticipate a surge in FinTech platforms offering sustainable investment options, ESG ratings, and tools for conscientious financial decision-making. Investors are likely to have more access to transparent information on the environmental and social impact of their portfolios, driving a shift towards responsible and sustainable investing.
  6. Enhanced Cybersecurity Measures: With the increasing digitization of financial services, cybersecurity remains a top priority. In 2024, the FinTech industry will continue to invest heavily in advanced cybersecurity measures to safeguard sensitive financial information. This includes the adoption of blockchain technology for secure transactions, biometric authentication methods, and real-time threat detection to stay ahead of evolving cyber threats.
  7. Open Banking Evolution: Open banking, which allows third-party developers to build applications and services around financial institutions, is evolving. In 2024, we can anticipate more comprehensive and secure open banking ecosystems. This evolution will lead to improved collaboration between traditional banks and FinTech startups, resulting in a broader range of innovative financial products and services for consumers.
  8. NFTs and the Tokenization of Assets: Non-fungible tokens (NFTs) have taken the world by storm, and their application is extending into the financial realm. In 2024, we expect to witness the tokenization of various assets, from real estate to art and intellectual property. This trend will democratize access to traditionally illiquid assets, allowing a broader range of investors to participate in asset ownership and trading.
  9. Quantum Computing Impact: As quantum computing progresses, its impact on the FinTech sector becomes more imminent. While still in its early stages, quantum computing has the potential to revolutionize financial modeling, optimization, and encryption. In 2024, we may see increased exploration of quantum-resistant encryption methods and early experiments leveraging quantum computing capabilities for financial calculations.
  10. Financial Inclusion Initiatives: FinTech is increasingly becoming a force for financial inclusion. In 2024, expect to see more initiatives focused on providing banking and financial services to the unbanked and underbanked populations. Mobile banking, digital wallets, and innovative lending platforms will play a crucial role in bridging the financial inclusion gap and empowering individuals in underserved communities.

In conclusion, the FinTech landscape in 2024 promises to be dynamic, transformative, and marked by a wave of innovations that redefine how we interact with and perceive financial services. From the evolution of decentralized finance to the integration of advanced technologies like AI and quantum computing, the FinTech trends of 2024 are set to shape a more inclusive, efficient, and secure financial future for individuals and businesses alike.

Jacob Parker Bowles Financial Inclusion: Bridging the Gap with Fintech Solutions

Financial Inclusion: Bridging the Gap with Fintech Solutions

By

On June 5, 2023

In FinTech, Jacob Parker-Bowles

Financial inclusion, the access, and usage of financial services by individuals and businesses, is crucial in reducing poverty and fostering economic growth. Fintech solutions have emerged as a powerful tool to bridge the gap and extend financial services to underserved populations. This blog explores the concept of financial inclusion, its challenges, and fintech’s role in creating a more inclusive financial landscape.

Understanding Financial Inclusion: Financial inclusion aims to provide individuals, particularly those in marginalized communities, with access to essential financial services like savings, credit, insurance, and payment systems. Unfortunately, millions worldwide lack access to such services, impeding their ability to financially save, invest, and protect themselves. Financial exclusion often results from barriers like physical distance, lack of documentation, limited financial literacy, and high costs associated with traditional banking services.

The Role of Fintech Solutions: Fintech, a portmanteau of finance and technology, leverages digital innovations to reshape financial services. Fintech solutions have played a transformative role in expanding financial inclusion by addressing the limitations of traditional banking systems. Mobile banking, for instance, allows individuals to access and manage their finances through smartphones, eliminating the need for physical branches. This empowers the unbanked or underbanked population to conveniently transact, save, and borrow money.

Additionally, fintech has facilitated the emergence of alternative credit scoring models. By leveraging non-traditional data sources like mobile usage patterns and social media behavior, fintech platforms can assess creditworthiness and extend loans to individuals without a formal credit history. This allows previously excluded populations to access credit and build financial stability.

Protecting Consumer Rights and Privacy: While fintech solutions have paved the way for financial inclusion, addressing concerns surrounding consumer rights and data privacy is crucial. Regulations and guidelines must be in place to protect users from predatory practices, fraud, and data breaches. Fintech companies must ensure robust security measures, transparent terms, and responsible lending practices to build customer trust and safeguard their financial well-being.

Financial inclusion is an essential element in fostering economic growth and reducing poverty. Fintech solutions offer immense potential in bridging the gap and providing underserved populations access to vital financial services. By embracing technology responsibly and addressing consumer protection concerns, we can create a more inclusive economic landscape that benefits individuals and economies.

Financial Inclusion in the Digital Age: How Fintech is Bridging the Gap

By

On May 3, 2023

In FinTech, Jacob Parker-Bowles

Financial inclusion, or the availability and accessibility of financial services to all individuals and businesses, has been a pressing issue in many parts of the world. It is estimated that about 1.7 billion people globally still don’t  have access to formal financial services, which has hindered their ability to save, invest, borrow, and manage financial risks. Fortunately, the emergence of financial technology, or fintech, has provided a new avenue for bridging the gap between the financially excluded and the mainstream financial system.

Fintech refers to technology that improves and automate financial services. It encompasses a wide range of applications, such as mobile banking, peer-to-peer lending, crowdfunding, digital wallets, blockchain, and robo-advisory. These innovations have enabled financial institutions, governments, and startups to offer faster, cheaper, and more convenient financial services to underserved and unbanked populations. Let’s explore how fintech promotes financial inclusion in the digital age.

One of the main benefits of fintech is that it has reduced the cost and complexity of providing financial services to low-income individuals and small businesses. Traditional banks and financial institutions often have high overhead costs, such as physical branches, staff salaries, and regulatory compliance, making it difficult to offer affordable financial products to people with low incomes or no credit history. Fintech, on the other hand, leverages digital platforms and algorithms to streamline operations, reduce fraud, and lower transaction costs, which translates into more accessible and affordable financial services.

For instance, mobile banking has become a game-changer in many developing countries with limited access to traditional banking. Mobile banking allows people to access banking services through their mobile phones, such as opening accounts, making deposits, transferring funds, and paying bills. This is particularly useful for people who live in rural areas, where physical banks are scarce or far away, and for those who do not have a formal ID or address. 

Mobile banking has also enabled microfinance institutions and other non-bank entities to offer small loans and insurance products to low-income customers, who would otherwise be excluded from formal credit markets.

Another way fintech is promoting financial inclusion is through peer-to-peer lending and crowdfunding. These platforms allow individuals and small businesses to access loans and investments from a diverse pool of lenders or investors, without going through traditional intermediaries, such as banks or venture capitalists. Peer-to-peer lending and crowdfunding have become popular because they offer faster approval times, lower interest rates, and more flexible repayment terms than traditional loans. They are also helpful for people who have unconventional business models or projects that may not meet the criteria of traditional lenders.

Digital wallets are another fintech application that is making financial services more inclusive. Digital wallets are mobile apps that allow users to store, send, and receive money electronically without needing a bank account. They are particularly useful for underbanked people, such as migrant workers, freelancers, and gig economy participants, who may not have a regular income or a permanent address. Digital wallets are also useful for making small transactions, such as buying groceries, paying for transportation, or sending remittances to family members in other countries.

Finally, blockchain technology is a promising fintech innovation that could promote financial inclusion in several ways. Blockchain is known as a decentralized digital ledger recording transactions in a transparent and secure way. It can potentially reduce fraud, corruption, and bureaucracy in financial services and enable secure and affordable cross-border payments. 

Blockchain could also enable people to create and exchange digital assets, such as cryptocurrencies, that are not tied to traditional banking systems and can be used as a store of value or a means of exchange. In conclusion, fintech is a powerful tool for promoting financial inclusion in the digital age.

The Biggest Myths about Fintech

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On February 8, 2023

In FinTech, Jacob Parker-Bowles

Financial technology, better known as FinTech, is a broad term used to refer to software, mobile applications, and other technologies that are designed to facilitate and automate financial transactions. This includes mobile banking, crowdfunding platforms, cryptocurrency, blockchain, and more. FinTech ultimately makes financial processes more easily manageable and efficient.

The fintech industry has been experiencing tremendous growth for some time now, gaining interest from investors, business owners, consumers, and bankers alike. However, new buzz is often accompanied by myths and misconceptions; this can lead to hesitation from those who are interested in the industry and would benefit from taking advantage of the opportunities it can offer. Don’t let these misconceptions and myths stop your business from growing and reaching its full potential. To help you distinguish facts from fiction, here are nine of the biggest myths about the fintech industry.

MYTH 1: Fintech carries a high degree of risk.

Risk management in the fintech industry has caused a lot of rumors and speculation. The truth is, as the field grows, new types of risks have become apparent, such as fraud, merchant, consumer, and credit risks. This has put immense pressure on fintech firms to strengthen their risk management capabilities. As a result, fintech firms are now implementing some of the most robust security measures available.

MYTH 2: Fintech is limited to larger markets.

There is a common misconception that fintech services only cater to big, privileged corporations in major cities like Silicon Valley, New York, London, and Hong Kong. While they certainly make up a large portion of the sector, Fintech in Emerging Markets (EMs) has been steadily increasing. Previously, many EMs were hindered by a lack of access to financial services, low income, outdated technology, and insufficient infrastructure. However, the landscape is changing, and EMs now provide fruitful opportunities for fintech companies, which offer customers better and more affordable services.

MYTH 3: Fintech is solely for younger generations.

It is undeniable that young generations have embraced Fintech due to their technological savvy. Nevertheless, baby boomers should not be underestimated, as they are quickly becoming frequent users of FinTech services, with an estimated 27% using the services. In fact, they are the fastest-growing segment of fintech users, predicted to make up 51% of urban consumption growth by 2030. Fintech has plenty of features that appeal to all age groups, so it’s important to consider these needs when developing services.

MYTH 4: Fintech is disrupting banking.

The media sometimes casts banking and Fintech as opposites, but in reality, they can work together in many mutually beneficial ways. For instance, digital account opening, mobile wallet, fraud management, and subscription management are all areas in which collaboration between the two sectors can work well. Referral partnerships are now being established, whereby banks refer customers to suitable Fintech services, getting a commission in return while providing users with improved services and a better customer experience. Collaboration between these two industries offers advantages for all involved, showing that Fintech doesn’t necessarily have to compete with banks but simply enhance their offerings.

MYTH 5: Fintech is all about money

We know that Fintech utilizes the application of technology in the world of finance as it relates to payment processing, lending, and online and mobile banking. But Fintech also covers security, insurance, and investment management. Therefore, Fintech is a broad term that should be used to describe a variety of financial solutions that are revolutionizing the way people manage their finances.

MYTH 6: Fintech should be cheap.

The truth is that developing your own fintech solution from scratch is far from the most cost-effective option. The final cost of a fintech service may depend on the type of app, the hourly rate of the developers, and any additional functionality. Despite the initial investment, using function as a service (FaaS) can be the best choice for any business looking to launch a fintech product.

MYTH 7: The Fintech bubble will burst.

When Fintech first emerged in the 2010s, it was met with skepticism and criticism — a passing trend that would soon end. However, Fintech has since become a revolutionary force in the financial industry. More than 210 million Americans are utilizing fintech services, making up 65% of the total population. In 2022, over 10,000 fintech startups were launched in the United States alone. Clearly, the fintech industry is still going strong and doesn’t look to be stopping any time soon.

MYTH 8: Regulations will put an end to Fintech.

Fintech leaders are well aware of the potential barriers and restrictions that can be imposed on them by government regulations. As such, they are actively seeking out ways to collaborate with governments in order to provide citizens with better financial services. This is evidenced by the UK Chancellor, Rishi Sunak, who has outlined a plan to further develop the UK’s fintech sector and make the financial markets even more efficient. His plan is a testament to the fact that governments are supportive of the fintech industry, as their ultimate goal is to ensure citizens are provided with quality services.

MYTH 9: Emerging Fintech products must be unique.

Countless companies and business owners are hesitant to invest in fintech solutions, thinking that it must be a revolutionary idea to be successful. However, innovation isn’t the only thing that will bring success. Quality, cost-effective, and user-friendly services are often more important to customers. Last year alone, 26,000 fintech startups were created, few of which were truly innovative or unique. The key to success lies in identifying what customers need and how you can add to or change your services to meet those needs.

Setbacks of Using Fintech

By

On June 23, 2022

In FinTech, Jacob Parker-Bowles

Fintech has become a big part of our lives, even if we don’t realize it. Fintech essentially refers to any financial technology and can fall into something as simple as the banking app you use on your smartphone or more complicated such as companies that focus on things such as mobile payments or insurance. Fintech has made our lives easier in a lot of ways, but like most things, it’s not without its problems. Here are some of the setbacks of using fintech.

 

Data Security

The rapid growth of financial technology in Europe led to a 78% increase in the number of people using it in 2020. However, this growth has been accompanied by unintended consequences. One of these is the rise of cybercrime, in which attacks occurs at least once every minute. Unfortunately, many of the companies that are using fintech are also being targeted by hackers. Due to the rise of digital money, the number of people who rely on financial technology to manage their money has increased significantly. This has increased the amount of data that banks and other financial institutions can collect. Unfortunately, this has also led to the potential for data breaches at major companies such as credit bureaus and foreign exchange brokers, such as Pepperstone, an Australian brokerage company that had its own customer data stolen in 2020.

 

Regulations

One of the biggest challenges the fintech industry typically contends with are the regulations that come with it. Government regulations and fees affect fintech banks in a big way, and they typically end up straining the resources of the bank. Regulations such as the Dodd-Frank Act and the Financial Account Standards Boards’ Current Expected Credit Loss play a big role in how a bank utilizes fintech, to the point where some may provide their customers with more limited options due to wanting to avoid compliance fees and the like.

 

Keeping Up With Evolving Tech

While operating through digital platforms can be extremely beneficial and sometimes even necessary for the survival of many financial institutions, making the actual jump to digital platforms can be costly and risky. Financial platforms that haven’t made the jump to digital need to make an important decision; do they take the risk in order to keep up and stay relevant, or do they stick with what they know and not have the same offerings as other platforms?

 

There are many drawbacks to using fintech beyond the three mentioned here, but many would argue that the pros outweigh the cons. As we continue to move through this digital world, financial institutions will have to do their research to see if investing more into fintech will ultimately help them succeed.

How to Help Eliminate Financial Stress

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On February 9, 2022

In FinTech, Jacob Parker-Bowles

There is no doubt that financial stress can have a severe impact on not only our personal mental health but also on our relationships. In fact, according to a study conducted by the financial firm TD Ameritrade, 41% of divorced Gen Xers and 29% of Baby Boomers say that their marriages ended due to disagreements about money. While having your personal finances in order is no guarantee that you won’t still fight about money with a partner or spouse, it can go a long way towards creating your own good mental health and wellbeing. Here are three tips to help eliminate financial stress.

 

  1. Track your spending

 

It is a sad, unfortunate fact that in the age of credit and debit cards, many people have no idea how they actually spend their money or where it all goes. Before you can create a realistic budget, you need to understand and identify your personal spending patterns. While that $6 latte each day may seem like a small purchase, over the course of a month they can add up to almost $200 and maybe even more if you are inclined to be a generous tipper.

 

  1. Create a realistic budget and stick to it

 

Creating a budget is easy, creating a realistic budget that actually accounts for your legitimate spending habits and patterns is much harder. This is partially due to the fact that some of your bills will vary from month to month. While it is fairly easy to budget for static bills like your rent or mortgage or car and insurance payments, creating a realistic food or entertainment budget may be more challenging. Credit cards make it too easy to spend more than you make and making only minimum monthly payments makes it easy to just keep racking up that credit card debt. A budget can help you begin to spend less than you make, but only if you stick with it.

 

  1. Create margins

 

Studies have shown that 40% of Americans would struggle to come up with even $400 to pay an unexpected expense. While spending only what you make is a good first step, your stress isn’t really going to go away until you create some cushion for the unexpected. While not spending more than you make is a good first step, ultimately the goal is to spend less than you make.

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Increasing your Understanding of Fintech

By

On January 20, 2022

In FinTech, Jacob Parker-Bowles

Financial technology, also known as fintech, is the implementation of technology in the financial industry. The purpose is to improve the ways that financial services are created and delivered to consumers. Technology has also increased the availability of financial services, such as loans and investments, to every member of the public. There are several methods recommended to become more knowledgeable about the emerging field of fintech.

 

Improve basic skills in finance

 

Someone who knows nothing about finance cannot expect to become a fintech expert. The first step is to develop a basic knowledge of finance in a diverse range of topics from stocks to lending.

 

Learn the different sectors of fintech

 

Once the basics of the financial industry are learned, the next step is to learn about key fintech sectors. The most well-known areas include online payment systems, blockchain, digital lending and digital wealth management. Since millions of shoppers are buying their products and services online, the use of online payment systems has exploded in the past decade.

 

Blockchain technology has become more advanced as people exchange vast amounts of private information over the Web. It is commonly used in cryptocurrency to conduct financial transactions without increasing the risks of fraud.

 

Enroll in short-term courses

 

A short-term course is designed to advance a learner’s skills in every major fintech topic from blockchain to Python programming. A course also gives a beginner firsthand access to experienced fintech professionals. Students can receive hands-on training in the field and start building their financial portfolios.

 

Review fintech websites

 

It’s recommended that starter and experienced fintech professionals begin to track financial trends and statistics carefully. Every day or once a week, they should review websites that contain the latest news about financial technology. There are numerous blogs, sites and newsletters that provide regular updates.

 

The years 2000 from 2021 saw massive changes in the ways that consumers use financial services. Many individuals and business owners had no choice but to use online banking to transfer funds and perform daily financial tasks. Financial consumers are becoming more interested in using machine learning and artificial intelligence. In addition, fintech sector is constantly expanding to include new technology areas and skills. So, becoming a master in fintech starts with a solid foundation based on basic professional skills and knowledge.

What To Look For In Fintech In 2022

What to Look for in Fintech in 2022

By

On September 21, 2021

In FinTech, Jacob Parker-Bowles

Fintech has developed and expanded increasingly over the last decade, with firms leveraging technology, innovations, big data, and analytics. These developments are far from the last we’ll see in the financial sector; as new developments arise, everything that involves finance will be impacted by fintech. Here are some fintech trends to keep in mind as we draw closer to 2022.

 

Banking

 

Society is steadily leaning towards becoming cashless, and digital-only banks lend to this growing trend. Fewer people have physically needed to go to a bank and handle their financial issues, resulting in fewer lines and no physical cash to hold. Current online banks, such as the UK-based Monzo, Revolut, and Starling, have seen rapidly growing customer bases that force existing banks to rethink the focus on mobile apps. Fintech improvements continue to shift the banking industry, which has forced banks to close branches as a result. 

 

As customers continue to say they plan on converting to digital-only banking, it’s no surprise that a quarter of all bank branches are expected to close within the next three years.

 

On the other hand, open banking pledges to deliver more competitive financial services to both individuals and businesses. This banking method connects banks, third parties, and technology providers, consensually sharing customer data with authorised providers.

 

Blockchain

 

As digital ledger technologies continue to advance and interest in cryptocurrency grows, blockchain technology will continue to open opportunities to fintech companies. According to PWC, worldwide economies are expected to adopt blockchain technology at scale by 2025. Blockchain continues to disrupt the payment industry, with many people expecting it to become apparent in both the financial sector and, specifically, fintech. This technology enables secure payments and transactions for all who use it while removing the middleman, therefore reducing costs by a large percentage. Presently, cryptocurrencies have successfully used blockchain technology and are prepared to be incorporated into financial institutions, applying them to traditional banking operations.

 

Financial Literacy

 

Fintech also provides a way to improve people’s financial literacy, allowing customers access to easy-to-understand financial information so they can make sensible decisions about their personal finances. Not all people, for example, understand the importance of budgeting; not all people are completely informed of the details when making spending decisions. Fintech uses data accessible through open banking to inform customers about the best available choices for them. The hope is to continue educating people in financial literacy throughout 2022 so that everyone can make smart financial decisions.

How Has Fintech Impacted Different Industries

How Has Fintech Impacted Different Industries?

By

On September 21, 2021

In FinTech, Jacob Parker-Bowles

Fintech has spread massively over the years, to the point where it impacts more than just the financial industry. Thanks to the development of fintech, two types of products were created for the benefit of others: B2B and B2C. The first type, B2B, offers different financial services through fintech apps, while the second type, B2C, offers apps that are user-oriented for clients. The B2C model, specifically, was created to compete with financial service providers. 

 

From mobile apps to trading areas, fintech projects vary immensely and allow entrepreneurs to get their money without having to visit the bank. Here are a few industries that fintech has impacted over the years.

 

Funds Transfer

 

Transferring funds used to be slow and expensive. If you wanted to transfer money, you really had to think about when you would do it and when you needed the money transferred by if you wanted to get it done in time. However, with fintech, the funds transfer field started to develop; according to Think with Google, 69% of smartphone users transfer money using a mobile app rather than a website. Plenty of online services exist for money transfers, such as TransferWise. These services give small companies and private users the chance to send money to others at a lower price. 

 

Loans

 

Since many people have credit cards with certain payment limits, it’s possible to take out a loan online. Web and mobile applications such as KreditBee and MobiKwik allow people to use their sites and take out a loan quickly; users can usually apply and be approved for a loan in fifteen minutes. Once approved, the whole sum of the loan can be transferred to any banking card within an hour, and users can access their personal information (balances, arrears, etc.) quickly and easily. It’s no longer necessary to stand in lines and sign physical documents to get a loan; this trend could completely replace habitual crediting.

 

Chatbots

 

Chatbots are artificially intelligent bots that can, among other things, help improve the financial process. They can send notifications about changes to whoever is listed, provide helpful information to users, and more. Due to this, chatbots have increased user loyalty, which increases a business’s profit and makes a product more competitive. Several banks globally already use chatbots and have seen these results, using them to notify clients, help clients pay their bills, and so on. Some, like MasterCard, even have a chatbot for Facebook Messenger to improve digital services.

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