Traditional banks are here to stay as almost three-quarters of consumers still visit primary banks in person for financial support and advice. But they have a serious competitor and that is FinTech (financial technology). According to a report, fintech solutions thrived at a rapid pace in recent decades. A huge shift to digital is not the only reason, but financial institutes are adopting advanced fintech solutions to deliver faster services, create & present personalized offers and for quick accessibility. As a result, personal and business financial management has become more simple and more accessible than ever before.
Below are some proven ways how FinTech solutions are transforming the daily routine and making life easier.
Financial Management Tools
Effective financial management is a key to ultimate financial success. Manual calculation and management of incomes, assets, liabilities, and expenses can consume a lot of time and effort. Even it can also cause duplication and other human errors. This is where FinTech comes in handy and helps you carry out complex work easily within moments. A lot of financial management tools and apps are out there that we can use for both personal and business financial management. This streamlines the task of managing, tracking, and analyzing income and expenses. Some financial management tools also provide consumers with useful insights about spending habits and other financial aspects to leverage the budgeting process.
Insurtech
It is one of the top FinTech trends and going to evolve continuously in near future. As major insurance providers are aware of the significance of personalization, from funeral insurance providers to auto insurance companies have started to adopt the latest financial technologies to tailor their insurance products to the changing consumer needs and current market trends. They are investing in AI and machine learning-enabled solutions to streamline several processes like underwriting, product personalization, and premium calculation based on risk levels. This ensures that if a consumer is healthy and enjoying a safe lifestyle, the insurance premium will be lower than for those who are not healthy.
Online Payments
As the recent worldwide global lockdown has shaped consumer habits, modern consumers are more likely to make online purchases and make other types of payments online using different electronic payment methods. Thanks to advanced FinTech solutions online payments have become a lot easier and simpler. For instance, a consumer can apply for the best credit card to make monthly payments or can create a digital wallet like Apple Pay to pay for utilities and other online purchases. Banks are also offering FinTech-powered mobile banking services so they can easily pay their bills, book air tickets, make monthly payments, or transfer funds in real-time. Both businesses and individuals can use such online payment solutions to pay for anything anytime without facing the barriers of time and location.
Online Borrowings
Thanks to advanced FinTech solutions and tools, people can now borrow money online whenever they need it. There are so many online money lenders available who lend money to both individuals and businesses. The online borrowing process is faster and simpler. Even some online lending companies process and approve loan applications within 24 hours. Most companies offer instant loans with consumer-friendly terms like a lighter credit check, no collateral required, and easier repayment schedules. As a result, consumers can get quick access to the money they need to fulfill their financial needs.
Robo Advisors
Investing is the best way to make your money grow and work for you. There were a lot of risks involved in traditional investment processes as people usually rely on guesswork. Thanks to FinTech tools like Robo advisors, consumers can get real-time algorithm-based investment advice and guidance to invest their money for better and long-term returns. Such tools use computer programs to provide users with accurate and insightful investment suggestions so they can get more out of their investments. Investment advice from Robo advisors comes with a low-risk index and improved long-term returns. Robo-advising has totally changed investment patterns as people can get investment guides in real time to leverage their investment decisions effectively.
Conclusion
The future of financial technology (FinTech) is infinite. Since the finance industry is different from other industries technology has transformed in recent years, and there are several FinTech solutions and tools that make life easier. However, one should choose the right financial technology tools to manage, track and invest personal money efficiently.
