In today’s modern age, digital technology is at the
forefront of every organisation’s operational processes, whether it’s
manufacturing or construction. Over the past few years, digital technology has
also been transforming the way the financial services industry operates.
From mobile wallets and digital currencies to online
banking and investment options, digitisation is now imbued in every aspect of
finances so much so that there’s an exclusive domain – the fintech space.
Financial technology or “fintech” in short is any
disruptive technology-based business that caters to or competes against
financial firms. It currently is one of the fastest growing sectors in the
world with ever-increasing year-on-year investment.
In fact, investment in
the fintech space has risen from USD100 million in 2008 to
USD19 billion in 2015.
What Fintech can Do for Your Personal Finances
Fintech firms are showing no signs of slowing down in the
personal finances sector. According to The Global Findex database,
almost 70% of the global population of adults now has an account with either a
mobile banking firm or a financial institution.
The options are seemingly endless for fintech in the
personal finances sector. From tracking finances and comparing credit cards
online to investing funds and learning about wealth management, there’s plenty
that you could do with your mobile device.
Here are four of the most important areas in personal
finance where new-age fintech companies are making a big difference:Budgeting, Comparing, Saving, Investing.
When you receive your monthly pay, feeling the need to splurge is only natural.
But, when you’re in debt, a budget to control needless cash outflow can be a
great first step. If you’re not up to making a budget the traditional way,
fintech apps like Mint and Goodbudget can lend a helping hand.
With these applications, you can track everything you spend
and get a real-time assessment of where you stand financially. You’ll even be
able to set aside money for specific purposes and get updates when you exceed
any preset limit.
Being financially aware is one thing, but to get the best financial products
and services, being financially
literate is extremely important. Never mind if you don’t know
the first thing about getting a credit card or refinancing your home loan.
Personal finance websites like BBazaar.my and NerdWallet can pretty
much be defined as repositories of financial information. Spend a little time
researching and you’ll have all the important tools you need to make informed
While making a budget is easy, sticking to it is the hard part. So, if you have
trouble following your plan, try Acorns or Digit, fintech apps that help you
with wealth management. When you use either of these apps, your income and
spending pattern gets a closer look.
Based on how you spend, a small amount of money is credited
automatically into a savings account. Money saved up can be used as emergency
funds for that proverbial rainy day.
Ever thought a robot could advise you about investing your money and growing
wealth? Fintech has made this possible with robo advisors. These digital
investment management services are mostly easy to set up and low on fees making
them ideal for small-scale investments.
Robo advisors like Wealthfront and Robinhood provide
algorithm-based recommendations based on your investment preferences.
With the fintech revolution here to stay, it doesn’t mean
that it’s the end of the road for traditional banks.
In fact, most start-ups in the financial sector are all
about enhancing existing services by highlighting the growing need for
convenience, speed, and inclusivity.
for the original article from Cyprus Mail.