How Fintech Is Changing the World of Finance

It’s not always easy to manage your finances.

Whether you’re looking to save money, want to track your spending or plan your financial future, Fintech is the company to help you achieve your financial goals.

A hybrid tech and finance startup, Fintech was born out of the 2008 banking crisis with people feeling a growing distrust with traditional banking systems and expressing the need for more innovative banking solutions.

While many thought the launch of Fintech would negatively affect the banking industry, it has actually improved well established institutions by assisting them in the creation of new technologies that offer customers personalized recommendations, support and banking features on their smartphone.

With technological advancements driving growth in finance, this will determine how all companies function, and Fintech is leading the finance revolution, making it possible to make secure purchases, compare loan rates and save you money.

With investment in Fintech up 67% at the start of 2016 compared to the previous year, it’s clear that more people are waking up to the fact that Fintech is shaping the financial world of tomorrow.

Another major factor is technology being designed to ensure that mobile banking will be able to provide a bank for the world’s ‘unbanked’.

An estimated 2 billion people globally do not have a traditional bank account, yet most do have access to a mobile phone. Specifically those living in poverty or rural communities are set to gain most from these changes.

To discover some of the other ways Fintech is changing the world of finance and how you could benefit from using their services, see the list below.

Online Banking 2.0

While many people now use online banking, few realize that mobile and online banking can offer you lower fees on products such as overdrafts and no bank charges associated with minimum account balances.

You can also expect to gain a relatively high interest rate on your savings while being able to withdraw your money for free using an associated network of ATM’s and get reimbursed for any fees you that do incur when you use non-network based ATM’s.

Track, Budget and Save Instantly

The days of tracking your finances offline are over. Close your spreadsheets and say goodbye to nights spent doing paperwork to keep your finances in order!

Manage your finances easily with budgeting apps made specifically for your mobile device to sync up with your bank accounts in real time.

Track your spending moment to moment, organize your spending by account or set up personalized categories to help you budget more effectively.

Analyze the data to see where you spend and save the most and receive notifications when you go over your budget limits, allowing you to make financial adjustments to suit your current situation.

An Easier Way To Save

Today, online banking and mobile apps are on hand to help you save more easily.

Many financial services now have specific algorithms in place for calculating how much you can afford to save and offer instant saving setups that will automatically transfer money into your savings accounts.

Statistics suggest that such features that support and encourage saving on a flexible basis have a higher success rate than fixed plans. Giving people constant access to their finances and the tools to make instant financial decisions is creating a more financially aware customer base who have a better grasp on money management and debt implications.

Straightforward Investing

Now that technology has the ability to manage our money for us, it’s never been easier to invest your money.  Online investing is rapidly growing in popularity, making it an accessible financial option for more people than ever before.

With fast set up, simple interfaces and low fees, the best so-called robo-advisors are able to provide you with a personal investment strategy based on your financial information quicker than ever before.

The computer can create and manage your portfolio and you can make adjustments in line with your strategy and take into consideration all market risks in real-time.

Some banks are beginning to bring in software to sync up with these robo-advisors so customers get even bigger financial rewards, which can be added directly to your investment fund.

The Future Of Money Transfers

Online money transfers are now an essential part of everyday life. Fintech set out to create a range of money transfer options that would give customers the power they need to carry out transactions from anywhere in the world.

One of the reasons the financial market was lagging behind the needs of its users was because many global enterprises created a large degree of separation between business-to-business transactions, consumer purchases and personal money transfers.

With high overseas fees, money transfer fees and money withdrawal fees for everyone from business owners to personal users, it’s no wonder Fintech is trying to end the days of specific money transfer categories and implement peer to peer based money transfers worldwide.

Money Transfers Just Got Personal

You can now make a deposit into your bank through the online system, no more waiting in line at the bank or having to get cash from the ATM.

If you’ve received a check, rather than wait until you can get to a bank and then wait even longer for it to process, just snap a picture of it in the app and it’ll be deposited into your bank.

No more waiting to get paid – your app can be linked to multiple checking accounts so you can send and receive money whenever you need to. Easily pay for a group vacation or manage household expenses without any real hassle!

Ria Financial launched Ria Money Transfer, their online money transfer service, in the fourth quarter of 2012. Featuring an easy to use online service that allows people to send money to over 140 countries 24/7 through their computers and phones, Ria has become a major player on the online money transfer industry in less than two years. Their mobile app is on its way as well.

Real time applications make it is easier to build relationships and connect. Want to split the bill at a restaurant? One person can pay via the app for everyone and they can send them their share from their phone in seconds, making things a lot easier.

Want to quickly pay a client? Haven’t got cash on you for a store purchase? As long as you have the details you can pay anyone, from anywhere using your phone.

Personalized Loans

While there’s already many loan comparison companies and all banks offer their own branded loan schemes, they only really give you a basic overview of what you can borrow and the expected repayments if you passed their requirements. It’s a rather complicated and time consuming process.

The best loan shopping tools now available through online banking systems take more of your personal information into consideration, striving to find you the best deal while you only have to input your details into one screen and then click for all the results.

Enhanced Online Security

There’s always the concern of security online.

But times are changing, and thankfully so is the security used to protect our sensitive information.

Biometric ID’s are being used more often as smartphones come with powerful built-in cameras suitable for ID. Verify your account with a fingerprint, eye, face or voice recognition – that beats having to remember a password!

Share your location – when you agree to share location-based GPS data with your bank, it can give you additional security measures like notifications to confirm if you just made a purchase to guard against fraud and theft.

You may also be able to see where free-ATMs are located and get updates about deals relevant to you in your area.

Fintech is certainly moving quickly, with many other features and tools in the works to make our banking and financial life easier.

If you bank with a global institution it’s likely that their online services already use some of the features we mentioned. Why wait when you could be taking control of your financial future with the touch of a button?