Fintech is changing your life for good
The way Fintech is growing across the globe, it is very certain that our lives will remain irreversibly transformed forever. This is how it’s happening.
The rise of digital wallets
We will soon say adios to our credit cards, debit cards and even hard cash. With the entire world living on cloud, payments no longer need tangible items. Just a few taps on the keyboard and a couple of clicks ensure that payments and fund transfers are done in an instant. Online payments have taken a disruptive turn after the advent of mobile wallets. Going in a cab or paying a bill or even purchasing groceries don’t need the use of cards or cash. A single scan of QR code and a bit of authentication ensures that both time and efforts are saved.
With a large number of companies having adopted the trend and the technology percolating to the grassroot level, one can be assured of witnessing a huge change in the way transactions will be done in the future. Our wallets won’t be overloaded with paper notes and we won’t have to worry about the loss of debit and credit cards.
Fintech has also transformed the way we deal in money with our friends and colleagues. Whenever we go out for a party or for a dinner, it often becomes tedious to split the bill and remember the money due of others at a later stage. But Fintech promises to take away all these worries from our lives. PayPal was the first organization that pioneered the sharing of money between close ones.
Google Wallet has also entered the market to make peer to peer money sharing quite easier. Venmo is very much the leader in this space. The seamless payment of money between individuals without taking the banks into loop is something that has made using these apps quite intuitive to the millennials. The day is not far when net-banking will be a talk of the distant past and peer to peer payments through apps will soon take over the world.
Sending money abroad once used to be a lot of pain. The process involved a lot of formalities and figuring out the current exchange rate, along with the time and hassle that used to accompany the entire story. But Fintech has made it so easy to transfer money across the borders that it takes just 15 minutes to get the entire saga of money transfer done.
Such blessings of Fintech have also given a boost to the remittances that happen across the globe. In 2016, remittances of USD 500 billion happened across the world. The growth of companies like Money Gram, Western Union, Transfer Wise and World Remit point towards a positive outlook. In the future, it will take far lesser time to send money to your family and friends living across the borders in times of emergency or any other need. Money will stop believing in international borders and we can see a world united by international transactions.
Your future doesn’t depend on banks for loans. With the emergence of companies like Prosper, Upstart and SoFi, the lending industry is getting democratized. This will make your future happier as you won’t have to always maintain a good credit score and you will also be tearing apart the red tape.
RIP expensive financial advisers
Fintech companies are hammering the nail in the coffin of expensive financial advising services. This is because of the new services coming up in the market. For instance, Acorns invests a tiny sum of money depending on your expenditure. Motif Investing help you to invest in stocks from a list of well-curated set of securities. Betterment Investment helps you to invest money in a variety of stocks depending on your financial goals. One thing common in all is the absence of human interaction. Just a small fee takes care of everything. In the future, you won’t need to hire financial advisers and pay hefty fee, when small fees can take care of everything.
Easy B2B lending
Kabbage is a firm that lends short-term loans to companies to help operations and growth strategies. Epiphyte aims to settle online trades between subscribed traders instantaneously through a software solution. Pleo makes smart company cards and helps to file expense reports automatically by tracking employees’ spending on corporate cards. Such Fintech solutions are making B2B lending quite seamless and quicker.
In future, Fintech will allow convergence of big data technologies and metadata from banks to arrive at analytical reports on which products and services offered by banks work. This will help Fintech companies also to roll out better deals and services to retain loyalty of their customers.
Services offered by banks and financial institutions is getting increasingly interactive. Mobile apps by banks have chat bots working behind them which make the entire process quite user friendly. Having a good user experience integrated into products and services help to retain customer loyalty.
Learn more about how companies are using Chatbots to their advantage here.
The way blockchain is growing and the pace with which companies (like Microsoft, PayPal etc.) are accepting bitcoins, one can be assured of the impact Fintech is going to have on the type of currencies we are going to use in the near future. Many companies have begun work on blockchain and the future may soon see reliance of blockchain as a reliable transaction mechanism.
The kind of security features that come integrated in mobile apps of banks and the other services has significantly reduced chances of money laundering and fraud. This will result in customer satisfaction and more people trusting online banking system.
Fintech is sure to transform the future of banking and transactions for the good. The game changers have arrived and they are rapidly disrupting the financial sector.