Being citizens of the 21st century, there’s a lot of conveniences that we enjoy yet take for granted. We live in a world with unprecedented levels of access and connectivity. Many services have taken on a virtual form, and anyone with the necessary tools can access them. We might not even realize it, but most of the worlds’ processes and operations rely on the technology that has been developed.
In the field of finance, the innovations could not be more felt. The Internet and software technology has definitely made an impact on the world. It changed how we interact with our money, and even how our finances move. This development of technology related to finances isn’t just some side-effect of technological advancement, it can even be said as its driving force. Fintech or Financial Technology is one of the most important fields right now, and here’s why it’s valuable to everyone.
What Is FinTech?
Before we dive deeper into why Fintech is important, let’s first discuss what it is. Financial Technology is the umbrella term for developments within the tech industry related to finances. It’s the integration of technological advancements to the financial procedures, making them more efficient, and in many cases, making impossible actions very much possible. Almost everything we know regarding money and finances is related to it: depositing money in a bank, withdrawing from an ATM, or even controlling your online bank account are all fintech developments.
Every year, more people are beginning to use the fintech-related banking process, adding to the ever-growing list of statistics related to it. It’s safe to say that in the very near future, online and digital banking operations would far outnumber traditional banking processes.
How it Helps Us
As mentioned before, fintech has definitely helped society evolve to one that utilizes seamless access to the market. Below are some ways it helps us- on a daily basis at that.
Manage Your Finances The Way You Want
Before, many banking transactions were severely limited in their offerings. But with financial technology, a lot of the emphasis is placed on control. Users have a significant amount of control over their finances: how much they want to auto-debit every month for their utilities, exchanging currencies, or even compartmentalizing their accounts. These features are basic services in most fintech providers, and many companies even expand on the options.
Faster and Easier Money Transfers
One of the key benefits of fintech is how integrated it is to almost everything that requires it. Money transfer and cash remittance can be done on the fly with, and with just a touch of a finger. Buying something doesn’t even require you to input financial information anymore- banking information is often encrypted in our personal email, allowing for seamless yet secure access.
It’s a Backup Plan
People are gaining more confidence in using FinTech services because of the many flexible financial solutions that various companies offer. Especially within the millennial generation, people no longer feel inclined to open a bank account because of digital banking. It would be wise to remain vigilant though, as many startup tech companies are not as reliable. There is still much that needs to be assessed and experts from the technology, law, and regulations industry need to work together to mitigate risks.
Bridge the Gap for the Unbanked
Another positive contribution of FinTech is how through it, more and more people are gaining the possibility of financial freedom and stability. Especially in places where opening a bank account can be challenging for the impoverished, FinTech allows these people to create an online financial account just as long as they have a smartphone and an internet connection.
Financial Advice In a Pocket
Often, financial management applications are developed in a way that enables their users to get insights into their financial situation. From charts to graphs, to reminders of when the last payment was made, many of the features embedded in online banking software are made to assist users.
No More Worries About Losing Your Wallet
In a way, because you practically have your wallet in the form of an application or software, you can go out of your house cashless and still have purchasing ability through your phone. These days many establishments already offer and promote digital payments for easier transactions. Eventually, we will be living in a cashless world, fueled by touchless transactions.
While there are many benefits to having a digital wallet, the FinTech industry is far from perfect. There are still issues regarding data collection and data breaches. What’s important is that users are aware of how their information is being used and that users are knowledgeable enough to manage their digital footprint.