What is FinTech? ~ We Show How Fintech Is Changing The World Today.
Unless you have been living under the rock for the past 10ish years, you have probably heard the word “fintech” thrown your way either through social media or your peers. But has anyone taken the time to sit you down and explain to you what it really is? No? Well you are in luck today as we walk you through this booming technology and how to integrate it into your everyday life. We'll answer how fintech has changed banking, how fintech is changing the world as we know it, fintech apps to know, and more.
Fintech short for "financial technology", is defined as essentially any technology that is utilized to improve and automate the delivery and use of financial services. Initially the creation of fintech was simply meant to describe back end software products used by financial institutions but there soon came the creation of more consumer aka your neighbor, your friend, and YOU centric software products in this relatively new industry. What are some examples you ask? Well keep reading for 3 quick examples of how you might have been using fintech in your everyday life!
1. Online Banking
Aren’t you tired of having to go to banks to deposit checks/cash? Have a quick question about your bank account and are using the app to check? All of this is you actively taking part in a type of consumer focused fintech! Here is how fintech has changed banking; more and more banks are creating apps that will reduce the need for individuals to go into physical banks and I for one am excited for this revolution. If you do online banking today, you are using fintech already!
2. Financial Management Tools
If you are a new grad just like me, there are many technologies out there to teach us about how to manage our finances better! Financial management tools such as Mint, allows us to have everything in one neat place and even tracks how much money we are spending across the board. Some, like CreditKarma, also provides insights into budget breakdowns and houses information about your student loans. A couple more financial management tools on the market to look into are MoneyLover and Digit. By-way of making financial management tools easier, fintech is changing the world as we know it.
3. Electronic Payments
Let’s be honest, who carries cash nowadays anyways? To replace cash we have many new tools in place that can act as a medium for electronic payment! In a post-pandemic world consumer behavior is shifting towards touchless payments and we are all for it. Some Apps that I tend to use on a everyday basis for online payments in Paypal, and Venmo. Another fintech app to become acquainted with is Zelle. Zelle makes it easy to transfer money directly between bank accounts (so you don't have to use another, third party platform). This makes me feel safe and sound with my finances.
These are the basics of fintech. There are many more software platforms and fintech Apps. to use. But being familiar with the financial industry’s trends is important. Fintech as an industry is rapidly growing and it is definitely a good time to keep an eye on this space as we as humans prepare for a post-covid world where any and all financial transactions come to the tip of our fingers!