Two Big Ways FinTech is Changing the Way You Manage Your Money

FinTech, short for financial technology, represents a world of mostly automated services changing the way people access common financial services. Even if you’ve never heard of it before, you’ve probably used it in some shape or form. That’s because FinTech is sweeping through the financial industry at an accelerated rate with the promise to radically change the way we bank.

Here are two of the biggest ways it’s set to change the way you manage your money.

Manage money

1. Digital currency

Thanks to Elon Musk, Bitcoin made it back into headlines when he said, “crypto[currency] is a far better way to transfer value than pieces of paper, that’s for sure.”

“Paper money is going away,” Musk claimed on an episode of the podcast “FYI — For Your Information”, before saying he owns only 0.25 BTC.

It’s telling that one of the richest futurists doesn’t invest in Bitcoin. Although it and other cryptocurrencies receive the most press, they’re far from the most widespread application of FinTech services.

The mobile wallet is much more popular. Unlike crypto, you don’t need a fortune before you can use it, nor do you need a degree in computer science to understand how it works. When the average mobile wallet connects with any online bank account, the only thing you need is a smartphone, and the willingness to try something new.

In 2019, mobile wallets have limited application. Starbucks and Walmart join some of the biggest retailers that have retrofitted their POS to accept digital payments, but most stores still rely on traditional payment methods — cash and credit included.

Soon, however, experts forecast a growing number of digital options and cash-free stores. Google, Apple, and other multi-billion-dollar corporations have already rolled out apps to support this future. They’re joined by smaller FinTech startups as well as some of the biggest retail banks to create similar apps.

2. Mobile banking

At the turn of the century, people who wanted to deposit a check or apply for a personal loan had to visit their local branch. The traditional banking model was the only way to complete day-to-day banking tasks.

Now nearly 20 years on, this old-fashioned way doesn’t match modern sensibilities. We live in a time when people can see or do almost everything instantly over the Internet. Who wants to take time out of their day waiting for specific opening hours before they can visit a physical location? Most people want banking to be as easy as anything else in the Information Age.

Innovative FinTech services are tapping into this need by digitizing the banking suite in ways that surpass digital payments. In addition to facilitating cash-free transactions, FinTech brings a greater range of banking tasks online.

There are mobile banks that make it possible to transfer funds, deposit checks, or set up automatic payments with a click of a button. There are also online lenders that increase your options for borrowing money quickly when you can’t borrow the traditional way. These apps make it easier to check your bank balance or status of your installment loan without needing to visit an ATM or your local bank branch.

The local branch: its days may be numbered. As more banks shutter their doors for good all over the world, the traditional banking model gives FinTech all the opportunity it needs to fill their place. With digital currencies and mobile banking, FinTech is already changing the way people manage their money. There’s no telling what will happen in the future.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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