4 min of reading
There is an ongoing revolution in finance driven by the culture of start-ups or startups, and it’s about more than just looking great or revamping an old, outdated brand to make it more fashionable. There have been major changes in the very services and products that financial institutions offer. These are some of the more dramatic changes that startups financial technology (fintech) have brought to the world of finance:
Integration of technology in financial products
The rise of startups fintech has led to surprising innovations in the sense that technology and data are used in alternative financial products to make them more convenient, safe and easy to use.
Buying shares now is something that can be done from the mobile phone, while checking social networks and sending a text message to a roommate so that he does not forget to buy milk on the way home. Customers can pay for dinner or loan friends money, all without touching their purse. They can deposit checks, open bank accounts, apply for loans, all without ever going into a real bank.
“In an age when mobile devices are fully integrated into our everyday lives, fintech solutions that bring traditional banking services to our phones are completely reshaping the way customers connect with financial institutions and use their related products. ”Said Phillip Rosen, founder and CEO of Even Financiero.
In 2020, 44% of retail banking customers you relied on your bank’s mobile app to access banking services and about half of them would use mobile deposit as their first option to deposit a check into their account.
Development of new financial tools that simplify finances
The trend towards digitization of financial products and services has not only made them more convenient but also more accessible. New markets have opened up among consumers who have never before had easy access to affordable financial services.
As the range of clients accessing these services expands and becomes more diverse, the startups are innovating more and more ways to simplify finances and make financial products easier to use, either by creating educational content on a bank account. brokerage or creating a budgeting tool on an online banking platform that helps users track expenses and set financial goals.
Budgeting apps like YNAB, for example, guide users step-by-step through the budgeting process and allow them to sync all of their accounts with the app to track expenses and receive personalized advice and information on where to go. make cuts to better meet your goal. They also offer free workshops and other live educational events, in addition to their in-app educational resources.
Fintech companies like this integrate education in money management so that users learn on the go and can apply each lesson to their own finances. The idea is that financial institutions should not only provide the tools people need to manage and grow their money, but also provide the knowledge and training to use those tools to make smarter financial decisions.
Financial services automation
An extension of the trend toward simplified finance is the emergence of automated financial tools. Financial institutions are increasingly offering innovative ways for clients to automate different financial services.
There are apps, like Acorns, that round each purchase to the nearest dollar and automatically invest that extra in the stock market. There are budgeting apps, like Truebill, that can cancel unused subscriptions or request refunds automatically, or Digit, an app that calculates how much money can be saved and then automatically transfers it to a savings account.
All these transformations driven by the culture of the startups They seem to have the same goals in mind: to make financial services easily accessible, intuitive, and personalized for each individual client.
Picture of Dan Burton on Unsplash
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