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The Impact of Fintech on Personal Finance

Technological advancements and introduction of new modifications in the technology universe have brought enormous changes, not only in our daily lives but within the workplaces, companies and organisations.

Automation has replaced opportunities for people with robotics becoming the area of focus. Thorough research by scientists is being conducted to increase the accuracy and precision of such automated operations as compared to errors presented had it been performed by manual labour.

Age of Digitalisation

In a recent study, 75% of small businesses are relying on digital services more than ever. The businesses that took this route were of the opinion that without digital technology, they would have had to shut down operations.

The current pandemic can be looked upon as an opportunity for small startups to explore the digital world. Businesses that have not done well during the crisis must ask themselves how to improve their standing in the market. To reach optimum growth, businesses should take advantage of going digital and look to sell services that can be remotely offered through digital channels.

Rising Virtual Economies

The virtual world economy has now become a multi-billion dollar industry. There is enough evidence to suggest that the industry has grown in size and proportion coming out of an increased demand from online world.

The rise of PayPal and other digital payment services has transformed the face of the payment landscape, and it is likely that this revolution will only intensify over the next few years. PayPal and Square operate as an online payment systems provider and conducts all business transactions digitally. They do not have brick and mortar banks and they are certainly not planning to become one.

Non-bank firms such as PayPal and Square provide conventional financial institutions with comparable services, but customers usually use them differently. PayPal customers can store money in their wallets and then use the app to move money and purchase items either in-store or online. Through affiliate banks, PayPal also offers loans and credit cards services.

Investment Advice

Fintech has made it possible for investors to improve personal finance experience. The introduction of robo-advisors makes way for proprietary algorithms to determine where to invest client’s money and primarily focuses on passive investments and investing for long term portfolio gains which can comparatively give better results than human counterparts.

Apartment Rentals

In New York, students or others looking to rent their city apartment has it worst than the city’s rental market where landlords demand that renters either have incomes far higher than the monthly rent or that a co-signer is acquired. Fintech firm ‘TheGuarantors’ works as a guarantor and can co-sign the apartment by issuing the landlord a bond backed by an insurance company.

Fintech makes it all possible: TheGuarantors’ platform allows the company to process applications within a matter of hours, and quickly informs the company when a renter’s payment is overdue.

As far as the future of Fintech is concerned, new opportunities and challenges lie ahead. With financial services further automating their offerings alongside the integration of Fintech embedded within, it ensues a future of adaptation to this evolution.

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