Over the last decade or so Fintech has become more and more consumer focused. A term which was once restricted to the back-end systems of banks and other financial institutions, it is changing the way we manage our finances.
Quick loans are now even quicker, our bank balances are easily accessible from smartphones and money transfers abroad are cheaper than ever before.
In this blog, CashLady explores 5 ways Fintech is simplifying the way we spend, save and invest our cash.
1. Paying with your smartphone
You may forget your wallet or even your keys. But many of us have our smartphones practically glued to us. Which is why it is handy that Fintech has made paying with your smartphone possible.
There are various ways you can pay through your phone, with Apple Pay being one of the more well-known. Some of the other vendors include:
Now, there is no need to take out cash, or even bring your wallet and cards with you on a night out, as you can simply pay with your mobile wallet at many retailers, bars and restaurants across the UK.
2. Online lending makes applying for finance quicker and easier
In recent years, many online lenders and brokers have appeared, offering us the opportunity to take out a personal loan without going to a traditional high street bank.
For people who may not have the credit history or rating to be accepted by more traditional lenders, it opens up the possibility of borrowing money that may not have been available to them before.
Fintech has made the process of accessing finance more streamlined. For example, lending businesses can now use Open Banking to gain an overview of a borrower’s financial history in order to make a decision on their application.
This makes the process faster through read-only access, avoiding the need for borrowers to provide physical documents as proof.
3. Crowdfunding your finance
One of the most well-known Fintech uses is the many crowdfunding platforms which enable users to head straight to investors to get the funding they need for a business or project.
Whether it is a business idea that you need money for to get started or travelling around the world on a gap year, crowdfunding platforms have become a useful alternative to having to head to the bank for a loan.
So, if you think you’ve got what it takes to be the next Richard Branson, fintech has opened up a whole new world of possibilities.
4. Want to know if you can afford something? Just ask!
If you want to know how much you are spending or wish someone would take any spare money you have and put it into a savings account, Fintech has made that possible too. This is in the form of chatbot apps and artificial intelligence (AI).
By utilising AI, you can have your own financial assistant, who will set you a budget and help you stick to it. A service that many people wouldn’t have been able to afford in the past.
These include services like:
- Plum – Facebook Messenger
- Cleo – Facebook Messenger
- Chip – Android, iOS and Facebook Messenger
5. Building your own investment portfolio
After saving all that money with help from a budgeting app, you may be looking to invest it.
Fintech has made this easier with apps promising to help you invest your money, even if you do not have the time (or knowledge) to know exactly what to invest in.
For example, apps like Raiz, a micro-investing platform aimed at young adults aged 19 to 25, is allowing people to invest small sums of money into the stock market using only a smartphone app.
On the other hand, BrickX is an affordable way for people to invest in the property market. They do this by dividing a property’s price into bricks of smaller amounts which you can buy and invest in.
With the advent of Fintech, managing your money, keeping an eye on your spending and maybe even starting to save or invest, has never been simpler. Also, technology has made services such as a financial advisor, more accessible to all.
So, Fintech could hold the key to helping you hit your next financial goal.