Finding easier and more efficient ways to manage money is something most American consumers are adamant about. This need for instant access has led to financial technology (fintech) becoming extremely popular. In fact, over 71% of American consumers rely on online banking solutions to manage their accounts.
While many in the financial industry have known about the power and potential of fintech for some time now, modern consumers are just starting to catch wind of what it can do. In the next few years, fintech will continue to reshape the way people interact with and manage their money/investments.
Below are some of the ways fintech is reshaping the financial service industry and what this means for consumers.
Financial Advice Meets Automation
Most hard-working Americans are always in search of the right investment opportunities. Building wealth is something most people aspire to achieve. In the past, consumers would have to go in and meet with a financial advisor to find out more about the investment opportunities at their disposal.
In the instant gratification world of today, a face to face meeting is becoming a thing of the past.
Robo-advisors are a fintech creation that provides consumers with information about which investments they need to pursue. Generally, these AI advisors are rolled out as live chat features on banking and financial services websites. The owners of these products can customize the messages provided by their Robo-advisors.
This means they can include automated suggestions regarding the financial products/services they have to offer. Companies currently using this piece of fintech have seen a substantial increase in profitability and consumer engagement.
Consumers Want an Omni-Channel Experience
Owners and managers of banking and financial institutions are continually looking for ways to edge out the competition. Accomplishing this goal generally requires the adoption of popular and innovative fintech. When trying to engage with tech-savvy consumers, these institutions focus on providing an omnichannel experience.
These experiences are provided with the help of things like live chat, SMS, social media, and websites. Providing consumers with several different contact methods makes it easy for financial institutions to meet their needs. Various communication channels also provide institutions with a way to market new products/services to their userbase. Using an omnichannel fintech set up for marketing purposes is very difficult.
Working with a marketing agency familiar with these omnichannel setups is the best way to avoid mistakes. With their assistance, it will be much easier for a financial or banking institution to successfully engage with existing and potential customers.
Helping Small Business Owners Get Funding
Starting a small business is one of the most challenging experiences a person can have in life. Whether you want to create a credit repair business or a Bitcoin mining operation, having working capital is crucial. Modern fintech solutions provide entrepreneurs with the ability to apply for and get approved for loans from their mobile phones. Making the loan application process easier allows entrepreneurs to focus on other aspects of getting a new venture off the ground.
Not only are these fintech solutions easy to use, but they are also very secure. Most banking and financial institutions work very hard to ensure they mobile technology provides things like data encryption. Providing consumers with this type of online security helps you avoid data hacks and other technological problems.
Reaching Out to Cryptocurrency Enthusiasts
One of the hottest trends in the world of finance is cryptocurrency. In the past few years, the number of people investing in this digital currency has exploded. This rise in cryptocurrency popularity has led to several financial institutions developing fintech tools specifically for people in this niche market.
These tools include mining apps and even Blockchain platforms with tons of transparency. Most financial institutions realize that cryptocurrency is the wave of the future, which is why they are investing heavily in fintech solutions for this industry.
Embrace the Power of Fintech
As you can see, fintech is changing the way people manage their money. Whether you are a consumer or a business owner, finding ways to use fintech in your life is a great idea. The right fintech solutions can make life easier for both consumers and business owners.