Fintechs are changing the world through the spread of access, personalization and literacy – all elements of a financial future that is people’s power where they own their money.
In the world, fintech innovation is closing the financial inclusion chasm and enabling millions of customers to enter formal financial services for the first time.
Accessibility
Fintech companies are changing the way we bank by making products available to a wider variety of people in different geographical and socioeconomic locations; for example, financial education through apps, tutorials and interactive platforms, empowering individuals with an awareness of their current financial condition, how to budget, track expenses, understand credit score and save.
But they also need to be accessible to the people most in need of them – not just because this is the law but because it’s a chance to differentiate from your peers and project a culture of inclusion, social responsibility and customer engagement.
Convenience
Fintech offers consumers, companies and banks a variety of faster, convenient, safe and efficient services. Mobile savings and investment apps, for instance, help people accumulate wealth; credit-matching systems that make obtaining a loan easier for consumers with bad credit histories; business loans with new creditworthiness assessment.
They also support economic equality, offering millions of citizens for the first time formal financial institutions. It allows for resolute single moms to save up for their children’s education, hard-working street hawkers to sell stuff, and creative youth to get entrepreneurial and realise their dreams of a career.
Personalization
Individualized fintech companies earn customer trust and drive retention while increasing engagement and conversion to maintain revenue long-term.
Fintech delivers the tools and services for customers that are easy, accessible, and convenient — helping customers control their money and reach their financial targets faster.
Customers aspiring for more financial control are looking to fintech apps for advice in an economic environment that may never be clear, especially after Mint; most fintechs are providing novel, personal financial management software in their stead.
Many fintechs offer education platforms to spread financial literacy and educate people on the journey towards economic empowerment like webinars, workshops, and online resources.
Empowerment
Fintech is changing the way we get finance: with digital apps, credit innovations and financial education, fintech makes more inclusive, financially independent futures possible.
But imagine if you are a small-scale farmer and you could take out a cheap microloan by simply tapping your phone a few times; or if you are a startup business owner who could crowdsource her start-up expenses; or if you are a low-income neighbourhood woman who took out microloans to establish your own small business. If only all these opportunities could be just one click away, via digital bank systems!
Empowerment is a complex social activity in which individuals exercise their own agency and power by acting on things they believe are significant. Empowerment is the gist of person-centred therapy and whole-person recovery – but what does it really look like in practice? A Harvard meta-analysis recently found that empowered leaders produce more ideas from workers.
Innovation
There is always a fintech business that delivers the personalized finance solutions to individual consumers ranging from online savings accounts to budgeting tools. This type of customization allows the customer to select what products and services he wants – which gives him a sense of ownership in his money.
These online financial services prove that fintech can be a force for economic liberation and order. If we can drive more people to fintech for help with money, they’ll get a clearer sense of their financial state and possibilities – in Plaid research, four out of 10 people who use fintech daily report feeling less stressed financially because of it.
But fintech’s exponential growth can also present regulators with particular issues. To help drive innovation and reduce risk.