Are you looking at your financial options? If so, then you might be wondering about Fintech, a much-used word these days. You might be wondering what is Fintech and why are so many people using this word? How can it benefit me?
It stands for financial technology, and it's generally applied to banks with no physical branches where users can access them entirely online.
Here's how Fintech is changing the world and why you should get on board.
1. Taking on Traditional Banking
Fintech banks are competitors to traditional banking. Fintech companies argue that traditional banking is overly conservative and is not moving with the times; traditional banks don't have consumers in mind.
But because they have much capital behind them, it has been traditionally hard to challenge them.
Some of the services Fintechs offer are better customer service through their app and more reliability if users want to change their PIN number or order a new card easily. With banking licenses in multiple countries, they are also able to offer multi-currency accounts and better services than traditional banks.
2. Opening Up to the World
Fintech banks open up the average consumer to the rest of the world. Banks like Transferwise offer multicurrency accounts so that you can receive and hold money from different currencies from around the world.
Have a client who wants to pay you in USD? No problem. Or maybe you're planning a trip to Singapore and want to convert your money to Singaporian Dollars. That's no issue either.
Revolut, Monzo, and Transferwise all offer debit cards with no fees for spending in different currencies. Many also provide a certain amount of free ATM withdrawals. These are great examples of what is considered fintech in the modern digital age.
You could even try using a fintech network platform rather than a traditional fintech bank.
3. Budgeting Better
If you want to budget better, Fintech should be your go-to; they are great for financial health. They have built-in budgeting tools that traditional banking apps don't have. It is an excellent example of fintech companies doing good work.
They can give you the lowdown on how your spending has panned out over the past month or week. You can categorize every payment you make and then see how much you spent on food and drink or entertainment compared with your bills.
If you have trouble saving money, then budgeting tools can be revolutionary. You can also create savings pots rather than create a whole new savings account for your savings.
What is Fintech?
It is a revolution in consumer finance that makes it easier for users to budget and get the resources they need to get themselves out of debt.
Fintech is a positive and progressive alternative to traditional banking, which has been at the center of financial scandals and corruption since the Great Financial Crash.
If you are interested in learning more about what is fintech, check out the rest of our site. Visit the Finance and Tech sections of the Bootstrap Business Blog to learn more about what is Fintech in modern financial technology.
