Thursday, 7 July 2016

Three ways consumers will benefit from the Fintech revolution

Fintech has been a hot topic for a while now but recently big tech companies such as Apple, Google and Amazon have become more vocal about their role in the financial ecosystem. This means that big banks now face increasing pressure not just from startups, but also large, well-recognized brands with the reach and funding to offer a comprehensive suite of financial services.

No matter, which entities rise or sink in this battlefield, one thing is for sure: consumers are the true winners.

Here are a three ways in which personal finance will most likely be reshape

1) Reduced Financial Waste: Processes like securing a mortgage, or finding the right insurance policy, have historically been slow, opaque and painful for consumers. New platforms provide intuitive, quick and transparent search processes for consumers of financial products. In addition, technology enablers with a specific focus, have the opportunity to work with banks and lenders to provide a scalable and modern process for securing mortgages. For other kinds of financial waste, it is likely that the new innovations will be in direct competition with legacy institutions and not only deliver more efficient service but also better customer experience.
2) “Intelligent” finance: Artificial Intelligence applications in financial innovation will continue to improve consumer financial services across a variety of verticals. Apps will automate and optimise personal savings, and the next wave of innovation will focus on creating a full suite of services utilizing AI to drive financial health and literacy. Imagine a personal financial concierge who automatically helps you optimize your spending, savings and investment based on your own personal habits and goals.

3) Serving the Under-banked: There is a huge and diverse market of underserved groups who are either unbanked or under-banked. . It is estimated that 28 percent of the U.S. population is in that category which can be costly and inefficient. There are a variety of reasons for this; some very complex and some as simple as geography.

Startups fintechs have already started offering alternatives to tap into this potential market by offering improved, flexible and more affordable services. As smartphone penetration increases and as the possibility of the digital dollar becomes more like reality so does the opportunity to create innovative consumer services for the under-banked.

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