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.
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.
Source: TechCrunch, 2016
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