The word Fintech is the combination of the words “finance” and “technology.” Financial Technology or Fintech is an industry where technology makes financial services more efficient than the predominant form.
Fintech has revolutionized the remittance industry worldwide. With the advent of fintech firms, the economic sectors have also started to adopt the digital format. As the world is getting digitalised, customers are now feeling more comfortable with digital financial services than traditional ones.
In this blog, I would love to discuss some facts about Fintech that you should note as a customer.
Fintech is a revolution
Financial institutions are adopting different changes in financial services in the past few years. However, Fintech has wholly developed the financial industry eradicating the middlemen. Micro and macro remittance businesses are now delivering products and services directly to consumers.
With the advancement in technology, customers are now adopting digital services, and if you notice, you are already using one of the fintech products. In India or China, almost 75 percent of the population has been accustomed to fintech solutions.
Different options to manage your money
FinTech firms have comparatively lower operating costs and manage a better relationship with the customers as they have greater access to the range of information about them. On the other hand, banks have significant connections, a loyalty base, and institutional trust, but the charges are comparatively higher. This comparison sounds like a competition that facilitates the customers by providing more excellent options.
Remittances are faster and cheaper
If you are a regular remitter and need to send money home more often, then half of your expenses are incurred due to the expensive transfer fees involved in every transfer. It has been estimated that migrants lost almost $32 billion in transfer fees. Therefore, fintech firms are trying their best to cut down this expense and offer the migrants a faster and more economical platform to transfer money home.
Fintech firms like ATL Money Transfer have developed remittance software for quick and reliable transfer at a much lower cost with great exchange rates.
Banks are becoming endangered
It was stated that a third of millennials in the US do not think they need a bank for financial services. Instead, they are trusting fintech start-ups for accessible financial assistance from the comfort of their home.
The unique selling point of Fintech lies in offering innovative solutions for daily financial needs and the value for the money.
“Unbanked” to “Banked”
According to a survey between the years 2011-2014, around 700 million people become official financial account holders but not through the bank.
Fintech firms have helped people in the sub-Saharan region with mobile money accounts which raised the percentage of account holders from about 24 to 34 percent in 2014.
Fintechs are working more on bringing in financial inclusion, especially among women.
Instant financial advisor
The financial management apps developed by the fintech firms give the customers on-demand financial advice. These apps use data tracking methods and customer behavioural information to help customers manage money and even inform whether the bills are paid. When you are running low on funds but spending more than the budget on anything, these apps will know and notify you to rein it in. Moreover, automatic sweep-up options is available for the leftover money at the end of the month to drag into your savings account.
At the end of 2014, the value of cashless transactions is increasing gradually. Many big fintech players have established instant pay apps or software through which you can transfer money abroad, pay bills, even store money digitally in your phone wallet. According to a study, 49 percent of customers stated that they are happy with the changes in their payment mode and methods.
Matter of privacy
Fintech services collect in-depth information to know the customers and track their transactions to provide complete security and secure their business.
Critics have made the point that this might be risky as they have the consumers data. Still, if you are using a regulated money transfer operator service, you do not need to worry about money laundering or fraud. As regulated money transfer operators have proper license and fall under the legal and formal channel of remittance.
Remittances form a crucial part of the country’s economy. Fintech firms have brought significant changes in the financial and remittance industries. You as a customer should also give chances to the newcomers and hence help in the socio-economic development of the country.
About ATL Money Transfer
This information is brought to you by ATL Money Transfer. We are an authorised and regulated money transfer provider operating worldwide. We care about your hard-earned money and hence provide you with the safest platform to send money back home at low cost and excellent rates. For further information, visit our website www.atlmoneytransfer.com