Ten years ago, fintech was an emerging niche that few had heard of. Now, it has expanded far beyond its once tiny corner of the financial world, and it’s on the cusp of disrupting traditional financial services permanently. As fintech grows to take a larger piece of the financial pie, many of its conventional competitors are changing their services to reflect this emerging industry. Some are even partnering with fintech innovators to provide these services. As their influence grows, the industry will evolve. Let’s take a look at three fintech trends that are changing the way Americans bank.
Mobile banking
An emerging group of fintech companies are creating mobile banksas a way to increase financial inclusion. They’ve developed mobile banking apps to service theregularly underbankedor the underserved. These individuals have limited access to typical financial services, often because they have very little credit history or some other negative note in their financial history.
Direct online lending
When the underbanked have trouble operating within the typical financial framework for daily banking tasks, then securing infrequent services like personal loans is a challenge. Many traditional loans require comprehensive reviews of an individual’s finances, making it hard for those with poor credit to find the assistance they need.
Direct online lenders like MoneyKey solve this problem affecting many of the underbanked. They cut out much of the red tape often complicating the borrowing experience by facilitating customers with loans directly, much like their name suggests. As a result, direct online lenders make it easier for the underbanked to find cash flow solutionsin cash loans or installment loans. Lenders like MoneyKey have also simplified their online processes in a way that’s faster and more convenient than conventional options. Their customers submit their financial information online and get an advance in as little as one business day.
Smart money management options
As the underbanked increase their use of financial services, other fintech companies are providing a way for this group to manage their finances responsibly. There are a lot of online tools that help this population who, relatively new to many services, may not have the financial literacy needed to manage them successful. Personal finance management apps like Mint simplify the way people organize their finances and create budgets. This app aggregates information into one convenient place, making it easy for its users to keep track of purchases, online loans, and investments.
As a once-niche service, it only makes sense fintech companies lead the push to solve the niche issues of the underbanked. In bridging the gap between this group and traditional financial services, fintech is bringing the underbanked a way to save, borrow, and manage their money in increasingly responsible ways. With eyes to the future, one can assume fintech will continue to expand as a service.
