FINTECH 101 – Do you know Financial Technology?

Financial Technology which is also known as ‘FinTech’ has been able to provide excellent tools for individuals looking to efficiently handle their personal finances. It refers to the synergy between finance and technology, which is used to improve the delivery of financial services. Currently, two out of five people across 20 major world economies claim to be using at least two FinTech services. The main innovative edge of FinTech lies in offering financial services to people who don’t normally have access to conventional banking and other financial services in the world today.

FinTech is generally believed to be a key factor to a future of increased financial inclusiveness. FinTech services such as money transfers, digital payments, financial management tools, P2P lending, insurance, etc are leading to more financial inclusiveness. FinTech is growing explosively, and it has generally changed the way people think about money and value exchange in real-time. The FinTech Industry is fast coming up with novel solutions, so it’s time you start growing your knowledge, and expertise to keep up with the growing FinTech space.

Here are a few ways that fintech can help you become smarter with money:

• Proximity payments tech allows you to use smartphones through “contactless payments” known as via near field communications (NFC) technologies.
• Smart Savings: It is obvious that the future of personal finance is automation. With technology, seamless ways have been created to save in a quick and efficient manner by automating transfers to your savings account. For Nigerians, Financial Apps like ALAT, Piggyvest, Cowrywise, etc allow you to set your savings goal and determine how much you want to save and for how long. Calculate how much you can afford to save daily, weekly, or monthly and automatically move money into separate savings or investment account.
• Automated budgeting technology is also compelling as it solves a common problem and saves people time. This tech provides smart budgeting tools that help you analyze your spending patterns and habits.
• Borrowing & lending money: obtaining access to funds has become much easier, transparent, and less centralized, and the traditional way of borrowing money from a bank via loans and mortgages is now being connected by options like peer-to-peer lending, decentralized finance (DEFI), and crowdfunding.
• Post-payment allows you to make a purchase online in real-time and receive an invoice for that purchase later, often after the product is delivered to your home.
• FinTech also provides investments apps that allow you to trade stocks directly from your mobile devices with automated services like analytics, reminders, market trends, and many more.

On a final note, Financial Technology will increasingly remove barriers around financial management and central financial systems, empower you to make smarter daily decisions with your money and improve your financial relationships.