Financial technology, or Fintech, is a term that refers to the innovation of financial services through software. Fintech companies are beginning to disrupt traditional banks by offering apps and other digital initiatives that provide cheaper, more efficient banking services. Enjoy this article on how fintech is changing the way we bank.

Learn all about Financial Technology and how it transforms banking.

1. What is Fintech?

Tech companies like Venmo that are not traditionally associated with banking are making their mark on the financial services industry with innovative, customer-centric solutions to age-old problems. Rather than working with banks, fintech startups develop technology specifically for use by individuals and small businesses outside of the realm of traditional finance.

Apps like Venmo (see our review here) let you pay your friends back quickly and easily without having to worry about writing out each person’s full name or getting cash from an ATM. Cryptocurrency apps allow you to buy bitcoin and other virtual currencies just as easily as you’d order a book off Amazon or download a song onto iTunes.

2. How does Fintech change the way we bank?

The days of visiting a branch to deposit a check, transfer money from one account to another, or get advice from your local financial advisor are quickly becoming obsolete. Saving, spending, and investing your money is easier than ever before, thanks to fintech. Just like door-to-door package shipping, banking apps are hassle-free, as they allow you to manage all aspects of your finances with just a few taps on your smartphone screen.

The future of banking will likely include even greater digital integration through virtual reality interfaces and voice activation features for an app-like experience that feels more natural than navigating a screen.

3. Why should you care about Fintech?

Technology makes it easier

Fintech apps make sending, saving, and spending your money easier than ever before. Even if a fintech company doesn’t offer services that match your exact needs, you can still take advantage of their app’s features to manage your finances more effectively.

Affordable banking options

With traditional banks, you have to worry about being charged monthly fees for using an account or being assessed a fee for going over the limit on your credit card. With fintech companies, these fees are often nonexistent or replaced by digital transactions that cost less than physical ones. You’ll save money every time you use the app rather than visiting a brick-and-mortar bank branch.

Fintech makes loans more affordable and accessible

Fintech is making loans more affordable and accessible by making them product-specific. Fintech companies such as Yieldify allow borrowers to get personalized loan offers tailored to their needs and credit histories. This removes the need for lenders to assess a borrower’s creditworthiness, making lending accessible to a larger population of people.

Fintech isn’t going away anytime soon

As the popularity of fintech grows exponentially within the millennial generation, larger financial institutions will be forced to adopt at least some of the innovative features fintech startups have developed for their users.

4. How to save money with Fintech

Saving money with fintech is easier than ever. With just a few taps on your smartphone, you can manage your finances and save money without having to visit a branch or pay any monthly fees. Here are a few tips for how to save money with fintech:

• Use budgeting apps to track your spending and stay on top of your finances.
• Automate your finances by setting up recurring payments for bills and expenses.
• Compare interest rates and fees between different fintech companies to find the best deal on loans, savings accounts, and credit cards.
• Use digital coupons and rebates when making purchases online to save even more money.
• Use tax refunds or earn interest on the money you save by putting it in a savings account.
• Use fintech calculators to determine how much you would save if you saved money every day for the next six months.
• Use peer-to-peer lending apps to borrow money at lower rates than traditional loan providers.
• Take advantage of reward programs offered by credit cards, debit cards, and bank accounts to earn money just by making transactions that you were already planning on making anyway.

5. The future of Banking with Fintech

With millennials becoming an increasingly large demographic in the U.S., it’s no surprise that technology has become such a critical aspect of the financial services industry. Fintech will continue to grow as smartphones and other mobile devices become even more ubiquitous around the globe. This provides more people than ever with access to banking services from their fingertips. Thus, you should start saving today by using a fintech app.

Fintech is changing the way we bank for several reasons, but it’s important to remember that new banking technology doesn’t replace traditional banks. Traditional banks will continue to exist in some form and may even adopt some features from fintech startups. With this article, you’ve learned how apps like Venmo work by making paying friends back quick and easy while also providing more affordable loans with better customer experiences than ever before.