Technology and FinTech
The FinTech Market
The FinTech (“financial technology”) market is alive and well, and the largest group of users are tech-savvy millennial’s. It comes as no surprise that a generation raised using the assistance of smartphones and apps would indeed continue to seek to utilize apps in adulthood.
The Fintech industry has offered millennial’s a more convenient digital alternative rather than traditional financial services. FinTech technology gives users access to services in which they can open an account in minutes, take out a loan, or send money across the globe with a tap of a button on their mobile phones.
Fin Tech technology has made personal finance easy to do, using real-time budget apps that capture expenditures and pay bills automatically. It also shows the short and long-term consequences of the users spending with a touch of a button.
Critics claim these apps make personal finances so easy that it may also make personal finances easy to ignore. No longer is there a connection between the purchase and the payment. The biggest concern becomes lack of interest “out of sight out of mind mentality,” and then there’s lack of financial literacy. If you don’t constantly think about where your money is going, you won’t be able to think about whether you’re spending it wisely.
If you are using a personal finance app, use it wisely, and put the following steps in place to help you save money.
- Create a Plan- Staying organized is key to financial freedom, and creating a budget with the app may help you stay within your means every month. Many apps let you create a budget based on your income and can also put limits and categories on your spending habits.
- Keep track of your spending and expenses– Smartphone apps like Quicken can track your spending habits by taking a photo of your receipts, which it then puts into categories. Here is where you can see any unnecessary spending. Certain categories help you see where you would need to cut corners. It will also send you notifications and alerts when your account balance is low or your over-budget, helping you to avoid overspending.
- Save Money-The best way to save is by setting financial goals. Are you planning a trip, looking to buy a car or start a family? When you have a goal in mind, it helps inspire you to save for the goal. All while helping you avoid unnecessary spending. Qapitalis an automatic saving app that let you save based on your goals. You can choose what generates a deposit, and Qapital will do the work of getting that money into a savings account.
There many FinTech apps to choose from. Do your homework and find which app(s) are right for you. If these apps are not helping you, contact a trusted financial advisor. This advisor can help you navigate your finances and also create a plan for a sound financial future.
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