COVID-19 has challenged American consumers and global financial markets. However, one thing has not curtailed – financial innovation.
As we move forward and recover from this global pandemic, Financial Technology startups and brands will continue to redefine the way consumers interact with personal finance, shop, and apply for various loan products.
Here are three FinTech Trends to take note of, understand, and tap into to better your financial position and wellness.
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1. Rise of neobanks
The financial industry is led by numerous long-standing incumbents; however, the rise of neobanks – or rather digital-only banks – poses a threat to these archaic institutions. Chime and Aspiration are two culprits of the Silicon Valley and Los Angeles tech scene.
As they tout, they are redefining banking for the average American. Both offer low-fees, dynamic deposit products, and are socially conscientious.
This is the recipe for success in a marketplace where consumers reward eco-friendly establishments. If you want an inside view of what Chime offers, then check out this Chime Review.
2. Cryptocurrency Evolution
Love it or hate, cryptocurrency is here to stay. Bitcoin and Ethereum offer a new way for consumers to safeguard their privacy and transact money. Coinbase, Gemini, and Binance are two of the largest cryptocurrency exchanges that continue to innovate and offer secure exchanges for individuals to buy, sell, and invest in crypto.
3. A New Wave of Affordable Financial Advice
Personal Finance companies, like Facet Wealth, make financial planning affordable. However, some people like control of their destiny and prefer to hand-pick stocks themselves. They turn to services like the Motley Fool; however, the monthly fee is expensive, which turns away a large portion of the population who struggle to make ends meet.
Innovate FinTech startups that utilize advertising to generate revenue vice subscription fees will disrupt this niche within finance. They will offer affordable or free advice and use creative ways to generate revenue. This will open the flood gates for average Americans to receive tailored financial advice and insight.
Looking Ahead
FinTech brands enter the market to solve problems and make our lives easier. They bring unique products that offer low fees, favor comparison shopping, and present consumers with multiple opportunities. The FinTech rise is only beginning, and 2021 will be pivotal for brands to carve out a niche within the burgeoning financial industry.