UNITED STATES—Technology has touched every aspect of modern life. From entertainment and health to wealth, the improvements across the board are marked. However, it’s technology’s impact on the financial sector that’s been most significant in recent decades. Leaving aside the potentially revolutionary qualities of cryptocurrencies, financial technology (fintech) at all levels has reshaped the way we handle our money.
The fintech revolution started off the general consumer’s sight. Backend technology designed to improve money transfers, data entry, and bookkeeping were the primary targets for developers. However, as the internet took hold in the noughties and smartphones improved, the sector evolved. Fintech companies began looking outwards as well as inwards. This led to innovations such as digital wallets that allow users to pay for services online as well as store and transfer money.
Fintech Becomes a Service
Consumers can now scan checks with their smartphones and deposit money into their accounts. For the entrepreneurial types, fintech has made funding more accessible. Whether it’s a small project or the next big thing, startups can set up a GoFundMe or launch their own IPO. There there’s the advent of online trading sites. Today, everyone, from beginners to professionals, can trade stocks, forex, commodities, and more online.
In fact, such has been the improvements in this area that aspiring traders can learn to take control of their finances for free. The Nadex™ online demo trading account not only provides a free way to test out the markets, but it also offers advice on investment strategies and techniques. In essence, it’s another positive innovation from the fintech community that allows novices to master the basics of trading. Once comfortable, the option to open an actual trading account is there. Moreover, it’s another example of consumers having more control over their finances.
The Future of Fintech is Making Money Management Easier
But what about the future? We know where fintech has got us to but where is it taking us in 2021? Bitcoin and its crypto peers are still going to be disrupting the way money moves. It may not be the year when blockchains take control. However, we will take another step towards what looks increasingly like an inevitable end. Away from cryptocurrencies, one of the 2020s most impressive innovations came from Stripe. The financial and software as a service company announced its intention to launch Stripe Treasury. The platform will give online merchants such as Shopify the ability to offer financial products.
This ties in with new technology that makes it easier for lenders to scan and assess legal documents. That, in turn, streamlines the loan process and allows consumers to get better deals. When this is combined with Stripe Treasury, borrowers now have easy access to more services, better application processes, and, potentially, improved products. That’s likely to be the story of 2021. With economies struggling due to COVID-19, money is tight. However, through the power of technology, those with the right tools can get a handle on their finances. Whether it’s savings, trading, or finding a loan, fintech as a service makes managing money a lot easier.