Once upon a time, financial transactions took place in banks. Whether you wanted to open a savings account or invest in the stock market, the decisions were largely made in a facility with trained financial experts to help consumers manage their assets and investments. For customers, this meant that most interactions were face-to-face. You had a personal banker or a money manager who could look at your specific set of circumstances and help you make decisions based on their wealth of advanced knowledge about current finances. But it also had a drawback — time. It’s time-consuming to set appointments to see people about your finances. And it’s really only necessary for specific things. Today’s consumers are educated. They want to make decisions about their own investments. They want to have real-time access to their portfolio.
Just like every other industry, finance has seen major booms with the advent of technology. As society evolves toward instant user access, finance is keeping pace with new answers in mobile banking. Companies like Varo are offering consumers a mobile banking option. With this startup, customers can manage all of their financial needs through a secure mobile app. Varo customer might use a digital financial coach to help them manage the whole picture or just to take care of day-to-day matters.
For traditional banks, there’s a growing unease in the changes that these new startups offer to consumers. Startups such as Varo center on the customer’s ability to manage all of their finances, from debit card purchases to financial management, right from their phone. The app is designed to be intuitive; consumers can count on personalized services that help them take control of their own financial management and grow their own wealth. In traditional banking, there’s a growing need to upgrade their own technologies so that consumers have the widest range of services.
For consumers, Fintech offers the ability to stay in control of every area of your finances. It offers an app where you can easily access all of your accounts at any given time. Here are some key differences between traditional banking models and the new digital-only banking models:
For consumers, it’s easy to see why mobile applications would be so advantageous. They offer an easy and secure way to access your finances without slowing down the rest of your schedule. They’re exceptionally convenient for anyone who’s comfortable making the bulk of their financial decisions without any expert guidance. For those who work in finance, a great deal of change will occur in the way that companies do business as these banking models evolve. Online banking may take the lead in areas that traditional banks once dominated, such as wealth management, stock and market exchange management, and insurance.
Technology has impacted virtually every walk of life. In finance, information and transactions are available at a high rate of speed. There will be changes in the way consumers want to access their information, and there will be a need to stay on top of the latest regulations regarding finance and technology. There are also unknown variables, such as the way that block chain and bitcoin technologies might change the financial landscape.
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