82% of financial institutions are expected to increase their fintech partnerships over the next three to five years with some already investing in artificial intelligence to enhance either their customer relations or banking processes. This is great news for customers interacting with banks and other financial institutions on a regular basis. However, there are personal apps that are available that help individuals directly manage their money and grow their wealth. While both of these innovations, the kinds that banks are working on and the kinds that individuals engage with on their smartphones, are a part of financial tech, the latter is revolutionizing the way people manage their personal finances in a great way.
Discovering the Practical Uses for FinTech
High-end technology with artificial intelligence and smart learning abilities all sound great, but there are often times when there’s no real practical use in various industries. This is not the case for financial tech, which is enhancing money management in a big way. The most innovative changes have really been in the form of everyday applications that are free and easily accessible on a wide variety of platforms. These applications leverage smart technology to help users track their spending, form budgets, access financial planning tools and even invest their spare change. Robo-investing apps exist, for example, that allow people to access investing tools that previously weren’t accessible by the general public. The app provides insight into various trading categories and helps users create low-risk, high-return portfolios simply by investing the spare change on each purchase they make with a card. Another app provides a way for individuals in debt to access learning resources that train and equip them with the knowledge they need. This is revolutionary. But why?
Accessible Wealth Management Tools Spread the Wealth
Previously, wealth management tools and financial resources were only available to those with current access to actual wealth. Studies report that 22% of children in America now live below the federal poverty line and other studies note that these children don’t receive access to proper financial training or even get to witness how money management works. This makes financial technologies that encourage personal wealth management incredibly revolutionary. Families and individuals who can access free applications and digital financial planning tools are now able to share in the same type of wealth of information that others have for years. Accessible wealth management tools fueled by advancements in financial technology, therefore, helps spread the wealth more evenly across socio-economic lines and encourages everybody to take control of their money.
The Ability to Invest in You
What fintech really does is provide individuals with power. This power is backed by financial tips, learning resources, debt management planners, budget creation tools and so much more in order to allow everyday people to have control over their own finances. While this was previously only designed for financial institutions, applications are making it easier and easier for normal people to access and harness the power of the technology, allowing for a more even distribution of wealth, or at least wealth management.