How FinTech Is Making Banking More Accessible for All
Did you know that two billion people across the globe cannot access banking services? Here’s how FinTech is working to make banking more accessible for all.
If you want to get ahead in the banking industry, you should spend less time looking at your portfolio and more time focusing on accessibility.
According to a study from the World Bank, it’s estimated that 2 billion people don’t have access to formal financial services.
People want to make banking more accessible for people around the world, and the institution that perfects the art of accessibility will win big in the coming years.
Fintech (a combination of the words finance technology) is the key to accessibility for banks. If you want to know why, read on!
What Is Fintech
FinTech may sound like a big concept, but it’s easy to understand when you break it down. Essentially, the term FinTech touches on every way technology has affected the world of finance.
The banking app on your phone and even a bank website is an important example of FinTech. Thanks to technology, you can do a variety of tasks with an app; tasks that would have required you to physically visit a bank in the past.
It’s estimated that 81% of people have used the internet to handle banking tasks in the past 6 months, and that number is only expected to grow.
Predictive analysis for stocks, machine learning powered algorithms for finding the best analytical data, and even having a chip on your debit card to enhance security are all excellent examples of modern FinTech.
How Fintech Makes Banking More Accessible
Finance related technology allows banks to help service their customers more, save money on the number of workers they need to physically be on location, and overall make banking more accessible for everyone involved.
The right kind of FinTech can help people in a variety of ways:
One the most obvious benefits of FinTech is how it has made it easy to do certain banking tasks.
Moving money from different accounts, paying bills, and even checking your balance would require a visit to the bank or a call to a teller.
Now anybody with an internet connection can do important banking tasks.
Simple Payment Processing
Many small business owners that couldn’t afford traditional payment processing methods would miss out on a lot of potential customers.
Fintech has made payment processing and banking more accessible for small businesses around the world.
Small business owners can now have the ability to easily take credit and debit payments and give them access to other simple payment options like mobile payments.
Alternative Paths To Loans
Getting approved for a loan from a traditional bank can be difficult for some entrepreneurs, but FinTech has made getting loans and funding more simple than ever.
Fintech has created a variety of alternative lending apps and programs.
A bank may choose to reject a loan, but someone could get their loan crowdfunded because of FinTech.
Other FinTech backed lending programs may go beyond credit scores when they’re determining your approval. Your overall experience in the industry and even your GPA into account.
Do you want to know how technology can improve your business?