We live in an age where the intersection between finance management and technology is inevitable.
Digital technologies are now at the forefront of organizational processes of any company and, since some years, they’re also in the way financial services are offered.
From mobile wallets to cryptocurrencies, from online banking to new investment possibilities, there are many financial sectors that have become domain of FinTech.
FinTech, which stands for financial technology, is one of the fastest growing economic sectors in the world.
What can FinTech do to help you manage your finances
According to the World Bank’s Global Findex, in 2017, at least 70% of the world population opened an account in a mobile banking company or in other financial institutions.
The application of FinTech in the personal finance field comes in several aspects: from savings analysis to the comparison of credit cards, from investment in funds, to personalized savings management advice.
Here are four areas of personal finance in which FinTech companies are bringing new added value:
Planning your budget
Ensuring that your salary will be able to meet all the expenses and whims of the month is fundamental. But often, it happens that, without a proper control tool, you could find yourself in a bad way some days before the next salary. If programming your budget in a traditional way (with a manual register or an Excel file) isn’t for you, there are very useful apps which come to your aid: Mint, Goodbudget or You Need A Budget are only some of the solutions you can find just a click away.
These apps help you keep track of all your expenses, and they estimate your “financial health” in real time. Some of them also help you set aside a budget for specific purposes.
Comparing financial services
Managing your finances with awareness is important, but making a step further and improving your “economic education” is even better if you want to rely on the best financial products. Think for example on how to get the best conditions for your credit card, or to fund your first home loan.
Services like Segugio.it, SOS Tariffe, MutuiOnline, are real treasures of financial information.
If planning the budget is easy, sticking to the budget is the hardest part.
For this reason some FinTech apps exist to help you with asset management.
Among the many apps on the market we can mention, for example, Acorns, Oval Money, Openwork or Simple: all of them will help you have a more accurate view of your income/expenses budget, and will help you dedicate a portion of your income to a savings account.
FinTech has made it possible to count on the advice of “robot consultants” or “robo-advisors”.
These are very easy to configure digital investment management services: they don’t cost much and they’re perfect to make small-scale investments. They work thanks to artificial intelligence algorithms which analyze your financial situation and propose solutions designed for your needs.
Services like Moneyfarm, AdviseOnly, Wolfway and Robinhood, offer tips based on your investment preferences. Nowadays, even many banks are starting to support digital consultant proposals to mobile banking
This post is also available in: Italian