The term “fintech” covers a wide range of services and products, therefore it’s easy for people to overlook some of the more exciting innovations developing within the industry. For example, most individuals are familiar with banking and payment apps, but they may not know about the various online lending and fundraising services available.
In this post, we’ll cover some relatively under-the-radar fintech innovations that you should pay attention to. Whether you’re an entrepreneur, consumer, or someone who currently works in the traditional financial services industry, this technology will undoubtedly have a significant impact on your life.
Most people already understand the concept of digital wallets to some degree. Digital wallets have risen in popularity fairly rapidly for obvious reasons: storing your money digitally is a lot easier than actually carrying around a physical wallet. On top of that, the risk of misplacing money or being robbed is virtually eliminated when you don’t have physical currency on hand. What people may be less familiar with, though, is the concept of physical wallets that allow you to store money in a wide range of currencies. This technology will make life much easier for people who travel on a regular basis.
One example of this new type of digital wallet is CashDash. This mobile app allows users to buy, return, and collect foreign currencies without using a credit card. Imagine traveling to another country and never again having to go through the stressful currency exchange process before you can start making purchases.
Artificial Financial Advisors
Artificial intelligence isn’t science fiction anymore. While we’re still a long way from robots that can pass the Turing test (meaning that robots can convince a majority of people that they are human), we’re not very far at all from AI bots that can leverage online data to help you make better long-term financial decisions.
While many people currently working in the financial industry express skepticism over an AI’s ability to offer the kind of personalized recommendations that a human financial advisor can provide, this doesn’t change the fact that AI wealth-management services offer a cost-effective alternative for people who may not be able to afford a professional financial advisor. With AI technology, you can quickly and affordably set up your own personalized portfolio.
Many people praise Fintech for helping unbanked and underbanked people gain access to financial services that were previously unavailable to them. AI financial advisors represent another step in this direction. Thanks to AI, people who once were unable to justify the cost of hiring a financial advisor will soon be able to take advantage of essential wealth-management services.
Anyone who has played Pokemon Go! has used augmented reality (AR). This technology allows users to add or remove elements from the real world via their digital screens. Although AR products currently rely on mobile devices to offer users these types of features, developers may soon focus on creating apps for wearable headsets as these products become more popular.
In the fintech industry, AR is poised to substantially enhance existing services. For example, one day soon you could display a product you’re interested in buying on your phone’s screen. A banking app would then immediately supply you with information about your account balances, available credit, and any other data you might need to make a more informed purchase. Visa Europe has even conducted experiments with mobile e-commerce applications, enabling audience members at a recent London fashion show to purchase clothing items by simply pointing their phone cameras at the models.
AR may also contribute to the decline in brick-and-mortar banks, a major side effect of the fintech revolution. By combining AR technology with virtual reality (VR) programs, it will soon be possible for customers to open up accounts and conduct other face-to-face interactions with bank employees from the comfort of their own homes. This way, people won’t actually have to travel to a bank to discuss their finances if their life circumstances prevent them from traveling to a bank branch easily.
As always, these predictions represent only a small fraction of the kinds of developments consumers should expect from fintech in the coming years. There are plenty of upcoming innovations on their way that many can’t yet imagine.