Category Archives: Entrepreneur

Fintech’s Social Benefit: What You Need to Know

Fintech’s Social Benefit: What You Need to Know

Fintech products offer major benefits to consumers. By providing alternatives to traditional financial services, they simply make day-to-day life more convenient.

That’s certainly a major reason why people have embraced fintech in recent years. However, it’s not the only one. Fintech can also have a positive social impact. For instance, fintech companies can provide unbanked and underbanked people with greater access to financial services. This helps people in emerging markets do everything from saving money to starting a new business. As these products continue to improve and develop, we’re likely to see them yield even greater benefits in the future.

The following examples illustrate several other ways in which fintech is changing the world for the better.

Assisting Immigrants

Adjusting to life in a new country is often challenging. In addition to cultural differences, there are also practical issues that must be addressed.

For instance, new immigrants in the United States often struggle to establish themselves due to a lack of credit history in the country. Everything from renting an apartment to starting a business requires a credit score.

Fintech startups are changing that. One company, Nova Credit, helps immigrants transfer their financial profiles from their home country to their new one by linking information from various global credit bureaus. The goal is to provide users with a “financial passport” that makes it easier to adjust to life in a new country.

This doesn’t simply make life more convenient for immigrants. When you have an established credit history, you have more opportunities.

immigration

Expanding Insurance

It’s easy to forget that many people and organizations throughout the world lack insurance. According to one estimate, the number of uninsured people in the world may be as high as 3.8 billion.

That’s an alarming statistic. Without insurance, a single unexpected incident could ruin a person financially.

This is another problem fintech is addressing. Just as fintech startups have created banking services designed for people who lack access to traditional banks, so have numerous startups developed “insurtech” products, which serve essentially the same purpose for people who lack access to traditional insurance.

In the long run, this may give people in developing economies greater incentive to take the kinds of financial risks that result in financial growth. For example, without insurance, a person may be hesitant to start a business. When they can insure their business, however, they’ll likely feel more confident in their entrepreneurial goals. This allows them to grow their own wealth while also providing others in the area with employment opportunities. As a result, regional economies can grow more quickly.

Facilitating Payments

Helping people start a business is certainly a major social benefit fintech offers. That said, it’s often difficult for a business to grow to its full potential without access to foreign customers. We live in a global economy, and business owners who don’t participate in it may find themselves faltering.

Fintech products that allow for greater efficiency and security in cross-border transactions make it easier for businesses to serve customers around the world. Reports indicate the rise of fintech has also led to a rise in the amount of money flowing into regions such as Latin America. When both businesses and customers are able to perform cross-border transactions easily, money is more likely to flow into and throughout various regions of the world, boosting economies in the process.

business payment debt

Managing Debt

Many people all across the world struggle with debt, but managing it effectively can be difficult. Paying off debt when you have limited income, as well as other bills to pay, requires vigilance and planning. To some people, the tasks required to manage debt, such as remembering to make regular payments or creating a budget, can be challenging.

Fintech simplifies these tasks. Numerous fintech services allow people to better manage their debt by automating payments, monitoring their progress, and managing all their debt via a single platform. This allows everyone from recent college graduates to small business owners to take positive steps toward a better financial future.

It’s worth mentioning that the fintech revolution is just getting started. While these examples demonstrate some of the social benefits fintech is already offering, they are not an exhaustive list of the full potential of these products. It will be interesting to see how fintech continues to impact the financial wellbeing of people throughout the globe in the coming years.

How Financial Institutions Will Benefit from Fintech: What You Need to Know

How Financial Institutions Will Benefit from Fintech: What You Need to Know

When discussing fintech, it’s common for experts to focus on how this technological revolution will impact the overall relevance of banks and other traditional financial institutions. Some argue that banks will no longer be relevant in a short time. Others suggest that banks can partner with fintech firms in order to survive shifts in the… Continue Reading

How to Design a Successful Fintech App: Essential Qualities You Need to Focus On

How to Design a Successful Fintech App: Essential Qualities You Need to Focus On

Fintech products succeed because they offer convenient alternatives to existing financial services. That said, not every fintech product will satisfy customers. Sometimes entrepreneurs focus so much on creating an innovative service that they forget to prioritize basic elements of a strong digital experience. It’s important not to overlook such elements. Those who have launched successful… Continue Reading

How Fintech Can Help Brick-and-Mortar Retail: What You Need to Know

How Fintech Can Help Brick-and-Mortar Retail: What You Need to Know

Anyone who has studied the impact that emerging technologies have had on the retail market understands that e-commerce has significantly impacted the popularity of brick-and-mortar shops. Thus, it’s easy to understand why some people assume this trend will naturally continue. They believe that as technology continues to develop, shoppers will be less and less interested… Continue Reading

Why All Business Owners Need to Know about Fintech

Why All Business Owners Need to Know about Fintech

Financial technology, or fintech, while fairly new to the world of financial services, has already had a noticeable impact on the world economy. While fintech affects virtually everyone, there are some people who should pay more attention to it than others. Eventually, everyone will benefit from the improvements that technology has made to typical financial… Continue Reading

This Is How Fintech Is Expanding Job Opportunities for Young People

This Is How Fintech Is Expanding Job Opportunities for Young People

Fintech offers many benefits to people with limited access to financial services. That’s one of the reasons why it’s so popular in developing and emerging markets. Fintech not only makes it easier for everyone to take advantage of banking and investing services, but it also provides young people in these countries with employment opportunities that… Continue Reading