Fintech is popular for many reasons. For one, they are available to many different types of people. These even include people who have traditionally been unbanked or underbanked. Because most adults can benefit from using financial services, and many have to as part of their daily lives, the customer base for fintech products is enormous.
This can sometimes make it difficult to appreciate fintech’s value. When a type of product is valuable to many people, it becomes easy to discuss its advantages in vague terms. Sometimes it’s more productive to focus on the ways a product can benefit a specific group.
For instance, fintech services can be very useful for college students and recent grads. The following points illustrate just some of the reasons why.
Paying Off Loans
A college education is an investment. But while the benefits of a degree can justify the cost, many college graduates struggle to pay back their loans.
Fintech may help. Already, various fintech products make it easier than ever to apply for and manage student loans. Now there’s reason to believe they may also help graduates pay them off. Because fintech products are offering features such as flex contribution plans, refinance rate comparisons, and savings plans, more and more college grads are looking outside of traditional banking institutions for their payment solutions.
That may be good for everyone. When people have greater opportunities to save and invest their money wisely, eventually, they can participate in the economy in healthier, more productive ways. This generates a ripple effect that spreads throughout regions. College graduates who can pay off their student loans more easily will start putting substantial money into the economy sooner rather than later.
Expanding Access to Education
Fintech products can offer a variety of services. Often, they simplify various types of transactions.
This is another way in which fintech may help students achieve their goals. In particular, fintech can offer major benefits to international students.
Many people wish to seek an education outside of their country’s borders, but there may be a number of obstacles in their way. For instance, paying for an international education involves complicated transaction processes. Ensuring international students understand their fees and pay them on time can be difficult, as many parties are involved.
But thanks to fintech products, the process of paying for an international education can run much more smoothly. With easy-to-track cross-border transactions, colleges and universities can collect payments from students more efficiently and effectively. At the same time, students will know instantly whether money has arrived or not.
This saves staff members a lot of time. As a result, they can focus less on the practical tasks they would otherwise get bogged down in, and more on providing international students with a transparent and efficient payment system.
Making Budgeting Easier
Maintaining a budget can be difficult. Not only is the process of sitting down calculating bills and income unappealing, but it isn’t particularly easy.
This can get college students in a lot of trouble. If you’re a young person who is not accustomed to managing your own money on a daily basis, you may run out of funds before a semester ends if you don’t take the time to make a budget.
Luckily, fintech makes budgeting very simple. Apps such as Mint help users track spending, letting them know when they are veering into overspending territory.
As a bonus, using budgeting apps during college can also help students to develop the personal finance skills they’ll need later in life. The sooner they start learning how to budget, the better off they will be post-graduation.
Collecting Emergency Funds
Being a college student can be expensive. If you’re focused on your studies, you may not have time to hold down a job that pays very well. Add tuition and related costs, and it’s not hard to understand why sometimes college students find themselves in minor financial emergencies.
Sometimes family or friends can help. It’s not uncommon for college students to get in touch with their parents and ask for a small loan to help them stay afloat until the end of the semester.
Thanks to mobile payment products such as Venmo, students can get funds from a family member or friend relatively quickly. Depending on the nature of the situation, that may be essential.
While fintech products can benefit virtually all adults, these examples illustrate how they can benefit just one market segment. With fintech, college students can save more effectively, spend more wisely, and pay off their loans more quickly than ever before.