The combination of cutting-edge technology and financial solutions has brought the fintech era into existence. Though still in its early years, the age of AI (artificial intelligence) and computer-led processes could prove to be the most important social development since the digital revolution of the late 1900s. How is the unique marriage of consumer banking and other services with high technology shaping modern society? The effects are apparent in several areas.
In addition to a whole new, automated way of buying and selling securities, fintech methods are popping up in the personal loan market, the home mortgage field, online payment platforms, the insurance industry, and the cryptocurrency space. No segment of the consumer or commercial finance sector is untouched by the technology and its hundreds of related products, systems, and programs. Consider the following examples.
No Fee Stock Market Investing
With the advent of mobile-only apps for stock investing, robo-advisors, social investing platforms, and sophisticated trading software, the era of fintech assisted brokerage accounts has arrived in full force. For the past five years, brokers and their clients have been adopting the latest, most technically advanced trading and investing software in a rapid fashion. A decade ago, online, and in-person account setup took hours or days. Now the job is done in a matter of minutes, assuming the new customer transfers funds into the trading account quickly. One of the most recent changes in the investing world is no-fee trading. Many of the top online-only brokers offer mobile functionality that comes with zero commissions, low opening balances, and other user-friendly features. The entire arrangement is made possible by fintech-based features.
Streamlined Personal Loans
Those who haven’t taken out a personal loan for several years are in for a pleasant surprise. That’s because today’s application process is 180 degrees different than it was just a few years ago. While proceeds are still a wise way for borrowers to acquire money to meet short-term financial goals, tech-based systems have streamlined every step for consumers. Gone are the lengthy, paper forms that took hours to complete. Nowadays, nearly everything is done online, and applicants can get results in a matter of a few days or less, sometimes in minutes. Personal loans have always been a go-to choice for individuals who need cash to cover an emergency or unexpected expense. The latest solutions offer faster service, a simpler application process, and quick results, all due to computerized handling.
The mortgage industry, and the process of how to get a mortgage itself, has a reputation for paperwork, long waits, arcane rules, and unexpected expenses for borrowers. The reality is quite different, thanks to recent advances in digital tech and streamlined management processes. The recent appearance of digital mortgages is a massive step forward for a niche that was late to adopt digital solutions. The good news for consumers and home buyers is that applying for a home loan can be a 100% online affair, and the whole process is much shorter than it once was. Powered by several AI apps, a typical digital mortgage application takes less than a week, entails no hard copies of documents, is done online, and keeps homebuyers in the loop every step of the way.
The most famous payment platforms have been around for almost 20 years, but those early versions were bare-bones concepts compared to today’s high-tech applications. Recent AI enhancements have turned simple payment platforms into defacto banks, loan companies, and tax-preparation resources. While about a half-dozen companies dominate the industry, hundreds of smaller wannabes have entered the marketplace. Some are specialized apps that only serve specific corporations, schools, or government agencies. Others are startups looking for a bigger piece of the pie in an industry that is exploding with potential growth.
The days of the independent agent are reaching their logical conclusion as smart apps help consumers search for, screen, find, and apply for policy coverage with insurance carriers of all sizes and types. The life insurance industry is a massive, multi-billion-dollar enterprise, and advanced tech applications have been bringing in new customers at a high rate of speed. The once-stodgy business of selling insurance policies has leaped into the modern digital age, expanded customer bases, and made it possible for people of all ages and income levels to purchase coverage online in a matter of minutes, all thanks to fintech software.