The finance industry is changing incredibly, and not just the banking sector is experiencing disruption.
Finance companies worldwide are using new technologies like AI, chatbots, and virtual wallets to provide their customers with better financial services than ever before.
In this article, we’ll explore some of the latest trends in personal finance management (PFM), lending platforms, insurance services, and more—all while watching how these technologies will impact our future lives as consumers and investors.
It’s a shift from what was to what is. So, let’s explore –
1. From Wallets to Virtual Wallets
Not long ago, we still used cash or credit/debit cards on the checkout line. Credit cards were fancy to many.
But smartphones disrupted all that, and we have virtual wallets to thank for it.
A wallet is an app (or a mobile website) that holds all of your payment card information.
You can pay for things in stores or online, transfer money, and earn purchase rewards. It also lets you manage all your financial accounts in one place. The future of finance? It’s here now!
2. From Notebooks to PFM Tools
Even if we want to, we can’t follow our parents’ footsteps in everything. I’m not keeping a diary to journal every one of my monthly bills.
Personal finance management tools are at the tip of your thumbs.
Keeping track of your personal finances isn’t’ a daunting task any longer. Mint, Moneytree, and Moneystrands help you organize your money and stay on top of it.
These apps let you input your information into a database that tracks how much money you’ve spent on groceries or at the mall and how much you have left over in each account.
This way, they can tell you exactly how much more pizza dough to buy when the fridge is low on dough balls (yes, this happened).
They also provide helpful advice based on their data about different things like saving for retirement or paying down debt faster with our favorite trick:
“Every time, I save $5 from now until age 65 by putting it into an investment fund instead of eating out for lunch every day.
I’ll have enough to buy an old-fashioned bicycle, explicitly built for riding around town with friends after work!”
3. From Money Lenders to Micro-Lending Platforms
There’s no need to go around your relatives and family members for small amounts you want to borrow. Microlending apps have got you covered.
Micro-lending platforms are also seeing an increase in use. These are online platforms that connect borrowers and lenders.
These sites allow individuals to get small loans for small businesses, students, and entrepreneurs.
The future of finance is micro-lending platforms because they allow people with little or no credit history to secure financing at reasonable rates on
The finance industry is changing at an incredible pace
4. From Finance Gurus to Financial Chatbots
Do you have questions about your investments, savings, loans, or credit history? Financial chatbots are convenient assistants that help you get to the answer.
Chatbots, the new-fangled artificial intelligence (AI) systems that have been popping up on your phone and in your browser are poised to change how we interact on the internet.
Chatbots are just what they sound like: chatty bots that can talk to you. They look like an emoji, or maybe an alien—or nothing!
They might be animated or static, but their primary purpose is to help you solve a problem or accomplish something online without dealing with another human being.
The benefits of this technology include saving time and offering convenience, but there are also some challenges: for example, some people distrust AI due to fears about its potential for misuse by corporations or governments; others feel uncomfortable talking on the phone at all because they’re shy or introverted; while still, others worry about privacy issues related to how much information is shared when using chatbots.
These issues haven’t been resolved yet (and probably won’t be anytime soon), but there’s no reason why you shouldn’t try out one of these financial chatbots right now!
5. Financial Health Calculators and Apps
A financial health calculator is an online tool that helps you figure out how much money you need to save to reach certain goals, like buying a home or paying for college.
You input information about your current situation, and the calculator tells you how much money you need to save each month.
Financial health calculators are great because they give users an estimate of their net worth (the difference between what they own and owe), which can be useful for people who want to know where they stand financially before starting a new job or making big purchases.
They also help users visualize how much more money they’ll need for retirement or other life goals.
So if someone wants to know how many years of work it will take until they have enough saved up for their dream trip around Europe, these apps will tell them what those numbers would be!
6. AI-Based Insurance
A financial health calculator is an online tool that helps you figure out how much money you need to save to reach specific goals, like buying a home or paying for college.
You input information about your current situation, and the calculator tells you how much money you need to save each month.
Financial health calculators are great because they give users an estimate of their net worth (the difference between what they own and owe), which can be helpful for people who want to know where they stand financially before starting a new job or making big purchases.
They also help users visualise how much more money they’ll need for retirement or other life goals.So, if someone wants to know how many years of work will take until they have saved enough for their dream trip around Europe, these apps will tell them what those numbers would be!
7. Business Intelligence and Marketplace Lending Tools
When it comes to business, the phrase “you can’t manage what you don’t measure” is often repeated.
Business intelligence helps businesses make better decisions by providing information about their company’s performance in different areas.
Companies of all sizes use business intelligence tools, but they’re accommodating for small businesses that may not have access to the same resources as more significant organizations.
Marketplace lending tools help small businesses get funding online.
A business can use a marketplace lending tool like Lending Club or Prosper alongside a business intelligence tool like Xero or Intuit Quickbooks Online to make more informed decisions about their financials and operations.
Conclusion
It’s a brave new world out there, and it’s exciting to see how fast the world of finance is changing. With new tools and technologies being created daily, we can only expect more innovation in this space as we move forward.
With all the innovations, the fear of technology is also rising. However, we should take the innovations in a positive light and make the most out of them.
The current finance tech solutions are the most common types of finance tools available out there. We will keep you updated as more such tools start to appear. Thank you for reading.
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