The finance industry is changing at an incredible pace, and it’s not just the banking sector that’s experiencing disruption.
Finance companies around the world 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 keeping an eye on how these technologies will impact our future lives as consumers and investors.
Contents
1. Virtual Wallets
A wallet is an app (or a mobile website) that holds all of your payment card information.
You can use it to pay for things in stores or online, transfer money, and earn rewards on purchases. It also lets you manage all your financial accounts in one place. The future of finance? It’s here, now!
2. Personal Finance Management Tools
Keeping track of your personal finances can be a daunting task. Mint, Moneytree, and Moneystrands are just a few of the many services that help you organize your money and stay on top of it.
These apps let you input your information into a database where it 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, built specifically for riding around town with friends after work!”
3. Micro-Lending Platforms
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 time.
The finance industry is changing at an incredible pace
4. Financial Chatbots
Chatbots, the new-fangled artificial intelligence (AI) systems that have been popping up on your phone and in your browser, are poised to change the way we interact on the internet.
Chatbots are just what they sound like: a chatty bot that can talk to you. They look like an emoji, or maybe an alien—or nothing at all!
They might be animated or static, but their main purpose is to help you solve a problem or accomplish something online without having to deal 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
AI was once just a figment of the imagination, but now it’s here! It can be used to predict future events and help determine insurance premiums.
Take the following example: A customer visits an insurance agent with a complaint about their car breaking down.
The AI system will scan through thousands of cases to find similar complaints, then use that data to create an algorithm that can predict future breakdowns based on past models.
It’s not just science fiction—this technology already exists and has been implemented by major insurers like Allianz Group in Germany and Axa in France!
And just like financial health calculators, insurance tools like the policyme insurance calculator work similarly, yet the only difference here is in the input and output details.
Insurance calculators take into account demographics such as your age, gender, and location, for example. Along with other factors, they produce a risk profile and spew out information that best suits your needs.
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 them with information about how their company is performing in different areas.
Business intelligence tools are used by companies of all sizes, but they’re especially helpful for small businesses that may not have access to the same resources as bigger 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 every day, we can only expect more innovation in this space as we move forward.
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