Fintech is seeing a lot of advancements. Combining finance with technology, fintech can be used to simplify banking or increase security features. Here are the latest fintech trends that simplify how we shop, work, bank, and travel (and they pack a powerful punch!).
Flexible App Approaches to Saving and Investing
Automated banking is going beyond basic direct-deposits. New automated features through banking apps are helping users to save more money by “rounding up”.
Apps like ChangEd or Fifth Third Momentum offer automated features that round up daily transactions and apply any extra change toward school loans. Each time a cup of coffee or a newspaper is purchased, the amount due is rounded up and the change is applied toward student loan debt.
Neobanks like Varo Money offer a popular “Save Your Pay and Save Your Change” plan that rounds up money into savings account. USAA and Digit use similar approaches to pay down credit card debts or add money into savings or investment accounts.
Voice Banking to Reduce Time Searching for Transactions
With Alexa, Home, and Siri’s popularity, fintech institutions are able to simplify banking. Instead of time wasted on searching online through transactions, voice banking will simplify searches. Banks already using voice banking include Capital One Bank, U.S. Bank, and Ally Bank.
U.S. Bank states voice banking is part of ambient computing they offer with their mobile app. Voice banking works with Google’s Home, Apple’s Siri, and Amazon’s Alexa.
“The uses for voice banking are in the beginning stages, and they will broaden and integrate with the bank’s other digital efforts in years to come,” cites Gareth Gaston.
Users can ask their in-home devices for past transactions or ask things like, “Siri, what was the final bill for the client dinner meeting last week?”
Neobanks Receive Bank Charter Approval
About 62 percent of consumers used digital banking in 2016 and the number continues to increase as more features become available and fees decrease.
Neobanks were popular online-only bank start-ups that became available after the recession. They don’t have charters from the Office of the Comptroller of the Currency (OCC), but partner with banks to gain FDIC coverage.
Recently a few neobanks received approval to become part of a national bank charter. Social Finance or “SoFi” is pursuing a bank charter, while Varo recently received theirs.
Varo Money charges no monthly service fees or foreign transaction fees. Their savings accounts offer 1.75 percent APY. Varo received a conditional OCC approval and is on its way to becoming a national bank.
With digital bank increases, competition may heighten among traditional banks to offer customers better services with reduced fees.
Advancements in Biometrics
About 30 million people are victims of fraud every year and paper IDs can be easily duplicated. Hence, biometric scans are used to authenticate a person’s identity.
Biometrics is used to heighten airport security and detect illegal entry in the U.S. It’s already used in mobile devices to confirm user identities. Cloud-based biometric solutions are optimizing the identification process for governments and businesses.
Multimodal biometric authentication systems are used for identifying employees and these include fingerprint scanners. Bio-plugin multimodal solutions replaced unimodal systems on construction sites where construction workers have dry and damaged fingers that might not be picked up with unimodal scans.
Reducing Fraud Among Senior Citizens
Seniors hold 75 percent of U.S. wealth, but as they age, they may become forgetful. 1 in 5 can fall for financial scams. To reduce fraud incidents among the elderly, banks are working on advanced measures.
EverSafe monitors investment accounts, credit cards, and financial transactions. To reduce the risk of financial exploitation, it sends alerts to senior customers to remind them of missing transactions like a monthly check deposit.
True Link Financial offers payment cards to seniors. They can block out merchants to ensure they don’t fall prey to financial abuse when they’re especially vulnerable. They also provide investment management for seniors and their families. Their service is for older adults, those in recovery, and people with special needs.
Fintech trends are changing how people bank, shop, and save. Because the features are providing more ways to stay secure and save time, expect to see more game-changing advances in the future. 97 Degrees West has years of expertise in the marketing of financial products and services.
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