How FinTech Can Help to Improve Your Personal Finances

  FinTech has dominated business news headlines for a number of reasons. It’s changing our relationship with money; it makes banking more convenient than it has ever been; the revenues that startups in the space generate are huge; and investors have poured hundreds of millions of dollars into ventures across the ecosystem.

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But FinTech isn’t just about the macro-effects—industry disruption and big money moves. At the basic level, it’s making life easier for so-called commoners like you and me. Here, we’ll explore some of the ways it can improve (or has improved) our personal finances.

Make Saving Easier

People who struggle to cultivate a habit of saving can do better at it with saving apps. Platforms like Cowrywise and PiggyVest allow their users to hold portions of their income for months or years, either as individuals or as a group. They also offer attractive interest payments on funds held with them. This makes the idea of saving attractive and has convinced millions of people to keep their money with such platforms.

Build Wealth

In the last couple of years, there’s been a significant rise in the number of apps offering their users access to investment opportunities. They range from vehicles that open up the local capital and money markets to small-time investors, to apps that allow everyday Nigerians to purchase a share of bonds and real estate in other countries. Thanks to these tools, regular people can now enjoy wealth-building benefits that were once only available to the well-off.

Track Spending

Your effort to mend your personal finance succeeds or falls flat on your ability to track your expenses. Many people know that they’re burning way more cash than they should. But they can’t quite put their finger on how this is happening. These days, there are FinTech apps that facilitate financial transactions and provide data to users about what they’re spending on over time. This sort of information enables you to fix whatever budgeting lapses may be contributing to the poor state of your finances.

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Secure Financial Information

The typical FinTech app has its users’ financial transactions encrypted, so that third parties can’t pick up on them unless they’re logged into the users’ accounts. In addition, they support multi-factor authentication, including password, PIN and biometric verification. The developers of these FinTech platforms usually aim to achieve bank-level security, in order to keep their customers’ data safe.

Reduce Transaction Costs

On average, FinTechs charge lesser fees than what’s obtainable with banks. They are able to do this because their operating costs are lower. This is, in turn, the result of their running almost exclusively within flexible digital spaces. While the savings on the fees in question seem insignificant, they add up to considerable figures over time. And that’s a good thing for anyone who uses the services of such FinTechs.

Hedge against Inflation

We have talked about the wins that you can secure with digital investment tools. But besides yielding high returns and expanding wealth, some of these apps generate enough to protect one’s wealth against inflation. This is particularly true for platforms that offer dollar-denominated investments. By channelling your funds to these opportunities, you benefit from the stability of a currency that’s recognized globally.

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Final Words

FinTech can do wonders for your personal finance. You just need to know what financial technology tools to deploy, and what aspect of your personal finances you should apply them to. Be sure to do due diligence before choosing any FinTech product. Featured Image Source: E-Spin Group

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Got a suggestion? Contact us: editor@connectnigeria.com  

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This article was first published on 20th February 2023

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