10 Ways Fintech is Changing Our Lives
How financial technology can be found in our daily financial needs.
In recent years, major changes have occurred in the way that we handle our finances. Nations are changing laws, tax responsibilities increase, and more. One of the most noticeable changes taking place is the way technology has had a hand in our finances.
To better understand the following article, let’s quickly summarize fintech. Fintech companies are those that leverage new technology used to create better and new financial services for consumers and businesses. “Fintech” is used to describe any kind of business that may work with personal wealth management, insurance, payment, asset management, and more.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with the task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
Today it’s hard to do anything with your wealth without using some kind of fintech, from new currencies to computers that calculate financial advice.
One of the highest trending fintech advancements has definitely been cryptocurrency. Whether or not you believe that currency is the future of finance, it definitely has made a splash.
Cryptocurrency is digital money that uses cryptography for security. Cryptography is writing and solving puzzles. With the cryptography step, it is difficult to counterfeit. The currency does not have a central authority and can be used for a variety of things such as buying goods and investing.
Digital currency has the ability to make transferring funds easier between two parties. The transactions don’t cost much and allow users to avoid high fees experienced when using most banks and wire transfers.
Blockchain is the digital, public ledger where cryptocurrencies occur. Through a blockchain, everyone in the network can see every account balance. Every transaction includes a file with a sender, recipient public key, and the number of coins involved in the transaction. The transaction is sent with a private key by the sender in the form of cryptography.
There is more to blockchain than just cryptocurrency. It is fairly agreed upon that blockchain will grow beyond than just cryptocurrency. Big banks have been making deals with major technology companies and even small startups to develop ways for blockchain to work for them.
Blockchains are used for things like accounting, managing business operations, and even human resources. Every day there are new uses for the public ledger.
- Artificial Intelligence
Artificial intelligence is no longer a word associated with science fiction movies. It is very much real, with computers that learn and even develop personalities. There are so many uses for AI including personal companionship, the service industry, and even the financial industry. From investment management to finding investment opportunities and investing your money, artificial intelligence is gearing up to help you from beginning to end on your investment journey. As less traditional financial institutions, such as banks and insurance firms, are becoming less popular, the room for fintech and AI is increasing.
In the world of fintech, artificial intelligence may be doing more than you ever thought possible. For one, AI has been used in many hedge fund strategies. Computers are now able to analyze the performance of sectors and compare them to your own investments and give you suggestions for your own portfolio.
AI can also be used for chatbots for banks, assisting in blockchains, and more!
The way we do our banking has changed so much and is so ingrained into our lives, we may not even notice it now. Think about how you check your bank account or credit card balance. You are more than likely checking a website or even downloaded an app for your smartphone.
From a small device in your hand, you can transfer funds, deposit money, check account information, and more. Long gone are the days when you had to walk into a bank for a simple deposit.
While many may find this problematic, financial help is much more accessible than it ever was before. Not only do these changes make personal banking easier and convenient, people can understand their finances easier from the comfort of their home, with online chat features, frequently asked questions, and online help features.
Investing in Fintech
The fintech market is predicted to take off and investors are catching on. Compared to other forms of technology, fintech is just starting out. We see it in the form of virtual wallets, paying apps, and now with new currencies taking hold. There is still so much to be created in the world of fintech.
Many venture capital adventures, who have been enjoying the benefits of mobile technology for years, are now seeking other technologies, including fintech. Their focus is on business people who can utilize fintech, such as those working in the financial and business sectors.
If you are ready to make the leap into the world of fintech, Alpenrose can help. Alpenrose Wealth Management International AG, the sister company of Alpenrose Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.
Building on many years of experience in private banking in Switzerland, Alpenrose Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well-known for being sophisticated and discreet. In 2017, it was reported that $7.5 trillion in assets are held in Swiss banks and almost 51% of that is generated from clients outside of the country. Choosing Switzerland as a banking destination is choosing years and years of financial stability and growth.