Fintech apps: redefining financial management
The Fintech industry has boosted the development of applications to help make payments and provide easy and fast access to many financial services. Try the apps!
Only a few years ago, payments were all about cash and credit cards. But now, on a global level, we are experiencing a phase of radical transformation in this regard, with new payment methods gaining a firm hold. Back in 2019, the European Central Bank data showed that in the year only 48% of purchases in the EU were made using banknotes.
According to the Mobile Report in Spain and the World by the Ditrendia Agency, “with 290 active services in 95 countries and 372 million in active accounts, mobile money now forms part of the general economy”. Moreover, in 2020, payment preferences were marked by the surge in virtual or mobile wallets, forecast to become the main means of payment by 2023.
Contactless payments, according to a study by MasterCard, have also risen by 97% in Europe and by 80% in Spain since 2018. At the same time, there has been an increase in digital payments via different web platforms and payment gateways.
This revolution has been caused, to a large extent, by the digitalisation of banking, the evolution of Fintech and the speed, ease and safety provided by these types of payments.
The evolution of Fintech
The term originated from joining the words “Finance and Technology”, understood to mean financial technology. Therefore the industry includes businesses that operate in the financial sector with various disruptive technology solutions enabling them to provide service in a different way to that of traditional banking.
Nowadays, according to the Ditrendia report, the amount of new Fintech companies continues to rise. By February 2020, 8775 new startups of this kind had been created in the US, 7385 in EMEA and 4765 in the Asia-Pacific area region.
According to a recent report by Deloitte, Fintech companies have historically emphasised that they are not banking or financial institutions; they are in fact able to establish close connections with their clients, drive market trends and generate disruption for traditional competitors.
However, the difference between the two is becoming blurred, insofar as banking has begun a digital transformation and innovation process, coupled with active partnerships with financial technology firms.
In addition to the foregoing, some fintech companies are considering taking on banking charters to enable them to compete on a broader scale.
How apps make managing your finances easier and faster.
Financial management apps have become an important tool in people’s lives, in that they simplify and automate various tasks in this area, such as payments, account management, digital nomad lifestyle and loan application. These transactions, which used to require a visit to the ATM or an actual bank branch, can now be done from anywhere.
5 Apps in the fintech world 100% designed for people
- Suscrip: this is an application for shared payments, allowing you to divide any subscription, service or rental payment among several users. It is ideal for controlling expenses, as you will be able to manage your accounts in a more intelligent and transparent manner, whether to divide the payment for domestic services, organise travel costs or remind your friends that they owe you lunch.
- Bizum: this is a solution for payments via the mobile phone, promoted by Spanish banks. It allows you to make transfers between individual accounts, NGO donations and make eCommerce payments, quickly and easily.
- Splitwise: this is also a shared payment application that allows bills to be shared between friends and relatives.
- Revolut: this is also a shared payment application that allows bills to be shared between friends and relatives.
- Payflow: allows your collaborators or employees to collect their salary or part thereof when needed. For example, if a member of your team should need 500 euros before payment date, he or she can request this via the application and the amount will be automatically deducted from the wages at month end.
And how are technology and communications companies reacting to this kind of innovation?
- Important companies have joined the world of digital transactions designed to make life easier by offering services that if provided by traditional banks would entail large amounts of paperwork, long response times and tedious processes.
- An example of success is Movistar Money, a personal loan service for company clients, with funds provided within 48 hours through a straightforward process of identity validation and online contracting. Simple, clear and fast, which is what fintech is all about.
Are you ready to manage your money in a better way?
Educate yourself financially and download the applications that best suit your needs and expectations. Financial technologies are becoming increasingly more secure and continue to strengthen both their software and physical data storage to gain your trust and take care of your money and identity.