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According to Nate King Cole’s famous Christmas carol, a turkey and some mistletoe help to make the season bright. But it might be time to add FinTech to this festive list of holiday must-haves.
Financial Technology—shortened to FinTech for those in the know—describes platforms that automate traditional financial products and services. It represents the banking app you have on your phone, the online loan that deposits directly into your account, and the budgeting service that helps you keep on track.
As the power behind many apps and websites you use throughout the season, FinTech digitizes your money management, transforming the way you shop and save.
1. Digital Payments
Restrictions limiting in-person shopping may be gone, but plenty of merrymaker’s plan to do the bulk of their shopping online. According to a new survey by CreditCards.com, 62% of people will skip crowded malls in favor of browsing the digital shelves of their favorite retailers.
A whopping 70% of pollsters made their decision over convenience; it’s simply easier to shop from their spot on the couch than going to a brick-and-mortar store.
Convenience is one of the biggest perks of FinTech platforms. They drive the payment processing industry, making it possible to purchase items with a few clicks of your mouse or tap of your finger.
FinTech powers online transactions and ensures appropriate encryption on any data shared from your bank account or credit cards.
2. Loans by Phone
Bad luck can strike at any time, even over the holidays. You can wake up to a flat tire one icy morning, or you might come down with a sinus infection.
Handling an unexpected trip to the mechanic or doctor can be challenging during the holidays. If you’ve put too many gifts and goodies on your credit card, a personal loan can provide an alternative backup.
FinTech services have transported the traditional in-person borrowing experience to your phone. Now, you can research and apply for over the phone loans without having to arrange a face-to-face meeting with financial advisors.
Many phone loans are synonymous with direct deposit loans. They rely on innovative tech to transfer your approved funds to your bank account automatically.
3.Buy Now, Pay Later
Buy Now, Pay Later (BNPL) financing is one of the newest FinTech trends. It piggybacks on digital payment processing and blends it with unsecured consumer credit. In other words: online personal loans.
BNPL financing is a FinTech solution that allows shoppers to buy something online without having to pay for it upfront. Instead, you make a down payment and agree to pay off the rest of your bill in two to four payments, spread out over time.
The BNPL system reflects many online personal loans, as you’ll follow a fixed repayment schedule to pay back what you owe. However, instead of receiving funds upfront to use as you please, you’ll get the item in your cart.
4. Budgeting Apps
Keeping your financial house in order is no easy feat during the holidays. All the extra socializing, hosting, and gift-giving can steal money away from other financial obligations.
If you aren’t careful, you can struggle to pay bills or wrack up serious debt.
FinTech services offer an easier way to keep your spending on track through digital budget apps. These services connect your financial accounts to the budgeting app, auto populating your financial information.
FinTech consolidates due dates and balance info, so it’s easy to oversee your expenses.
The Takeaway:
From loans by phone and BNPL financing to digital payments and budget apps — FinTech has revolutionized the way people manage their money during the holidays.
