Is the success in the finance vertical dependent on technology? Heading to the bank to deposit a check has become a chore of the past. Balancing a checkbook’s ledger? Prehistoric.
It’s no secret that major financial institutions are adapting to a high-tech world and constantly find more opportunities to change their business model to incorporate digital trends. The beginning of the digital finance trend was simple online banking apps which show balance and basic information.
Eventually these apps incorporated the ability to deposit checks using your phone, a technology many of us rely on often.
Third party apps were a new wave of innovation for technology in the finance work. Applications like Mint allow you to keep a digital budget, and apps like CreditKarma keep your credit score in check while providing advice for credit moves to strengthen your current portfolio. Just when we thought personal finance and tech couldn’t be combined any, the Fintech industry surprised us again.
Finovate, finance and tech conference help annual, just celebrate its 10th anniversary earlier in September. Thousands of spectators gathered to hear about new innovations from top leaders in the Fintech industry. While many new platforms and advancements were introduced, two new platforms, in particular, made waves:
Autogravity, a car-financing service, was one of the few presenters to be awarded with a “best of show” accolade. The premise behind there technology is to recreate how we finance automobiles. Essentially, purchasers will know exactly what their payment options are before walking into a dealership. This application allows you the freedom to shop around and become an educated consumer before starting negotiations with the dealership. CMO of Autogravity, Serge Vartanov, says, ““We give you a set of options compared to the current experience where you need to spend hours researching.”
M1 Finance is another company to spark interest with the Finovate audience. Their product marks the latest innovation in mobile investments. M1 Finance offers a “robo-adviser” which helps assess your portfolio. You can buy stocks, or bonds and your “robo-adviser” will advise how to rebalance or secure your portfolio as necessary. The platform touts that traditional firms with financial advisors charge fees to accommodate an advisor’s commission, whereas a “robo-adviser” can operate off of a flat fee, which means customization should be more about you than the advisor.
At the pace we’re going in the Fintech world, it seems unlikely that financial institutions will ever be considered solely “finance” any more. Having technological innovations is becoming a key characteristic in successful financial organizations. Fintech is the new finance industry. Currently, we’re able to do our day to day banking, trade stocks, finance a vehicle, and sort through credit card options. There is very little in our current finance world that resembles the long standing intuition of banking.
What future advancements do you see next? It seems the housing industry has been slow to embrace technological advancements. How could this industry expand further?