From the Spanish Association of FinTech and InsurTech (AEFI) they shared with Cointelegraph in Spanish, the reasons why FinTechs are the perfect ally to save in this inflation scenario that has hit most economies globally.
For the association, saving generates peace of mind, security and greater economic independence, and allows the future objectives of any citizen to be met, so securing part of this “disposable income” is essential, especially in these times of crisis.
In its commitment to promoting the culture of savings in all Spanish citizens, and in a scenario of economic instability and uncertainty, where “savings management” is complicated, the Spanish Association of FinTech and InsurTech has prepared a document where it develops at least Five keys that make FinTech a solution to save in times of crisis, such as those we are currently experiencing:
1. For being promoters of savings in an easy and accessible way for everyone:
FinTechs have been able to democratize financial services in an accessible and safe way, bringing financial services and products closer to the entire population, including those who do not have access to a traditional financial institution.
The use of technology has made it possible, through different mobile applications or computers, for people to optimize savings by controlling their expenses, thus promoting the culture of savings and the management of personal finances.
In this way, FinTechs have made financial inclusion their banner and have become a fundamental element in facilitating this process, so that finances and savings are more bearable.
2. Due to its ability to adapt to changes in society:
FinTech companies have had the ability to adapt and solve the problems that arise in the society we live in. A society in which customers opt for more immediate products, with a more agile and rapid introduction.
In this context, FinTech in this search process, find new solutions or adapt existing ones so that people can achieve the savings objectives that are set, so that they can manage savings according to their lifestyle, needs and the moment they live.
Hence, the interest of the youngest in saving and investment has been increased, finding in the FinTech an ally that has allowed them to form a habit, automating and facilitating the online management of finances thanks to the financial operators that are members. technology related to more efficient, fast and secure payment and transfer methods.
This characteristic of the “scalable business” model is what gives FinTechs the agility that allows constant change. Situations such as Covid19 have accentuated the important role of the ecosystem. Another example of this would be how the FinTech ecosystem has contributed to good causes with functions that allow users to make donations of their rewards to charities or local organizations.
3. For the promotion of healthy financial habits:
The current citizen needs to be educated in the financial field, in this way an increasingly free and prosperous society will be achieved. This financial education should serve so that anyone has the appropriate tools that allow them to know all the savings and investment alternatives that they can use, as well as to know where or to whom they should go to achieve better management of their finances.
The FinTech ecosystem promotes this education, as it provides citizens with access to a range of savings opportunities and guidance on how to use financial products effectively.
Therefore, it is common for FinTechs to bet on including educational elements in the provision of their services, as well as opinion systems from other clients in order to create confidence and security in potential clients, thus helping consumers to take appropriate, understandable and consistent financial decisions at all times, feeling confident in handling these new technologies and ways of contracting services.
4 .For becoming catalysts for efficiency, innovation and inclusion for savings:
New technologies have brought with them technological innovations and all the companies that make use of these technologies such as Big Data, or Artificial Intelligence (AI) to provide their clients with an automated wealth management alternativehave an important role in positioning themselves as a savings option for all savers or investors, due to their proximity, immediacy and the possibility of access from small entities.
FinTechs offer new technological innovations that allow consumers to make appropriate financial decisions, while helping to enhance their skills when handling these technologies and ways of contracting services.
Likewise, FinTech companies have served as a model for traditional companies, by offering greater efficiency in services, an increase in the functionalities presented by the sector and an improvement in the quality of the offer.
5. For being promoters of spending awareness and management of controlled payments:
The new solutions offered by the FinTech ecosystem have played an important role in the management of personal finances and the ability to save, such as payment management, with innovative models focused on online payments, credit and loans, cryptocurrencies, personal financial control or investment.
These companies, thanks to the fact that their environment is 100% digital, ensure electronic transactions, with developments and services designed to operate safely and reliably on the network.
For its part, the traditional financial system has been adapting criteria of the FinTech ecosystem in the management of payments, offering a micro-savings tool, which is already being implemented by several traditional banking entities through its application at the time of payment.
This tool consists of storing the remaining cents of each purchase made in a second account automatically. In this way, for each purchase made, this rounding will allow the user to save this small amount for future use.
The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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