What Millennials Can Learn from Boomers about Retirement Planning

Boomers retiring by the tens of millions each year.

How many times have you heard it said, “If I only knew then what I know now…” about everything from financial planning to raising kids? It’s likely that you’ve heard it at least several times a week and now even millennials are becoming tuned in to the problems besetting boomers as they age and retire.

The world is a much different place than it was, even a generation ago, and so it would be wise for the younger generation to look at some of the trials and tribulations of boomers as they begin retiring by the tens of millions each year.

Insufficient Planning Delays Retirement

One of the major problems that many boomers face is that they didn’t plan sufficiently for their future. They assumed their Social Security check along with that 401k or other retirement investment would be sufficient to provide for them in their senior years.

Back a few generations, there simply weren’t the resources to plan well for retirement and today’s retirees are learning that they should have planned better. Today there are financial products that are aimed at growing wealth for your senior years and these are the products millennials should be investigating when seeking to invest in their own futures.

Unexpected Rises in the Cost of Living

What it all boils down to is that no one really expected the cost of living to skyrocket as it has. Some attribute it to the cost of production, keeping prices rising while others attribute it to higher taxes and the increasing cost of fuel and food. For whatever reason, the cost of living has far surpassed the rise in wages and this is something no one could have foreseen but perhaps should have planned for anyway.

Avoid Borrowing against Retirement Savings

Another one of the big mistakes boomers made, almost across the board, is to have borrowed heavily along the way against their retirement savings. This is a big problem that millennials should learn from. If at all possible, don’t delete those savings! Find a way to finance what you need to pay but leave that money where it is so that it can continue growing.

You know what they say about good intentions, so don’t be caught in the ‘intend to replace it’ trap. Chances are you will never replace that money once it has been spent. Just as you think you’ve got your head above water, another crisis surfaces and so it goes. Put that money away and forget it’s there. That, perhaps, is the biggest lesson you can learn from boomers.

The Logic of Downsizing Early

When it comes to downsizing once the nest is empty, altogether too many people fail to liquidate assets early enough. That big six bedroom home you live in and raised your children in may be sentimental but now that it’s paid off, sell it, buy a smaller property and invest the profit made from the sale.

Too many middle age people hang on to the family homestead thinking to save it for the kids, or to have a place for them if they need to come home. It’s time for grown kids to be grown kids. Think about your future by downsizing as soon as the nest is empty. Can you imagine how that amount of money can grow over the course of a couple decades until you are ready to retire?

Diversify Your Investments

And one final thing which millennials should learn from boomers is that they failed to diversify their investment products early enough. Altogether too many people lost their savings with the economic crisis of a decade ago and now those boomers simply don’t have enough time to recover their losses.

By diversifying your retirement investments, you can have that added bit of protection if one market should fail. The last time it was real estate that led to a global crisis. What will it be next time around? No one knows so diversify, unless of course you are a fortune teller and can predict the future.

The intelligent millennial will take a good look around them and fully understand the predicament most boomers are in now as they face retirement. It is always good counsel to be told to learn from your elders, in both their triumphs and failures, but never more so when planning for retirement. Don’t fall into the same trap your parents and grandparents fell in. You can learn a lot from boomers if you care to open your eyes. Plan now and live comfortably later – a great investment strategy altogether.

 

 

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How Financial Technology is Creating Growth Opportunities for Small Businesses

Changing the Way Small Business Are Financed

One of the major problems many economies have had to deal with is that which concerns catering to the needs of small businesses in a changing business environment. The traditional model of new companies turning to banks for finance was limiting for most entrepreneurs.

Small business owners found it unbelievably hard to secure funding through a bank, with loan requests being declined for reasons ranging from insufficient collateral to economic concerns, and everything in-between. This made survival difficult, never mind expansion.

Thanks to new fintech firms, small and medium businesses can now access cheaper alternative financing and grow. The innovative ideas and new developments brought by fintech companies have changed the business sector and made it easier for startups to navigate the financial services landscape through the following ways:

Advances

Fintech enables small businesses to get the funding they need to expand. Peer-to-peer lending sites such as Funding Circle, LendGenius, and Kabbage provide microloans for business owners that often have difficulty finding lending support. This helps make it possible for small businesses to carry on their operations unhindered.

The requirements for getting approved by these companies are less restrictive than commercial banks. Fintech advances also attract lower interest rates, involve little to no paperwork, and do not require collateral. Add the convenience that they offer on top of that, and you will see just how far financial technology has brought us.

Expense Tracking and Electronic Invoicing

Another way that fintech removes the barriers that small businesses encounter when they try to expand is that it provides them with reliable expense monitoring solutions that are flexible enough to allow them to meet their business needs.

Fintech firms like Sage offer tools with which small-sized businesses can monitor all the money coming in and going out of the company’s accounts. This helps business owners to understand how much money is in the business at any point in time, as well as how that money is being spent. When a business can have a clear picture of its finances in this manner, it will find it easier to make informed financial decisions.

Further, fintech enables small businesses to automate invoicing, simplifying the accounting process as a result. This helps entrepreneurs to not only deal with cashflow challenges but also to maximize efficiency.

Provision of Digital Payment Options

Before now, one of the major problems for businesses that operate on a small scale is how to send money across international borders. The procedures for sending funds across borders was long and tedious. As a result, it discouraged clients from buying from overseas businesses. Fortunately, payment solutions like PayPal, Stripe, Venmo, Skrill, etc., now make it easier for small business owners to accept payments globally. This enables businesses to achieve international growth, as any customer can pay for items regardless of their location.

Last Word

Fintech has contributed in no small measure to helping small-sized businesses to drive revenue and grow market share in a tough business environment by addressing the market failures that they encounter.

The ease with which organizations can access funding, track expenses and conduct business have significantly enhanced their ability to keep their finances in check, achieve growth, and measure results effectively.

 

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Payday Loan Improvement: Has Regulation Truly Made A Difference

Payday Short Term Loans That Make Sense

Payday Loans were created to ease the financial pressure that workers face before they receive their pay cheques at the end of the month. The short term loan would be paid directly into the worker’s bank account before they were expected to repay in full, with interest, when they eventually received their pay. The type of loan came under much scrutiny, with critics citing that it made it too easy for a vulnerable person to ‘over borrow’ and therefore, face long term financial hardship. It was as a result of this condemnation, that a series of laws were introduced in an attempt to regulate payday loans.

We’re going to explore those very laws and examine whether the regulation made a difference.

Which Regulation Was Introduced?

The Financial Conduct Authority (FCA) was the organisation responsible for the regulation introduced into the payday loan market.

The first action the FCA took was to introduce a cap on interest rates charged on loans, which were frozen at 0.8% per day the amount borrowed. There was also another condition added, that no borrower should have to pay back more than twice the amount of their original loan.

They also regulated and reduced the fees that payday lenders could charge for arranging a loan, as well as introducing a cap on the borrower default fee, meaning that if a borrower failed to meet the conditions of their loan, they could only be charged a maximum of £15.

The FCA’s final ruling was that each payday lender had to list their loan rates on at least one price comparison site to prove their legitimacy, as well as improving competition and price transparency within the market.

Did The Regulation Make A Difference?

These interventions went a long way to making the payday lender industry far more legitimate; however there is still room for improvement which was detailed in a report published by Citizens Advice.

They found that after the caps and regulation were introduced, that borrowers were far less likely to find themselves in extreme financial difficulty, provided that they communicate to their borrowers that they were having trouble repaying their payday loan.

The 44% of borrowers who were experiencing difficulty in paying back their loans, but actually spoke to their lender, managed to agree a more affordable alternative repayment plan.

This statistic illustrates two points; the first is that lenders are more than happy to provide alternative options for borrowers provided that they tell them they are experiencing problems. The second, however, is that more than half of borrowers are unwilling to voice their concerns regarding repayments, due to the fact they perhaps feel embarrassed or ashamed at their inability to repay their loan.

Therefore, while payday lenders have clearly improved their methods for making loans easier to repay, work can still to be done in regards to the line of communication between lender and borrower.

Ultimately, it’s clear that the payday loan industry has evidently improved after regulation, however it’s still not perfect, and things can still be done to better the industry for both lenders and borrowers.

 

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How Banks Can Reimagine their Business Processes to Deliver Real-Time Personalized Banking Experience

Global Financial Services

The global financial services sector is on the cusps of significant disruption, with fantasy technologies like AI and blockchain fast changing the way banks operate and deliver services to clients. More so, the emergence of financial technology (fintech) and regulatory technology (regtech) firms who continue to muscle into financial services has created a digital race of some sort in the industry.

Along with robo-investors, digital banks have been launched to help individuals transact as fast as can be imagined, and they are making a difference. The disruptive momentum of fintech vendors is helped by a growing population of tech-savvy consumers who expect personalized services.

The customer-focused nature of these new breeds of tech startups has made traditional financial institutions realize that they are at risk of falling behind in the innovation race unless they acquire transformative technologies that will enable them to keep up with advancements in an ever-evolving business environment.

Reshaping the Customer Experience by Leveraging New Digital Tools

To deliver real-time, personalized banking experience to clients, businesses need to address significant customer pain points as well as identify new ways to satisfy them in differentiated ways. Today, we live in a generation where people are never far away from a smartphone.

To put this in perspective, 87% of millennials never separate from their mobile devices, according to a report. Another report says customers use mobile banking apps 7,610 times a minute. Also, 70 percent of consumers who own a smartphone prefect transacting from their phones. These make mobile one of the most clear-cut ways to differentiate.

To meet client needs in this digital age, banks must do their due diligence to appropriately integrate digital tools such as live chat, self-service, mobile, and Omni channel support and emerging technologies like artificial intelligence into their processes.

Ways to Optimize the Customer Journey Experience

Information gathering is key to improving the customer journey. To deliver banking services in real time, banks first have to have enough data to make informed decisions. This requires gathering deep customer insights so that institutions can get a better sense of their needs, which can be achieved by investing in systems that recognize every customer irrespective of the platform used.

That said, here are the ways banks can improve banking experiences for consumers:

  1. Improve the account opening process and make the onboarding experience efficient

An exceptional account opening experience can help banks earn customer loyalty and remain competitive. To this end, institutions are advised to make the account opening process faster and provide robust mobile account opening services to make it easier for today’s connected customers to open accounts on a mobile phone. The more straightforward the process, the better the customer experience.

  1. Consider a user-friendly authentication solution

A complex authentication system can get customers frustrated. Institutions are advised to consider authentication solutions such as those based on one-time passwords, as they offer robust security and are user-friendly.

In addition, less intrusive technologies like Facial Recognition, Touch ID, and Iris Scanning are other effective solutions institutions might want to consider.

  1. Embrace the disruptive potential of AI-powered chatbots

Chatbots are some of the fascinating stories in fintech. It wasn’t so long ago that they were nothing more than automated answering agents. Today, they help address customer complaints, thanks to their ability to engage consumers with their intelligence.

Implementing this innovation will help financial institutions lower cost while improving the customer experience by providing personalized, always-on service. This is the future of Banking.

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How to Begin Investing as a College Student

College Students And Investing

You might think that your college budget doesn’t allow for a variety of things, such as making investments. It’s going to be tricky, but your student years are one of the best times to start investing. After all, you’re on a learning curve and not afraid of making mistakes.

Unfortunately, there are no college courses on how to build your wealth. You’ll be pleased to know, however, that it’s not going to require thousands of dollars in capital to start your investment journey. You do need to know how to do it, and how to do it best. Below is an introduction to some of the most popular options for college investors and the best ways to get you started.

5 Main Ways to Invest Money

  1. Cash in the bank is considered to be one of the safest options, but it’s not a great investment. Interest rates paid by banks tend to be lower than inflation. Certainly don’t leave your hard-earned money under the mattress because if you’re burgled, you’ve lost the lot.
  2. For most people, property is the single best investment. It’s one you can start as soon as your income allows, simply by buying your own home. Once you’ve got your foot on the property ladder, you can climb your way up.
  3. Antiques, art, wines, and collectibles can be a very interesting way to invest. Collectibles are often cheap, making them an affordable form of investment. However, it’s not the easy path to riches you might think. You need to be an expert in the things you collect to avoid being taken for a ride.
  4. Equities can provide the beginner with the opportunity to make sizeable profits. They are a stake in a company, with shareholders often getting paid a dividend. Shares, stocks, and equities provide good growth potential. Equities allow you to invest smaller amounts, while also being cheaper to hold.
  5. Bonds are the fifth option. They have a guaranteed interest rate and a date on which they’ll be redeemed. Bonds issued by governments are considered safer than company bonds.

Tips for College Students Who Want to Invest

If you want to invest in any of the options mentioned above, you should learn as much as you can. It’s possible to gain enough knowledge by reading books and articles online, and the information you gain will help you become a successful investor.

Any debts you have need to be paid off before making any kind of investment. Finding out how to refinance student loans will help you to repay these quicker. Making risky investments while you’ve still got high-interest loans to repay will only make your financial situation worse.

Making investments will require a brokerage account, so you need to find a reputable brokerage firm to handle your investment transactions.

A sensible thing to do when making investments is to diversify your portfolio. Don’t invest all your funds in one single company. Instead, put invest in various industries and investment types.

Investing is not only for rich people. You can make money, even if you’ve only have a small amount to invest. Practice makes perfect, and before you know it, you’ll be making more money. Start small, and any money you make can be used for further investments, and increase your learning.

 

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3 Ways You Can Implement Project Management Skills in Business

PROJECT MANAGEMENT

 

You may think a degree in business is enough to help you in your career of choice. While it may help you land your first job, for you to prosper, you need to continue improving yourself, otherwise your skills will become overlooked. Completing an MBA in Project Management can help develop your skills, which will, in turn, propel you forward in your career. Through project management, you can learn how to make goals and meet them within the constraints your business or client imposes.

Here are three ways your can implement project management skills in business.

Organizational Skills

Business requires a level of organization, however, chaos can ensue. You need to ensure that you are able to organize not only yourself but also your team. Otherwise, you may miss deadline, fail to meet quality or miss out on details that could impact the business as a whole. As a leader, it is up to you to meet the client’s brief, while knowing how to manage the scope of the project, the budget and the quality and time that is needed.

Strategic Planning

It’s in the name – ‘management’ means you will be managing a number of projects as well as people, so that you can meet deadlines and ensure the quality is up-to-scratch. You may be assigned one project at a time or perhaps two. If it is the latter, then multi-tasking is a required skill.

You may need to work with other sectors within the business, such as designers, contractors and other project managers. Ill-defined project management can be detrimental to a project and the client’s objectives, which is why, if you are needing to improve your skills, you should look for ways to improve your knowledge in the area. Project management MBA program can help teach you about strategy, as well as leadership, making business decisions and marketing.

Working Within Budget

All projects will require you to work with a set budget. This is a necessity, so that your business – and client – can breakeven or make a profit. To ensure you do not overspend, you need to learn how to work with money and keep finances in order. Project management can help you work within this common constraint.

As a project manager, you need to speak to your client and understand the outcome they are hoping for. While a budget may seem restricting, it can help you mold an image of what it is your client is after – without overstepping the mark. This is a problem you need to solve, which is why learning problem-solving skills can help you deliver to your client and impress them.

Project management has the ability to help you improve your skills personally as well as your professional life. You can become a better leader, know how to manage within certain Res-Ptrictions, work with clients as well as co-workers, and establish or improve pre-existing planning, organizational and marketing skills. Project management skills can be obtained easily, through the internet and through online courses.

 

 

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“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

A New Financial Order

As user behavior among consumers continues to shift towards a mobile experience, fintech offers exciting new technologies that could potentially disrupt existing financial practices and establish a new order.

A majority of commenters perceive consumer banking as the area most likely to be disrupted by fintech companies because most startups have sought to target the end customer directly by providing smart solutions.

The technology provided by fintechs could change the way we transfer money, make payments, and manage our financial lives. As such, it is seen as having the ability to impact customers’ demand for checking accounts and debit cards, and this has the traditional players worried.

Meet the New Players

A PriceWaterhouseCoopers survey reveals that around 83 percent of traditional banks and credit unions believe that they are at risk of losing out their business to fintech companies. This is because new fintech entrants bring with them innovative and cutting-edge digital banking ideas that enable them to cater to the digital generation better than existing practices allow traditional banks to.

One of the major companies looking to change the way consumers bank is Venmo. Venmo is a peer-to-peer system which seeks to enable consumers to send money or request funds from each other using a mobile app. Such a system offers convenience and gives the customer a great deal of autonomy, as they do not have to rely on established financial institutions to send funds.

The New Venmo Card

Venmo is also on the verge of launching its Venmo Card. The card, which operates on the MasterCard network, will make it possible for a user to withdraw funds without having to go through a traditional bank. Payment company, Square, also has a prepaid debit card which functions in the same way, allowing users to make payments with a swipe.

In a related development, online payment system, PayPal offers the PayPal Cash MasterCard, which lets users use funds in their account to pay for goods online, in-stores where MasterCard is accepted, as well as withdraw cash at ATMs.

On its part, online-only lender, SoFi, which offers inexpensive rates for mortgages, personal loans, as well as student loan refinancing, seeks to revolutionize traditional banking models using SoFi Money. The product allows account owners to spend funds using the company’s own debit card. If you prefer to leave your funds in the account instead of spending them, they will earn an annual percentage yield of 1.10 percent.

Other innovative products that could overtake traditional mediums as the primary way individuals spend and send funds or invest include the Acorns Spend card from Acorns and the Stash Banking from Stash Investments, among others.

Fintechs and Account Use: What Statistics Say

Meanwhile, the number of checking accounts has dropped by nearly 100 million in the last six years due to fintech’s growing influence on financial services. A Moebs Services study uncovered that the total number of checking accounts fell from 690 million to around 600 million from 2011 to 2017, representing a 12 percent decline.

 

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The Evolution of Cryptocurrency – Wall Street

Cryptocurrency Evolved Out of Necessity

Nearly ten years after the introduction of bitcoin, the first and most prominent cryptocurrency, digital currencies continue to defy the doomsday. Despite being around for less than a decade, cryptos already show potential to replace traditional fiat currencies and transform the financial services landscape. But how did they come so far so quickly?

The Beginning

While the concept of online currency predates bitcoin, 2009 marked a defining moment for peer-to-peer electronic cash system when an individual (or group) under the pseudonym Satoshi Nakamoto publicly released the bitcoin software. Bitcoin was created to protect against inflation, provide security, and put the control of money in the hands of the people.

The release kick-started what is now known as bitcoin mining, and indeed the introduction of alternative currencies, which have been developed, either to address bitcoin’s perceived shortcomings or to accomplish different goals.

Bitcoin was valued for the first time in 2010 when an early adopter decided to swap 10,000 units for two pizzas. The token is believed to be worth around $0.00001 when it was first created.

The Emergence of Alternative Cryptocurrencies

As bitcoin grew in popularity and gained more acceptance, users began to notice some of its shortcomings. As a result, alternative cryptocurrencies (often referred to as altcoins) were launched to fix its perceived flaws in areas such as privacy, transaction speed, DNS resolution, proof-of-stake, among others.

Similarly, Forks like Bitcoin Classic and Bitcoin Cash were created by manipulating the existing bitcoin code to reduce confirmation times, reduce transaction costs, or correct scalability issues.

Namecoin, Litecoin, and SwiftCoin were the first altcoins to launch in 2011. Today, some of the most popular alternative cryptocurrencies are Ethereum, Ripple, Zcash, Litecoin, Monero, and Dash. There are currently more than 1,500 cryptocurrencies online.

Initial Coin Offering (ICO), a fundraising tool for startups, makes it easier than ever to launch new cryptocurrencies. The first ICO was held in 2013 by Mastercoin. Since then, several cryptocurrencies have begun this way. Some of the most popular cryptocurrencies created through this means include Ethereum and NEO.

Growing Acceptance and Surge into Mainstream

The popularity of cryptocurrencies is on the rise. Countries like China, Ecuador, Tunisia, Venezuela, Senegal, Sweden, Estonia, Singapore, etc. have either created their own national cryptocurrency or are planning to launch one.

In addition, bitcoin and other popular digital currencies appear to be gaining more acceptance as a growing list of retailers and services now accept them as payment. The market value of digital currencies is expected to reach $1 trillion this year as positive sentiments continue to rise.

Challenges to Mass Adoption

Cryptocurrencies are a suitable medium of exchange, store of value, and unit of account. Possessing these characteristics make them a reliable form of money by any yardstick. However, some obstacles must be overcome before the general public widely adopts these online-based currencies.

One of the major barriers to mass adoption of cryptocurrency is volatility. Merchants are sometimes reluctant to accept cryptocurrencies as payment because their prices fluctuate very often. Scalability issues, security, and regulatory challenges are other factors that impede further adoption of digital currencies.

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“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

A New Financial Order

As user behavior among consumers continues to shift towards a mobile experience, fintech offers exciting new technologies that could potentially disrupt existing financial practices and establish a new order.

A majority of commenters perceive consumer banking as the area most likely to be disrupted by fintech companies because most startups have sought to target the end customer directly by providing smart solutions.

The technology provided by fintechs could change the way we transfer money, make payments, and manage our financial lives. As such, it is seen as having the ability to impact customers’ demand for checking accounts and debit cards, and this has the traditional players worried.

Meet the New Players

A PriceWaterhouseCoopers survey reveals that around 83 percent of traditional banks and credit unions believe that they are at risk of losing out their business to fintech companies. This is because new fintech entrants bring with them innovative and cutting-edge digital banking ideas that enable them to cater to the digital generation better than existing practices allow traditional banks to.

One of the major companies looking to change the way consumers bank is Venmo. Venmo is a peer-to-peer system which seeks to enable consumers to send money or request funds from each other using a mobile app. Such a system offers convenience and gives the customer a great deal of autonomy, as they do not have to rely on established financial institutions to send funds.

The New Venmo Card

Venmo is also on the verge of launching its Venmo Card. The card, which operates on the MasterCard network, will make it possible for a user to withdraw funds without having to go through a traditional bank. Payment company, Square, also has a prepaid debit card which functions in the same way, allowing users to make payments with a swipe.

In a related development, online payment system, PayPal offers the PayPal Cash MasterCard, which lets users use funds in their account to pay for goods online, in-stores where MasterCard is accepted, as well as withdraw cash at ATMs.

On its part, online-only lender, SoFi, which offers inexpensive rates for mortgages, personal loans, as well as student loan refinancing, seeks to revolutionize traditional banking models using SoFi Money. The product allows account owners to spend funds using the company’s own debit card. If you prefer to leave your funds in the account instead of spending them, they will earn an annual percentage yield of 1.10 percent.

Other innovative products that could overtake traditional mediums as the primary way individuals spend and send funds or invest include the Acorns Spend card from Acorns and the Stash Banking from Stash Investments, among others.

Fintechs and Account Use: What Statistics Say

Meanwhile, the number of checking accounts has dropped by nearly 100 million in the last six years due to fintech’s growing influence on financial services. A Moebs Services study uncovered that the total number of checking accounts fell from 690 million to around 600 million from 2011 to 2017, representing a 12 percent decline.

 

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“Banks On Notice” Fintechs Are Coming for Checking Accounts and Debit Cards

A New Financial Order

As user behavior among consumers continues to shift towards a mobile experience, fintech offers exciting new technologies that could potentially disrupt existing financial practices and establish a new order.

A majority of commenters perceive consumer banking as the area most likely to be disrupted by fintech companies because most startups have sought to target the end customer directly by providing smart solutions.

The technology provided by fintechs could change the way we transfer money, make payments, and manage our financial lives. As such, it is seen as having the ability to impact customers’ demand for checking accounts and debit cards, and this has the traditional players worried.

Meet the New Players

A PriceWaterhouseCoopers survey reveals that around 83 percent of traditional banks and credit unions believe that they are at risk of losing out their business to fintech companies. This is because new fintech entrants bring with them innovative and cutting-edge digital banking ideas that enable them to cater to the digital generation better than existing practices allow traditional banks to.

One of the major companies looking to change the way consumers bank is Venmo. Venmo is a peer-to-peer system which seeks to enable consumers to send money or request funds from each other using a mobile app. Such a system offers convenience and gives the customer a great deal of autonomy, as they do not have to rely on established financial institutions to send funds.

The New Venmo Card

Venmo is also on the verge of launching its Venmo Card. The card, which operates on the MasterCard network, will make it possible for a user to withdraw funds without having to go through a traditional bank. Payment company, Square, also has a prepaid debit card which functions in the same way, allowing users to make payments with a swipe.

In a related development, online payment system, PayPal offers the PayPal Cash MasterCard, which lets users use funds in their account to pay for goods online, in-stores where MasterCard is accepted, as well as withdraw cash at ATMs.

On its part, online-only lender, SoFi, which offers inexpensive rates for mortgages, personal loans, as well as student loan refinancing, seeks to revolutionize traditional banking models using SoFi Money. The product allows account owners to spend funds using the company’s own debit card. If you prefer to leave your funds in the account instead of spending them, they will earn an annual percentage yield of 1.10 percent.

Other innovative products that could overtake traditional mediums as the primary way individuals spend and send funds or invest include the Acorns Spend card from Acorns and the Stash Banking from Stash Investments, among others.

Fintechs and Account Use: What Statistics Say

Meanwhile, the number of checking accounts has dropped by nearly 100 million in the last six years due to fintech’s growing influence on financial services. A Moebs Services study uncovered that the total number of checking accounts fell from 690 million to around 600 million from 2011 to 2017, representing a 12 percent decline.

 

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