With data science’s evolution over the past several decades, tech startups are now able to do what large banks and credit unions always did. Fintech makes lending, trading, wealth management and other financial services far easier for consumers. People can now handle their money through a smartphone instead of having to drive to an ATM or speak to a teller.
The range of services that fintech firms provide is continuing to grow, and this article will discuss several of them.
Loans
Many fintech companies offer loans at reasonable rates. When a startup is looking to upgrade its tools, equipment financing is easier to come by. When a family needs help buying a house, many tech companies now offer mortgage loans. Even home equity loans are becoming more prevalent with fintech companies. Due to advancements in data science, more and more companies can allow their clients to raise credit and consolidate debt with special payment plans.
Trading
The increasing popularity of digital currencies has boosted trading initiatives. The more convenient the process is, the more a person can profit. Fintech companies have been helping consumers lay out a plan for buying and selling stock. Since trading entails watching for business events, a comprehensive app can bring these events to a trader’s attention without the trader having to search too hard. Short-term trading has been the most common practice over the past year or so, but some companies also allow fundamental trading for people who want to buy and hold.
Overdraft
When a consumer doesn’t have enough money saved to do a transaction, he or she may need to rely on credit from the provider. This credit comes through an overdraft, which was traditionally a service that only banks offered. However, with the onboarding of data scientists in the fintech industry, clients can have more leeway when their account gets low without having to go to a bank. As fintech companies become more successful and build more revenue, lower overdraft fees are a possibility in the near future, and they may offer higher amounts of credit for the customer to borrow.
Consultations
Data science and fintech don’t just come down to automatic services. New technology has allowed companies to offer personalized financial services to help customers manage their net worth. An advisor can balance a customer’s wants and needs with the circumstance at hand, and then decide what the best course of action is. The advisor can combine different financial elements such as loans, investments and budgeting plans to offer a range of options. Firms such as Cane Bay Partners help with business management with risk analysis, marketing strategies, scorecards and other avenues.
Money can be a complicated thing to handle, so it used to be that only large institutions could help consumers with their finances. The game has now changed due to the innovative pursuits of data scientists and entrepreneurs. As more young people pour into the fintech industry, there’s no telling what more will be accomplished over the next few decades.
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