Fintech has burst onto the financial scene over the last few years, ushering in a new financial reality. While fintech is still in its early stages, business minds are keen to continue disrupting traditional finance with innovation.
Eric Blue hopes to make a splash in fintech when his Nevly mobile app releases later this year. After already experiencing success with Nevly Money, the CEO has bigger aspirations to put financial tools in the hands of consumers.
Misconceptions and a general lack of knowledge from the public have held fintech back. Blue feels like some of the best minds in the industry can change that and allow fintech to explode in popularity over the next few years.
More Than Just Online Banking
Early fintech mostly referred to any type of online banking. While online banking does indeed fall under the category of fintech, there’s so much more that makes up the industry today.
Fintech, short for “financial technology,” refers to using technology and innovation to improve and automate financial services. Fintech companies help create innovative financial products, services, and solutions. The goal is to enhance traditional financial institutions’ existing options, making them more efficient, cost-effective, and user-friendly.
The industry encompasses a wide range of financial services, including; online banking, peer-to-peer lending, investment management, crowdfunding, digital currencies, and more. Fintech companies often leverage emerging technologies such as artificial intelligence (AI), blockchain, and big data analytics to develop new financial products and services.
All the growth has caused a disturbance in the traditional financial industry. Fintech solutions prove to be more convenient (only need internet access), accessible (24/7/365 service), and affordable (less overhead) than traditional options.
Traditional banks, for example, have started beefing up their own technology to counterbalance this growth in fintech and compete with it. Eric Blue feels this is positively impacting the industry and that Nevly will be able to match or surpass any options traditional banks offer.
Benefits of Using Fintech
Eric Blue, like many leaders, continues to push for consumer fintech solutions. He sees a great opportunity for fintech to boom now that many people own smartphones and have a level of accessibility to the internet that was unheard of even a decade ago. Here are just some of fintech’s many benefits.
Whether identifying fraudulent activity or looking at money trails, transparency helps the fintech world, giving consumers clarity and peace of mind.
Smarter Decisions (Companies and Consumers)
Fintech companies rely heavily on AI, which helps with decision-making. Everything is data-driven to come up with the most effective strategies for consumers. There’s also the ability to use AI-powered solutions to get consumers what they need faster.
From a user perspective, Blue and his company, Nevly, focus on providing better financial education and literacy over time as well. Smarter decisions become natural when people learn about money. Combined with AI-assistance, consumers can enjoy making confident decisions with their finances.
A lot of fintech companies benefit from automated solutions. These cost-effective and time-efficient conveniences help businesses to meet customer expectations.
Traditional institutions still need to lean on automation more. Some specific tasks are much harder to complete without automation.
Automation is a benefit of fintech because it allows companies to streamline processes, reduce costs, improve accuracy, and provide better customer experiences. Fintech automation solutions use software and algorithms to handle tedious manual tasks like data entry, account opening, and even customer service. By automating these tasks, financial institutions reduce the need for manual labor, cutting costs and eliminating errors.
Traditional institutions still haven’t fully embraced automation like fintech. As fintech automation improves, it’s harder for companies stuck in the past to keep up.
Click here – 6 Career Paths for MPA Graduates
Various services are offered based on the user’s and provider’s financial needs. From a user’s perspective, a person can open a savings account, apply for a credit card, apply for different types of insurance, and invest. Providers can analyze credit applications, store data, streamline payment methods, and more.
The ability to do this on one platform is a step in the right direction. Eric Blue sees the benefit of having one app like Nevly for all things finance instead of jumping around and juggling so many apps simultaneously.
Fintech companies have a different type of overhead than traditional financial institutions. This means lower costs associated with doing business. Couple that with increased access through the internet, and fintech companies can be a force for good.
Blue can think about his days growing up and remember feeling excluded from financial knowledge. He witnessed his mother struggling with finances and caring for her family as a single mom. Eric Blue hopes to empower those struggling, providing accessible tools to learn financial literacy and help those ensnared in debt.
Biggest Challenges with Fintech
As promising as fintech is, it’s still a growing and evolving industry. The quicker some of the biggest challenges get addressed, the stronger fintech will become.
Data security has been an ongoing issue in the fintech industry. A traditional bank has a secure infrastructure to protect its data and valuables. Security is easily visible to the consumer, whether it is security personnel, closed-circuit television cameras, locks, vaults, or more.
Security is vital to Eric Blue, so before launching, Nevly ensured they have a level of protection that makes a difference with their 24/7 account security and other features. When inputting sensitive data, consumers should never have any doubt that they’re protected.
Lack of Regulations
Regulations in fintech continue to improve, but there are fewer than traditional financing options. This comes down to policing the unknown: it takes a lot of work to handle regulations when everything is constantly changing.
No company should put its clients at risk, even if they are operating lawfully. Nevly maximizes fintech’s potential, but not at the expense of ignoring current or future regulations.
Limited Access in Some Areas
Smartphones have increased in use worldwide, but some developing countries are just now getting this technology.
There’s no timetable for when certain parts of the world will have affordable access to steady internet and smartphones. It’s only possible to see the bigger vision of fintech once that’s the case.
Is Nevly the Future of Fintech?
Like many startups in the industry, Nevly hopes to capitalize on the growth of fintech. As a hotshot whiz-kid, Eric Blue focuses on providing the best option possible to help with credit services, financial literacy, and wealth management while packaging it all up in an easy-to-use format.
Nevly Money has already shown that there is demand for the product and that it can have an impact. The Nevly mobile app will take things to another level, enabling people to access their accounts at any time, anywhere they go, and allowing them to do money differently; the Nevly way.