FinTech Has a Daily Impact on Our Lives

FinTech Has a Daily Impact on Our Lives

Money is what makes the world go around, or so they say. Everyone is in business to make money, but the degree to which the organization deals with it might vary. For example, some companies, like banks, are designed to make money by helping others manage theirs. Banks and marketplace lenders take advantage of what is called financial technology, or FinTech, to more effectively provide services to individuals or organizations that want to manage, borrow, pay, see, or use their money in more efficient ways.

Banks are more subject to specific regulations, whereas marketplace lenders, or MPLs, are still somewhat on the upswing. FinTech helps them lend, collect, and distribute capital. MPLs have risen in popularity in recent years, and it’s likely because an estimated $7 trillion is at risk of being displaced from the financial services market. They take advantage of modern technology, which ultimately means that they are at less risk overall than with any other non-regulated financial transaction. Legislators are hard at work creating ways to regulate these organizations without keeping them from innovating, but this proves challenging, as there needs to be something in place to protect consumers.

What is FinTech?
Simply put, FinTech is any sort of technology that is used to track or manage your finances. This includes your credit card, online banking systems, and even applications like PayPal. While technology isn’t anything new in this regard, the drastic changes to hardware and software in recent years have fostered growth in this sector, providing new mediums outside of the traditional banking infrastructure. Whereas banks have been run in largely the same way for a long time now, MPLs have a considerably larger amount of virtual capital that allows these companies to invest in ways that other independent organizations could only dream of. Basically, thanks to FinTech, investors have more options than ever before.

These days, most money is flowing through asset managers who take the money and invest it in non-traditional methods through technology systems. Even defining FinTech is an issue at times due to the scope of what it covers, including where the company operates and what kind of lending facility it is. Overall, regarding federal regulations, the latest FinTech models present questionable situations that need to be addressed by legislators. Federal investigators have had their eye on this sector for around five years now, so compared to banks that are somewhat limited in what they can and cannot use their capital for, marketplace lenders have been able to bypass these restrictions to create new opportunities.

Payday Loans
Independent lenders are certainly nothing new for the financial industry either, but they have always had a negative connotation associated with them. One of the more controversial lending organizations out there is the payday loan market, which lets users take advantage of fast money in the form of a short-term, high-interest loan. If the user can pay it back before their next paycheck, then the lender only charges them a small fee. If not, it gets ugly. The loan can be renewed with interest added into the equation. Generally speaking, most people would only need a couple hundred dollars that can’t wait until their next paycheck, but those who need more might find themselves in a questionable position before long. Several U.S. states have outlawed such loans specifically due to how predatory they are, but other locations that have yet to do so are seeing major challenges from FinTech lenders.

Some FinTech lenders are attempting to make getting a payday loan much different. These lenders, including LendUP and Elevate, are offering services where the big difference is that they work with borrowers rather than purposely get them into situations where they are in over their heads. This new FinTech model aims to help borrowers repair their credit by turning toward data analytics.

What FinTech services do you currently use? Would you recommend one to others? Leave your thoughts in the comments below.

Tech Terminology: Processor
Going Through the Pros and Cons of Choosing VoIP


Already Registered? Login Here
No comments made yet. Be the first to submit a comment

Mobile? Grab this Article!

Qr Code

Tag Cloud

Tip of the Week Security Best Practices Technology Cloud Email Privacy Malware Hackers Business Internet Computer Business Computing Microsoft Software Hosted Solutions Mobile Devices Google Network Security Backup Windows 10 Ransomware Android IT Services Hardware Smartphone User Tips Small Business Managed IT Services Tech Term Data Management Facebook IT Support Windows Gmail Browser Productivity Data Internet of Things Server Saving Money App Business Continuity Cloud Computing Smartphones Microsoft Office Disaster Recovery Cybersecurity Business Management Managed Service Provider Upgrade Data Recovery Efficiency Phishing Word Encryption Remote Monitoring Office 365 Artificial Intelligence Data Backup Tip of the week Money Spam Government Communication Social Media Innovation Workplace Tips Infrastructure Office Tips Employer-Employee Relationship Productivity Managed IT Services Chrome Outsourced IT Content Filtering IT Support Windows 10 Big Data Vulnerability Risk Management Robot Antivirus Wireless Website VoIP Applications Customer Service Apple Firewall Settings Two-factor Authentication IT Management Passwords Analytics Data storage WiFi Bandwidth YouTube Avoiding Downtime Miscellaneous communications The Internet of Things Monitors Search Wireless Technology Tablet Holiday Unified Threat Management IBM Recovery Printing Automation Administration VPN HIPAA Customer Relationship Management End of Support Wi-Fi Computing Data Security BYOD Password Data loss Business Technology Google Drive Virtual Private Network Augmented Reality Mouse Vendor Management Apps Save Money Safety Mobile Security Hacking Network LiFi Server Management Hacker Virtual Reality Storage Hosted Solution Telephone Systems Maintenance Presentation Paperless Office Mobile Device SaaS Office Scam Outlook Blockchain Social Cost Management Gadgets Application Optimization Corporate Profile Education Google Calendar Chatbots Remote Computing Mobile Office Solid State Drive Printer Wearable Technology Virtualization FinTech VoIP Net Neutrality Typing Screen Reader Computing Infrastructure Dongle Company Culture How To Networking Experience Unified Communications Smart Technology Deep Learning Motherboard Humor Permissions Hacks Assessment Users Digital Payment Recycling WannaCry Legislation Identity Operating System IT service Heating/Cooling Mobile Device Management Running Cable Politics Hard Disk Drive Virtual Desktop Access Control Budget Chromebook MSP Time Management FCC Cryptocurrency Smart Tech Cabling Buisness Alerts Service Level Agreement How To Hard Drives Collaboration Managing Stress Firefox Distributed Denial of Service Bring Your Own Device Router sip Lithium-ion battery Laptop Fraud Internet Exlporer eWaste IT solutions Comparison BDR Servers Tech Support Document Management SharePoint Development Network Management Title II Bitcoin Connectivity Network Congestion Computer Care Managed IT 5G Licensing Information Technology Refrigeration File Sharing Cables Techology Managed IT Service Best Practice Modem telephony User Halloween Value Writing Continuity Digital Lenovo Cortana Specifications Compliance Google Docs Public Speaking Samsung Google Maps IoT Computers Websites Identity Theft Smart Office Mail Merge Fun Downloads IT Technicians Competition Charging Touchscreen Online Windows 8 Training Disaster Shortcut Downtime Cooperation Google Wallet Wires Unified Threat Management Break Fix Business Growth Cookies Scary Stories Hotspot Current Events Professional Services Retail Automobile Solar Spyware Superfish Black Friday Regulations Statistics Microsoft Excel Star Wars Display Work Address Multi-Factor Security Mirgation Legal IP Address Cybercrime Uninterrupted Power Supply Patch Management Staff Drones Undo Voice over Internet Protocol Quick Tips User Error Dark Web Alt Codes Nanotechnology Dark Data Bluetooth Sports Language Going Green USB Social Engineering Marketing Business Intelligence Knowledge Cyber Monday Social Networking Machine Learning IT Budget Web Server GPS Unsupported Software Update Computer Repair IT Consultant Relocation Emergency Processors Cameras Tracking Mobile Data Meetings Health Cleaning Private Cloud Domains Alert CCTV Emoji Webcam Electronic Medical Records Work/Life Balance Mobile Computing Error Physical Security Black Market Point of Sale Law Enforcement Upgrades Travel Notifications G Suite Botnet Supercomputer Twitter Gadget Staffing 3D Printing Motion Sickness Personal Information Administrator CrashOverride Crowdsourcing Taxes