Digital money, digital trading, digital banking, and more.
The way that we handle our finances has changed drastically over the past decade as fintech developers create more ways to simplify and digitize our financial activity. Even money itself is changing. Cryptocurrency, digital banking, online currency exchange, digital trading ledgers, and more are impacting our lives more than we realize.
Don’t get left in the dark. In this article, we summarize a few of the changes we are witnessing and some of the emerging companies that are at the forefront of this digital shift.
Currency and Spending
Digital banking is one of the most common ways we have incorporated fintech into our lives. Most banks have an online presence that allows users to do most of their banking activity remotely. This online presence is often in the form of an app on smart phones, making it simple to check account balances and even deposit checks from our palms.
The way we are spending our money is even becoming more digital. Apps like Venmo and Apple Pay allow consumers to pay each other and businesses with a simple touch of a screen. The apps are convenient, secure, and are cheaper than transferring money between bank accounts and using checks. This kind of platform has become very popular among millennials.
Paying bills almost completely online, often coming directly from a bank account without the user having to prompt the transaction.
One of the most popular ways people are using fintech is through trading and investing platforms. Robo-advisors, AI, and other startups are making the process automated and easy. They are offering big savings and high returns with services that usually only provided to wealthy investors. They also allow beginners to use a small amount of capital to begin investing.
We cannot forget to mention the rise of cryptocurrency, the origin of blockchain and a revolutionary view of currency. Cryptocurrency is digital money that uses cryptography for security. Cryptocurrency has the ability to make transferring funds easier between two parties. The transactions don’t cost much and allow users to avoid high fees experienced when using most banks and wire transfers.
An emerging leader of the fintech and currency revolution is Revolut, a UK based fintech company that offers a variety of services including prepaid debit cards, cryptocurrency exchange, peer-to-peer payments, and currency exchanges. The company began in July 2015 by cofounders Vlad Yatsenko and Nikolay Storonsky, both financial experts.
Since its formation in 2015, Revolut has gathered business from all over the world:
- More than 3 million customers
- Over 250 million transactions
- Has a value of over $33 billion
Revolut is changing the way we do our personal financial activity. In just minutes users can create an account, unlike the bank. Since there are no branches, new users can simply make an account directly from their phone.
Need help saving? One of the greatest features is the built-in budgeting. The app will tell you exactly how much you are spending and on what each month. It will even send immediate spending notifications.
With Revolut you can make fast, international money transfers and without fees. With a multi-currency business account, users can hold, receive, and exchange 24 different currencies by using the real interbank exchange rate.
Revolut even allows users to exchange cryptocurrency, changing the way trading is done. Long gone are the days that crypto exchanging is difficult and time consuming. Revolut gives users instant exposure to crypto with just the touch of a button, instantly exchanging 24 different currencies directly into crypto.
Users choose from five cryptocurrencies:
- Bitcoin Cash
Blockchain and Tokenization
Not only is our money and the process of changing money changing, but the investments themselves are changing. Hard assets, often represented by hard to track paper, are moving to digital ledgers. Digital money is being spent on digital assets.
Popular assets like stocks, real estate, carbon credits, oil, and gold can be difficult to physically transfer and/or subdivide, leading buyers and sellers to utilize paper trading that represent some or all of the asset. Paper trading can be complex, with legal agreements that can be hard to track. One way to combat this process is by switching to a digital system.
Tokenizing hard assets is one of the newest developments and is spreading rapidly. Tokenization allows buyers and sellers to sell whole or fractional assets easily on ever developing blockchains.
Digital systems allow commodities to be traded without the use of paper but can come with a hefty overhead and relies on trusted participants. Fintech developers, major financial companies, and startups are all switching their gaze to asset tokenization.
Sygnum and Custodigit are two companies that are experts in tokenization of assets. Sygnum is a fintech company based in Switzerland and Singapore that works with clients with their digital asset needs.
This tech-driven company works to empower financial services in the expanding economy of digital assets. Their goal is to give clients and partners integrated solutions to store, trade, manage, and issue digital assets. Sygnum utilizes ledger technology to change the financial industry.
Custodigit is a digital asset custody platform calling itself the swiss pioneering solution for regulated financial services providers. Like Sygnum, Custodigit is dedicated to providing customers with full access to digital assets.
Fintech and You
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards Fintech.
Looking beyond blockchains, we are seeing technology have a hand in simple things such as payment and holding money, and more complex life aspects like investment advising. Some companies are even developing ways artificial intelligence can assist in hedge fund managing!