Introduction
The financial industry has a long history of innovation. It is not just about new products or services; it’s also about how we interact with those products and services. As the digital revolution continues to transform our lives, one area in particular is ripe for change: personal finance and well-being.
The rise of digital financial tools and fintech innovations is changing the way individuals manage their finances.
The rise of digital financial tools and fintech innovations is changing the way individuals manage their finances. Say’s Dr John Strobeck, with more people using credit cards, mobile banking and cryptocurrencies, these technologies have the potential to improve personal finance and well-being. However, it’s important to note that fintech innovations can also be dangerous if used improperly.
In this section we’ll cover some of the most popular fintech tools currently available on the market today:
- Credit Cards – Credit cards allow consumers to purchase goods or services now with a promise to pay later at an agreed upon price (typically interest) with no cash upfront needed from them until after they’ve made purchases with their card(s). This means that if someone loses their job or gets sick unexpectedly then they may not be able to pay off all those things immediately but rather over time through monthly installments which can add up quickly!
This change is enabled by the proliferation of mobile devices and the accompanying increase in mobile banking, which is now available to over half of US adults, according to Pew Research Center.
This change is enabled by the proliferation of mobile devices and the accompanying increase in mobile banking, which is now available to over half of US adults, according to Pew Research Center.
Mobile banking is growing rapidly. The number of consumers using mobile apps to check their balances or make payments has increased from 33% in 2014 to 43% in 2017–a rise driven largely by Millennial use.
What does this mean for personal finance and well-being?
Technology has created opportunities for individuals to take control of their personal finances and well-being. However, it can also amplify risk in ways that are difficult to quantify. As technologies like AI and machine learning become more prevalent in financial products, there is a need for better understanding how these tools affect consumers’ ability to make informed decisions about managing their money and meeting their goals.
The answer is unclear: while some studies have shown positive effects from using tools like AI-powered recommendations and robo advisors, others have found negative consequences such as increased anxiety among those who use them.*
The answer is unclear. Technology creates opportunities, but it also can amplify risk.
Technology is not a panacea. The benefits of technology are often overstated and the risks understated. For example, many believe that smartphones have made people more productive and efficient because they allow us to do things such as check our email or social media accounts at any time of day or night. However, research has shown that these devices actually make us less focused on the task at hand because we become distracted by notifications from other apps on our phones (e.g., text messages).
In addition to this type of distraction, there are other potential downsides to using technology in personal finance:
Conclusion
We are at the beginning of a new era of personal finance and well-being. Technology is enabling individuals to take control of their finances in new ways, but it also creates risks that could cause financial harm if not managed properly. It’s clear that these tools can help people make better decisions about their money, but we need more research on how they impact our lives beyond just spending habits.
