In the unprecedented times we’re living in today, and inflation is the main topic due to the cost-of-living crisis problem going around, fintech services like Mytalu are more in demand than ever as they offer unique concepts in order to tackle this issue. This blog post will focus on how FinTech are managing this issue so far and explore the different ways in which both consumers and financial services are affected.
1. Tackling the issue
Due to the rise of digital banking caused by the events of the last few years, there are numerous ways that fintech help tackle the issue of inflation. This can specifically be seen through the efficiency of digital payments, loans and multiple budgeting apps that would help consumers manage their funds during these unprecedented times.
2. A chance for opportunities?
The cost-of-living crisis has been rising at an alarming level and although this is unfortunate as it creates financial uncertainty, it also happens to create new opportunities for fintech services to come up with more innovations as a solution to this issue. In this case, this has led to more fintech start-ups that are discovering new efficient ways of managing money and debt.
3. Importance of customer-based banking
The concept of customer-based banking holds great significance within the fintech sector as it predominantly allows the customer to be in charge of all the financial decision-making regarding their accounts. Not only does this help businesses be more specific with their target marketing but also enables the client to feel in control (ensuring customer satisfaction) which is essential in fintech as this results in customer loyalty.
4. Digital deflation
One other way fintech seems to help tackle the issue of inflation is through digital deflation; in which investors fund technological advances in the hope to lower the cost of business services. This method would essentially generate more profits within financial services which again would slightly reduce the effects of inflation.
5. Continued financial education
It goes without saying that more financial education is the main key to helping consumers manage the effects of inflation as it empowers them to feel more confident with their finances. Though budgeting tips, saving schemes/apps, and informational blogs, all equip consumers to be more financially savvy as well as encourage them to be on top of all their finances.
With how fintech services are tackling the issue so far it is clear that their solutions are going in the right direction, as although inflation and the cost-of-living crisis are still a struggle for everyone, the options for managing the effects of it at the moment are still extremely beneficial for the consumers.