Over the past decade, FinTech has emerged into how society functions and has continued to grow rapidly. However, more recently, FinTech has generally broadened how the world sees online banking and Artificial Intelligence (AI). This blog post focuses on the massive role fintech has played over the past few years, as FinTech companies such as mytalu, continuously strive to bridge the gap in global financial literacy and ensure financial inclusion.
1. Before the recent FinTech revolution
Although the fintech industry is massively successful at present, its growth to success was not easy. Due to everything becoming digitalised and the increased use of AI on society it took a while for some consumers to accept and fully trust online services as it was not what they were used to. Despite this, with the fast progress of FinTech companies and start-ups as well as going through world changes such as lockdown, people eventually became more receptive to the benefits fintech services have to offer.
2. Importance of global financial literacy
The main benefit of global financial literacy is that it helps people to be able to lend, borrow, save and spend money confidently. As well as this, it empowers people from all backgrounds and offers a great opportunity for those who have financially struggled in the past to have a way of potentially getting out of it. Ultimately, global financial literacy helps the advance in FinTech services as well as their consumers.
3. Boosting financial wellbeing
With the way FinTech’s have changed the way businesses operate, it is evident that it pushes people to develop healthier financial habits, such as easily being able to manage their savings and budget. Countless studies on this topic prove that there is a correlation between a person’s financial state and wellbeing and with fintech being more accessible to all communities globally, it is a great solution that positively contributes to a country’s economic development.
4. How FinTech is bridging the gap so far
At the moment, FinTechs tend to be offering guidance and tips on how to manage money which again helps the financial literacy gap. Due to AI and how advanced it has made online customer service, the financial guidance one would get from digital banking would be targeted to whatever specific financial problem they may be facing. This proves that FinTech provides an even better customer experience and boosts people to feel confident enough about making any big financial decisions.
5. Impact on the next generation
With AI and embedded finance platforms such as e-commerce making it so easy for people around the work to use no matter their age, this means that the next generation will be generally more equipped with online financial services. This is crucial because these are valuable skills that would not only strengthen their financial literacy but be able to benefit from in their day-to-day lives.
The main outcome of this is essentially that FinTechs are successfully bridging the gap in global financial literacy as surveys suggest that over the past few years financial literacy rates have increased in several countries. Aside from this, FinTech services having a fundamental impact on people of different ages, and different parts of the world not only promoting financial inclusion but also inspiring people to want to know more due to how innovative AI methods are.