Introduction
Budgeting tools are increasingly a prominent aspect of digital banking and this has forced FinTech companies to keep coming up with new ways of keeping consumers engaged with their finances and savings. In this week’s blog post, we look at how social factors have influenced FinTech companies to make budgeting tools their USP and what is in store for the future.
Rising Costs
Budgeting tools essentially show the consumer that the company has their best interests at heart especially given the rise in cost of living. Due to this, some consumers have become a lot more cost-effective in their spending which has definitely increased the demand for more budgeting-focused tools to be available within fintech applications. Ultimately this seems to have had a positive impact on both consumers and FinTech businesses.
Financial Education
Financial inclusion is usually at the forefront of every FinTech company and start-up, as they aim to connect everyone through financial accessibility at a global scale. This being said, budgeting is an extremely useful skill to have and what better way than to incorporate it into digital banking apps, making it easy to use and accessible for all. Additionally, not only does this tackle the fact that Global financial literacy is constantly growing at a fast pace but also promotes greater financial literacy for people from all walks of life.
Versatility of budgeting tools
When it comes to budgeting tools that are used within digital banking, there is a wide range of them spanning from savings accounts to, spend trackers to AI assistance. Again, due to budgeting tools being so high in demand, the budgeting options FinTech companies offer are endless, allowing consumers to find a budgeting method that works for them.
What the future looks like
From briefly looking into some different factors that encourage investment from FinTech companies and start-ups, it is evident that they are somewhat all of equal importance. The issue of rising costs remains quite topical in today’s society and can be seen as a catalyst for the need for more budgeting tools within digital banking and the FinTech sector. Overall, it is with no doubt that there will be even more progress in this area in the future.
