Fintech solutions debunking , are they really a good idea?
Fintech Solutions depends on different realities and may have been created with one idea: respond to market necessities (Even those you didn’t imagine existed) but there is a lot of mystery when engaging with innovation and new technologies. How can we decide if Fintech solution is reliable? There are so many myths that we must start debunking them!
Fintech Solutions are only for young audience
Well, it always depends on the market and region, but the tendency says the majority is between 26 and 35 years old. This narrows it down to Millenials who are at least 30% of world population and are more likely engaged with Fintech solutions. But they are not the only ones; those on the gap of 18 to 25 years old are submerge on the knowhow of Fintech solutions and are more willing to manage their finances online. Early adapters are not the rule and as time goes on and Fintech is more known of, their audience grows; the real percentage is that there are more customers on the range of 35 to 44 years old (21.3%) than the young 17.7% (18-25 years old).
So this is a not so true fact, Fintech Solutions are for everyone.
They are not reliable
There’s something that is completely natural for those that connect online since they are born that doesn’t apply so easy for those that grew up as analogical people. To trust something you can’t touch and only exists online is a new frontier to cross for older generations, while younger people (Millennials and Centennials) can do very easily. There is nothing to be afraid of when you trust on well-known Fintech options and when you take all security recommendations possible. This is a complete myth; you can trust your data, just be cautious rbs are a huge part of traditional banking, aren’t you trusting them already?
They are only available to be used in the US
Opening an account in the US is difficult if you are not there, and if you need to mobilize your money in USD, the best option is to actually have an account there. The US market is big and with constant growth, hence, it’s logical that new cutting edge Fintech solutions be available there. But that doesn’t make it an exclusive rule. The truth is that over 16.4% of Fintech are in the US, but the UK market is very close with UK market 14.3%, yet the main percentage is in Hong Kong with 29.1%.
I cannot use them in my day by day actions
Have you ever used ebay or amazon? There’s a transparency when accessing to these platforms that allows you to have savings both in time and money. E-commerce is highly connected with Fintech solutions and there’s no reason to pretend that both (E-commerce and fintech platforms) are not part of our day to day routine. While we continue to globalize our finances and actions, a necessity to use more than one currency grows; therefore we need to have a way to manage all of our money. An option like transferwise is more suitable for our day by day actions than regular banking systems that overcharge a simple and mundane transaction just because they are international. So no, Fintech are actually a nice way to cope with day to day necessities.
Fintech Solutions are only for High income users
And for our final myth, let’s clarify. No, it’s not only for High income users. While some things may sound unreachable for some generations, for others it’s easier to engage with some ideas. Over 44% of Fintech users are high income but the rest is very diverse, or at least that’s what we can find on research papers and personal finance articles considering 6% of an annual income of USD 30000 or less. The tendency is to grow and this percentage is bond to become over 14%, so we can debunk this last myth; no, it’s not only for high income users and in fact this will change in time.