2020 was a financially stressful year for many. In fact, at the height of the pandemic, a study by the US Financial Education Fund found that nine in ten Americans said the COVID-19 crisis was stressing their personal finances. As a result of this changing economic needs and concerns, coupled with quarantine and social distance requirements, more people are turning to the Internet to find ways to make, save and manage money.
But for most of life, easy access to this information has its strengths and weaknesses. Fintech (short for “financial technology”) can simplify our lives … or can be complicated if we are not careful.
To help you become a more savvy fintech consumer, here are some of the most common advantages and potential pitfalls of our increasingly high-tech financial world.
First, the advantage:
- Financial literacy. Are you interested in the difference between fixed rate mortgages and floating rate mortgages? Do you need a calculator to help you decide to pay your debt? Searching for savings accounts at competitive rates? A quick search online will find the answer you are looking for on a reputable certification site.
- Stress-free savings. Studies show that most people are less likely to check their bank account if they are financially uncertain, and more likely to check it when they think things are going well. However, technology makes it easy and stress-free to automate good habits, such as transferring a portion of all salaries to a savings account. Reserve funds reduce the impact of unexpected costs for a particular month.
- Financial flexibility. You don’t always have time to go to the bank or cash your check. Mobile banking and online banking help you access your account whenever and wherever you need it, with secure encryption and easy transfer. Last year, home banking helped families and businesses manage their accounts remotely.
However, be aware of the drawbacks.
- “”Invisible “spending. E-commerce transactions surged in 2020 as consumers made much of their daily shopping online. However, digital spending can also increase billing, thanks to website designs and algorithms that facilitate purchases and make it difficult to track total spending.
- Myths and false alarms. Anyone who has a social media account or website can claim to be a financial guru, whether or not they have the expertise to back it up. This means that you can come across a lot of dangerous advice online, some of which are malicious. Remember: When you hear about the secrets and loopholes of making money, it sounds untrue, but it probably is.
At Axiom, we are committed to leveraging the right combination of FinTech to give our clients professional control over their money. With a variety of solutions, including online and mobile banking, remote bill pay, and photo check deposits, you can easily access your account wherever you are. For more information, please visit www.axiombanking.com.
Axiom Bank, NA, a nationally chartered community bank headquartered in Central Florida, offers retail banking services such as checks, savings, money markets and CD accounts, as well as commercial banks, financial management services, real estate and business. We offer commercial loans for the purpose of. ..