Financial technology, commonly abbreviated as fintech, is designed to help make financial management and investment easier for dedicated traders. Individuals who want to optimize their financial activities may benefit from a broad variety of such programs and systems. If you are planning on diving into investment opportunities, take the time to look into some of these trends that can have measurable results.
Robo-advising options have been on the rise, recently, and they can be some of the most advantageous systems for individuals interested in working with automated systems to help handle wealth management. Experts project that upwards of $3.7 trillion in traded assets will be managed through robo-advisory services by 2020. Further speculations believe that this number will rise to as high as $16 trillion by the year 2025. Through robo-advising, investors can expect a greater degree of choice and control over their investments, and there are specific brands of advisors that specialize in certain instruments over others to provide niche options for specialized investors.
Security Token Offerings for Cryptocurrency
Cryptocurrency, which is a type of digital currency, is regulated through encryption techniques. Experts believe that this option will be traded much more by consumer in the coming years. Recent polls showed that although only 8 percent of American respondents and only 9 percent of European respondents currently own some type of cryptocurrency, 21 percent of the American respondents and 25 percent of the European respondents expect that they will own cryptocurrency sometime in the future. This is a result of the rising trend of Security Token Offerings, which are much more secure than the crowd-funded Initial Coin Offerings used to regulate the trade of cryptocurrency.
Blockchain Extensions to Investing and Lending
The Blockchain is the publicly available system through which cryptocurrency exchanges and transactions are recorded and made. This system makes the journey of cryptocurrency trading transparent, and it is a vital component of public ledgers used in digital transactions. Through recent extensions and optimizations, the Blockchain has been used for transactions through traditional currency systems, such as on various ecommerce platforms. The technology is used to monitor loyalty programs, supply chains and even optimize digital voting for goods and services. The technology has extended to packaging, trading and securing loans, making the practices much more efficient for all parties involved.
Online Loan Opportunities
As more and more technology advances towards security through the online platform, some online loan lenders have become a part of the trading scene. Security enhancements have made it easier for individuals to opt into online loans, which can then be transferred to the individual’s bank account, just like a direct deposit. Individuals who need money quickly for an emergency may be able to do so through the use of online loans. It is important to understand when to use these types of loans, such as only in the case of unexpected emergencies where you need financial help immediately. This could include things like an unexpected medical bill or auto repair.
Retailers Offer Mobile Wallet Transactions
All over the world, societies are coming closer and closer to optimizing cashless transactions. As cashless opportunities become more and more prevalent, so too does the technology and regulations around them. With how available digital wallets are becoming, investors will have the opportunity to synergize all of their transactions in one efficient and seamless way.
Like with any such technological additions, it is vital for you to assess your personal needs and think about what options will provide you with the most utility in the future. Plan according to what instruments you will find yourself investing in the most, and always remember to diversify your fintech in order to easily branch into other markets should the opportunity present itself.