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  • Anthony Constantinou Describes Fintech in Simple Words

    Anthony Constantinou Describes Fintech in Simple Words

    Fintech is used as an abbreviation for Financial Technology, and thus, very clear from its own term that technology used to make finance and financial operations easy and user-friendly. In its core, Fintech is to serve multinational companies, small businesses and other consumers to manage and process their financial operations in a much better way by using specialized and advance algorithms and software on computers, laptops and nowadays on smartphones also.

    Knowing Fintech

    The term Fintech emerged in the 21st century and was earlier used by the back-end of the establishment or organizational financial department. Since then, there has been a drastic change in the perception of the users and a great shift has been noticed in its end-users and consumers. Fintech now includes many different sectors like Retail banking, Industries, Education, Non-profit organizations, Investment management and many more.

    From double-entry bookkeeping to the invention of the digital money, every innovation in the financial area which has helped the consumer to transact the business in an easy manner is because of financial technology or Fintech

    A lot of variety of financial activities fall under the head of Fintech. Activities like, using a smartphone to deposit a check instead of walking into the bank branch, money transfers or raising funds for business startup or applying for credit without interacting with the bank employees or branch manager or managing the investment portfolio without any assistance of a financial advisor. These are some activities that are covered under the Fintech and since the internet connectivity is available on the smart phoned Fintech has grown explosively and the term which was earlier referred to as computer technology for the back-end users is now applied as in very broad and vast level.

    Anthony Constantinou shares some active area of Fintech includes the followings:

    • Digital cash
    • Cryptocurrencies
    • The smart contract, which uses computer programs to execute the contract between buyers and sellers automatically.
    • Digital landing.
    • Business without barriers.

    Fintech is in practice for many years and since then, many new technologies and techniques are added in the queue. Even machinery and equipment are been added in the process from time to time. ie. Auto teller machine(ATM) and Card Swipe machine. Combinations of modern technological developments with the latest financial applications. Fintech has helped the businesses of all types whether large industries, medium enterprises or small or micro-businesses.

    It is an estimate that nearly 2 billion people worldwide are not having any bank accounts and for them, Fintech is an agile option to carry on their financial services and contribution to their country’s GDP and that is what Fintech has been designed to do.

    Here are some examples of Fintech in the payment system.

    PayPal can be said to be the pioneer who even started this revolution. PayPal used to be the first company to provide payment solutions. Today many companies providing similar services are there in the market and pushing the industry into the next level. It is because of Fintech that the cost of moving big money has been sledded down allowing more transparency.

    Banks used to charge fees for the payments done or received especially in the case of international transactions. One has to pay heavy transaction fees for international money transfer, as it was impossible to get the middle market rate. But now it is no longer expensive. Rather some of the startups are on the way to solve this problem by eliminating the middlemen.

    Bottom Lines

    Fintech has provided a common platform and has opened a new world of opportunities for every business. Much better services are being provided at low prices to consumers. It has bridged the gap between the business and the banks using technology by eliminating inconvenience. It is very important for the business to acquaint with the technology and stay informed and up to date with Fintech development to continue with the easy and hassle-free business.

  • Financial Mistakes You’ll Hate Yourself For in 10 Years

    Financial Mistakes You’ll Hate Yourself For in 10 Years

    Budgeting and setting financial goals is not always easy, but you will regret not doing it in the long run. Whether you forget to make a budget, or you didn’t enroll in your 401(k) plan, there are a number of financial mistakes that you will end up hating yourself for in the next decade.

    Not Paying Off Your Credit Cards

    When you get a credit card, it is far too easy to spend money that you do not have and get into debt. Many people fall into the trap of carrying over a balance from month to month. In a single year, you can waste hundreds of dollars on interest

    Paying off your credit card each month saves you when it comes to interest. It also ensures that your credit card debt does not grow out of control. If you continuously have problems paying your credit card bills, there are ways to help you. If nothing works, you may need to rethink having it in the first place.

    Not Budgeting Your Money

    Too many people put off budgeting until later in life because they don’t think it’s necessary. Budgeting does not mean denying yourself fun toys or splurges, you just have to be more responsible about it.

    You can still buy a new phone–but you have to add it to your budget. Your budget helps you figure out where you are wasting money and what you could change. Instead of wasting money on cable or coffee, you could save that money for a vacation or put it toward a 401(k).

    Once you get used to having a budget, it becomes easier to save money and hold off on impulse splurges.

    Forgetting to Invest in Insurance

    Not investing in life insurance, health insurance, and other insurances can ruin your finances.

    If you were to die today, would your family be financially secure? If you became ill, could you afford the doctor’s bill? These are questions you need to consider.

    One of the biggest causes of bankruptcy is medical debt. Right now is the time when you should be considering disability insurance, long-term care insurance, and health insurance policies. Accidents happen, and it is important to make sure that you are prepared for them as much as possible.

    Buying a Car You Cannot Afford

    A vehicle might be necessary to get you to work, but it does not have to be brand new. Too many people buy a car that they cannot afford. If they use a car loan, then they also have to pay higher costs for car insurance.

    A car payment can easily cut into your budget and your retirement plans. Once you stop having a car payment, you will find it surprisingly easy to afford things like vacations or an emergency fund.

    Skipping Your Emergency Fund

    Sooner or later, accidents will happen whether you’re ready for it or not. Your car might break down, or your child may fall ill. Life is full of mishaps, and you will most likely have a financial emergency at some point.

    Your emergency fund should have at least three months of expenses set aside. Some people have closer to 12 months, but it all depends on your situation. If you are single and can easily find another job, you might need less. If you have children and the sole breadwinner, you will need more money set aside.

    Your emergency fund should be placed somewhere that you can easily access it, but you should only do it when you absolutely have to. The entire goal of the fund is to provide you with cash when an emergency happens, so you need it somewhere that you can easily reach. You could try an online savings account or a savings account at your current bank.

    Neglecting Your Retirement Plan

    Because of compound interest, you will have more money in your retirement account if you start saving now. Plus, retirement accounts, like a traditional 401(k) can lower your tax bill in the current year.

    Social Security is not enough for a secure and happy retirement, so you need to make sure that you are prepared for your golden years.

    Forgetting to Discuss Money Matters With Your Spouse

    For your family to reach your financial goals, you have to work as a team. You need to make decisions together, this way, everyone is aware of what’s going on.

    Financial problems are a leading cause of divorce, so discussing money matters can help your relationship as well as your financial situation.

    Save Yourself from the Regret

    To reach your financial goals, you have to make sure to avoid these mistakes. By planning ahead, buying insurance, and setting a budget, you can make sure that your household is protected from financial mishaps.

    You will never forgive yourself later in life if you don’t try and financially prepare yourself for the future. It seems nearly impossible, but by realizing it now, you can save yourself a lot of trouble later on.

  • 4 Reasons Why Financial Education Is Important

    4 Reasons Why Financial Education Is Important

    Saving is the foundation of financial education. Working on yourself habit will allow you to achieve your goals and be free and economically independent in the future.

    Learning to use money goes beyond saving. That is why financial education is composed of an extensive framework of possibilities that allows the execution of actions for the benefit of different sectors of the population, associated with their needs and conditions. In fact, banks consider financial education as a central element of the financial consumer protection regime, as well as an engine for the economic and social development of the country.

    For this reason, several entities have developed their own programs for the proper management of personal and family finances, as well as for the establishment of relationships with the financial system. These are not only focused on their customers, but on the general population.And is that financial education in the national territory seems to be the ‘Achilles heel’ because to date has not been given greater relevance to this knowledge that can completely change the lives of citizens. Having this kind of concepts clear involves acquiring tools to understand not only the risks, but also the opportunities derived from products related to finance, and informed and responsible financial decisions. Due to lack of information and ignorance of the financial system, people make decisions that end up being disadvantageous.

    The little or no financial education brings serious consequences such as over-indebtedness, inefficiency in the management of personal finances, absence of savings and wrong investments.To address this problem, Asobancaria, the union that brings together banks in Colombia, has developed a financial education program that seeks to raise awareness among the population about the importance of educating themselves in this area. “Know more, be more” is the name of this program that seeks to provide tools to improve the knowledge and habits of people when managing their personal and family finances, and to establish relationships with the financial system.

    There are many reasons that define the importance of finance within which I will mention some of the main ones that will help us:

    Teach to use Resources Responsibly:

    Means the commitment to take responsibility and discipline to learn to give the right use to the money that is counted, consciously planning on what we spend. If you commit to making your budget and carry it out as you thought then we will learn to be disciplined and responsible.

    When you plan your resources, you set expenditures that you will make and hold, therefore you know that if you spend something outside of the budget, that planning and control that was made from the beginning would be totally lost, here is the importance of the discipline; the opposite would not help the anticipated projection.When you know the resource that is counted to spend and invest, avoid resorting to credits, debts, the goal is to achieve what was projected.

    Improve your Income:

    It is not good strategy to save without investing; the one who knows about finances seeks to increase their savings, looking for opportunities to invest, since it will give good returns, hoping to improve the income that is received. There are many options to invest finance teach us to know each of these opportunities.Click here for more opportunities to improve.

    Achieve the objectives:

    When plans are established and goals to be met, finances teach us the strategies of how to achieve success in the management of our money, reaching it depend on us. Nowadays, having a job is one of gratitude, there are many people who do not have that opportunity, you have it, the resource is part of your earned effort, manage it intelligently, the best place to start is in your own home, use your resources responsibly and finally as a result of this learning.

    Enjoy the Life:

    When you understand the importance of finance in your personal, work, professional and business life you will enjoy and learn to use your money correctly, not with waste and waste of what little or much you have if not responsibly .

    Hopefully you can implement the Finance in the management of your money.