Max Arias of The Wharton School Explains the Power that Fintech Startups Have
Philadelphia, PA - ( NewMediaWire ) - October 12, 2020 - Fintech startups are capable of changing the way that people access and interact with their money. Depending on what the startup does, it can be used by residential and commercial entities. Fintech, also known as financial technology, is capable of providing many benefits. Max Arias discusses the power of the startups and why they’re gaining in popularity.
Max Arias of The Wharton School, a teacher’s assistant with The Wharton School of Finance, discusses how fintech startups are helping with financial literacy. It allows people to understand what money they have, how it’s being used, and how to invest it appropriately.
With improved financial literacy comes the ability to fight wealth disparities. Max Arias of The Wharton School is a huge proponent of providing financial literacy to all groups as it can combat intergenerational disparities found within disadvantaged communities. With more fintech startups focused on literacy, it makes it easier for people to have the information they need.
Fintech is also making it easier for more people to use banks. Max Arias of The Wharton School points out that there are many people who still choose to be “unbanked.” This means they would prefer to operate using cash than to place their money into a bank. As the world moves toward a cashless society, this becomes problematic.
With more fintech startups appearing, it fills in the areas where banks are currently failing. It can offer greater convenience as people can deposit checks using a camera phone. It allows people to have faster access to their money. It can also offer faster rates of approval for everything from transactions to credit line increases. Max Arias of The Wharton School says that some of the financial tech is focused on one area while others focus on providing the be-all for a bank experience.
In many ways, fintech startups are also capable of providing a more personalized service to banking customers. The fintech is capable of learning about customers. This information is used to offer a personalized experience, ensuring that consumers have all of their needs met using the latest and greatest technology, Max Arias explains.
Another reason why fintech startups are moving forward is to reduce costs. Many people choose not to be banked because it can be more expensive to use a bank. Overdraft fees, fees for not having enough money in the account, and more can lead to hundreds of dollars lost over the course of a year. The startups focus on reducing costs – including eliminating positions out of a bank and reducing the need for brick and mortar buildings.
Fintech startups are listening to the problems that consumers have. Max Arias also explains that the startups are using technology to address the problems. Banks are using the tech in order to reduce costs, improve financial literacy, and offer a more enjoyable experience.
Max Arias of The Wharton School encourages everyone to see what the latest fintech is to see how it is making an impact in the world of banking.