The Landscape of Financial Technology Tools

November 12, 2018 by Rocco Pasternak

There are countless financial technology tools and products in the world that are working to help everyday people manage their finances and save for retirement. It’s almost impossible for the average person to make sense of them all, let alone understand which products could provide the most benefit.

Many of these new “fintech” companies fall into two categories (with many nuances). The first category are firms that offer traditional financial products, but modernized for our digital world. The second are firms that strive to teach financial literacy and/or create financial behavioral change through their product.

The first category could be classified as the modern or digital bank. These firms offer customers the utility of financial products, but just glossed up for the savvy millennial tech consumer. The only differentiation between many of these “digital bank” firms and products is through how they position their brand and market themselves. The firms that fall into this category like robo advisors, P2P lenders, and money transfer companies serve to provide a traditional service in a more seamless/modern way through technology.

The second category could be described as firms that strive to provide tools to help with financial literacy while also encouraging positive behavioral change. This could be through content, incentives, data insight and/or gamification. Companies like Mint provide insight into your spend while also encouraging saving and investing goals. Firms like Learnvest serve to provide compelling content to drive financial literacy.

It isn’t common for a financial technology company to tackle both categories: providing financial products while simultaneously encouraging positive behavioral change. Stash Invest is excellent because it allows an investor to purchase traditional financial products (packaged in an innovate fashion) while also striving to encourage behavior (the ability to set scheduled deposits and investments in stocks). Namu Financial aims to encourage positive change while also providing traditional financial products, which provides a bit of an edge in the financial technology game. Want to learn more?

 

Get Namu today to help with your finances!