Technology has changed every aspect of human life. People can now interact with friends and family, sometimes tens of thousands of miles away, and get instant feedback through social media platforms and emails. Businesses can now advertise their products on Facebook and Instagram and get instant feedback from their consumers. The birth of the internet barely two decades ago has worked its way through our mobile wallets and portfolios. It is possible that you have one financial tech tool at your fingertips, given the many investing applications, budgeting apps and mobile banking apps that are available today. Financial technology is growing at an exponential rate.
In 2017 alone, the global investments in financial technology went up to the tune of $31 billion. This is according to a recent survey that was conducted by the international audit firm, KPMG. In many ways, the rise of money automation and digitization is a positive idea that can help people across the globe improve their financial stability. According to Jason Raznick, financial technology is the art of making the banking system work better for its consumers and helping customers lead a better life. Just a decade ago, most of the financial tech tools, that are now available in the market, were just a reserve for hedge funds, big corporations and oil companies. Financial technology has made investing even more accessible to the average Joe.
There is a myth that has been perpetuated throughout society that you need a fortune to get started with fintech tools. However, this is not true. Some fintech applications such as Stash, Robinhood and Acorns only require you to have $5 to get started. Anyone who wishes to continue investing can have it as easy as making the regular day-to-day purchases. For instance, when using the Acorns commercial application, you will have to connect your application account with your bank account. The app will round up the layout automatically whenever you swipe the credit card or debit card that has been connected to the account.
The application will also move your change from the checking account into your brokerage account that is finally invested into the selected exchange-traded funds. You will only be charged $1 for every month that you use the Acorn application. Other financial tech applications like Robinhood are free, and you will not be charged any fees for options and stock trading. The Stash app charges a monthly fee of $1 for any account that holds less than $5,000.