Hello, and welcome back to the Joyful Dividends Blog! My mission is to help investors and alpha seekers like you to – Make More Money. Today, I have an interesting topic that you probably would have heard a lot about. Yes, it’s right there in the subject header – FINTECH!
Similar to the industrial revolution of the 1800s and the growth of the Internet in the late 1990s, newest trends today in AI and Fintech will open up money-making opportunities for smart investors who are “in the market”.
Before we dive in more deeply into the applications of Fintech and it’s immense income generation opportunities, let’s explore this topic a little more.
Fintech In 2 Minutes
Unless you have been sleeping under a rock, you would have heard about this term.
To put things simply, Fintech is the use of technology to declutter financial transactions. Some benefits from Fintech include lowering costs of everyday transactions for both people and businesses. Barriers to entry into once traditional and highly regulated banking industries will also be lowered – which means more innovation, accessibility, and transparency for end consumers, which can only be good for consumers like you!
In the coming years, some areas of banking and finance would encounter immense and rapid change. These include:
- Deposits and Lending Online
- How Companies Raise Capital for Growth
- How Investors Invest Money for Returns
- How People and Business Transact – Pay and Receive Money
- How People Purchase and Use Insurance Policies
Opportunities To Make Money
Other than trading bitcoin and ethereum, fintech companies have opened up a host of opportunities for the everyday investor to make an additional income.
Such opportunities are hard to spot if you lean more towards traditional banking. Here are 2 of them to get you started:
This simply matches people with money, to those who need or want money. Those who want money can be either people or businesses – with ideas.
By cutting out middlemen like banks, it becomes easier for people with money to engage with people who want money.
Successful investors in crowdfunding can expect to make more than 10% return on capital a year. This is certainly way better than the poor savings rates offered by banks, who have a weak lending appetite.
As investors however, you need to take note of the risks involved in this innovative lending option. Make sure that the Fintech company you deal with is licensed by the relevant regulatory authority in your country. Also try your best to perform due diligence and verify information you receive regarding your potential investments.
Robo-advisors are online investment services that helps you select an investment portfolio based on your risk appetite.
Some benefits of engaging a robo-advisor include:
- Lower costs of investment management (ranging from as low as 0.5%), as compared to traditional wealth managers
- Low minimum balances required to start investing! If you are a newbie to the confusing world of investing and wealth accumulation, robo-advisors can be a good first step. You can start off with as little as $1,000 at some firms, and achieve your first investment returns. Do check out available robo-advisors in your area!
- Algorithms. When you take the human factor out of investing, it becomes more systematic. By relying more on investment models, human emotion and error is reduced, which can be beneficial to enhancing your returns.
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If you want an easy way to get started investing and compounding your returns, check out the robo-advisors! Remember, one of the most important factors to accumulate wealth is to start early and compound your returns.
More opportunities to make money have become available with Fintech.
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Featured Post Credit: Monito