America is facing huge inflation and with it a cost of living crisis. According to the World Economic Forum, food prices have surged 9.4% over the past year, to April, and other costs of living indicators are rising – and only set to rise further. Every party within the financial sphere is looking for ways to ease the malaise, and that includes banks, who are using fintech to deploy measures that they hope will help their customers.
Money management
While the cost of living crisis is obviously squeezing budgets everywhere, there is a lot more than the average consumer can do to manage their money. Forbes highlights a range of apps that use open banking to help create budgets; this, in turn, helps individuals to keep hold of more of their hard-earned cash, and to start saving. Despite the downturn and the crunch on salaries and cost of living, it is still important to save – arguably the only way to help climb out of long-term financial distress. Budgeting and saving apps are key to achieving this, and fintech will continue to play an important role.
Reforming insurance
According to Deloitte, one of the most important reforms coming from the fintech sphere concerns insurance. Insurance is a huge business in the USA, and premiums are rising across the board due to the impact of extreme weather, wage volatility, and other factors. Fintech is changing insurance by allowing a more granular approach to coverage. It allows insurance agents to target very specific user data and provide fully comprehensive and bespoke insurance packages, helping customers to minimize costs.
Improving the technology
There are also measures that fintech companies can take to help improve the situation for their customers – without promoting specific features. American Banker highlights particular infrastructure improvements, such as tech that MasterCard has put in place to improve payment assurance – reducing the amount of bounced transactions each day. This should help in easing the rate of failed transactions, allowing consumers to establish their financial position.
In the world of tightening budgets and inflation, having a solid financial base is important. Sometimes, just providing consumers with the information they need to make informed financial decisions can make a world of difference. Fintech helps by providing that solidity and improving technology for better times.
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