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It’s always a good idea to save money, especially when it takes you no effort to do it.
Today you can save quite a few coins simply by using the right tech. If you haven’t used specialized fintech apps to help you with this before, now is the time to start.
Millions of people clearly understand this as the usage of such solutions has increased by 72% in 2021. No doubt, it will continue to grow until everyone using gadgets starts using these apps as well.
Let’s have a look at the best 6 types of Fintech apps that can help you save money.
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Best 6 Types of Fintech Apps for Saving Money
1. Budgeting Apps
Planning your budget and monitoring your expenses are both essential tasks for surviving in the modern world. For a long time, doing this included going over multiple paper receipts, notes, and spreadsheets. Is it any wonder that so many people fumbled around without a budget and therefore failed at managing their money?
Budgeting apps solve these problems. Using this kind of mobile app makes planning a budget an easy task. You can also track all your expenses effortlessly. Any app worth its salt today can integrate all kinds of receipts in moments. It will also provide you with diagrams of your spending and show how you are faring against your planned budget. All in all, monitoring and managing your money will become so easy, you can teach kids how to do it.
When you look into the best budgeting apps of 2021, consider what your priorities are. For example, Mint is the best among free apps because it offers many handy features. However, you’ll be annoyed by in-app ads every step of the way. Paid solutions, like EveryDollar, allow you to disable ads if you are willing to spend about $10 a month. That kind of app will also come with a much better customer support service.
2. Investment Apps
Investment apps available today are versatile. They range from simple portfolio management apps to robo-advisors that guide you to the best investments. These apps are most popular among millennials today. It’s not surprising because this fintech aims to help you make money on trading. The most important thing about these apps is that they don’t require you to have a huge fortune.
The majority of top apps don’t even have an investment minimum. This means that you can start small and grow your returns little by little. Even without a professional understanding of the investment and trading industries. These apps help you make smart choices and minimize risks.
This type of fintech is mostly driven by machine learning. It’s based on the services offered by personal investment brokers. However, unlike hiring a living breathing professional, the machine is doing all the predictions and selections. It also automates much of the investment process. Therefore, the user only needs to do minimal research and click a few buttons to purchase or sell stocks or assets.
However, remember that each app offers unique features and advantages. For example, Wealthfront is renowned for its financial planning feature. Acorns, on the other hand, is effortless investing of your loose change fit for complete beginners. There are also solutions like Vanguard for mutual fund investors.
3. Money Transfer Apps
Making and accepting money transfers from abroad is now as easy as it’s cheap. And it’s all thanks to money transfer apps that offer an alternative to expensive bank wire transfers. This type of fintech revolutionized small business as well as the investment industry. It’s because of these platforms that even small companies and entrepreneurs now can afford to accept payments from customers or pay suppliers overseas.
Do note that there are many types of payment processing apps. For example, the most popular option that comes to mind when thinking about international money transfers is PayPal. However, if you look closer at the terms and conditions that this digital payment processing platform offers, you’ll see that using PayPal for money transfers isn’t the best idea.
On average, you will lose about 4.5% of the transfer amount using PayPal. With banks, an international wire transfer can cost you anywhere between 3% and 7%. Depending on where you send your money to, the cost might get even higher. African countries have it the worst as transfer there can cost up to 12%. The UN made it a priority to lower the cost of international money transfer costs, and fintech helps with that.
The apps that can really help you save money are platforms like Wise (previous Transferwise), WorldFirst, OFX, etc. You’ll need to study a list of the best international money transfer apps today so you can pick what’s best for your needs. Bear in mind that this is a fast-growing industry. Its projected market value growth is 11.75% by a CAGR in years 2019-2024. Companies within the industry evolve and start offering new services all the time.
Their terms also differ depending on the transfer destinations. Therefore, the first thing to do for you is to find services that offer transfers to/from the countries you need. Next, compare their FX rates and fees. But also, you’ll need to check what kind of additional services they offer. Money transfer apps today offer hedging tools and FX advice and other useful services that can help you save more money in the long run.
4. Digital Banks
Digital banking, also known as online banking, is a type of fintech service that can truly revolutionize the world. Online banks are rapidly becoming consumer favorite. In fact, according to predictions, 3.6 billion people will use these services by 2024.
For all intents and purposes, online banks can be a substitute for traditional banking. In fact, these services are so effective and well-liked by consumers that all top brick-and-mortar banks now are offering online banking services. Otherwise, they would have become obsolete.
The best digital banks offer the majority of services that traditional financial institutions do. However, they often have better terms and interest rates for savings accounts. They often charge lower fees and offer a variety of extra services, like cashback or discounts from partner businesses. Ally Bank, for example, also offers online brokerage services. There is also Schwab bank that doesn’t charge fees for using ATMs, therefore is a great choice for travelers. Another good example is Chime, an online-only service with great savings options and an early access to your paycheck.
Most importantly, these apps allow you to monitor and manage your bank accounts using a simple smartphone app. This software can be synched with your budgeting app to help manage your money even better.
5. Insurance Apps
Along with digital banking, today is the era of digital insurance apps. This type of fintech is highly beneficial for everyone who wants to save money and still use insurance. These apps offer lower premiums, which is their main advantage.
They also make it much easier to file a claim and manage all the paperwork involved. Everything is digitalized and automated, which means you can get your payouts faster. Also, there is a lower risk of fraud as the claiming process is mostly automated. For example, Lemonade, one f the most popular apps, uses A.I. to process claims. And a popular digital car insurance app Metromile also provides an app that can help drivers keep their vehicles in top shape and report if the car is stolen.
Insurance apps make policies more easily accessible. Note that digital insurance companies usually collaborate with conventional insurance providers.
6. Tax Filing Apps
Tax filing software is already here, but it’s still in the nascent stages of its existence. Therefore, the apps available today may not be the most reliable. This means you need to choose them with extreme care and double-check the reports they generate. Top options today are Turbotax by Intuit, TaxAct, TaxSlayer, and H&R Block Deluxe.
Already, this type of fintech is making a splash. It can help you save money by removing the need to hire a professional to manage your taxes. Even if you are doing all this on your own. The app can help by making the process easier.
However, the most important advantage of these solutions is that they should help you find more ways to find tax returns. All in all, the purpose of these apps is to ensure you get access to all the benefits, and even loopholes, that the taxation system can offer. And you get to do this without risking to make a mistake that would get the IRS after you.
Use Tech Wisely and Stay Tuned
Money issues cause a great deal of stress for the majority of people. Therefore, using every opportunity you have to save money is essential.
Today you can increase your savings with the help of fintech apps. Those range from tools to help plan a budget to solutions that allow for cheap international transfers.
You should understand what kind of fintech exists today to see opportunities it opens to you. With the help of these apps, even beginners without a large fortune can become investors and traders.