The adoption of digital technology is accelerating the use of financial services, which comprise engaging in conferences with financial consultants, making payments using cash, and performing transactions using ATMs. The broader term encompasses everything from payments, money management, and insurance to digital banking technology.
Financial services involve several moving parts and stakeholders like credit card processors, issuers, emerging challengers, and legacy banks. Many consumers are increasingly using digital banking services to pay from home for their services or buy products online or at retail outlets. So, startups and financial institutions are gearing up to offer this technology and expand their remote services. You can rely on Joseph Stone Capital for advice on your digital offerings.
Classification of financial services
Financial services are classified into corporate, consumer, and personal. In a recent survey, more than 75% of the respondents planned to use personal finance management tools from a financial service provider. Those bank customers using personal financial management tools are 18% wealthier compared to those not using them. Therefore, brands should form a strategy to help those customers achieve their aspirations and goals.
Importance of personal finance management
It helps individuals allocate a portion of their salaries every month for savings, prepare a budget, and spend money wisely to accomplish their goals. They need to consider payments like rent, tuition fees, credit card dues, and loan repayments, interest payments on payday loans, commuter expenses, and monthly income when preparing a budget. It helps you plan for a vacation with your girlfriend, retirement savings, or buy a new car for commuting daily to your office.
Consumers look for personal financial services when choosing a bank or financial institution. The banks should allow remote management of personal accounts. Consumers can control their finances and health through mobile apps and online platforms. The personal finance management tools offered by the banks are targeted at tech-savvy and young consumers.
Free mobile apps for banking
Some of the banks worldwide are offering mobile apps for free to their consumers. The mobile apps allow consumers to transfer funds online, make payments for purchases online or at a local merchant, deposit their surplus funds in short- or long-term certificates, book tickets online, and develop a credit history by ensuring timely payments.
The mobile apps also allow customers to request checkbooks, issue requests to stop check payments, etc. Consumers can also use banking mobile apps to request loans and open a checking account for free. All these services are possible from the comfort of your home. It allows operating the bank account from anywhere across the world.
Some of the banks based in the US offer D2C (direct-to-consumer) services like retirement planning and savings accounts through their digital wealth management services. Joseph Stone Capital can help banks offer such services in your region using its wide network of contacts. You can use the latest tools, like money management chatbots powered by AI, to analyze the spending behavior of consumers in real-time and develop your products for prospective consumers.
Consumer Finance helps customers buy their products and pay in installments at their convenience. Key players in these financial services are student and personal loan services, mortgage lenders, and credit card services.