The financial world has been seeing a lot of changes. Most of these changes can be attributed to two things. First, there was the financial crisis of 2008/9. While this crisis had many negative implications to people, it also led to many good things. The block chain industry was one of the major results of the crisis. Second, the introduction of the iPhone and the later growth of the mobile industry led to a change in the industry. For example, products like Apple Pay would not be what they are today without the iPhone. In this article, we will look at the top trends in personal finance that you need to watch.
Peer to Peer Lending
The peer-to-peer lending industry existed before the crisis. There are several companies and nonprofit organizations that used to provide these peer-to-peer solutions. A good example of this was Kiva, which is a non-profit organization that enables people to lend to one another. In addition, companies like Lending Club and Prosper were already in the industry before the crisis. What the crisis did was that it made these companies more prominent. Today, Lending Club is worth more than $1.5 billion. At its peak, it was valued at more than $10 billion. The number of companies that are in the peer-to-peer industry has increased so much, especially in Europe. The industry will continue to grow because it provides a mutually-beneficial product. Borrowers get the money that is unavailable in the convectional financial system and lenders get interest from their funds.
Online Unsecured Loan Companies
The industry of online unsecured loans has emerged as one of the fastest-growing around the world. Mobile has enabled these companies to emerge, screen their clients, and then give money. There are so many examples of these companies in the United States and around the world. Tunaiku is one of the best-known companies that offer these loans in Indonesia. Others that are well-known are Ally Bank and Upgrade in the United States. This industry will continue to grow as the need for money increases.
The banks that are well-known are brick and mortar banks like Citi and JP Morgan. The industry is seeing a lot of changes that you need to be aware of. In the United States, Goldman Sachs, which has in the past avoided consumer banking has launched Marcus. This is an online bank that has more than $55 billion in assets. In Europe, online banks like Revolut and N50 have emerged and are seeing impressive growth. In the US, there are other online mobile banks that have launched like Ally Bank, Chime, and Simple. In the future, I believe that all most big banks will enter the mobile banking industry.
Easy Money Transfer
In the past few years, there were a few methods of sending money. The most common were Western Union and Western Union. Bank transfer was also a common method in the past. However, the reality is that new companies have come and changed the industry. They have made money transfer easy, cheap, and faster. Some of the companies that are changing the world of money transfer are Transferwise and World Remit. These companies remove friction because they have bank accounts in so many countries. As a result, international recipients receive funds on the same day. Other companies that are changing how people send and spend money are app-based companies like Cash Up and Venmo. Therefore, these companies will continue to grow, driven by increased millennial spending.
The cryptocurrency industry is one of the most important inventions of our time. The industry has changed the world. It has changed how people transact. Today, many people are using crypto for their shopping than ever. As a result, other industries are coming up. For example, there are many companies that offer crypto-backed loans. The idea is simple. If you have crypto and believe that the price will go up, you can go online and borrow against this crypto. By this, you will still have your crypto. The industry will continue to grow.
Another industry that is changing is the investment world. This is an industry that allows people to buy shares easily and faster. These changes started a few years ago when a company known as robin hood was started. The company allows people to invest in shares for free. In recent weeks, the industry has changed and all companies in the United States have started to offer free trades.
The personal finance industry will never be the same again. In the coming decades, we will look at the current financial industry and consider it ancient. It is therefore very important for you to understand these trends and align your finances properly.