High Tech or High Touch? The Value of Keeping Personal Finance Personal
News Fintech is a great tool for meeting you where you are, but there is no substitute for the value of a human touch when it comes to managing your unique financial situation.
When it comes to your personal finances, financial technology, often referred to as fintech, is booming. It is revolutionizing the way we spend, borrow, save and invest our money, while also enhancing our ability to absorb and retain personal finance information.
The Fintech Revolution
New technology is literally able to meet you where you are. Technology is revolutionizing:
Budgeting: Financial tools like Mint or You Need a Budget allow you to track your spending, get out of debt or save more money.
Borrowing: Organizations like LendUp are offering alternatives to payday lenders.
Saving: Apps like Qapital allow you to round up spare change and move that money into savings or Digit, which helps you automatically set aside savings each day based on your income and spending.
Investing: Micro-investing tools like Acorn make it easy to round up everyday purchases and “invest your spare change.”
Education: Websites like NerdWallet and Centsai deliver financial education and knowledge to consumers in an engaging way through articles, video and infographics.
“When high tech is integrated with high touch... we create access and opportunity.”
The key is to communicate in a way that is engaging and understandable. So with all of this new innovation, what is the value of meeting with a financial professional such as a counselor, coach or planner? When it comes to high tech versus high touch, there is value in both – and the greatest value is in the integration of the two.
The Value of Human Connection
Human beings are intrinsically unique and nuanced. As individuals, we all have different wants, needs and goals. We come from different races and backgrounds; we practice different religions and have different political and philosophical views. Even technology increasingly focused on behavioral science still lacks human connection – someone who understands that, at the end of the day, money affects every aspect of our lives.
This is where meeting with an unbiased financial counselor or coach can help you. With a coach’s help, you can more effectively utilize these tools to build a strong financial foundation that addresses your unique situation and needs.
“We invite fintech providers to ... help bridge these gaps.”
A financial counselor can help you identify and modify ineffective money management behaviors and build healthy money habits that can lead to financial freedom. A financial coach can collaborate with you to devise a plan that works best for your needs.
Once you have a strong financial foundation, a financial planner can set you on the road to building sustainable wealth.
When high tech is integrated with high touch from highly trained, experienced and ethical financial professionals, we create access and opportunity. As financial technology continues to evolve, we invite fintech providers to partner with nonprofits and financial professionals and help bridge these gaps. This will help ensure that all people, regardless of income or background, have the opportunity to achieve their own unique life goals and experience lasting financial well-being.