Mahi Sall, Advisor, Fintech-Bank Partnerships, Payments and Financial Inclusivity
January 25th, 2023
Mahi Sall is the CEO & Founder of FinXpair, a Berlin-based strategic advisory boutique firm focu[...]
How FinTech Companies Can Help Students?
Guest Post | July 14, 2020
Technology is never staying in one place and is regularly developing. You might think that the technologies that you use now cannot be improved and that there is nothing that can be better than this, but then in a couple of days, you read a new article about some exceptional discovery, and you realize that this is not it.
Technology is an integral part of your whole life. Just think for a moment. You buy your morning mocha only with a wave of your watch, send money to a person that is hundreds of miles away from you, and complete many other money transactions thanks to the improvements in the financial technology field.
See: Can Fintech Make the World More Inclusive?
Over the last couple of years, fintech companies have been evolving extremely fast, and recently they have begun to manage student loan debt. They offer students everything that they possibly can – an opportunity to become fluent in financial literacy, loan refinancing, educate the students in the ways they can pay off their loans.
However, such companies are not suitable for every student. But the good thing is that they provide some outstanding perspectives regarding student debt.
The Next Step to Reach Financial Literacy
According to Investopedia, the term “financial literacy” stand for the ability to use different financial skills to become more self-sufficient and to reach financial stability. To be more precise, it includes the knowledge and correct usage of essential terms like diversification and inflation.
Any loan given to any person has stated rates and conditions. The same applies to student loans. And when a student has no knowledge of the key financial concepts and doesn’t understand what is going on in the loan agreement, he or she might easily get into trouble.
Fintech companies provide their clients with a chance to get more fluent in financial literacy by offering budgeting tips and various savings guides.
A Simpler Understanding of Money Management
Of course, having a basic understanding of the main financial concepts is amazing, but that is not enough. A successful student must also have at least some knowledge and understanding of his own financial situation.
How often do you ask yourself, “Who can write my paper instead of me?”. If you do this very often, and then go and find an essay writer to pay money for a paper, you are definitely not managing your budget correctly. Maybe you don’t actually realize why you spend so much money in a short period of time, but after a fintech company helps you to analyze your financial situation, you will be able to understand where all of your money goes.
It is very easy to drain a budget when you are spending on a lot of things that you do not actually need. But having a strict and set budget plan can help you a lot. If a student is familiar with his own income and expenses, it makes it possible for that student to set a limit and maybe even save some money for the upcoming planned expenses.
Post-Secondary Education
Even when a student gets help with managing his expenses and successfully graduating, it doesn’t mean that he will have enough money to get a post-secondary education. In most cases, the student simply is not able to pay for it without proper financial help.
See: FFCON20 fintech cage match: Financial planning vs literacy
According to the analysis of post-secondary tuition growth, it is rising every year, making it even harder for students to pay. Compare student loan refinance rates and consider refinancing your loan if necessary. And the even sadder fact is that the wage isn’t increasing at such a crazy rate as the tuition and fees are.
The Bottom Line
When it comes to earning a higher education degree, taking a loan is an almost inevitable thing to do. If the student loan system remains the same as it is now, students will need to keep looking for various possibilities for taking a loan to pursue their dream career.
Fintech companies provide a huge number of services and options, but their main goal is to provide any students with a chance to stay in control of one’s finances. Students don’t need to pay anything to get that possibility.
All you need to do is download one of the fintech apps and get registered. You can easily access the numerous features of your mobile phone. According to HuffPost, this is just the beginning. As time passes by, more and more fintech companies will begin to offer student loans. It is up to you to risk it or not, but loans from fintech companies is a great way to do it.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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