These Four Fintech Companies Are Changing Personal Finance Right Now

These Four Fintech Companies Are Changing Personal Finance Right Now

Remember what the internet did for travel? It opened it up to more people and made it easier. Instead of needing to hire a travel agent to plan a trip, we can do it ourselves for free. That’s what financial technology, or fintech, is doing for a lot of areas of personal finance.

We don’t have to spend hours on the phone to find the best student loan refinancing or insurance rates. We don’t have to give our friends cash or gasp! write a check to them when we split the dinner bill, and now instead of having to read dry books or hire a financial advisor to teach us how to manage our money, there are great resources right at our finger tips, just a click away.

These are four companies making a big splash in the fintech world.

Cover

Shopping for insurance isn’t typically fun but with Cover, it almost is! Cover is an app that allows you take a picture of your car or motorcycle, smart phone, pet, jewelry, home, boat, and several other things too, upload it, and receive quotes for the lowest rate to insure it.

They work with the big insurance companies, GEICO, Progressive, and TD among others, and constantly monitor rates to see if they can get you an even better deal. You make an account, choose what you want to insure, upload a photo answer a few questions and that’s it! A quote will be texted, e-mailed, or phoned to you.

Venmo

Have you ever been out to dinner with a group of friends and when the check comes it takes longer to sort it out than it did to eat the meal? Not everyone has cash, no one has change, and someone forgot their wallet.

Venmo is here to solve this problem of modern life. Venmo is a mobile payment app that lets you receive and send money from a linked credit or debit card or your checking account. Both sender and receiver need to have accounts.

To send money, open the app, click the pen in the top right corner, choose the “Pay” option, enter the amount, what it’s for, and to whom the payment is being made from your phone or Facebook contacts, add a note describing the transaction (like the memo line on a check), and click “Send.” That’s it!

There is no fee to use your debit card or checking account but there is a 3% transaction fee if you use a credit card.

LendEDU

If you are struggling with student loan debt, you may have considered refinancing. But you might have been overwhelmed trying to compare the best rates and terms. That’s where LendEDU comes in.

They don’t refinance student loans, they allow you to compare rates of companies that do. You fill out just a single application and you can compare up to a dozen different lender’s rates.

Using LendEDU is free and won’t affect your credit score. The company does a “soft pull” which doesn’t show up on your credit report the way a “hard pull” (applying for a credit card for example) does so there is no risk involved.

SmartPath

I think we can all agree that personal finance education is lacking. Most of us don’t learn it at school and if we don’t learn it from our parents, where can we learn it? SmartPath is taking personal finance education into the work place. Better late than never!

SmartPath is an app that employers can offer to employees to help them take control of their finances. They offer webinars, seminars, and pre-recorded lessons on a range of personal finance topics ranging from how to start investing, to how to start a side business, to negotiating for a raise.

Why would an employer bother teaching their employees good personal finance habits? Because when employees are stressed, and money is a big source of stress for many of us, they are less productive. Helping employees get a handle of their finances makes for better, happier, more productive employees.

There is even a competitive element to SmartPath. Employees can compete with each other which helps encourage participation and engagement. But employees don’t disclose anything publicly about their finances; progress is just tracked using a points based system.

Fintech is the Future

Many of us have improved our finances using companies like Betterment, Mint, and Nerd Wallet. Those companies have changed the way we live our lives and handle our money. LendEDU, Cover, Venmo, and SmartPath are poised to be part of the next big fintech wave.

 

This post was brought to us by Ben Kenny. Ben is a freelancer writer who specializes in personal finance. He took an interest in fintech companies after seeing how pivotal they could be for general everyday finances. Now he specializes in writing about these companies and their services as a big believer in their ability to improve financial literacy and overall financial health.

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