When you consider how money has evolved throughout time, it’s amazing how the world has gone from bartering goods, minting gold and silver coins, printing cash and now to plastic cards and digital payments. When finance first started going digital, there was a lot of skepticism over the security of banking, and potentially what more artificial intelligence and robots would do to economies because of it. It turns out digital payments and electronic money transfer services have added more opportunities than what was originally thought to have been possible, and there are several ways they can make your life easier.
Saving Trips To The Bank With Banking Apps
Instead of spending time having to go through the paperwork and questioning of a brick and mortar bank official when you go to sign up for an account, a digital banking app can substitute. These banking apps are about as easy to sign up for as they get. You just go to their website, fill out their application and you usually get approved for an account very quickly. Most online banks send plastic debit cards and allow their customers to make cash withdrawals from ATMs, and others have even included cash deposit methods through third party services. But online banks also allow for direct deposit from employers or clients who are paying you for short-term services. The bottom line is you can go completely digital in banking and feel you have more control financially.
Using Electronic Budgeting Technology
With digital money management also comes the need to place various limits on it and set goals for using it. That’s what budgeting apps allow by monitoring how much take-home pay you’re bringing in and making sure it’s being allocated wisely to your expenses. Most people feel more than willing to budget but don’t do it because they don’t feel they have the time to write things down on paper, do a lot of math, and run the numbers over again. Digital budgeting apps do a lot of the work for you by taking your financial data and organizing it for you. They can even convert it into spreadsheets and charts if you want a good look at how you’re doing with your goals.
Sending Money Rapidly To Friends Or Family
There are many occasions where work or school can take someone overseas and far away from their families or friends posing some challenges if they need to support them financially. This is true, especially for citizens of emerging economies like India or the Philippines. As a matter of ensuring they don’t lose their money, they can’t send cash, and sending paper checks or money orders can be a slow process because of the time and logistics involved. But with the ability to make digital payments, you can transfer money to your home country seamlessly. If you are an Indian, you can learn how to transfer money to India and get around the old obstacles to getting your money there on time. Various transfer services allow you to send money directly from a bank account, a prepaid debit card, credit card or even cash if you do it through a local agent. And most of these services take exchange rates into account, although the person you’re sending to may still be subjected to local taxes if they are making a cash withdrawal. You can decide how you want to send and how the recipient will receive your money, but the fees can be greater for cash pickup transfers as opposed to ACH bank transfers.
Borrowing Money From Lenders Around The World
The rise in online banking and money transfers has also brought about new opportunities for business funding including peer-to-peer loans and online microloans. If you’re starting up a business but can’t or don’t want to apply for a massive bank loan right away, peer-to-peer lending platforms can connect you with investors who can work with your specific financial situation. Even if you are located overseas, they will usually be willing to loan you money transferring it directly to your bank, or sometimes through an online merchant account or P2P payment system. You also usually need to be able to pay them back electronically. It is important to note that P2Ps cost a bomb in interests if you don’t pay them on time. It is always good to keep this mode of borrowing as the last resort.
Investing In Different Funds
Digital banking and transfers have also opened the door to different investment opportunities. It’s possible to use an investing app and open a brokerage account and have a bot advisor offering assistance on where you could invest your money. Or, if you’re looking for some alternative investing opportunities, you might consider using a crypto trading platform to buy into cryptocurrencies and take on a little more risk. Basically, investing electronically can be done from just about anywhere in the world using digital banking and transfer services so long as the investments you want are approved in your country.
The bottom line is you can move money around in more ways than ever and don’t have to worry about foreign exchange barriers as much these days. You just need to make sure you’re using highly reputable and secure financial service apps.
