Bing! Check Your Phone: The Fin-Tech World Is Upon Us

About a decade ago, my son called me and excitedly described a new internet financial world he and others had glimpsed. It featured digital money called bitcoin. I lacked his enthusiasm. Since then, I have watched crypto currencies come and go but also have noticed the world remains keenly interested in financial technologies, like cryptos, that serve the underserved or meet special needs.

Underserved needs: India, Kenya and Uganda are among the developing countries that have found that digital currencies and mobile-phone banking transactions are proving essential in advancing their economies, especially in remote areas. Villagers now can access banking and financial services via cell phones. Via apps, they can receive digital payments like paychecks, pensions or government welfare, and then order goods and services, and pay for them promptly. No more long treks to the nearest bank for cash, plus the danger of mail fraud or criminal holdups when dealing with paper currency is dramatically reduced.

Special needs: Imagine you and I share an investment, say ownership of a landmark building, along with thousands of other people. Our ownership is recorded on a digital token or held electronically in a secure digital lock box. When we’re ready to sell our interest, we use a digital connection on the internet to offer our ownership interest for sale. Throughout the world, interested parties are informed and can make digital offers. When you sell, all the title work and proof of sale is digitally recorded, transferred and stored.

Crowdfunding is a precursor to this.

Thanks to the cell phone, internet and creative software applications, your entire financial life can be now managed in the palm of your hand, from paying for dinner to making stock trades. In fact, all your personal financial information can be securely locked in a digital safe and accessed only by you via your smart phone or computer.

If you want, artificial-intelligence programs can create a unique personal profile that tracks the internet for news and information on any subject you select and immediately alerts you when a development occurs. For example, if you are interested in funding an education trust for your kids or grandkids and legislation is being introduced that would make such a gift subject to more taxation. Bing! Your phone alerts you.

AMG is intently watching as this digital world continues evolving so we can better help clients capitalize on it. Right now, we are exploring BaaS (Banking as a Service). A digital world of companies is out there creating new online products covering a plethora of financial solutions. We’ll keep you posted.