5 Financial Technology (FinTech) Products and Banking Arrangements
Learning Objectives:
- Understand automated transactions.
- Learn how to set up accounts for particular goals.
- Explore the different apps to track spending.
What is Financial Technology (FinTech)?:
“FinTech (financial technology) is a catch-all term referring to software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike. FinTech can include everything from straightforward mobile payment apps to complex blockchain networks housing encrypted transactions” (Columbia, n.d.).
Automated, Scheduled Money Transfers to Your Savings Account
The Electronic Fund Transfer Act (EFTA) of 1978 (15 U.S.C. 1693 et seq.) is intended to protect individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers. With direct deposit or electronic fund transfers (EFTs), the general public, government agencies, businesses, and other institutions can pay and collect money electronically, without having to use paper checks. Direct deposit (EFT) is safe, secure, efficient, and less expensive than paper check payments and collections (Direct Deposit, 2023). “The Automated Clearing House (ACH) is the primary system that agencies use for electronic fund transfers (EFTs). With ACH, funds are electronically deposited in financial institutions, and payments are made online” (Automated, 2023).”
Watch the video:
Setting up Accounts for Particular Savings Goals
Watch the video:
Here are the steps to a SMART savings goal:
- S = Specific. What are you saving for? Create an emergency fund.
- M = Measurable. How much do you want to save? $400.
- A = Attainable. Is this realistic? Is it doable? Yes, if I earn more and spend less.
- R = Relevant. Is this worth saving for? Is this…
- T = Time-bound. When will you meet the goal? In 5 months (20 weeks)
Now, try the SMART Savings Goal worksheet.
Apps to Track Spending
Here are some suggested apps from academic institutions to track spending:
Key Takeaways:
- The Electronic Fund Transfer Act of 1978 is intended to protect individual consumers engaging in electronic fund transfers (EFTs) and remittance transfers.
- Several budgeting apps are available to download on different devices, such as tablets and smartphones.
Please Provide Feedback
What is one tip that you learned from this chapter?
References
Automated Clearing House [ACH]. (2022, December 23). U. S. Bureau of the Fiscal Service. https://www.fiscal.treasury.gov/ach/
Columbia Engineering. (n.d.). What is financial technology (FinTech)? A beginner’s guide. Columbia Engineering Boot Camps Blog. Columbia University, Fu Foundation School of Engineering and Applied Science. https://bootcamp.cvn.columbia.edu/blog/what-is-fintech/
Direct deposit (Electronic Funds Transfer). (2023, January 30). U. S. Bureau of the Fiscal Service. https://www.fiscal.treasury.gov/eft/
