Many financial institutions are turning to digital technologies, which provide many advantages both to the institutions themselves and to clients. Firstly, companies can conduct financial transactions faster. Secondly, IT technologies provide the latest mechanisms for protecting data about customers, transactions, etc. In addition, financial technologies make it possible to carry out any financial transactions in any place and at any time. Such convenience and simplicity of fintech will suit both young and older audiences.
In the UK, 11% of people over 65 years old use mobile apps for pension benefits and information, while 61% of people from 55 to 64 years old prefer websites for pension information, according to one study.
How does fintech help retirees get their money quickly and safely? Why is fintech a profitable solution for users of all ages? The answers are in our new blog post.
Tech-Savvy Retirement: A Deep Dive into Fintech Solutions for Financial Independence
Harnessing AI for Optimal Retirement Solutions in Fintech
Technological innovations in retirement payment and management have a key role in improving financial transactions. In particular, fintech offers a more personalized payout experience for retirees. Personalization of fintech services is provided with the help of artificial intelligence, which collects data about a client, expenses, taxes, periodicity of pension payments, etc.
The Plaid payment platform, which our developers worked with is a prime example of an AI-powered fintech tool. It’s a large storage that allows companies to create web-based fintech solutions. The main task of this platform is to connect users’ accounts in fintech solutions to the financial services they wish to choose. Plaid has a convenient, intuitive interface that allows a beginner to quickly navigate and use it to perform financial transactions. The platform is also made convenient by AI algorithms that simplify access to financial data, which also helps companies create reliable and convenient FinTech solutions.
Exploring SaaS Solutions for Fintech Retirement (based on Groovv)
Another benefit fintech offers to the pensions industry is improved pension management. In the field of fintech, a considerable number of web solutions have been developed that allow companies to pay retirement payments to their employees faster and more securely. Groovv SaaS platform is such a case. In this platform, businesses register and conduct retirement payments to their employees. In addition, this platform offers capital investment services to increase the income of its employees. And, accordingly, the employees/platform users can act as their investors. They can also accrue retirement benefits from their bank account to their Groovv account. In the future, these payments can be requested. Upon request to the platform, the employee can withdraw some or all of the funds. This is how the accumulation system works: from the side of the business to the employee, and from the employee to themselves.
The development of the financial SaaS platform lasted 2.5 – 3 months. Our team with a client from the USA, thought out three Groovv’s business models. We chose the third, last model of work, where we used third-party services to maintain the balance and create withdrawal functionality. According to project manager Serhii Bezdieniezhnykh, storing data on third-party services is more legal for fintech platforms, especially when they are designed for an international audience.
“According to many countries’ laws, we don’t have the right to keep customers’ bank information on our side. Otherwise, you need to get a lot of permissions and licenses to keep such information. But it’s a very tiring and very long process. Therefore, third-party services are used,” Bezdieniezhnykh said.
In a selected business model, the validation of each financial transaction is carried out manually with the help of an administrator. A user makes a request, the administrator checks it, approves it, and sends it to the user. This business model makes financial transactions in Groovv as safe as possible.
Exploring the Role of Online Banking in Fintech for Retirement
Online banking is a universal solution for conducting financial transactions among people of any age. In one of our previous blog posts, we raised the issue of mobile and online banking and how it affects the loyalty of customers of financial institutions, particularly young people.
Speaking about online banking for retirees, again, using an online cabinet for financial operations is easy, accessible, and fast. Retirees don’t have to go to real offices and submit documents to receive pension benefits. Using a smartphone application, the user can carry out financial transactions at any time without leaving home.
“You get flexibility and convenience. Online banking allows you to view your account balances, pay your bills, locate ATMs, transfer funds, and even deposit checks all while on the go, 24/7. If you can’t get to a branch during service hours, online banking gives you alternative ways to handle your banking needs,” said Heather Almand, Digital Insight Communications Manager.
Popular online banking solutions include Ally Financial, Digital Insight, SoFi, etc. In particular, Digital Insight is popular for its innovative mobile and web solutions in online banking, and virtual bank Ally Financial provides the opportunity to use the platform without an additional monthly fee.
The Game-Changing Advantages of Fintech for Retirement
- Automation. One of the main advantages of fintech is the automation of a considerable number of financial transaction stages. As it has been mentioned above, digital technologies significantly reduce the time of document verification, approval, and transfer of funds. Thus, financial process automation ensures fast and accurate retirement payments without delays and errors in the process.
- Electronic application and confirmation. Instead of paying numerous visits to different authorities to submit the necessary documents, the user can simply submit electronic documents through the account to a financial web or mobile application.
- Cyber security. Data protection and transaction confidentiality are key components of any fintech solution. So, here the fintech field offers quality solutions and algorithms, such as authorization mechanisms (password, fingerprint, device recognition and verification, face scan, etc.), databases and archives with protection mechanisms, and AI algorithms that detect fake data, etc.
Fintech has already had a significant impact on improving retirement services and pension fund management. The main reasons for the popularity of fintech are the convenience and speed of submitting e-documents, data reliability and security, financial transactions automation, and speed of transaction approval and execution. In addition, fintech with AI allows you to track every transaction, simplify access to the necessary data, and detect data fraud.
Thus, fintech’s ease of use allows retirees to quickly adopt modern technologies and make them a part of their everyday lives.
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