How is social media changing the way FinTech works?

April 27, 2021
Jacques Potts

 

 

Nowadays, anyone on the social network can send money to the US, UK, Canada, Australia, and Europe thanks to the influence of social media.

Social media greatly influenced FinTech, which made the world of finance change. A good example of financial services is the so-called chatbots, most of which are found on social messenger platforms today.

People are becoming used to what is easy for them, and social networks are moving toward replacing banking systems with their own services for users. Financial companies and private businesses, in turn, have come to understand that the user can be offered a product on the pages of the social network, which they will pay immediately.

For better understanding how social media changed the way of Fintech work, in China, there is WeChat, a smartphone app that serves not only as a messenger, but also replaced a social network, a dating platform, a Skype, Instagram, and Internet wallet, and a translator for the Chinese. You can send a text or voice message, record a video, make an animation, or send money via social networks.

WeChat has its own payment system, which allows you to pay for products with your smartphone at any kiosk. Additionally, most of these kiosks do not accept credit cards, but WeChat does.

In the meantime, there are specialized social networks whose primary purpose is financial services, especially investment. People may talk about economic issues, build investment portfolios, and make decisions about them, resulting in increased investment capital.

As a result, the eToro network operates on a global scale, with more than 6 m million registered users from 140 countries and thousands of new accounts being generated every day. This social network enables users to interact with one another, copy trader activities, and monitor their behavior, allowing them to profit from their knowledge.

In general, the evolution of the financial technology industry is inextricably linked to developments in the financial markets. Every third trader trades on social trading sites, and every second investor now uses social networks to prepare trading strategies.

As a result, investors are rapidly pursuing social media platforms, which provide the opportunity to provide feedback, as well as reliability and confidence in the services.

Nowadays, we can say that investing is becoming more clear for society, and money transactions are becoming quicker and less expensive.

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