With Fintech, the financial sector has undergone tremendous changes due to current global technological innovation. Fintech companies contribute to business digitization and create new solutions for end-user problems, leading to greater profitability and efficiency for companies in the financial and banking sector.
Challenges the banking and financial sector
One of the challenges for the banking and financial sector is the diversification of financing sources, in which crowdlending platforms are presented as an alternative to the lack of banking agreement and strict controls to access loans through the traditional system; the solution must be fast, simple and digital so that businesses with large turnover can access investors or useful sources of financing.
Another challenge for the sector is to improve digital banking through technology; this has led consumers and entrepreneurs to interact with their bank only by digital means; thus, many banks “strive” to offer their clients services high-quality digital products with added value.
Explain without resorting to numbers
Explaining a product in finance without resorting to the numbers can be difficult, but not impossible. Topics such as risk, rewards, percentages, earnings, savings, etc., can be difficult to convey or teach without resorting to numbers.
The question arises: Why so? Because in this way, the magic combination that opens doors to financial education is discovered, and in this way, the right to establish a relationship with people who are currently ignored and misunderstood, or that the current competition by using an “elitist jargon “Or” numerical ” makes these people feel different, misunderstood or that they are part of the same environment.
Financial illiteracy and the rejection of numbers
Financial illiteracy and the rejection of numbers originate from the current educational system. Academic intelligence is given priority, and other important branches such as social, emotional, spatial-temporal, linguistic intelligence, etc., are neglected.
Many educational systems reward the person who masters mathematics or numbers while they tend to punish or belittle people who do not like mathematics; this generates a very high rejection of numbers by many students. Another problem is that in several educational systems, personal finance and how it can affect an individual’s day-to-day life is not taught. There are times when the educational system can be so far removed from reality that a person may have graduated in Economics and Finance, but at the same time, has serious deficiencies when it comes to managing his or her own personal or family finances.
Behavioral science must be taken into account to understand where to look in this awakening of financial and number literacy. When looking towards the financial literacy solution, it is difficult to question the power of storytelling, which has worked in many life areas: from religion, politics, business to social gatherings. Financial narration or storytelling is a good alternative for Fintech companies to explain a didactic and simple financial service.
For example, the parable of the talents in the Bible simply explains the importance of saving and investing; on the other hand, the fable of the hen that lays the golden eggs explains the importance of understanding how wealth is created and how we should avoid making decisions without having the correct information, in this way, we can create our own stories with which we can teach basic and advanced concepts to our prospects and clients.
There is a saying that mentions that people will not remember what you told them. Still, they will remember what they felt at that moment, so it is important to tell stories that can convey emotions (whether positive or negative) to place them and apply them in their day by day.
What do you think about this topic? Do you think a financial product can be explained without resorting to numbers?
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