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Think Before You Click

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#ThinkB4UClick

The global pandemic has tested the online security resilience and vigilance of people world-wide, while at the same time the pandemic is pushing more and more individuals to conduct their daily personal and work lives online.

Unfortunately, cyber criminals have sought opportunities to create havoc and financial gain in the midst of the chaos caused by the pandemic.

Since our lives have shifted into the digital dimension, educating the online user on cyber security has become more important than ever before.

As a result, cyber security has become increasingly important domestically and globally. But we must all remember that cyber security begins with a few basic steps such as: being vigilant, changing your password often and most important… think before you click on or open a link.

Tips for Securing Your Digital Accounts

Like keeping our doors locked to keep our homes safe from burglars, keeping our online accounts secure is vital to help protect ourselves from cyber criminals – and passwords are the key.

Here are some tips to help you keep your accounts safe online.

1. Choose strong passwords

The stronger your password is, the more difficult it is to hack your account.

Create passwords that are at least 15 characters long and include a combination of upper and lower case letters, numbers and symbols if allowed.

A good way to do this is to create a passphrase – use a sentence that includes unusual words, or words from different languages.

In addition, always use unique passwords for all your online accounts.

2. Use a password manager

A password manager is a convenient way to take care of your passwords.

Several very good password managers are free and easy to use. It will create strong passwords for you and keep them secure.

If you’d prefer not to use a password manager, write your passwords into a notebook and keep it in a secure place away from your computer.

3. Enable Multi-Factor Authentication (MFA)

Multi-factor authentication (like 2FA) provides an extra layer of security to help protect your accounts.

It is an electronic authentication method where you need to present two or more pieces of evidence (factors) to confirm your identity and access your account, for example a password and a code that is sent to your mobile phone. Your account cannot be accessed without entering this code.

4. Do all of the above!

For extra security, use a password manager that will create strong passwords for you and enable multi-factor authentication when available for your best chance to keep your accounts secure.

References:

  1. https://cybersecuritymonth.eu/resources/top-tips-for-securing-your-accounts/

FinTech: OppFi

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Building consumers’ financial health over time.

There exist a large and widening gap in financial inclusion and economic equality in America, according to OppFi. On average, the median U.S. consumer is employed, has a bank account, earns median wages, but has little to no savings or investments. Some have experienced a hardship or emergency; others are struggling to make ends meet; others have unplanned expenses.

Overall, the state of the American middle class is precarious. Among other things,

  • 150 million Americans have less than $1,000 in savings,
  • 115 million live from paycheck to paycheck, and
  • 60 million Americans lack access to traditional credit.

The median FICO score in the U.S. is 711. Borrowers with a score of below 620 are considered to be subprime, a group that represents a third of people with credit histories.

Americans with subprime credit struggle to cover a $400 emergency. Although many consumers in this category are unemployed or under-employed, Experian found that the average income for a subprime borrower (pre-pandemic) was $65,000 annually. These consumers may have income fluctuations, but they are generally members of the middle class.

Surveys have found that when these consumers face an unexpected bill, such as a medical bill, car or house repair that someone with a high credit score would simply put on a credit card, they have very few options: their family and friends are often in the same situation, and any credit cards are maxed out. They generally have nowhere to turn.

Borrowers with low credit scores are not naïve. Research on the sector has found that while these consumers may face desperate financial situations, they also understand the consequences of borrowing at high interest rates. They make the determination that taking out a high-cost loan is better than losing access to their doctor, being unable to get to work, or living without a working oven.

Source: OppFi

OppFi has designed a FinTech platform around the subprime customer with the ability to facilitate credit access that is simple and accessible. OppFi focuses on providing access to credit as well as building financial health through financial education and resources.

FICO score alone is not the only measure of a potential customer’s ability and willingness to repay a loan. According to OppFi, there is a way to operate profitably providing loans to this underserved population without gouging them with high interest rates. This addressable market has expanded because of artificial intelligence and alternative data that make has made it easier to model risk without relying solely on FICO scores

Empower everyday consumers to rebuild financial health.

OppFi is an online installment lender that has facilitated over 1.5 million loans with a total origination volume of over $2.3 billion, which works out as an average loan size of around $1,500.

OppFi began life as a direct lender with multiple state lending licenses. They moved to a bank partnership model a couple of years ago and are now fully committed to that model. They have multiple bank partners today and will continue with this model as they release new products.

OppFi is focused on building a financial ecosystem to help the tens of millions of Americans whose only alternatives are predatory lending options, like payday or title loans. OppFi meets its mission—Empower Everyday Consumers to Rebuild Financial Health— by helping consumers gain access to transitional financial products with transparent pricing and affordable payment schedules, help rebuild their credit and financial health, and graduate them back into mainstream credit.

OppFi meets the demand for non-bank lending products in a way that empowers customers to not only meet their short-term financial needs, but also build credit for their long-term financial future. The loans we service are designed for:

  • Access: Loans we facilitate are for people who do not qualify for prime loans. Non-traditional credit quality standards are used to help more people have access to loans to meet short-term, small-dollar emergency needs.
  • Affordability: Loans through our platform are underwritten to ensure that a consumer has the ability to pay off their loans, with amortizing payments, longer pay-off periods, and lower monthly payments. While rates through our platform
  • Transparency: We provide terms that are simple and transparent to customers. There are no fees: no origination fees, late or NSF fees, or prepayment penalties. We don’t want borrowers to have surprises. That makes things easier for us and for them.
  • Graduation: We report positive payments and payment history to the three major credit bureaus, and when a customer pays off their loan, we work to facilitate access to lower cost credit. This helps our borrowers’ credit scores improve so that they will not need us if they have another financial shortfall.
  • OppFi proves that facilitating access to credit to consumers with poor credit does not need to involve high rates, fees, or tricks to meet their needs at a profit. There intent is to help consumers who have no other place to turn, but they also offer a path to a better financial future through financial literacy and referrals to nonprofits.

    • References:

    1. https://www.oppfi.com/wp-content/uploads/OppFi-2020-Social-Impact-Report.pdf
    2. https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/, accessed 7/2/2021
    3. Elkins, Kathleen. “Here’s how much money Americans have in their savings accounts.” CNBC.com, Sept 13, 2017
    4. Bureau of Labor Statistics U.S. Full and Part Time Workers; Friedman, Zack. “78 percent Of Workers Live Paycheck to Paycheck.” Forbes.com, January 11, 2019
    5. https://www.oppfi.com/media/credit-access-whitepaper.pdf

    Protecting Yourself Against a Cyberattack

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    The Top Three Things That Anyone Should Do to Help Protect Themselves Against a Cyberattack

    The top three things that anyone should do to help protect themselves against a cyberattack.

    1. Incorporating multi-factor authenication (MFA)
    2. Understanding phishing and how to identify phishing attempts
    3. Discussing with colleagues, families and cyber professionals

    FinTech…An Investing Opportunity

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    The financial technology (FinTech) services industry continues to attract tech companies that transform how people and businesses spend, save, borrow, invest, and more. And, FinTech startups continue to attract a growing amount of entertainment media attention and private capital.

    Effectively, these companies have transformed an already existing, and one of the world’s largest industries, finance, by minimizing the friction and pain points that are commonly connected with it.

    Currently, the millions of these businesses’ customers and clients can simply go online to one of the many FinTech companies and transfer money to any location in the world in their currency at excellent exchange rates, and have the money deposited within a day, and in some cases, minutes.

    Conversely, there are literally several hundred public and private FinTech companies offering a variety of products and services. The 2021 FinTech 250 list, shown below, features the most promising private FinTech companies from around the world, according to CB Insights’ Intelligence Unit.

    Source: CB Insights

    Some of the biggest names in the FinTech industry in 2021, according to www.reportsanddata.com, include:

    • Ant Group
    • Stripe
    • Adyen
    • PayPal
    • Coinbase
    • Robinhood
    • Square
    • Klarna
    • SoFi
    • Credit Karma

    Many traditional financial companies have incorporated technology into their operations in order to respond to changing trends and become more innovative and inventive in order to attract new customers. However, FinTech still refers to new startups that have emerged in the last two decades or so and are co-existing with established large financial nce companies.

    Don’t look past FinTech giant Amazon

    Amazon is dipping its enormous enterprise toe into FinTech and financial services, according to CB Insights. From payments and lending to insurance and checking accounts, Amazon is engaging in financial services from every angle without even applying to be a conventional bank.

    Amazon’s has an existing strategy in financial services and a vast array offerings — what they have launched and built, where the company is investing. The company remains very focused on building financial services products that support its core strategic goal: increasing customers participation in the Amazon ecosystem.

    “What people never realize or truly understand about Amazon is that part of the recipe for success is daring to try things you have no idea whether will succeed or not, and if you think that you have a notion of how to succeed … you try again.” Patrick Gauthier, ex-PayPal employ and ‘Pay with Amazon’ team lead

    References:

    1. https://www.cbinsights.com/research-fintech-250
    2. https://www.reportsanddata.com/blog/top-10-leading-fintech-companies-in-the-world
    3. https://www.forbes.com/fintech/2021/#33ba693931a6
    4. https://www.cbinsights.com/research/report/amazon-across-financial-services-fintech/
    5. https://millennialmoney.com/fintech-stocks/

    Knowing Your Why: Financial Freedom

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    WHY is the purpose, the cause, or the belief that drives every organization and every person’s individual career.

    “Knowing Your Why” is the single most important thing you can do to energize your journey towards being a better you and to achieve a better financial future for you and your family. Why is all about your purpose. Why do you get out of bed in the morning? And why should anyone care?

    Simon Sinek, author of the book Find Your Why: A Practical Guide for Finding Purpose for You and Your Team, writes that it is only when you understand your “why” (or your purpose) that you’ll be more capable of pursuing the things that give you fulfillment. It will serve as your point of reference for all your actions and decisions from this moment on, allowing you to measure your progress and know when you have met your life and financial goals.

    When you’ve identified your life’s purpose, it’s easier to focus on what truly matters. To stay focused on your goals, they must be important to you. Your subconscious can try to trick you into believing that you want one thing, when in reality these things do very little to help you live out your purpose.

    Understanding why you’re doing what you’re doing is the single most important question you can ask with respect to your life and financial well-being. Failure to ask and answer that question can be the single greatest oversight you can make when it comes to saving and investing. Those who do have a strong sense of why they are investing are more successful financially.

    Understanding why you’re doing what you’re doing in the first place is critical. Your why serves as your compass to stay on course or your North Star in the often hectic day-to-day grind that can derail you from reaching your goals. It’s so easy to get caught up in the minutiae of chasing fads, hot stocks or following the investing herd that you forget what you’re trying to really accomplish in the first place.

    Saving and investing with a purpose

    Saving and investing without a purpose will leave you filling empty. Saving and investing should be a means to an end…financial freedom . If money is the end, it will likely create more problems than it solves. Thus, knowing your why for saving and investing is an essential first step.

    But, what is financial freedom? Financial freedom is about much more than just having money, writes Robert Kiyosaki. It’s the freedom to be who you really are and do what you really want in life. It’s about following your passion, making choices that aren’t influenced by your bank account, and living life on your terms.

    Beyond serving to tell you what financial goals you should be pursuing in the first place, knowing why you’re saving for the future, and investing to grow your money and to build wealth serves two important purposes:

    • It motivates you, and
    • It orients you.

    To find your personal “Why” in life, you really have to dig deep down into your conscious mind. You must ask yourself several pertinent questions such as:

    • Why do I work every day?
    • What do I value most?
    • What do I want to do with my life?
    • What is my purpose and goals in life?
    • Why do I want to have a positive influence in my community and on the world?

    “He who has a why can endure any how.”  Frederick Nietzsche

    Sinek and his team provide a simple format to use to draft your WHY Statement:

    “TO ____ SO THAT ____.”

    The first blank represents your contribution — the contribution you make to the lives others through your WHY. And the second blank represents the impact of your contribution.

    “You can only become truly accomplished at something you love. Don’t make money your goal. Instead pursue the things you love doing, and then do them so well that people can’t take their eyes off of you.” Maya Angelou

    The key to harnessing your passion and to live a life of contentment is understanding your “why.” Why are you passionate about saving for the future and investing to grow your money and building wealth? Is it because you desire financial freedom and have a new lease on life?

    What if we awoke every single day knowing your why? For no better reason than to be better than yourself and to achieve financial freedom in order to leave our family and our community in a better condition than we found it?

    References:

    1. https://engineeringmanagementinstitute.org/knowing-your-why/
    2. https://www.deanbokhari.com/find-your-why/
    3. https://www.developgoodhabits.com/your-why/
    4. https://www.richdad.com/what-is-financial-freedom
    5. https://www.entrepreneur.com/article/243737
    6. https://www.jordanharbinger.com/simon-sinek-whats-your-why-and-where-do-you-find-it/

    General Colin Powell’s 13 Rules

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    General Colin Luther Powell (April 5, 1937 – October 18, 2021), the first African American Secretary of State, died at the age of 84. General Powell was a retired four-star Army general who served as National Security Advisor, Chairman of the Joint Chiefs of Staff, before becoming Secretary of State.

    General Powell’s 13 Rules are listed below.  They are full of emotional intelligence and wisdom for any leader.

    1. It Ain’t as Bad as You Think!  It Will Look Better in the Morning.  Leaving the office at night with a winning attitude affects more than you alone; it conveys that attitude to your followers.
    2. Get Mad Then Get Over It.  Instead of letting anger destroy you, use it to make constructive change.
    3. Avoid Having Your Ego so Close to your Position that When Your Position Falls, Your Ego Goes With It.  Keep your ego in check, and know that you can lead from wherever you are.
    4. It Can be Done. Leaders make things happen.  If one approach doesn’t work, find another.
    5. Be Careful What You Choose. You May Get It.  Your team will have to live with your choices, so don’t rush.
    6. Don’t Let Adverse Facts Stand in the Way of a Good Decision. Superb leadership is often a matter of superb instinct. When faced with a tough decision, use the time available to gather information that will inform your instinct.
    7. You Can’t Make Someone Else’s Choices.  You Shouldn’t Let Someone Else Make Yours. While good leaders listen and consider all perspectives, they ultimately make their own decisions.  Accept your good decisions.  Learn from your mistakes.
    8. Check Small Things. Followers live in the world of small things.  Find ways to get visibility into that world.
    9. Share Credit.  People need recognition and a sense of worth as much as they need food and water.
    10. Remain calm.  Be kind.  Few people make sound or sustainable decisions in an atmosphere of chaos.  Establish a calm zone while maintaining a sense of urgency.
    11. Have a Vision. Be Demanding.  Followers need to know where their leaders are taking them and for what purpose.  To achieve the purpose, set demanding standards and make sure they are met.
    12. Don’t take counsel of your fears or naysayers.  Successful organizations are not built by cowards or cynics.
    13. Perpetual optimism is a force multiplier.  If you believe and have prepared your followers, your followers will believe.

    General Colin Powell’s rules are short but powerful.  Use them as a reminder to manage your emotions, model the behavior you want from others, and lead your team through adversity.

    References:

    1. https://executiveexcellence.com/13-rules-leadership-colin-powell/

    Tax Avoidance vs. Tax Evasion

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    “The avoidance of taxes is the only intellectual pursuit that carries any reward.” John Maynard Keynes

    There’s nothing wrong with you wanting to pay less in federal, state and local taxes. Where you can run afoul of tax regulations is how you go about decreasing your tax obligation. There are legitimate tax avoidance steps you can take to maximize your after-tax income. But, failing to pay or deliberately underpaying your taxes is tax evasion and it’s illegal.

    The U.S. federal income tax system is based on the idea of voluntary compliance. Under this system, it is the taxpayer’s legal responsibility to report all income.

    Tax evasion is illegal and is punishable under law

    Tax Evasion—The failure to pay or a deliberate underpayment of taxes. Internal Revenue Service

    A taxpayer who intentionally hides income— by lying, concealing information, or committing fraud — has committed a willful act known as tax evasion, explained Jo Willetts, Director of Tax Resources at Jackson Hewitt. Tax evasion is illegal and carries serious criminal and civil consequences.

    According to the Internal Revenue Service (IRS), one way that people try to evade paying taxes is by failing to report all or some of their income. Sometimes people do not report income gained through illegal activities such as gambling and selling stolen goods. Other times they do not report all the tips they collect or the money they earn through legal activities such as garage sales, baby-sitting, tutoring, or yard work.

    Common examples of tax evasion include non-reporting or underreporting of:

    • Overseas income;
    • Cash-in-hand payments for jobs like babysitting, catering, cleaning, or manual labor;
    • Income from side gigs;
    • Income from illegal activities
    • Gains made on digital currencies like Bitcoins; and
    • Payments received from a cash business like tutoring, pet sitting, or childcare.

    Tax evasion can also include things like overstating deductions or failing to file a tax return.

    Tax avoidance or minimizing your tax obligation is legal and encouraged by IRS

    Tax Avoidance—An action taken to lessen tax liability and maximize after-tax income. Internal Revenue Service

    Minimizing your federal, state and local taxes is perfectly legal and encouraged. Minimizing your taxes is about managing and structuring your finances in a way that complies with the tax code, while at the same time, lowering your total income tax. 

    IRS regulations allow eligible taxpayers to claim certain deductions, credits, and adjustments to income. Essentially, these provisions have been built into the tax code to influence taxpayer behavior.

    For instance, to encourage home ownership, an interest deduction is available for eligible homeowners with a mortgage. To make it easier for primary caregivers to get back to their job and career, working parents could potentially qualify for a credit for childcare expenses. To promote financial protection for families, death benefits from a life insurance policy is exempt from taxes.There are also deductions based on the number of family members.

    These are only a few of the many ways people can legally limit the tax they pay. However, the taxpayer must be able to prove that he or she qualifies. Many people pay more federal income tax than necessary because they misunderstand tax laws and fail to keep good records.

    In reality, most taxpayers are already engaging in some form of tax minimization. For example, if you contribute to an employer-sponsored retirement plan with pre-tax funds, that is a tax-minimization strategy because (1) you’re deferring a tax payment, and (2) you will likely pay less tax when the funds are withdrawn in retirement.

    The most common and effective tax planning strategies include:

    • Contribute a 401(k) or IRA: The money people put into their 401(k) or IRA the IRS does not tax until it’s withdrawn. Many employers offer a 401(k) option with a matching contribution to help boost their employees’ retirement funds.
    • Revise W-4 withholdings: Most people have their income tax withholdings set to a standard amount for their tax bracket. Every financial situation is unique. Therefore, consider revising how much money is paid to the IRS to reduce tax liabilities later.
    • Use FSAs and HSAs: With flexible spending and health savings accounts, individuals can contribute to a dedicated account for their medical expenses. This money is specifically for medical care, so it is added to an account pre-tax.

    Ultimately, investing money into financial tools that offset taxes can be a significant advantage for both long-term investment and tax planning strategies. The IRS offers a variety of opportunities for people and businesses to reduce their tax liabilities.

    Additionally, the most practical IRS tax avoidance methods include:

    • Itemization: Depending on how much an individual or couple’s expenses are every year, it might be more lucrative to itemize tax deductions. It can be time-consuming and requires diligent recordkeeping, but it’s especially valuable for anyone with mortgages or expensive medical bills.
    • Tax credits: A tax credit, which is different from a deduction, gives money back to individuals and families. These credits generally come with stipulations. However, these credits can be worth the investment for people with big tax bills.
    • Tax deductions: Tax deductions are another way to reduce tax liabilities. With a deduction, someone’s taxable income gets reduced, which lowers the total amount owed to the IRS. Popular tax deductions include work-related expenses, property, and real estate taxes, and contributions to charity.

    Tax avoidance or minimizing your federal taxes through the IRS can be one of the most critical tools for individuals, families and small businesses that don’t have access to tax-reducing investment strategies.

    In summary, tax avoidance is the practice of using legal means to minimize your tax burden. Tax evasion, on the other hand, is using illegal means to hide or under report income from the IRS, or take deductions you aren’t actually allowed.

    “Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay.” Milton Friedman

    References:

    1. https://apps.irs.gov/app/understandingTaxes/whys/thm01/les03/media/ws_ans_thm01_les03.pdf
    2. https://www.findlaw.com/tax/tax-problems-audits/tax-evasion-vs-tax-avoidance.html
    3. https://www.wsj.com/articles/buy-borrow-die-how-rich-americans-live-off-their-paper-wealth-11625909583
    4. https://www.jacksonhewitt.com/tax-help/tax-tips-topics/tax-fraud/tax-avoidance-vs-tax-evasion-whats-the-difference/
    5. https://taxcure.com/blog/tax-avoidance-vs-tax-evasion

    Mindfulness

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    “Mindfulness is awareness that arises through paying attention, on purpose, in the present moment, non-judgementally…in the service of self-understanding and wisdom.” Jon Kabat-Zinn, PhD. Professor of Medicine emeritus at the University of Massachusetts Medical School and Founder of the Center for Mindfulness in Medicine, Health Care, and Society

    Mindfulness helps you live in the moment.

    Mindfulness is the basic human ability to be fully present, aware of where we are and what we’re doing, and not overly reactive or overwhelmed by what’s going on in the environment around us. It means maintaining a moment-by-moment awareness of our thoughts, feelings, bodily sensations, and surrounding environment, through a gentle, nurturing lens.

    Mindfulness is a quality that every human being already possesses. To live mindfully is to live in the moment and reawaken oneself to the present, rather than dwelling on the past or anticipating (anxiety) the future, according to Psychology Today.

    To be mindful is to observe and label thoughts, feelings, sensations in the body in an objective manner. Mindfulness can therefore be a tool to avoid self-criticism and judgment while identifying and managing difficult emotions.

    The goal of mindfulness is to wake up to the inner workings of our mental, emotional, and physical processes and well-being.

    Mindfulness helps us put some space between ourselves and our reactions, breaking down our conditioned responses. It is available to us in every moment, whether through meditations and body scans, or mindful moment practices like taking time to pause and breathe.

    Mindfulness can be viewed as a type of meditation in which you focus on being intensely aware of what you’re sensing and feeling in the moment, without interpretation or judgment. Practicing mindfulness involves breathing methods, guided imagery, and other practices to relax the body and mind and help reduce stress.

    Simple mindfulness exercises can be practiced anywhere and anytime. Here’s how to tune into mindfulness throughout the day, according to mindful.org:

    1. Set aside some time and adjourn to a quiet space.
    2. Observe the present moment as it is. The aim of mindfulness is not quieting the mind, or attempting to achieve a state of eternal calm. The goal is simple: we’re aiming to pay attention to the present moment, without judgment.
    3. Let your judgments roll by. When we notice judgments arise during our practice, we can make a mental note of them, and let them pass.
    4. Return to observing the present moment as it is. Our minds can get carried away in thought. That’s why mindfulness is the practice of returning, again and again, to the present moment.
    5. Be kind to your wandering mind. Don’t judge yourself for whatever thoughts crop up, just practice recognizing when your mind has wandered off, and gently bring it back.

    That’s the practice of mindfulness. It’s often been said that it’s very simple, but it’s not necessarily easy. The work is to just keep doing it. Results will accrue overtime.

    Benefits of Mindfulness Practice:

    When we’re mindful, we reduce stress, enhance performance, gain insight and awareness through observing our own mind, and increase our attention to others’ well-being.

    Mindfulness meditation gives us a time in our lives when we can suspend judgment and unleash our natural curiosity about the workings of the mind, approaching our experience with warmth and kindness—to ourselves and others.

    Yet no matter how far we drift away, mindfulness is right there to snap us back to where we are and what we’re doing and feeling.

    “Mindfulness is a state of active, open attention to the present. This state is described as observing one’s thoughts and feelings without judging them as good or bad.” Psychology Today

    Mindfulness can help you become more content, can help maximize your enjoyment of life and daily activities, and can allow a more relaxing and peaceful night’s sleep.

    References:

    1. https://www.mindful.org/meditation/mindfulness-getting-started/
    2. https://www.mindfulnesscds.com/pages/about-the-author
    3. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/mindfulness-exercises/art-20046356
    4. https://greatergood.berkeley.edu/topic/mindfulness/definition
    5. https://www.psychologytoday.com/us/basics/mindfulness

    Financial Technology (Fintech)

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    “There are more financial products for more consumers than you could ever imagine.” Fintech Startup Founder

    Fintech, or financial technology, refers to the technological innovation in the design and delivery of financial services and products. The term can apply to any innovation in how companies and people transact business, from the invention of digital money to double-entry bookkeeping. The technology in finance continues to evolve; advancements include the use of Big Data, artificial intelligence (AI), and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks.

    Fintech refers to any business that uses technology to enhance or automate financial services and processes. The term encompasses a rapidly growing industry that serves the interests of both consumers and businesses in multiple ways. From mobile banking and insurance to cryptocurrency and investment apps, fintech has a seemingly endless array of applications.

    There are 326 Fintechs, according to one database, from one-stop shops such as PayPal Holdings Inc. and Revolut Ltd. to behind-the-scenes payment processors.

    Fintech companies integrate technologies (like AI, blockchain and data science) into traditional financial sectors to make them safer, faster and more efficient. Fintech is one of the fastest-growing tech sectors, with companies innovating in almost every area of finance; from payments and loans to credit scoring and stock trading.

    “Fintech’s disruptive potential was unleashed in mature markets such as the U.S. only recently, thanks to a confluence of factors: low interest rates, better technology, rising consumer demand, and a more permissive attitude toward nonbank finance”, according to Lionel Laurent, a Bloomberg Opinion Columnist. “Efficiency gains in software have kept products coming.”

    Fintech technology examples include:

    • Crowdfunding Platforms – Crowdfunding platforms allow internet and app users to send or receive money from others on the platform and have allowed individuals or businesses to pool funding from a variety of sources all in the same place. Instead of having to go to a traditional bank for a loan, it is now possible to go straight to investors for support of a project or company. 
    • Blockchain and Cryptocurrency – Cryptocurrency and blockchain are hallmark examples of fintech in action. Cryptocurrency exchanges connect users to buying or selling cryptocurrencies like bitcoin or litecoin. But in addition to crypto, blockchain help reduce fraud by keeping provenance data on the blockchain. And while cryptocurrency and even blockchain have certainly taken parts of the investment world by storm in recent years. 
    • Mobile Payments – It seems as though everyone with a smartphone uses some form of mobile payments. In fact, according to Statista data, the global mobile payment market is on track to surpass $1 trillion in 2019. Using increasingly sophisticated technology, services have emerged that allow consumers to exchange money and payments online or on mobile devices – including popular payment app Venmo. 
    • Insurance – Fintech has even disrupted the insurance industry. In fact, insurtech (as it’s been so-called) has come to include everything from car insurance to home insurance and data protection. Additionally, insurtech startups are increasingly attracting funding. 
    • Robo-Advising and Stock-Trading Apps – Robo-advising has disrupted the asset management sector by providing algorithm-based asset recommendations and portfolio management that have increased efficiency and lowered costs. Since the rise of more advanced technology that can analyze various portfolio options 24/7, financial institutions have adapted to offer online robo-advising services. Perhaps one of the more popular and big innovations in the fintech space has been the development of stock-trading apps. When once investors had to go directly to a stock exchange like the NYSE or Nasdaq, now, investors can buy and sell stocks at the tap of a finger on their mobile device. And with inexpensive and low-minimum apps, investing from anywhere with any budget has never been easier. 
    • Budgeting Apps – One of the most common uses of fintech is budgeting apps for consumers, which have grown exponentially in popularity over the years. Before, consumers had to create their own budgets, gather checks, or navigate excel spreadsheets to keep track of their finances. But after the fintech revolution prompted the development of financial services apps, consumers can easily and efficiently keep track of their income, expenses and other budgeting tools that have revolutionized the way consumers think about their money. Budgeting apps help consumers track their income, monthly payments, expenditures and more – all on their mobile device. 

    With fintech innovations, firms can better meet customer needs and expectations. With clear benefits, fintech is quickly changing the landscape of investment management. Advancements include the use of robo-advisers, Big Data, AI, and machine learning to evaluate investment opportunities, optimize portfolios, and mitigate risks. In the area of financial recordkeeping, blockchain and distributed ledger technology are creating new ways to record, track, and store transactions for financial assets.

    Additionally, artificial intelligence (AI) is having a major impact on the finance industry as part of fintech. AI is being used to analyze investment opportunities, optimize portfolios, and mitigate risks, among many other functions, but the applications go well beyond the investment decision-making process. For example, automated wealth advisers (or “robo-advisers”) may assist investors without the need for a human adviser, or they may be used in combination with a human adviser. The desired outcome is the ability to provide tailored, actionable advice to investors with greater ease of access and at lower cost.

    The annual Forbes Fintech 50 compiles some of the hottest fintech platforms on the market worth noting.

    Fintech is changing the landscape of financial and investment management. At its core, Fintech exist to help companies, business owners and consumers better manage their finances, processes, and lives by utilizing specialized technology, software and algorithms.

    References:

    1. https://www.investopedia.com/terms/f/fintech.asp
    2. https://www.cfainstitute.org/en/research/fintech
    3. https://www.bloomberg.com/news/articles/2021-10-07/fintech-s-explosive-growth-has-regulators-scrambling-lionel-laurent
    4. https://www.thestreet.com/technology/what-is-fintech-14885154
    5. https://www.forbes.com/fintech/2021/#1e6de3bc31a6
    6. https://www.forbes.com/sites/elizahaverstock/2021/06/08/the-future-of-personal-finance-fintech-50-2021/?sh=2ce3aba8710a

    Psychology of Passwords

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    The Online Behavior That’s Putting You at Risk

    As more and more people work and socialize exclusively online, protecting your digital identity is more important than ever. Most people believe they are knowledgeable about the risks of poor password security; however, they are not using that knowledge to protect themselves from cyber threats.

    The Psychology of Passwords report examines online security behaviors of 3,250 global respondents, and it shows that people aren’t protecting themselves from cyber security risks even though they know they should.

    Top 6 Risky Behaviors Making You a Target:

    1. We use the same password over and over. If a hacker gets access to one account, they can wreak havoc on all of them!

    • 53% haven’t changed their password in the last 12 months even after hearing about a breach in the news
    • 42% say that having a password that’s easy to remember is more important than one that is very secure.

    2. We want to be in control. We think that reusing passwords gives us more control, but it really puts us at risk. When asked why they reuse passwords, respondents said:

    • 60% I am afraid of forgetting my login information
    • 52% I want to be in control and know all of my passwords

    3. We still memorize our passwords. Can you memorize unique, strong passwords for all your accounts? Only if you’re a superhero. If not, you shouldn’t be relying on your memory to protect you online.

    • 54% keep track of passwords by memorizing them
    • Remembering isn’t working: 25% reset their passwords once a month or more because they forgot them

    4. We ignore breaches. If a brand you use is breached, you should change your password.

    • 52% haven’t changed their password in the last 12 months – even after hearing about a breach in the news

    5. We underestimate our risk. I’m not a target, right? Wrong. While your credit card number might only get a hacker US $5 on the dark web2, if they steal hundreds of thousands of pieces of data in one fell swoop, it adds up.

    • 41% think their accounts aren’t valuable enough to be worth a hacker’s time

    6. We are predictable. Personal information can be easily found by hackers on your social media accounts or by doing a quick internet search.

    • 22% could guess their significant other’s password
    • 24% use sentimental information in their passwords

    There is much we need to be doing to protect ourselves online.

    References:

    1. https://staysafeonline.org/wp-content/uploads/2020/06/Psychology-of-Passwords_2020-Ebook_FINAL.pdf
    2. https://staysafeonline.org/resource/psychology-of-passwords/