Invisible Money, Ease of Clicking a Button: Fintech’s Role in Sustainable Wealth Growth

Digital innovation intersects with every aspect of our lives these days, and finance is one of the most affected industries. Fintech has emerged as a powerful force, promising not just to reshape how we manage our finances but to fundamentally alter our relationship with money. It has a potential to foster sustainable wealth growth for individuals and societies alike that cannot be understated.

However, amidst fintech’s forward march, a critical question must be answered: How can fintech be harnessed not just for convenience and efficiency but to promote financial health and stability?

Fintech, or financial technology, encapsulates a broad spectrum of tools and platforms that integrate technology into financial services, offering unprecedented access and control over financial transactions, investments, and planning. The allure of fintech lies in its promise to democratize finance, making sophisticated financial tools accessible to everyone, not just the affluent or the financially literate. However, this accessibility comes with its own set of challenges, notably the ease with which it allows individuals to engage in financial behaviors that may not align with long-term stability and growth.

Take financial transactions. It has never been easier or more convenient to make a payment or purchase online. With a few taps on a screen, bills can be split, investments made, and loans acquired. But this frictionless environment has also facilitated a culture of instant gratification, where the immediate ease of acquiring goods and services often overshadows the financial implications of such decisions. The result is a paradox where technology designed to enhance financial freedom and growth could inadvertently lead to financial stress and instability.

“Now, you don’t even need cash. You don’t need to take out your card. You can just tap it. You can click a button. Oh, and the best part, too, is you don’t even have to pay for it when you click a button. You can easily finance it for a couple of small payments over time,” said Ariel Dangelo, Financial Advisor at NWSAdvisors and Founder and CEO of Helo, during her panel at The Lively & Grit Daily House at SXSW 2024.

The heart of the issue lies in the disconnect between the convenience offered by fintech and the discipline required for sustainable wealth growth. The ease of digital transactions and the allure of “invisible” money — where tapping a phone replaces handing over hard cash — can obscure the reality of spending, making it all too easy to live beyond one’s means. This digital detachment from physical currency, while liberating, necessitates a renewed focus on financial education and discipline to prevent the very tools designed to empower us from leading us into financial jeopardy.

As the sector evolves, innovations like AI-driven financial assistants and platforms that automate savings and investments offer a glimpse into a future where technology not only simplifies financial management but actively contributes to wealth growth. But these tools are merely aids that, when used wisely, can amplify our financial decisions. They cannot replace the fundamental principles of budgeting, saving, and investing.

During the panel “The Role of Fintech in Sustainable Wealth Growth” at The Lively & Grit Daily House, Ariel discussed the pitfalls of fintech and how to control them with Dasha Shunina, Founder of Women Tech Meetup and Forbes Contributor. One of the biggest takeaways was to have a financial plan and direction.

“If you don’t have a direction you’re going in, you’re not going to have good financial management, and you’re going to lose out on opportunities,” remarked Ariel, who recommended finding a tool you like and being consistent.

For those who didn’t have a chance to see the panel live, you can see the full discussion below.