Technology has made our lives easier in a number of ways, including how we operate and expand on our financial services business ideas.
Here are seven financial services business ideas that have evolved beyond recognition over the past 20 years.
1.Cloud-Based, Accessible Accounting
The present — and future — of accounting increasingly focuses around two areas: the cloud and integrations.
By combining these two areas of tech, in tools like Quickbooks online, Xero, Freshbooks, and others, accountants and tax preparers can streamline processes like invoicing, expenses, or inventory management and communicate with clients more effortlessly.
New accessibility of accounting also opens the doors to hundreds of add-on solutions that connect other financial services business ideas to offer more value to clients (and increase their lifetime value for the business), like credit repair for instance.
2. Predictive Financial Consulting Marketing
Technology has allowed financial consultants to combine sales and marketing software that use predictive analytics and big data to generate leads.
For example, predictive technology can find patterns in data sets to help companies determine how leads are likely to behave and how financial consultants can better serve their clients. Equipped with this knowledge, consultants can learn things like when prospects are most likely to be online or available for a phone call, or which products a consumer is most likely to purchase.
3. Finance Educators
20 years ago, podcasts, webinars, and social media, as we know them today, did not exist. Now that they do, the scope of a financial educator has grown immensely. It’s easier than ever to broadcast solid financial advice and generate qualified leads as a result.
This evolving industry has helped businesses grow and provided consumers with a new way to learn about personal finances, covering everything from credit score repair to saving for their 401K.
4. Gig Economy Jobs
It’s not only possible, but becoming easier to bring your financial services profession away from an office. With mobile and online applications, conducting digital business is more common than not. In fact, most consumers prefer to deal with their needs digitally because it is more convenient.
The combination of tech and social factors has made freelance or independent working the way of the future in the financial services industry. And, as software becomes more user-friendly, adding new services into your portfolio is also becoming easier.
5. Online Lenders
Entering financial information online was not a common practice 20 years ago. Now as banks have moved to more accessible web-based platforms, consumers are more comfortable entering sensitive information digitally.
For that reason, online lending is booming.
Business startup loans, student loans, mortgages, home improvement loans, and automotive loans are all types of financing services that can be featured on an online loans website. Many online lenders are also adding credit repair services to their digital portfolio to broaden their lead pool and extend their customer lifetime value.
6. Risk Assessment
Many financial businesses rely heavily on traditional practices when it comes to qualifying candidates for a variety of products. But this industry is changing.
Better analytics has shown, up until this point, risk scoring has been an incomplete calculation. Other indicators like behavioral patterns and recent financial management growth can also paint a picture of someone’s creditworthiness.
So, while credit score will always play a role in the process, risk assessors are starting to use predictive analytics for a more comprehensive look into true risk score, and more proactive steps toward earning a better loan.
The overall goal with new innovations is that financial institutions will be able to make better risk decisions at lower operating costs while still creating superior customer experiences.
7. Digital Credit Repair Services
Just like many of the other business ideas to make this list, credit repair existed 20 years ago, but the difference between now and then is the revolutionary business software that makes it manageable and easy to add within existing financial services.
Not only that, the role of a credit repair specialist has changed with technology. With latest iterations of technology, credit specialists are now equipped with data to provide solid financial advice and fiscal growth tactics geared toward improving a client’s quality of life in a relatively short time. This is a paradigm shift from credit advisors of the past.