Student debt is a challenge for millions of students and graduates around the world. In the United States alone, the situation has reached a staggering level, affecting more than 45 million borrowers.
Most students are forced to carry significant debt with them because college has become too expensive. This makes it very difficult for them to concentrate on education and their future plans. In addition to hitting major life milestones like buying a home or starting a family, this financial burden affects academic success.
Fintech is stepping in to ease some of this burden, presenting both challenges and opportunities for traditional banks. On the one hand, traditional banks must adapt to stay relevant and compete with fintech companies.
Many have partnered with or acquired fintech startups to improve their digital offerings. On the other hand, fintech has also provided opportunities for collaboration. Banks and fintech companies work together to create innovative solutions that benefit customers.
Personal finance is an area where fintech has had a major effect. Traditional banks provide their customers with simple management tools to track their savings and past spending. However, they are nothing compared to what fintech can do.
This article explores how fintech is changing student finances.