Whether you are looking for a or wanting to switch your energy provider, your first port of call is likely to be the internet. Rewind twenty years and much of this technology wasn’t available, meaning you would be much more likely to head to your bank for a loan or, with regards to switching supplier, probably not bother.
There is no doubt that for many of us, the expanding range of financial technology has changed the way we bank and manage our finances as a whole. But has this influx of Fintech we have seen over the last few years really left us better off than we were before? We investigate whether Fintech has been beneficial – or not – for your wallet.
Fintech is transforming the way we manage our money
In the past, checking our bank balance online was a lengthy process of passwords, numbers and navigating our way through complicated websites.
But now we can view our current accounts, savings accounts, and credit cards through an app accessible with only our fingerprint.
Not only do these apps give us an elegant overview of our finances, but many also offer tips about how we could cut back on our spending. Some even squirrel money away for us for a rainy day.
This technology has made managing our finances easier and more accessible. These websites and apps have put the power firmly in the hands of the consumer, when it comes to how (and when) you are able to manage your money.
This has resulted in a greater awareness of our spending patterns. We are more easily able to see where we could (and maybe should) cut back.
Having our saving goals in front of us every time we log into our accounts, helps us to keep motivated and makes our targets more achievable. All of this can only be a good thing. Indeed, , those who start using finance apps spend 7% less on average, over the next 6 months to a year.
Less contact with financial institutions
As technology evolves and processes become automated, consumers are turning to smartphones rather than going to their bank when they need to, for example, transfer money or increase their overdraft.
Being able to do an ever-increasing number of financial tasks from your smartphone, means saving money on the bus fare or parking charges you would have paid when traveling to your bank. Even better, it saves you time in your busy schedule.
Increased competition in the financial industry
As more and Fintech products are released onto the market, consumers have more choice with what to do with their money. According to , traditional financial services companies could lose up to 23% of their business because of the growth of Fintech.
This increased competition has meant that banks are forced to innovate and offer better services to consumers. Open Banking is just one of the many areas where Fintech has disrupted the banking industry in a positive way.
All of this together should mean that Fintech has a positive effect on your finances.
With innovations like apps designed to help you keep on top of your money matters, there is no need to spend time and money traveling to your local bank. The increased competition also offers you more freedom of choice.
Ultimately, the Fintech revolution should result in consumers having more control over their finances than ever before – and a healthier wallet too.