Technology is changing the way we budget, spend, save and borrow money. Smartphones and the internet have led to the development of all the tools people need to keep on top of their finances. Regardless of where you are in the world – a few clicks and a couple of swipes is all it requires to stay in control of your money. Here, we’ve broken down some of the ways technology is having an impact on the world of money management.
- Money transfers are faster
With mobile apps such as Pingit allowing people to transfer money to friends and family instantly from their mobile phones, managing money has never been quicker. Banks also offer apps that streamline your ability to perform financial transactions. For example, people can now use apps to take pictures of cheques and forward the image to their bank for deposit.
- Mobile wallets make paying easier
A mobile wallet allows people to make payments via their smartphones by placing their phone in front of a card machine and holding their thumbprint on the home button, detecting transactions from their linked bank account or credit card. You can also pay bills and order items online using this. This is known as biometrics technology. The iPhone X is pushing forward with this concept with its face recognition technology that can be used to manage money and approve contactless payments using your phone.
- Borrowing money is quick and simple online
Borrowing money has also been made easier by tech. You can apply for loans online and get an instant decision. Some lenders such as Sunny can approve your application and have the money in your account in just 15 minutes – great for an emergency situation. Technology is making it faster than ever to access loans and borrow money when needed.
Credit providers are using more sophisticated behavioural underwriting and data in order to analyse customer affordability and suitability, offering more flexible products to those with bad credit histories. (Source: paydaybadcredit.co.uk)
- Geo-location technology is saving us money
You also have geo-location technology (tracking your smartphone movement) and QR codes (Quick Response). You simply take a picture or screenshot of a QR Code to enjoy money off a product or service and different ones are presented to you depending on your location. Different companies use these to provide personalised and on the spot discounts for customers as part loyalty scheme. As a result of this, people can get emails and texts encouraging them to visit their favourite shops.
- Online banking makes managing money easy on the move
Online banking allows people to log into their bank’s website or app and conduct their banking activities at home or anywhere else as long as they have an internet connection. You can check your account balances, transfer money to different accounts and pay your bills. As well as this, you can also link your accounts, open up new ones, buy and sell investments and set up direct debits with certain banking apps.
- It can help with budgeting
Technology is also a great way to help you budget and save. Anyone who’s tried making personal budgets knows how hard it can be. You need to make a log of all your bills and income and it can be time consuming using programmes such as excel or a hand written diary. Apps such as Cleo, Chip and Money Dashboard make tracking your spending easier than ever and budgeting simple. Plum is another great example as it offers automated saving, taking away a few pounds when it feels you can spare them.
As technology continues to develop, the world of finance will continue to benefit. Digital innovations such as online services and software programmes will change how we manage our money forever.