Smarter way to bank
SMARTPHONES are revolutionising the way we live, as we use our devices to check social media, order tickets, view maps, play music, binge watch TV shows and increasingly, manage our bank accounts.
While the big high street banks routinely close down branches, the new breed of challenger banks and financial technology “fintech” start-ups are releasing “apps”, short for applications, encouraging people to do their banking online instead.
More than six out of 10 use free-to-download financial apps to transfer money to friends and more than half to pay their bills, according to research from UK Finance. Millions receive text alerts notifying them of upcoming payments or reminding them to cancel subscriptions.
Is it time to join the revolution?
APP HAPPY
Bank customers logged into banking mobile apps 5.5 billion times last year, and the numbers are steadily rising.
Almost seven out of 10 smartphone users have downloaded at least one financial app and Michelle Pearce-Burke, co-founder of investment service Wealthify, said smart technology can encourage us to save for the future: “It can nudge you into putting aside small, regular amounts that can add up to significant sums over time.”
A growing number of digital-only banks are taking advantage of the “open banking” revolution, which lets you share your data from a range of bank accounts on a single platform. For example, with Tandem Bank you can manage all your bank accounts in a single app to show how much you spend, identify savings and find better deals on regular bills. It also
TRAVEL IN STYLE
Travellers who want the best possible exchange rates should consider Revolut. Its app and cards allow you to hold multiple currencies and unlike most credit and debit cards, it does not take a cut of currency transfers or overseas spending. It also gives you instant notifications every time you spend, in pounds. Moneyhub shows all your accounts, borrowings and investments and can put you directly in touch with financial experts, who can see your data instantly and securely, and offer personal advice.
MOBILE SAVINGS
Atom Bank offers fixed interest savings at competitive rates, as does online savings account Marcus from Goldman Sachs. MoneyFacts.co.uk finance expert Rachel Springall said: “Savers who do not use their mobile phone may be missing out on the best easy access interest rates.”
Wealthify offers “hassle-free investing for the iPhone generation” where an expert builds and manages an investment plan that you can monitor via app or online dashboard. Moneybox rounds up your spending to the nearest pound and pops the difference into a tax-free stocks and shares Isa in your name. So if you buy a coffee and a cake for £4.20 it rounds this up to £5, and invests 80p. Money Dashboard connects all your online current and savings accounts and credit cards, then groups transactions into various categories to highlight where your money goes and if you are spending too much, say, down the pub or on takeaways. It can help you save towards goals, such as clearing debt, going on holiday or buying a house.
Squirrel is another app that holds money back from your account and releases payments for bills as they fall due, so you do not blow your salary straight after payday.
They may never replace the personal touch of your local branch, but the app revolution is proving increasingly difficult to resist.