Technology

8 ways technology has changed personal finance

4 Mins read

Technology has had its hand in affecting almost every aspect of our lives. With that in mind, technology has enhanced how we do everything: how things are created, how we communicate and sparked new industries we didn’t have before.

Today, businesses are relying on technology to make everything faster, more efficient and more available. Not only that but it’s affected nearly everything we thought we know about personal finance, from how we bank, how we budget, financial security, how we trade, how we get paid and finally how we pay.

Gone are the days where you dressed up to go to the bank, or you held up the line at the market to write a check, almost everything has moved to the phone. Your money, your banker and even your checks are stored in one place and mobile.

1. Mobile

Using fast and efficient mobile apps such as Zapp or Pingit, people can now make payments effortlessly on their mobile phone. Other apps can even allow you to transfer money to your family or friends, while apps such as TransferWise enable people to send money overseas only for a fraction of the cost. Moreover, banks also provide apps that streamline your ability to conduct financial transactions. For instance, customers can rely on a mobile app to take a picture of a cheque and send it to their local bank for deposit.

2. Google Wallet

Making payments is even easier today, thanks to our technology. Google wallet allows us to make payments by simply waving the device in front of a payment terminal and deducting transactions from their linked credit card or bank account. That said, mobile wallets are incredibly efficient when you have to pay for bills or deposit checks without having your credit card or cash around.

3. Geo-location and QR codes

The combination of QR (Quick Response) codes and geo-location technology (which tracks your location if you’re using a smartphone) allows businesses to offer on-the-spot deals and personalized discounts to customers who opt into their programs to improve customer loyalty. In turn, shoppers can get emails and texts that try to tempt them in particular stores.

The technology is also advantageous for businesses who need to encourage clients to enter a contest, contact customer service or look at new products/apps.

4. E-commerce

Almost everything today has moved online, and stores aren’t excluded. eCommerce allows individuals to shop online instead of going to the physical store, making their lives even easier. Numerous companies today are competing with one another around the world, which is great for consumers as they can easily find information that will help them make a more informed decision before making a purchase.

Nowadays, mobile is not the future of eCommerce businesses, but also it is a new requirement for every eCommerce, and there is no reason why. There is a significant increment in the use of smart devices, and due to that, the eCommerce traffic is also booming as we know that customers are using their mobile phone for shopping almost anything.

The primary method for online shopping was our desktop, but with advanced technology, mobile devices will become the primary method for eCommerce shopping.

5. Electronic Trading

The adoption of electronic trading continues to improve. The reason varies, but for many, electronic trading has been an anecdote for fee compression, and enable for efficiency and automation, and a catalyst for improving trade performance. Nowadays opening an offshore Forex trading account is also possible, as we can easily choose a Forex broker that isn’t restricted by the boundaries of a nation. Electronic trading has eliminated routines and rigid structures, so it’s a lot easier to buy and sell currencies.

Today, increasingly more traders are launching standard Forex accounts in foreign countries as it is perfectly legal, safe and faster thanks to electronic trading.

6. Online investing

Buying and selling shares online is easier than ever. Almost 45% of investors trade online using either a tablet or a smartphone to monitor their holdings on the go. Online brokers offer many facilities for all investors, including research, news, trading tools and stock recommendation.

Market competition has also kept the brokerage fees low, for example, if you plan on trading $10,000 or less, you can expect to pay only $20 fee.

Nowadays, online investment companies such as Jemstep and Personal Capital, are offering personalized, low-cost and high-quality investment advice to investors about wealth management. Moreover, investment platforms also offer a more in-depth view of all your personal finances and investment in one place.

7. Web-based aggregation platforms

Web-based aggregation platforms make it easier to manage your money by gathering all of your financial details in one place, including your credit cards, bank accounts from different banks, savings, mortgages, insurance, loans, employee benefits and even pension plans.

With a simple login, you can easily view how much money you have all together and even indicate when you went over spending limits and where your cash was spent. Web-based aggregation platforms are a lifesaver for those always on the go, want to pay, keep track of their investments, bills and so on.  

Some platforms even allow you to keep track of your progress and set future financial goals. If your account happens to be overdrawn, web-based platforms can show you a wide range of options of borrowing and how they will impact your overall wealth.

Specific web-based platforms even come up with behavioural economics built-in their design, which allows you to understand the effects of your financial decisions and how to improve them in time.

8. Eye-scanning

By 2023, all vehicles should be equipped with cutting-edge technology that monitors driving behavior, allowing insurers to determine the fees they will charge their clients.

Car insurance is expected to get more personalized as insurance companies can use black boxes also to track your mileage, braking and driving speed. So, if you drive through an accident spot or brake regularly suddenly, your premium could be pushed up.

Many futuristic personal finance technologies are expected to go mainstream in the not-so far-future, which will have a great impact on the way we shop and track our finances. While some services will be web-based, others enjoy taking advantage of the boom in smartphone usage.

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