Over one-third of people consider money management a burden. Technology is everywhere recently, including in your finances. Over the last few years, we have seen the financial landscape transformed by an influx of technological innovation, all aimed at helping people with their financial planning. Banks are rolling out digital monetary services to their customers, and the fintech market is continuously seeing the introduction of mobile apps to aid those looking to get to grips with spending, their retirement plans and just about anything linked to personal or commercial finance. This shift has not only changed the way we approach financial health, but has in many ways, simplified money management for Canadians.
Unlocking New Financial Habits
Thanks to technology, our attitude toward money management is shifting. Mobile apps have made it easier and much less time consuming to do a financial health check. Now, people can pay their bills, do their budgeting or even apply for a loan, all whilst on the train to work. By making it easier and simpler, more people have begun to integrate regular money checks into their daily routine rather than running away from them. It’s not just the fiscal management habits that have changed, but saving habits as well. In a study by Bank of America and GFK, at least 1 in 6 millennials had $100 thousand dollars or more saved in 2018. A better flow of financial information and financial services at their fingertips is helping the younger generation to save better.
Reducing The Cost Of Financial Management
Canadians paid $130 billion in banking fees for 2016, one of the highest banking fees in the world. The average Canadian has paid between $760 to $2800 in banking fees in their lifetime. With the introduction of mobile apps, the cost to consumers has drastically changed. Most digital services are downloaded for free or allow a promotional version to be accessed for free. For those looking to access finance or get involved in investing, inventions such as Robo-advisors have allowed them to do this for a minimal fee. This is a benefit that is particularly applicable to those seniors seeking ways to boost their retirement savings or seniors considering the use of automation to improve their finances.
Financial literacy is rapidly improving in today’s society, partly due to technology making information much more accessible and easier to understand. Because of the increased ease of accessing information, comparison and obtaining knowledge of their financial options has become much quicker and faster. As a result, individuals today are able to be much more knowledgeable about the financial products available and the terms that come with them. From mortgages to savings accounts and ISAs, people can now choose to get to know what the best offer is for them.
The introduction of technology has not only changed the way we live, but it has also transformed consumer finance as we know it. It has widened the choices available to Canadians and made them more aware of their financial health. Not only are people accepting the integration of technology into their finances; they are embracing it. With all the benefits it affords individuals, it’s not hard to see why.