Since advanced technology like e-commerce and mobile banking has exploded onto the scene, the world of finance suddenly saw its business model transform. Instead of the relatively static models of financial services where you had to take a trip to the bank to secure a loan or transfer money, all this can now be achieved with just a single tap on your phone.
UK Finance agrees that these developments have encouraged a more efficient financial sector to emerge, that can deliver services quicker than ever before. While we can all agree that digital technology has dramatically changed the finance industry, here’s how it’s made it easier for you:
In need of some money? No longer is making a trip to the bank and waiting in a long queue necessary. Applying for a personal loan has never been easier when you can visit the website of a reputable company and apply in the comfort of your own home.
Applying for a loan online is far easier than in person and would typically save you money just by not having to pay for fuel (or electricity) to travel to your lender or broker, and then potentially pay for a parking space.
Most of us can’t live without our phones and tablets but they’re benefitting us financially too. We have the power to organise our money and keep track of our finances all in the comfort of our pockets. One-click and you’ve paid your rent, another and you’ve opened a money-saving ISA account.
In 2022, 93% of UK adults are using some form of internet banking and it’s easy to see why with the incentive offered by digital banks such as Monzo and Revolut.
Another benefit of having the internet at our fingertips in the form of our smartphones is the accessibility of financial advice. You can find ethical and impartial advice for your finances completely free online, and this is helping Brits make better financial decisions.
Some of the best online financial advisors include Unbiased and Personal Finance Society. These can provide guidance on budgeting, investing money, and mortgage advice amongst over things.
Blockchain technology is another game-changer in the financial sector. Originally introduced in 2008, blockchain tech was developed as a secure and safe way of recording the origin, movement, and transfer of something valuable. So rather than relying on a bank, blockchain requires approval from individual blocks in the blockchain to process or transfer payment.
Blockchains are particularly influential in cryptocurrency and are the key to the centralised security and safety of online assets. The data in blockchains is irreversible, meaning that any activity or transaction is permanently recorded and viewable to anyone.