TMCnet Feature
September 21, 2021

The Growing Popularity of Financial Service Apps



The financial sector has witnessed remarkable technological developments over the last decade. They have been abandoning bricks-and-mortar operations and migrating to digital platforms. At the center of these developments are the financial services apps. The apps have transformed the industry by significantly improving financial institutions’ operational efficiency and customer experience. Many surveys show that financial apps usage will even continue to deepen in the future. Here we will look at six ways in which people are currently using financial service apps.



Borrowing

It’s not hard nowadays to access credit if you are in a cash crunch. Numerous personal loan apps are offering a soft loan. You can receive the loan at the push of a button and do not have to visit a bank physically - everything is done on mobile devices or online platforms. Financial institutions extend loans to creditworthy customers at an interest. If you have a good credit history, there are high chances you will be considered for a loan. The financial apps use algorithms to profile the creditworthiness of a borrower. If the borrower is not financially fit, the bank extends the loan to be repaid at a more immediate due date, like 3 month payday loans for those with bad credit.

Budgeting

Budgeting apps are used in tracking income and spending habits. They are key in personal finance and wealth management. They are simple to use and will make you be disciplined in managing your finances. The apps have key features, including budgeting categories, customer education, investment tracking, and net worth tracking. The app provides you with real-time updates regarding your spending or income. For instance, the app updates any change in your credit card or debit card and adjusts the account balance accordingly. As a result, one can resist impulse spending and stay within budget.

Saving

The saving app helps you conveniently save money. The app is linked to a bank account and helps you manage your spending and savings. You can instruct your bank to be deducting a certain amount of money and channeling it to your bank account. Some use algorithms to determine the amount of money that gets in and out of a checking account and then deposits the amount it deems suitable to save into a saving account.

Mobile payments

Many people use mobile apps to make payments for utilities like electricity bills, water bills, mortgage payments, and credit card bills. It is a fast and convenient way to make payments. The mobile apps are secure to use because of privacy and confidentiality properties. They can also be used to track expenses since one receives a message confirming transactions. There are different ways of making the payment, including credit card payment, debit card payment, or mobile wallets.

Manage expenses

There is always a temptation to overspend whenever one has money. Often you will hear people say that they don’t know where their money goes simply because they don’t have a way of accounting for their spending. Many people make impulse buying which makes them spend money on things they do not need. With the advent of expense tracking apps, it is now possible to account for every dime you spend. Having an app that tracks your spending habits is good for keeping check and thus helps you avoid spendthrift tendencies. While expense tracker apps overlap with budgeting apps, the former lays more emphasis on tracking your spending.

Mobile banking

Some years back, most banking transactions were done manually, where people had to make long queues to be served. This way of banking is ebbing away as digital platforms take over. Approximately two billion people are using mobile banking apps to transact with banks. The app enables one to withdraw, deposit, or conveniently make payment. The innovation has revolutionized the banking sector by bolstering its operational efficiency. The app has also greatly improved customer experience since it is possible for one to transact anywhere.



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