For the average American, managing money is hard. Getting a budget under control and making ends meet can be so difficult that CNBC estimate that up to 65% of Americans save little or no money every month. As with many other walks of life, technology is stepping up to provide the average member of the public with tools to change their situation – and some of the latest technologies might surprise you.
Technology’s money management foundations
One of the most important money management principles is budgeting, and this is something that financial tech companies have clearly identified. Using technology makes budgeting straightforward by providing a bespoke platform, devoid of complicated spreadsheets or pen and paper, that can be instantly accessed. Several of these apps have become widespread, but how have they innovated? 2019 is set to see ‘money punishment’ become a popular tool. These apps set mini-challenges, such as not getting take out, with a custom penalty fee. If you fail, you save the money. According to one set of developers, who also practice behavioral economics at Yale, this is a powerful budgeting tool.
Bringing AI into the fold
Many budgeting apps now feature rob-advisers, powered by AI, that give you insights into your spending habits and help you plan for the future. Taking this to the next step is a focus of fintech companies. The first step is through apps like Digit and the UK-based Chip, which analyzes your bank account and automatically saves for you. The next stage will be through flipping this process on its head, and creating lending to help people actively manage their money. This is the intention of Delhi start-up Phocket, which is adapting a smart approach to lending. The end goal of technologies of this ilk is to be able to actively manage and distribute funds, but may be a while coming – lending laws are notoriously strict around the world.
The Cyborg Revolution?
Smart money management is being made easier through the uptake of contactless technology. This enables consumers to utilize their money in specific ways and while keeping an eye on their bank account, placing all of their cash in the same place. However, there are security risks associated with this; in the UK, NFC-related fraud has overtaken check fraud, at up to $12.7 per year. Tackling this – and other physical frauds, such as card theft and cloning – is implants. While in early stages, NFC implants are now not uncommon; thousands have adopted the tech in Sweden, according to the South China Morning Post. Expect to see a higher uptake as the years go on, enabling consumers to manage their money with security and confidence.
Money management is a big focus in modern society. Technology is enabling people to take greater control than ever before. Through AI, advanced apps and biotechnology, this will help the average person to enrich themselves.