Over the years it has been pretty impossible to make the process of managing your money, or planning for large financial expenditure interesting or “sexy”. No matter what traditional banking marketeers have shown over the years, this is not perceived to be a “Lynx moment”, where everything we desire falls into our lap easily.
Managing money is the thing that fills most people with dread. Looking at the monthly bank statement, finding the overdraft has been hammered again as per the Monday morning text alert, and despite all the best efforts to avoid going out, to save money, the local pub has been frequented more times than planned. There is no getting away from it, financial well-being is one of the key elements that either bring stress into your life, or in fact removes it.
In light of the high-street banks not really doing anything significant to improve the consumer experience in managing money, who are the emerging players that are really helping to set a new standard in being a helpful bank…
There are a number of companies that have taken a look at banking and financial services through the mind-set of a consumer, and have coupled it together with innovation to genuinely help people get better control of their finances and improve the process of managing them. So, who are these trailblazers, and how are they helping consumers get back into the financial driving seat…
One of the first mobile banks in the UK. A great sign-up process which takes under 1 minute, using some of the latest techniques in identity verification. Monzo started off as a prepaid card that allows you to load money from other accounts via their app, and this proposition has now grown into a full current account. The are many great features with Monzo, but here are the some that genuinely help customers manage money better
- Real-time updates on any spending through the app, and ability to group spend into a number of categories to help with budgeting
- Some really cool app features that allow you to manage your card and spend e.g. frosting it when either you think it is lost, or for the “budget out of control” moment
- There are NO FEES for using the Monzo card abroad
A relatively new entrant on the pitch, as a consequence of the new regulation PSD2 in banking. In a nutshell, for consumers this regulation means from January 2018 you can go to a provider like Yolt and ask to see all of your account information from various banks in one place. This means no separate logging into each bank to look at your balance, or check transactions as this can now be done in one place. This really does make financial planning much simpler for customers. Yolt, has been leading the charge on this , allowing customers to get financial control by offering the below
- Consolidating all bank accounts and credit cards into one app, easily
- Create a budget that covers all of your accounts e.g. the everyday account, the saving account and credit card
- Ability to quickly visualise finances at a glance
“Everything we do is focused on making it smoother for you to shop online. That means paying later, over time or buying with one click. Sounds pretty good, no?”
Klarna is not a bank nor an app, but a very progressive Swedish technology company that has again looked at innovation from the perspective of a consumer. A real breath of fresh air in the market, driving new life into something that has not been updated or re-invented in a while ……the way in which customers pay for goods and services. The Klarna way of shopping allows customers to manage purchases in many different ways
- Not only try before you buy, but also choose the way in which you pay
- Pay now Pay by card directly at the checkout. No lengthy forms, no passwords, no worries
- Pay later – Try it first, pay it later. Klarna lets you pay 14 or 30 days after delivery depending on the store. Or “slice-it” by spreading the cost of your purchase into equal monthly payments
All three organisations are driving value for consumers, and showing the power of innovation by design that re-pivots to make life simpler and better. Some food for thought for everyone in the business of running life!