The FinTech wave has the potential to fill the huge gap by encouraging customers to shop around for better rates. Technology, particularly, in the field of finance is changing the way customers used to transact. ⭐FinTech UK ⭐Money Management
UK has become the world’s second-largest Fintech market, only preceded by the US. The vigorously growing UK Fintech market surpassed 2018’s $3.6 Bn investment and garnered $4.9 Bn in 2019. UK has been well known for its’ expertise in Finance, which is one of the major factors behind the UK’s glorious position in the global Fintech sector. Another factor that plays a significant role, is the country’s regulatory support for open banking.
With a significant amount of people switching to the convenience of mobile banking apps and e-services, the future of Fintech looks stellar. People are becoming increasingly dependent on technology. So much so, that they rely on mobile apps for saving money and budgeting. A major incentive that is driving customers away from incumbent banks, towards digitised finance, is the ease of having their needs met, with digital-first solutions.
We aim to help you make better informed financial decisions, so we’ve done an analysis of how Fintech firms can benefit savers in the UK.
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Loan Amount
£4000 -
£20000
Norwich Trust
Loan Term
1 -
10 years
4.8/5
Representative APR
22.9%
Minimum Age
21 Years
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
4.8/5
Norwich Trust
Loan Amount
£4000 -
£20000
Loan Term
1 -
10 years
Representative APR
22.9%
Minimum Age
21 Years
Minimum Income
£2000 per month
Representative Example If you borrow £20000 over 72 months, your representative APR will be 22.90% APR. Your monthly repayments will be £488.36 and the total amount repayable will be £35,161.92.
Loan Amount
£5000 -
£100000
Evolution Money Loans
Loan Term
1 -
20 years
4.5/5
Representative APR
28.96%
Minimum Age
18 years
Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
4.5/5
Evolution Money Loans
Loan Amount
£5000 -
£100000
Loan Term
1 -
20 years
Representative APR
28.96%
Minimum Age
18 years
Minimum Income
Not mentioned
Representative Example: Loan Amount: £20950.00, Loan Term: 85 Months, Interest Rate: 23.00% PA Variable. Monthly Repayments: £537.44. Total Amount Repayable: £45,682.15. This example includes a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00
Loan Amount
£1000 -
£10000
1Plus1 Guarantor Loans
Loan Term
1 -
5 years
4.4/5
Representative APR
47.80%
Minimum Age
18 years
Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.
4.4/5
1Plus1 Guarantor Loans
Loan Amount
£1000 -
£10000
Loan Term
1 -
5 years
Representative APR
47.80%
Minimum Age
18 years
Minimum Income
Not mentioned
Representative example: If you borrow £3000 over 36 months at a Representative rate of 47.8% APR and an annual interest rate of 39.7%, you would pay 12 monthly installments of £143.84. The total charge for credit will be £2178.24 and the total amount payable will be £5178.24.
A step towards innovation
The shift towards Fintech can be largely attributed to people’s acceptance for innovative and more convenient ways of managing personal finance. Fintech game-changers like Monzo and Starling have carved their niche in the financial market by attracting current account customers from traditional banks. One can notice a similar trend in the savings market, where people are finding it easier to switch to app-based saving.
We’ve shed light upon some of the most popular features offered by Fintech:
1. Automation
- Let’s face it, we find it difficult to physically save money, or rather save it at a more practical time such as payday. We want to hit bull’s-eye with the whole thought process that goes behind saving the right amount for each month. This is because we want to save a substantial amount but we also need to keep enough cash aside for the monthly expenditures.
- People with irregular incomes and expenditures, especially have a hard time setting up a solid saving plan for themselves. They’re often uncertain about how much they should save upfront. This is where apps like Plum and Chip come into the picture. These applications help save money without the user having to set a monthly target each time they want to save. You can set up rules and conditions to teach your spending habits to the AI. Following this, it will automatically start saving money on your behalf. With this, you won’t have to physically transfer money into a savings pot/account.
- Another automation technique which is increasingly gaining popularity is the ‘round-up’ system. So every time you make a purchase, it is rounded up to the next nearest pound, and the change goes into your saving pot. As of now, Starling and Revolut offer this feature on a day to day transactions. Roundups don’t single-handedly generate substantial savings, but when paired with other saving features such as ‘Goals & pots’, you can strike the right chord with saving money.
2. Saving goals and Savings pots
- If you’ve used N26’s Spaces and Revolut’s Vaults, you probably are aware of saving goals and pots. Some applications provide space where you can set up saving goals and set aside some money. These spaces are within the customer’s main account so that the money for your monthly expenditure can be separated from your savings. This feature helps in inculcating a general habit of saving in you.
- N26, for instance, provides an interface wherein you can label your savings pot and add some cash to it as per your requirement. This feature allows you to keep all your money in a single app, while simultaneously saving into your respective pots.
- Chip provides the additional functionality of providing the realistic date by which the goal can be achieved. Moreover, some pots can be locked until a specified date. For instance, you can restrict access to your savings for two months straight, before you start utilising them.
- Similarly, some account providers like Monzo and Dozens, allow their customers to create applets to automate the process of saving based on the IFTT (If This Then That) method. This method helps in effective saving as it only allows the user to access and use their savings if a certain condition is met.
- For instance, £10 could be diverted to your savings pot in Monzo, every time you complete 5000 steps. This is a fun way of incentivising your savings.
3. Savings Marketplace
- A savings marketplace is a digital market where you can choose from a range of savings account providers. Raisin, which garnered a lot of recognition, is a Fintech savings marketplace that allows users to choose from services provider, Europe-wide. Similarly, Monzo launched a marketplace within their app, to enable users to purchase fixed products from a variety of providers.
- However, in some cases, opening an account directly with the provider can reap more benefits than going to them through a different provider like Monzo.
4. Comparison websites
- Comparison websites help you save money by allowing you to choose from multiple deals available online. These websites can be used to compare various financial products, such as loans and policies. LoanTube is one such platform that helps you save both time and money. With LoanTube, you can compare loans based on Real Interest Rates from multiple lenders, by filling a single application form. Before finalizing your offer, you can also analyse it’s acceptance certainty to make a better decision.
- In conclusion, we understand how difficult it can be to set aside savings each month. These applications provide the perfect digital platform to save some pounds. As consumers continue to drift towards Fintech service providers, the competition in the sector is becoming cut-throat. There are more than 1600 fintech firms in the UK. This number is expected to double by 2030. However, the ultimate benefactor here is the consumer. Being an active saver takes a great deal of effort. But these applications are helping people inculcate this healthy habit, in a rather easy-going manner.
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