Goodbye Bank, Hello Mobile: How Smartphones are Taking Over Finance Management

A recent report has revealed that 512 million text alerts were sent last year from banks, equalling 16 texts every second.

The texts alert people to changes in their bank balance, whether that be to notify them they’re in their overdraft or when they’ve been paid.

The research, by UK Finance, has revealed the extent of people’s dependence on mobile banking – a case brought to light when TSB’s digital services caused problems for customers earlier this year following the migration of data to a new IT system.

According to the banking trade body’s The Way We Bank Now report, there were around 5.5 billion log-ins to banking apps over last year, which is a 13% rise since the previous year.

Forecasts this month predicted that mobile banking would overtake online by 2019, and this latest report certainly suggests that businesses are on track to do just that.

While we don’t need figures to tell us that people are becoming more and more reliant on their phones, it’s worth noting how important mobile finance is becoming – especially for those who need to monitor their finances on a regular basis, such as small businesses and start ups.

The rise of mobile finance

Mobile banking is most popular with the younger generations, with 69% of 25-34 year olds managing their money on their phone, followed by 59% of 16-24 year olds.

Alternatively, only 49% 65 year olds and over bank online – and fewer than 20% make use of mobile banking.

Despite this, it’s clear that mobile finance is taking over and will continue to have people switching to their handsets when people need to manage their money.

The rise in use of mobile banking apps is in part due to ease and making the process simpler and in part due to the amount of money people can save.

By paying a bill with just a few simple taps, or being able to transfer money from one account to another, people are not just managing money, but saving it too.

Allowing people to move their money more quickly means banking apps are helping to avoid overdraft charges that could otherwise be incurred – savings which are vital if you own a business.

Bookkeeping on your phone

Banking apps are one thing that can save you money with a few taps, but have you spared a thought for how it can benefit your bookkeeping?

If you’re offering the luxury of mobile to your banking it makes sense that you would do the same when you’re managing your monthly books, a process which can take up 2.5 million working days for the self-employed.

With 35 million people predicted to be banking through an app by 2023, it makes sense that you should hop your business’ finances on the bandwagon before you lose out on money and even more importantly, time.

By bookkeeping through your mobile device you can save yourself hours that would normally take up your free evenings as you hunker down at your computer and begin to stare at spreadsheet after spreadsheet.

Instead you can manage your business’ accounts on the train, while you’re grabbing a bite to eat or in between meetings – rather than wasting your precious time at home on them.

Are you making the most of Pandle with our mobile app? With it you can manage your invoices, add new customers and fix any errors on the spot, without having to head to the nearest computer. If you’re yet to try it, download it for free on iOS and Android.