How Fintech is Changing Money Management

Financial technology, or fintech as it is now often shortened to, has shifted the money management landscape in the last few years. A REPORT BY ACCENTURE in 2015 found that investment in financial technology had gone up from $930 million in 2008 to $12 billion at the beginning of 2015, a sign this kind of technology is here to stay. There are several ways this technology has now entered the mass market, changing the way we all manage our money on a daily basis.


The introduction of crowdfunding has revolutionised the way many start-ups acquire equity for growth. Crowdfunding, normally taking place online, works by raising capital for a project from a large number of people rather than a wealthy few. It was estimated that a massive $34 billion was raised this way in 2015. Crowdfunding has not only opened up investment opportunities for businesses but can also serve as a strong form of market research – the more popular the product/service on offer, the greater the number of people investing and willing to become a customer.

Insurance Tech

A few insurance companies have started to adopt smart technology to help them decide on the insurance rates they offer their customers. Activity data, such as the number of footsteps the user has taken, fed back to companies from wearable tech, for example, will change the rate the individual is offered for life and health insurance.


The huge increase in the number of people using and accepting cryptocurrency as a form of payment threatens to turn the whole financial industry on its head. The main purpose of cryptocurrency is to create a decentralised digital cash system. Bitcoin, considered the first form of cryptocurrency, began in 2008 but only properly began to take off in the last couple of years; it has revolutionised the financial industry by avoiding all the typical finance channels and creating a new method of payment.

Money Management Apps

Due to advancements in technology, the way we now access and manage our personal finances has changed hugely; in 2018 a massive 71% of the UK population accessed their accounts via a browser or banking app. Money management apps now mean that we can track exactly what we spend our money on, have financial projections for the rest of the month based on current spending habits as well as have 24-hour access to our accounts.


Innovation with financial technology moves at an incredible speed, making it hard to regulate and keep on top of security issues. Security concerns are often the main reason many users are wary of adopting this kind of technology into their lives. However, many start-ups and established companies are aware of this and include innovations in security as part of their new financial products. Examples of this are facial recognition and thumbprint scanners as being a new way to gain access to banking apps and financial payment systems. Companies, especially when trying to establish a reputation, need to attract and retain customers by offering the most up-to-date forms of online financial security.

The Future

Huge advancements in technology over the last ten years have brought about a large shift in the way both individuals and businesses manage their money. The amount of money being invested in the fintech industry is only set to increase, suggesting there will only be a greater shift in how we all manage our money in the years to come.