Smartphones have not only changed the way we communicate, but they have also changed the way we manage our finances. Whether it’s doing your banking transactions or planning your budget, the impact of smartphones on financing today is hard to ignore.
In a society where having our small handheld computers has become a necessity, we are all slowly adapting to the new way of financing. Looking back on our progress, here’s how the smartphone’s impact on banking has changed our financial habits.
Online banking has become more convenient
Remember when you had to queue at your local bank just to deposit your savings? It seems like an old school thing to do. This is why the financial inclusion development plans that started in 2011 focused on improving online banking services. But back then, not everyone had desktops for banking, and not everyone had access to a stable internet connection.
These days you can just pull out your smartphone, download your bank’s mobile app, and transfer money from your payroll to your savings. You didn’t even have to get up. It is the power of mobile banking apps. All of the major banks in the Philippines now have a dedicated online banking app, making banking more convenient than ever.
Opening a bank account is much easier
Opening a savings account with your local bank was once a drag. You had to compile a bunch of documents, wait in line to process your request, and wait a few days before accessing your account. Then, the impact of the smartphone on finances changed the game by introducing mobile banking and opening up the Philippine market to fully digital bank in 2018.
Digital banks have also made opening a high interest savings account more accessible. With bank interest rates reaching up to 4%, opening a digital bank account using your smartphone has since become a popular way to grow your savings. ING, CIMB, Maybank and UnionBank are the current leaders in providing instant banking services with just a few clicks.
Applying for a loan is now faster
Who knew you could use your smartphone to get cash when you need it? Since smartphones have already made banking transactions more convenient, loan application has also become more accessible. People with good credit can easily be approved through an app or use their phone to compare different loan restructuring programs in the Philippines.
And thanks to the impact of smartphones on banking, online loans have found their way onto your smartphones. Applications like Tala loan can offer you loans up to PHP 15,000 by applying directly from the application. All you need to do is follow the on-screen instructions and take photos of the required document (s). Just make sure you pay it back on time as always.
Budgeting has become less stressful
Before smartphones, how do you prepare your budget? You probably have tons of notebooks buried somewhere in your garage with all the expenses you’ve had over the past decade. Even tracking your expenses through Microsoft Excel was a bit of a hassle. You must have learned a bunch of formulas just to organize your monthly finances well. These were the days indeed.
But now that smartphones are here, you can easily record your spending as soon as you spend your money. You can even automate the process by recording your purchases as they are credited to your account. Most apps even let you mark every purchase as personal, work, business, or any other category you can think of. Think of it as budgeting on the go.
Read more: 5 best ways to increase your extra savings
Paying bills and other payments is a snap
When was the last time you went to a bayad center to pay your bills? Unless you live with family members who don’t trust anything online, you probably haven’t been in a long time. The impact of smartphones on banking has improved the way we manage our bills. You can even automate your payment so you don’t have to remember when to pay your bills or subscriptions.
Customer service is stepping up a gear
No one likes to contact customer service. But before smartphones made it easier, you had to call through a landline or wait for their response via email. Nowadays, you can simply voice your concerns on their social media pages. The fact that you can get help by searching for your bank’s profile on Messenger proves how influential the smartphone impact on banking really is.
What’s exciting is that the impact of smartphones on banking services will continue to influence the way we manage our finances. In a few years, people will revisit this list and say we were a little primitive. But for now, it is quite normal to enjoy the convenience of smartphones in all areas of our life.
This article first appeared in The Manila Times.
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