Banks are increasingly closing down their branches.
And instead, they’re investing huge resources in their online and digital services.
In Asia and the US, this seems to be even more advanced than in the UK.
I’ve seen apps which automate their money management, to an extent that is still rare here.
For example, it’s quite common for banks to use algorithms to calculate when customers have ‘spare’ money in their checking account – then move that into their savings account.
This helps customers save effortlessly, depending on their spending patterns and cashflow forecasts.
Others have money moved into investment vehicles such as managed portfolios and mutual fund offerings.
Another trend, particularly in Asia? Customers log into their banks’ mobile apps and see their data displayed like a social media feed – together with personalised tips, insights and product offerings. It’s all curated specially for them, helping them make better financial decisions.
And most of these services exist for business accounts too.
Overall, I think this is a good thing. The easier we can make it for people to understand their financial situation, save and invest, the better. This is the way of the future, there’s no getting around that.
But I would caution against over-reliance on algorithms. The ideal for me is a hybrid approach, where we combine these very clever tools with information and advice from a real, live human expert…
At the end of the day, people – including business owners – will never feel completely comfortable outsourcing their financial management to an app or tool.
You need an expert to whom you can address questions; who will help you understand the risks and opportunities of your approach, hash out your options and who will reassure you that your financial decisions are sensible.
The algorithm may feel “personal,” but it will never be as personal as meeting with your financial advisor or finance director face-to-face.
I believe that most banks understand this, which is why they still have financial advisors available to their high net worth clients. And it’s why corporates all still have fully staffed finance departments, headed by finance directors who have a seat at the top table.
But you shouldn’t and don’t have to wait until you’re a corporate to benefit from such focused attention to your financial picture.
Insight Associates works with companies turning over £1 million and more, to give you the kind of financial management that corporates take for granted.
We install in your business all the tech you need to get excellent financial reporting – for example, the outstanding iplicit accounting platform, which will help you understand your financial picture better than you have ever done before.
We also install essential financial systems and processes to help you manage your cash more responsibly and professionally, from approving expenses to authorising bank transactions.
But we’re also here to work with you and your team, every single day, on interpreting all that information that’s generated. We make sure you understand what it means to your business, answer all your questions, discuss the financial implications of the decisions you’re considering – all to maximise your profitability and help you grow faster.
It’s a very personalised approach in an increasingly impersonal financial world.
If that’s the kind of financial management you’d like for your business, please get in touch today.
Simply email firstname.lastname@example.org or call our office on 01279 647 447 for a no-obligation chat.