How Technology Helps Manage Personal Finance

It all started at the end of the 90s, when PayPal came along, offering a revolutionary payment instrument at the time – online transfers between users. Since then, new technologies have been introduced in all spheres of financial life, from banking to investments and insurance. There are even special applications that teach you how to lend properly. Read more about these apps on appslikethese

Voice assistants tell us it’s time to stop spending, smart algorithms invest our money, and voice-identification systems protect our savings from fraudsters. What technologies help manage personal finances today and what is the future for them?


Automated online platforms help invest in all sorts of assets. Recently, services for creating portfolios from exchange-traded funds (ETFs) – Robo-advisers – have become popular. Based on algorithms, the system analyzes the acceptable level of risk and selects an investment strategy for the user. And it implements it.

The main advantage of the platforms is that they can be used by people with any level of financial training. And the interfaces are much simpler than trading terminals.

Communication and Advice

Based on AI technology, digital assistants and advisors are created. The simplest example is a chatbot replacing call-centers employees in banks. It usually answers simple questions, such as about services. And it’s good at least because it works around the clock, 7 days a week at a minimal cost.

There are also automated assistants that can analyze customer needs and give advice on managing finances. Most often such a service is built into a bank’s mobile application, from which it receives information about users. The main task is to monitor financial behavior.

The digital assistant regularly reports exactly how and how much money the person has spent, how much is left before the paycheck, and when to make a loan payment.

Both voice and text assistants so far provide only standard answers and are limited to the tools of the system to which they are connected. But in the future, they will be able to become more versatile and fully build a financial plan for the user, taking into account all their income and expenses and helping them invest in all possible assets.

Forecasts and analytics

By 2025, there will be 75 billion Internet-connected devices – about five per person – all of which will collect data. The Internet of Things and Big Data are already being used by financial institutions to collect customer information. It’s clear why banks and corporations need data – more information, more efficient offerings, lower costs.

Banks, for example, have been quite successful for several years in determining the probability that the client will not repay the loan. They do this by the behavior of the client in social networks. But some services are beginning to try how to put Big Data and the Internet of Things at the service of a simple user.


The main task of developments in the recognition of faces, voices, and other individual features is to accurately identify the client and ensure that his funds are protected from fraudsters.

The most common biometric technology at the moment is access to banking applications and payment by fingerprint. Some banks already have systems in place to recognize customers’ faces. Some are beginning to implement voice recognition.

Despite the sufficient accuracy, most biometric identification systems do not yet give a hundred percent guarantee. So they are not used en masse. But developments in this area do not stop. Visa and MasterCard not long ago announced that they are researching customer identification by heart rhythm.

Fast access to accounts and services

Cloud technology is a major force driving the digitalization of the financial sector. Cloud storage keeps information from being destroyed, thanks to system resilience. And from hackers, through enhanced cybersecurity measures.

Cloud computing increases the speed of data processing, including the analysis of big data – Big Data. They take the load off companies’ systems, which means that all financial applications and sites are faster and more reliable.

Soon, the development of cloud technology will be spurred by the Internet of Things. It will be in the clouds that terabytes of data will be stored that smartwatches and cars will collect about us. It is in the cloud that services will process this data and help humanity make the right financial decisions.

In conclusion

Today’s technologies, which are used for different tasks today, are intertwined. Eventually, they will take us from a world of “money”, “transfers”, “investments” and “forecasts” to a world where everything without much effort on our part works for a single user goal: financial well-being.

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