Making investments has traditionally been associated with wealth management. Unless a person has serious capital, they wouldn’t normally consider becoming an investor. Savings accounts are a much more popular repository for an individual’s spare cash but the returns are generally low and the high street options limited. Now, apps powered by open banking are helping people take control of their money by giving them access to an online marketplace packed full of investment and savings products. It’s not a one way journey either. Many apps offer real-time insights and advice based on a person’s financial health and spending habits. Not only that, but as the markets fluctuate and more products appear, these apps make recommendations to help users get the most out of their money 24/7. An average bank customer doesn’t need to be wealthy or a trading expert to use these apps which are democratising the process with jargon-free language and easy access.
One of these upcoming fintechs is Zeux which compares accounts and investment products predicting up to 6% returns. Users can manage all their bank accounts within the app and categorise their spending. There are no fees on foreign exchange. When a customer is travelling Zeux uses the VISA exchange rate without charging anything extra. Payments can be made directly from the app but there’s also the option to have a physical card for those customers who prefer it. Another interesting fintech is Open Money which has a selection process for customers wanting to invest. They have a simple tool to help them assess a prospective customer’s financial health and investment potential. If they don’t think they are suitable, they will give them advice on how to improve their finances. Once a customer is on board they help them to invest in either stocks and shares, a personal pension or a general investment account. Their portfolios are diversified and offer different risk levels depending on the customer.
Moneybox is super user-friendly and gives customers the option to invest in portfolios with three different risk levels, cautious, ambitious and adventurous. Customers also have the opportunity to choose socially responsible funds. There’s a fantastic summary chart of how Moneybox’s different portfolios performed in 2019 giving customers with no investment knowledge handy benchmarks. Freetrade works well for beginners as well as seasoned investors offering a wide range of tools in an easy to understand format. It’s commission-free, offers thousands of stocks in the US and UK, exchange-traded funds and fractional share options. It’s now powered by open banking via Truelayer making it faster for users to make deposits. All of these apps and many more are brilliant tools to help customers save more cleverly and become overnight investors. Opening an account is also quick and hassle free thanks to open banking. It will be interesting to see which other features are launched in the future.
Pay iO’s articles do not constitute financial advice and are for information only.