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Technology • October 10, 2024

What to Look for in a Financial App

Hoxton Blog • What to Look for in a Financial App

  • Technology

It wasn’t all that long ago that the idea of managing all of your finances through your phone was a laughable proposition. But that all changed with the launch of the iPhone in 2007, and the pace of progress hasn’t really slowed since. Financial apps have revolutionised the way people handle their money, covering areas like budgeting, investing, and everything in between.

Whether you’re a seasoned investor or someone just starting to get your finances in order, choosing the right financial app can make a significant difference in how effectively you manage your money. 

In this article, we’ll look at how to choose the right financial app for you, and some of the key features you should seek out, to make sure you select one that is not only user-friendly but also secure and aligned with your financial goals.

The Growing Popularity of Financial Apps

The surge in financial app usage is no surprise. As smartphones have become an essential part of our daily lives, so too have the apps that help us manage everything from our schedules to our spending. 

Financial apps offer a level of accessibility that traditional financial tools simply can’t match. With a financial app on your phone, you have the power to monitor your investments, track your spending, and make informed financial decisions anytime and anywhere. The usability of these apps are also increasing all the time, with technology like open banking automating a lot of work that used to require manual inputting of data and numbers.

One of the biggest reasons people gravitate towards financial apps is the simple visibility they provide. In the past, understanding your financial situation might have required wading through monthly bank statements, creating your own spreadsheets, or setting up regular meetings with financial advisors. 

Today, financial apps put all this information at your fingertips, often in real-time. This level of insight allows users to stay on top of their finances like never before, making adjustments as needed to meet their goals.

In addition to visibility, financial apps offer a level of control that was previously reserved for financial professionals. Users can execute trades, transfer funds, and even plan for retirement with just a few taps. This democratisation of financial tools allows individuals to take charge of their financial futures, often with more confidence and efficiency than traditional methods.

How to Choose the Right App

First, you need to decide what it is you want a financial app for. As mentioned, there are apps for every part of your financial life. Perhaps you want help with managing your budget, or some extra guidance and motivation on how to save more money. Maybe you want to invest in stocks and ETFs, buy some crypto, or manage your pension.

Or it could be that you want something a bit more holistic that will do a bit of everything, and help you create a better plan for your financial future. Once you know what it is exactly you’re looking for, you can narrow down the list of options to try.

Key Features to Look for in a Financial App

Now that you have a better idea of the type of financial app you’re after, it’s time to consider the features you want.

  • User experience

    Arguably one of the most important aspects of an app is the user experience. A well-designed app should be intuitive and easy to navigate, not only to limit any frustration, but also to give you the best chance of sticking to new money habits. 

    The best financial apps provide a seamless experience, with a clean interface that guides you through complex financial tasks easily. Whether you’re tracking your portfolio’s performance or setting up a new investment, the app should make these processes straightforward and accessible.

  • The right tools

    Another important factor is the range of financial tools available within the app. Look for an app that offers comprehensive features, including portfolio management, market analysis, and investment tracking. 

    These tools are essential for making informed decisions about your money. A good financial app should also offer customization options, allowing you to tailor the experience to your specific financial goals. Whether you’re focused on long-term wealth building or short-term financial management, the app should adapt to meet your needs.

  • Connectivity and automation

    The more a financial app does for you, the more likely you are to stick to it. If a budgeting app requires you to manually enter in everything you spend every day, you’re not likely to keep it up for very long. If, on the other hand, it automatically syncs with your bank account and categorises your spending for you, there’s a far better chance you’ll continue to use it long term.

    When choosing the right financial app for you, be sure to check the connectivity options into your other financial or banking apps, and the level of automation for transferring information between them.

Security and Privacy Concerns

As financial apps become more integrated into our lives, security and privacy have become big concerns. When it comes to managing your money, you need to be certain that the app you choose is secure. 

This means selecting an app developed by a trustworthy company with a strong reputation in the financial technology sector. Look for apps that use robust encryption methods to protect your data and have transparent privacy policies that clearly outline how your information is used and protected.

It’s also essential to choose an app that regularly updates its security features to keep up with the latest threats. Financial data is particularly sensitive, and any breach could have serious consequences. The credibility and security track record of the app’s developer should be a top consideration.

The Role of Open Banking in Financial Apps

When we talk about apps sharing financial data (like your transaction information), it’s open banking technology that makes it possible. It’s one of the most exciting developments in the world of financial apps in recent years. 

Open banking refers to the practice of allowing third-party financial service providers to access consumer banking, transactional, and other financial data through the use of APIs (Application Programming Interfaces). This innovation has opened up a new level of convenience and integration for financial app users.

With open banking, financial apps can offer a more holistic view of your finances by integrating information from various accounts and services into one platform. This means you can see your current accounts, savings, investments, and loans all in one place, making it easier to manage your overall financial health. 

The ability to consolidate your financial data through open banking not only saves time but also provides a more accurate picture of your financial situation, helping you make better-informed decisions.

The Hoxton Wealth App

Of course we can’t talk about financial apps without sharing our own. An excellent example of a financial app that embodies all these essential features is the Hoxton Wealth App. Designed with global investors in mind, this app provides a user-friendly interface, comprehensive financial tools, and the security features you need to manage your investments confidently. 

The Hoxton Wealth App leverages open banking to offer users a complete overview of their financial situation, integrating various accounts and investments into one easy-to-use platform.

One of the standout features of the Hoxton Wealth App is the WealthFlow feature, which allows users to map out and visualise the impact of future life events, to assess how long their assets will last. You can build in tax rates, and test out ‘what if’ scenarios to stress-test the integrity of your journey towards financial independence.

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Finding the Right Financial App

The best financial apps offer a combination of user-friendly design, comprehensive financial tools, robust security, and the power of open banking to provide a holistic view of your finances. As you explore your options, you should consider how each app aligns with your specific financial goals and needs.

The Hoxton Wealth App is an excellent choice for those looking for a reliable, secure, and versatile financial management tool. Whether you’re a seasoned investor or just starting out, the right financial app can make all the difference in achieving your financial objectives. Take the time to choose wisely, and you’ll find that managing your finances has never been easier or more empowering.

If you’d like to discuss your financial needs on a more personal level, feel free to book a free initial consultation with one of our expert financial advisors.

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Hoxton Wealth

October 10, 2024