Tech savvy consumers deemed wealthier

Tech savvy consumers deemed wealthier

Investors who use money management technology such as apps hold double the amount of savings than the national average, new research has claimed.

The analysis from financial insights platform Moneyhub found technology-savvy customers had an overall wealth of £429,970, almost twice the national average of £239,096.

In a statement, accompanying the analysis, Samantha Seaton, chief executive officer of the platform, said the use of money management apps to manage savings, credit card and mortgage/investment accounts had increased substantially since 2015.

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She said: "The perception has been that apps are almost only the preserve of hipsters to keep track of spending on avocados.

"Our analysis shows just how incorrect this perception is. The average net worth of a Moneyhub user to manage all of their finances, from investments, pensions, mortgages to current accounts and credit is nearly double the national average, demonstrating the strength of technology in supporting complex decision making."

Ms Seaton said consumer interest in using digital technology to manage their finances was continuing to grow.

She added: "It’s clear there is real appetite to harness technology for real time insight that in turn can help money work harder and go further.

"This insight supports the individual to take control, but also helps businesses, from financial advisers to retailers, building societies to insurers, understand and develop the propositions consumers need."

Financial advice group Hargreaves Lansdown is among the organisations to have recognised the trend and said it has seen investment flows into its digital Portfolio Plus service continue in recent months, despite investor caution elsewhere in the market.

Chartered financial planner Danny Cox, the company’s head of communications, said the convenience, speed and simplicity appealed to consumers.

He said: "Something like 90 per cent of our transactions are now done online and the interesting thing is the number of people using smart phone apps to login into their account as opposed to going through the desktop. Around 70 per cent of all logins now go through mobile apps."

Mr Cox said there was more than £1bn in the company's Portfolio Plus offering.

He said: "Flows into the industry are subdued at the moment due to investor uncertainty but flows into our Portfolio Plus service are still accelerating."