Bank smarter

Financial experts explain how money can be saved by using banking apps to get better credit card and mortgage deals plus debt and investment advice.

- LISA SALMON

MOST people just use banking apps for their day-to-day financial needs - but new research suggests such digital tools could save users thousands of pounds if used smartly.

Digital helpers like budgeting alerts that warn before accounts slip into the red, features that highlight better mortgage or credit card deals, and in-app steps for tackling debt or providing timely investment information can add up to around £3,500 per household over 10 years, according to a study commissioned by Lloyds Banking Group.

The figure comes from trimming unnecessary costs, improving returns, and helping people spot money risks before they become difficult to manage.

The research was led by John Gathergood, a professor of financial economics at the University of Nottingham, who says the findings suggest that being smarter with the use of banking apps over the next decade could unlock around £100billion in economic value for the nation.

“Most adults in the UK now use digital banking - even among the over-70s a majority are using it - and we would strongly encourage everyone to start making use of these features as they increasingly become available,” he advises.

“They'll find there's loads of benefits, and it doesn’t need you to be a tech whiz - increasingly, the interface is becoming more natural and more easy to work with, which spreads the benefits more widely.”

And Jas Singh, CEO consumer relationships at Lloyds Banking Group, adds: “If digital banking makes it easier to switch to a better mortgage deal, understand your credit position, manage debt more effectively or build savings, the benefits are not only meaningful for individuals and families - but, repeated day after day, across millions of lives, they can really add up to something much bigger.”

The report identifies seven areas where banking apps could either currently help customers to save or make money, or will be able to do so within the next five to 10 years.