HSBC and other banking apps experience technical issues
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One of the reasons the British public has become drawn to mobile is the fact that physical branches are on the way. More than 300 UK branch closures have already been confirmed by Santander, Lloyds, Halifax, HSBC, NatWest, and Barclays this year, with the pandemic exacerbating this digital move. In light of this, experts are issuing advice to the public on navigating this new world of banking, which could be exclusionary to some people, and educating them on the service’s unique benefits. Speaking exclusively with Express.co.uk, Pete Mugleston, the Managing Director of onlinemoneyadvisors.co.uk is outlining the best ways Britons can “budget better” using these apps.
“Budgeting, as time consuming as it is, not only gives us the necessary knowledge and control over our finances, but it allows us to do more of the things we love, by setting some money aside for those special occasions, spur of the moment events and more,” he explained.
Create designated savings pots
Creating multiple savings pots can help account holders keep track of their and designate where they want to save, invest and spend it, according to Mr Mugleston.
He said: “It’s all well and good having the ‘I’m going to put this money away’ goal, but what are you putting it away for?
“Give every pound a purpose and start by deciding how much you can afford to put aside for savings each month.
“Then split this up into designated savings pots, which some banking apps offer as part of their accounts.
“You could create a car savings pot, which you could use for day-to-day outgoings such as petrol, or for when some of the heftier spending is needed, for example an MOT or if anything should go wrong.
“Do the same thing with occasions such as birthdays and holidays – that way there’s no unexpected expenses if you forget a loved one’s birthday is coming up or you fancy booking a spontaneous trip away.”
Some apps categorise your spending for you
With a variety of apps on offer, savers will be able to categorise their spending habits and notice any discrepancies in their bills which is affecting their ability to save and invest wisely.
He added: “Tracking how much you’re saving is certainly an easier task than keeping a record of how much you’re spending.
“Certain banking apps go as far as categorising your expenses, grouping them into typical everyday expenses such as groceries, transport, bills, eating out, etc.
“If your mobile banking app doesn’t already do this, you can choose to set some time aside to figure out exactly where your money has gone in the previous month, but this could prove rather time consuming – let the technology do the work, right?”
Have your monthly spending projected
Mobile banking apps allow savers to now only track their current spending and saving, but allows them to receive a prediction of where their habits will lead their bank book.
“Likewise, where some apps track where your well-earned money has ended up, some also generate a monthly projection of how much you’re likely to spend the following month,” Mr Mugleston explained.
“Not only does this take the hassle out of trying to do this manually, but it means you already know exactly where your money will be heading, allowing you to then budget accordingly and – best of all – have complete control, which makes us feel more relaxed when logging onto our banking apps.”
Find out what outgoings, direct debits and standing orders you can cancel
Finally, Mr Mugleston advocates for having an honest conversation about what outgoing payments and direct debits are essential to keep going.
He said: “If you have a fair few, rely on your mobile banking app to do the legwork for you.
“Some apps out there will list all of your direct debits in one place, allowing you to pick and choose which ones you need in your life and which ones you could probably do without.
“It never hurts to cancel an account or membership that you’re paying for and not using – think of what you could do with that money instead.”
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