With the technological advancements we have seen over the last couple of decades since the start of the new millennium, so much of our everyday lives have been moved into the digital world. That includes our finances. Many of us still use cash and there are certain shops and other places that don’t accept cards or the wide variety of cards available. However, these are starting to become obsolete.

Payments can now be made using contactless cards and through smartphones and mobile finance apps. Martin Lewis’ site Money Saving Expert reported that in 2018 at least, just over half the transactions made in-store in the UK were contactless. That is a pretty big indicator of how things have moved on in the world. Is going cashless the best thing to do? Are finance apps a good thing or a bad thing?

If you are on the fence about this subject or just looking for as much information as possible, we are going to discuss some of the main pros and cons for consumers moving more or all of their finances into the digital realm.

Pros and Cons of Finance Apps for Consumers

First, let’s take a look at some of the main pros of going cashless and using financial apps.

They Are Convenient

This is rather obvious, but in the interest of offering a well-rounded argument, it is worth mentioning that not having to carry cash around with you all the time is just easier. When all you need to do to move money around or pay for something is to tap away at your phone, it’s quicker too.

Make the Complicated Simple

A feature of most apps that developers try to achieve is making them as user-friendly and easy to use as possible. This is something that is being seen more and more within the financial sector. Modern finance apps are made with end-users in mind.

Less Chance of Fraud

Succumbing to the likes of skimming and other modern forms of fraud is made a lot easier when you use mobile banking and other financial apps. Similarly, old-fashioned pickpockets and bag thieves are less likely to get the better of you if all your finances are handled online.

Lighter Big and Wallet

Are you fed up with carrying around a humungous wallet or purse that takes up a lot of space in your bag or pocket? When you choose to conduct the majority of your finances online and via mobile apps. You will find that you have far less to carry around.

Less Chance of Errors Being Made

When you need to use a traditional credit card or bank card, there is always the chance that you will make an error when typing in the PINs and if you do that too many times, your transactions and ATM access can be blocked. When you are using a financial app to pay for purchases, bills, and transferring money, etc. there is a smaller margin for error.

Greater Insight Into Your Finances

There are various finance apps available nowadays that have been developed to make it much easier than it ever has been to manage your finances. You can have quick and easy access to detailed, visible charts and visuals that show you what is happening with your money.


Now, let’s address some of the main cons of using finance apps to manage your money.

Loss of Signal

There are many places in the UK where the loss of a mobile signal is something that you don’t need to worry about. However, that does not apply to all towns and villages. If you choose to conduct the bulk of your money management online via mobile apps, and you happen to live or work in an area where the mobile signal or availability of Wi-Fi is not the best, this may not be the best option for you.

Data Use and Space

The more you use your mobile phone daily, the more you eat into your available data allowance and memory space. If you have a super-duper smartphone with additional SD cards and an awesome data plan, this may not be a problem, but it is still something you need to keep in mind when making the choice of whether to use finance apps or not.

Reliant on Technology

No system is infallible and technology, as we all know too well, can succumb to errors and breakdowns. While this is not too common an occurrence with the bigger, most reputable finance apps, it is something you should still keep in mind. The last thing you want is to have a big bill day or a purchase you need to make only to find that you can’t access your financial accounts because the system is down.

One solution to this and the above problem of signal loss is to have a back-up plan of some description.

Cyber Fraud

Although we said you have less chance of suffering at the hand of traditional fraudsters and even those who can skim credit and bank cards, you are not completely safe from criminals.

As the technology and protective measures that are put in place to keep your financial details and personal information falling into the wrong hands keep improving, cybercriminals are learning how to beat the systems in place and finding faults in new software and apps. For example, they are capitalising on the instability and insecurity that goes hand-in-hand with most public Wi-Fi access points.

In the end, it will be a personal decision and more about how comfortable you feel conducting your finances through mobile apps. As you can see, though, there are many great benefits, but some important downsides to keep in mind before you make the decision. With everything in the world becoming digitised, however, it may be worth looking into a finance app that works best for you.

This post was written on behalf of Nowloan, a site where you can find, a place where you can find lenders who can offer you loans, regardless of your current financial situation.