A recent report from HSBC UK has uncovered a problem in our increasingly interconnected world. As easy and convenient as smartphones are to access information, they are also playing a role in escalating levels of anxiety, especially when it comes to money management.
The research emphasises that young adults are affected most, with over a fifth of 18 to 24-year-olds spending over seven hours a day using their phone. Nearly 64 per cent of this age group experience anxiety when they are not within reach of their phone. They check their banking apps multiple times a day, which mirrors the way managing money has become an essential aspect of online life.
At Fair for You, we applaud more access to financial data. However, we also recognise that constant connectivity can be a downside, particularly for those who are already financially vulnerable.
Knowing The Relationship Between Finance & Stress
Internet technologies have certainly revolutionised how we handle our finances. With mobile banking being the new standard, we are able to view balances, move money and check transactions within a few seconds. This can be very convenient, but also stressful.
Real-time alerts, transaction reminders, and repetitive calls to action can result in compounding anxiety. Instead of feeling helped, customers feel watched, judged or even inundated by the volume of money information they must sort through and react to.
For many of the families we work with, managing money is already complicated. Adding more digital noise doesn't always help. In some cases, it adds to the worry, rather than easing it.
How Fair for You Helps Build Financial Confidence
Fair for You is a not-for-profit lender providing ethical, affordable credit to families who require access to everyday household essentials. Our approach is built on understanding and trust instead of pressure and performance.
We provide transparent and reasonable payment terms. Our clients select a plan that suits them, without any unexpected fees or concealed expenses. We are here to make it easier, not more difficult. We don't think additional reminders or warnings every time are the solution to financial wellness. We think about providing empathetic, human-focused financial services that provide people more control over their money in a way that takes their circumstances into account.
Digital Tools Should Support, Not Overwhelm
HSBC's study is a reminder that financial services must do more than simply digitise. They must consider how they impact mental wellbeing. Just because a tool is available, it does not always mean it is useful in its present state.
We think that digital finance can be a force for good if it's offered with kindness. We've built our service to be simple and stress-free, never scary. We aim to make people feel on top of their finances, not like they're under constant examination or judgment.
A Brighter Future for Financial Wellness
Technology will also continue to influence how we manage our finances, but not at the expense of our wellbeing. HSBC's study is a timely reminder that greater financial monitoring doesn't necessarily result in better outcomes. For the majority, and especially lower-income earners, it can cause undue stress.
At Fair for You, we would like to think that we can offer financial help that fits around individuals' lives and does not contribute to their worries. We hold dear trust, affordability and flexibility. We hope that one day financial products will remove worry and enable individuals to move forward with confidence - find out more about how Fair for You can help you.