Tech companies believe that knowledge is power, and the digital banks vying for the world’s savers are no exception. By offering colourful apps that promise users control over their finances, companies such as Atom, Monzo and Tandem think that giving people more information will help them make smarter decisions.
But a dark question stalks these ambitions: what if people have no self-control? What if, when told they spend a third of their monthly salary on takeaway coffee, they continue overspending? When it comes to money, sometimes people just don’t want to know.
Enter a new breed of sneaky financial apps, which also collect information about your spending habits. They don’t, however, bother telling you about them but quietly take action on your behalf. I’m thinking of apps such as Plum and Chip, which monitor your spending and move cash from your current account into your savings when you spend less than usual.