Let’s start the week by having a look at some key changes in the FinTech (financial technology) sector over the past 10 years.
In 2018, thousands of New Zealanders began using an app called BankerMate. BankerMate helps people make better money/moni choices by reminding them when payments are due, recording how much they spend, and comparing their spending each month. It also reminds them to put money/moni into their savings account .
When users make purchases, the app lets them know if there is a cheaper option somewhere else. Sellers and shoppers can decide together what the payment options will be. BankerMate also makes it possible for friends, family, and other groups to share the cost of payments for goods and services. The app has changed the way people use money/moni and, as a result, there has been an increase in how much people are saving.
These government-funded allowances cover school-related costs and basic needs. Students can also use their student allowances to invest in student business projects in the arts, music, technology, and other FinTech start-ups. A number of these businesses have gone on to become very successful.
In the same year, financial capability became a compulsory subject at school. Most secondary schools enrolled their students in a FinTech programme that teaches young people to manage their finances. Students in the programme wear a 3D wellbeing bracelet that keeps track of their financial goals /whāinga paetae and the amount that they spend and save.
If the bracelet detects spending patterns that might stop a student from meeting their goals/whāinga paetae, an alert is sent to the school Fin-Cap advisor. The advisor then meets with the student to give them financial advice.
In 2020 social-source lending became very popular. Social-source lending involves friends and community groups lending each other money instead of getting loans from banks. The rise in social-source lending was a reaction to the amount of money banks were making and to high levels of debt /nama in communities.
In 2022, a number of community groups set up their own lending initiatives. IwiSave provides a range of budget/tahua services and shared lending opportunities for members of different iwi.
Pasifika-Gift supports Pasifika families in a similar way. Both organisations encourage collaborative saving/whakaputu and offer a range of financial services that support goal setting, managing money /moni, saving/whakaputu, and debt /nama management.
Despite their popularity, some Fintech apps have created cyber security issues. There has been a dramatic rise in the level and sophistication of identity theft. Online bank accounts are regularly scammed with malware and many New Zealanders have lost their personal data and, as a result, access to their funds.
We have come a long way in a brief time. Some changes have been positive and some have not. My fin-blog tomorrow will take a more in-depth look at some of these issues. I’d be keen to hear your views on any of these topics.
A decade of changing behaviours around money/moni
Equipping young people for their financial future, embedding good money habits early on.
Hāpaitia te ara tika, pūmau ai te rangatiratanga mo ngā uri whakatipu.
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