Navigating the digital age

Liv Lewis-Long from Simplicity on embracing innovation as a non-digital native.

Change is hard. Fear of the unknown is a well-known phenomenon, and those of us who grew up before the world of chat bots, automated emails and digital currencies can have a hard time embracing and adopting these new technologies. As an almost-40-year-old, I get it! But innovation continues at pace, whether we like it or not. From the rise of smartphones — the first one being 30 years ago, believe it or not! — to online banking apps and the rather scary proliferation of artificial intelligence (AI) platforms and services, these advancements have revolutionised various industries, including financial services.

The days of the cheque-book, having a personal banker or even walking into the bank to make a transfer or pay a bill are fast disappearing. Having branch staff, financial advisors, and other associated overheads add significant costs for any business, all of which will in some form be passed on to the customer. Bank branches continue to close down, and we’re encouraged to instead use their online platforms to manage all transactions. 

You may remember when sharemarket trading was only via a broker or bank intermediary, before online brokerages started to emerge in the early 2000s. Investing in managed funds was also done through a financial advisor, broker or wealth management firm, all of whom took a more hands-on approach primarily conducted through paper-based processes. These days, anyone with an internet connection can manage their personal finances from anywhere in the world, with real-time access to global financial markets. Huge advances in technology and user experience (UX) design have given everyday investors access to what had previously been reserved for those who could afford to (or were confident enough) to work with a broker.

For those who didn’t grow up with newer technologies, aka non-digital natives, significant challenges arise in adopting the various online and automated platforms. Smartphones, for all their convenience, can be complex to understand and use. Working out how to download a financial services app or sign up to an online-only platform to then start DIY investing or banking can be more difficult than you think. With scams becoming ever more prolific, how do you know your hard-earned money is safe without looking someone in the eye and signing on the (physical) dotted line? It may feel hard to trust these organisations who don’t offer in-person consultations, or don’t have a phone number so you can talk to a real person before you make a transaction. 

I think it’s best to start with the basics. Download your bank’s mobile app and take time to explore its many features and benefits. For the most part, the proliferation of online and automated services have been created to make your life easier, not harder. They leverage technology to streamline their operations, which should (in most cases!) mean a superior product that’s easy to use, and one that can be offered to clients for a lower cost, having eliminated any number of overhead expenses and intermediary fees. Banking platforms offer access to plenty of functionality, from amending mortgage payments, to setting up direct debits, managing payees and much more.

The days of the cheque-book, having a personal banker or even walking into the bank to make a transfer or pay a bill are fast disappearing.

KiwiSaver and other fund providers also usually offer user-friendly online platforms that provide instant access to a wealth of financial tools and data such as projection calculators, fee comparisons and fund selector tools that can help you make informed, independent choices. In the case of Simplicity, our online-only, self-select model contributes to our ability to offer such a low-cost range of funds (in addition to the fact that we offer predominantly passive funds, and we’re a nonprofit fund manager). 

Just as the advancement of technology has improved our 24-hour access to news and current events, and allowed us to travel cheaper, further and more easily to all corners of the globe, the ongoing digital revolution should continue to improve the quality, cost and accessibility to more financial services. Open banking (a hot topic North & South covered in January 2024!) will also be a key driver leading to better technology, more competition and thus lower prices for you and me. So I say, bring it on! Adapt, adopt and embrace where you can. You won’t regret it!

The information provided and opinions expressed in this article are intended for general guidance and are not financial advice or a recommendation. Simplicity NZ Ltd is the issuer of the Simplicity KiwiSaver Scheme and Investment Funds. For Product Disclosure Statements please visit Simplicity’s website.