The way we do banking has certainly changed and doesn’t show any sign of stopping – and that’s just what consumers have shown they are wanting: less traditional banking, more digital banking services. More banking, payment, and investment solutions at our fingertips, less traditional brick-and-mortar branch locations, as well as actual bankers. So, what does the future of digital banking mean and what can we expect as consumers?
The banking features we’re able to utilize on a desktop computer – check balances, pay bills, apply for a loan, etc. – commonly known as online banking, have merged with what we’re now able to do from a mobile device (mobile banking apps). This ability to take care of our personal finance needs and access certain banking features from wherever we may be is what digital banking is all about, according to Forbes.com.
Between evolving customer expectations and a pandemic-prompted acceleration of the financial services industry’s digital transformation, digital banking has become a basic requirement for most banks. Today, traditional banks have no option but to adapt in order to remain competitive.
While most banks still focus on building customer-centric digital banking solutions to compete with modern fintech options, many banks have learned the value in allowing fintech companies to leverage their “banking as a platform” (BaaP) options to partner in accessing new customers.
Worth.com – “An Inside Look At The Future Of Digital Banking”
What Does the Future of Digital Banking Look Like?
Traditional banks and mobile banking apps alike must continue to adapt in order to stay competitive in today’s modern banking world.
According to Chad Butler in this recent article, we as consumers can expect to see more and more financial technology tools become increasingly more available (as well as more comprehensive and secure) through mobile banking apps.
We have apps to organize our pictures, our friends, our favorites, etc., and the future of digital banking will bring financial technology tools to help us organize our financial well-being, as well. Structured around our goals and income, digital banking solutions must meet customers’ financial needs in a connected, seamless manner.
Worth.com – “An Inside Look At The Future Of Digital Banking”
When it comes to being financially stable and independent in the long term, you should start by prioritizing the various aspects of your financial life. Understanding your financial priorities can reduce the risk of money troubles and help build a framework for a financially secure future.
Marygold & Co. is a banking and financial services app that is designed to help you build your financial plan and keep track of your financial goals. With features like our interest-earning Money Pool savings accounts with automated savings, staying on top of your financial goals is easier than ever.
Determining Where You Stand Financially
Financial planning requires you to think about your financial goals and the progress you are making.
Over time, your goals will change – just like the other aspects of your life. So it will be important to have an easy way to track your goals and change them as needed. But before you establish your financial priorities it is a good idea to assess where you stand today.
To determine your financial status, you have to look at how much you own versus how much you owe. The things you own include the money in your bank accounts (e.g., checking and savings), investments, retirement plan, car, home, etc. The things you owe might include credit card debt, student loans, car loans, etc. You don’t need to have exact amounts of each, but an estimate can give you an idea of where you stand financially. Once you determine this, you can start thinking about how to tackle your priorities.
General Financial Priorities to Follow
Financial priorities will change along with your life stage, but we all encounter different situations in life so the process isn’t uniform for everyone.
And don’t be so hard on yourself! This is an important step on the path to financial independence.
Generally, once you have a steady income, you want to prioritize paying down debt and creating an emergency fund. As you become more established you can ramp up your savings and retirement plan investments. Here are some ways to get started. These will help keep you prepared for emergencies and provide a framework for financial prosperity.
Set a Budget and Fund Your Obligations
First and foremost, create a budget. No one likes doing this, but it is important.
If you are just starting out, you should ensure you have enough money to cover expenses such as rent, food, and transportation. This fund should also include payments on all debt including credit cards.
Do you know the interest rates you are paying on your credit cards and other debt? Most people don’t.
Identify an amount over the minimum you can afford to pay, and apply all of that towards the debt with the highest interest first.
Life can surprise us with unexpected emergencies such as losing your job, getting your car repaired, or covering medical expenses. The most important aspect of creating an emergency fund is to get started! Start with a small amount and once you meet your goal you can expand it to further grow your fund.
To routinely add to your emergency fund, schedule regular deposits to your Marygold & Co. Emergency Fund Money Pool savings account. You can manage your transfers to be bi-weekly, monthly, or any time frame that works for you, but it’s good to continuously add to this fund to ensure safety for potential financial difficulties. Ultimately you want to have six months of expenses covered by your emergency fund.
Pay Off Debt
We advise giving the most importance to your short and immediate financial goals and this includes paying off high-interest debt.
Having a load of credit card debt can hold you back from achieving other financial goals.
A good strategy to pay off your credit card debt is to determine which of your accounts have the highest interest rates. Pay these off in-full first while making minimum payments on other accounts with lower interest rates. Use any additional funds to make extra credit card payments, placing the most importance on debts of higher interest. Paying off high-interest debt can relieve you of interest fees and can get you on the right track to saving.
Student loan debt has been growing faster than other types of household debts, and like other debts, it can hinder you from achieving your financial goals. A strategy to help pay off student loans is to make additional payments whenever you can. This minimizes the duration of your loan period and the interest accumulated. If your loan payments are too difficult for you to make, consider refinancing your loan for a lower interest rate or shorter repayment period. Private lenders don’t offer the same protections as the federal government, so you should only do this if you’ve done your research on at least a few lenders.
Organizing your savings with something like Marygold & Co.’s Money Pools will allow you to establish multiple interest-earning savings accounts that support your specific goals and provide you with multiple funding options.
Separating your savings from your spending money enables the financial discipline necessary to stay on top of your financial priorities.
Save For Retirement
It is easy to ignore saving for retirement since it seems so far away. But the beauty of saving for retirement is that it is far away, and so the “miracle” of compounding will provide a tailwind to your saving efforts. It’s smart to start a retirement fund as soon as you can. Retirement accounts generally come in two types: Workplace Retirement Plans and Individual Retirement Accounts. You don’t have to have just one of these accounts, you can contribute to both at the same time if you choose.
Workplace retirement plans, such as 401(k)s and 403(b)s are usually offered by employers to employees.
Does your employer offer one?
If it does, find out if they offer a company match, which means they will also contribute to your account as long as you are contributing. To participate, you can choose to have a portion of your paycheck automatically deposited to your retirement fund. Individual retirement accounts can be opened at most major brokerages or banks, and you can also choose to automate your contributions to your IRAs through automated transfers.
Prioritize with Marygold & Co.
The most important step is to get started!
Marygold & Co. can help you redefine and prioritize the different aspects of your finances. Features like the interest-earning Money Pool savings accounts can help you set aside money for various types of financial goals simultaneously. Additionally, we provide automated funding options to help you reach those goals quicker.
Our free mobile app is available to anyone in the United States, allowing them to send, receive, spend and save through FDIC insured accounts*.
*Marygold & Co. is a financial technology company and not a bank. Depository services provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”). Deposits insured by the FDIC up to the allowable limit. LendingClub Bank is not an affiliate of Marygold & Co. (“Marygold”) and is not responsible for the products and services provided by Marygold. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice.
You earn it, you save it, you spend it wisely – now protect it!
– Chad Butler, President
Shedding credit card utilization and any associated accumulating high-interest debt balance is a truly noble accomplishment. However, some people question how they can protect their debit card information if they are not using credit cards, particularly online. Although debit cards maintain fraud protection available through banks and networks, it is important to stay extra vigilant as fraudulent transactions can take money right out of your account leaving you vulnerable.
Monitor Your Account
The first and most important rule of thumb for all debit cardholders is to monitor your account regularly! Modern apps like Marygold & Co. provide immediate visibility to all your transactions along with customizable notification of transactions. You should not have to wait for a statement to be alerted of a red flag or fraudulent transaction on your account.
Look for a Secure Connection
The second most important rule of thumb is to make sure you never make a financial transaction on an e-commerce site that is not a secure connection. Make sure you see an “s” in the address like “https://” rather than just “http://.” You can also look for an unbroken key or padlock in front of the URL depending on your browser. These indicate your information will be encrypted and is therefore safer.
Avoid Public Wi-Fi
Lastly, do not use public WI-FI connections to make any financial transactions. Hackers can use public WI-FI to attempt to capture your account information and passwords because it is often unencrypted and insecure leaving you vulnerable to man-in-the-middle (MITM) attacks. MITM attacks exploit security flaws in networks to potentially intercept data opening you to identity theft. If you must use a public WI-FI, be sure to use a VPN connection which encrypts the data going to and from your device.
Controlling Your Accounts with Marygold & Co.
You know your spending habits better than anyone and certainly better than your bank. You should be able to control and protect your account fitting your own personal needs and spending behavior. Not only should you be able to easily freeze and unfreeze your accounts, but you should also be able to freeze and unfreeze e-commerce transactions to only work when you click “submit”.
You should be able to freeze and unfreeze international transactions when you are traveling or buying something abroad. Heck, if you’re not leaving your neighborhood or ever using your card at night, you should be able to set geographic boundaries where your account can be used or schedule the time of day your account can be used. Marygold & Co. will let you do all of this and more, right from your phone.
The Future of Banking
Additionally, Marygold & Co. will provide you with access to secure tokenized contactless payment options with your debit card, phone, and even associated wearable items like a bracelet or key fob. All these options will include customizable security controls that help you protect your hard-earned money backed by FDIC insured accounts and advanced mobile banking security technology.
We are not just building another fintech buzzword app for the masses – we are building a customizable super app that enables our discerning customers to protect and control their money the way they prefer.
I’ve been an early adopter my entire life. From being the first on my block to have the new Atari, Intellivision, or Apple IIc (dating myself!) to getting the “brick” cell phone and eventually trading my Blackberry in for the 1st iPhone. Technology excites me and I suppose the sci-fi geek in me loves to see the next predicted evolution towards the “future”.
– Chad Butler, President
Remember stopping to ask for directions or dropping off film to be developed and hoping pictures turned out ok? Remember wondering what your old friend from college is up to these days or how much something costs?
Very soon I’ll be asking, “Do you remember going to a bank? Do you remember why you went?”
Modern Technology Meets Secure Banking
As traditional banks attempt to force their branch-based square peg formula into the increasingly fluid shape of the mobile landscape, they are quickly finding they simply can’t keep up. Fintech challengers can build a mobile banking solution without any of the legacy banking constraints designed for the convenience and empowerment of their customers (what a concept!). These virtual “challenger” banking services have exploded in popularity overseas not only outpacing traditional banks with new customers but now holding more assets and managing more transactions than the legacy banks in just a few short years. Privately held Alibaba affiliate fintech Ant Financial is now arguably the largest financial institution in the world based on an implied valuation of $200 billion dollars from secondary market trades in 2019. London-based Revolut grew from 1.5 million customers in Feb 2018 to 3 million in Nov 2018 then to an astounding 8 million in Sept 2019. Now many of us are getting used to sending money immediately with our phones, automatically investing from our direct deposit paychecks, or even tapping our card or phone to a merchant terminal for a quick and secure payment transaction. New fintech companies like Venmo, Zelle, Chime, Sofi, and Robinhood are taking the US by storm with their unicorn growth and common-sense mobile solutions while Apple and Google continue to try and take over the world with their branded solutions.
As new technology is introduced and existing technology gets properly packaged for adoption, more and more mobile banking options will be introduced, and more and more specialized solutions will be available to the unique demands and desires of each of us.
Mobile Banking Made Even Easier
I like control! I like to have immediate and customizable access to my money and how it is managed. I like to feel secure that my money is safe and that I can lock it down, invest it, or spend it as I see fit. I like to know how others are making their money grow. I like convenient contactless transactions. Plus I would really like to have an easy way to pay anyone I owe without having to worry about if they accept Venmo, Paypal, Zelle, Bitcoin, cash, check, magic beans, etc.
If you like these things as well, I think you’ll like Marygold & Co. We set out to enrich the financial lives of our customers and their families bringing modern technology and common-sense customizable control of your money to our modern banking platform. No fees, no minimums, and no limits! Setup custom “Money Pool” Savings Accounts for things like emergencies, vacations, mountain bikes, down payments, etc. Earn interest on all your money and get paid up to 2 days early with a direct deposit. Pay anyone in the US with just their email or mobile phone number. Make secure contactless payments with your Marygold & Co. Mastercard debit card, mobile phone, or even an associated bracelet or key fob!
Like the sound of that? Join our waitlist now and be one of our early adopters!
PS – there will be gifts and incentives only offered to our waitlist subscribers.
