The one good thing about this recession is that I can actually walk around and get my Christmas shopping done in relative peace. But it is a little alarming to see most shops offering 20% off and yet still find shopping centres quiet.
As a strange form of torture at work, Sky News is broadcast all over the place and offer repeated and constant coverage of the financial crisis (NB: Why CNN find it hard to cover – can also be applied to Sky News). In fact the press has been doom and gloom about the economy for some time now, with some making comments about the Web 2.0 bubble bursting. We all know that between the rising fuel and food costs and the house prices sinking things are pretty gloomy right now.
Wesabe charts personal finances.
However I am interested in what role the web will have in helping us deal with this. We’ve had recessions before, but like American elections I don’t think we’ve had one where the web will play such a significant role, especially in how we cope with it. Firstly there is our connection to the internet both emotively and economically; while fuel bills sore the cost of broadband costs continue to fall, also we feel the internet is essential and not a luxury we can cut to save costs. So we aren’t going to us the web less now.
We already know that the internet has made us more informed consumers, thanks to price comparison sites and communities offering advice. But now most of us are feeling the pressure to have more control over our finances, so what tools can the web offer us to help us manage our financial affairs? There are some good free tools that offer some helpful budgeting and financial management services, here are some for the UK:
Wesabe / money.telegraph
Wesabe has been around for a few years now and offers support for most major UK institutions. They offer an aggregation service, allowing you to see all your financial data in one place. There is an active community around the service, as well anonymous data aggregation, allowing Wesabe to offer advice based to you based on your particular spending trends in the context of the wider community. Other functionality includes putting statements in “plain English” and aggregating this information across the community; so if a user identifies retailer TSC1238934 as Tescos, then if you were to shop there you will automatically see Tescos in your statement.
Wesabe have released an API and offer automated tools for downloading statements as well as various widgets to make your information more accessible. Recently the Daily Telegraph has partnered with Wesabe in the UK, further adding to its credibility.
Kublax is new to the UK market, however it is powered by Yodlee, who is one of the biggest service providers in account aggregation, having partnered with large corporate banks too. Plus because it is UK specific it supports most of the UK financial institutions. It has similar functionality to Wesabe allowing you to compare spending and to get advice based on your own spending habits, with a focus on localisation. But it doesn’t offer an API for developers to create more tools. It has some inbuilt fraud detection and alerting.
Buxfer’s functionality is limited in comparison, but offers budgeting tools that are particularly good at managing money between people and can automate splitting costs and tracking debt, which can be useful and relieve social tension when finances are tight.
Wigadoo is a UK service for sorting out events with a group of friends. Although it is not directly about managing your own personal finances, it is a useful tool for when you have to sort out the money for a trip with a group of mates and it avoids one person having to shell out for the cost for the whole group and they then take all the risk that someone will cancel or not pay their share. You no longer have to nag friends for the money they owe you, or have to feel guilty about not paying them back yet. Making these social money situations easier is always helpful when money is short and it is easy for it to become a source of tension.
In addition to better tools to help us manage our finances, the web offers alternative ways of borrowing money to the traditional bank loans; at a time when banks are reducing risks and lending far less, peer to peer lending continue to loan money and offer a way of raising necessary cash.
Zopa is peer to peer lending that started in the UK and has spread globally. The principle is that you can borrow or lend money from other individuals rather than from institutions. As a borrower you make a pitch about what you want the money for and how much you need, and as a lender you decide who you want to lend to, how much and at what rate. The borrower can choose the best rate from the offers made.
Although technology will be hit by the financial climate too, you need only look at the staff cuts going on across the board in tech companies to see that, I think that through these Web 2.0 offerings we can better empower ourselves with the tools to help us weather this storm.
Services like Wesabe and Kublux enable us to gather advice from a community as well as from our own actual spending data. By having all your information in one place you get a complete picture of your financial situation. However this isn’t without any risk; since your data is aggregated it is important to be considerate of where you are storing your financial information, but there are huge advantages to be had by participating, both in convenience and in access to information otherwise unavailable. There are plenty of good services out there, but I have tried to look at ones I know will work for the UK, if you know others or have any experiences with any please let me know how you have found them.