Over the last few years a steady stream of new financial firms have launched products and services meant to make our lives a little bit easier. Often described as innovative or frictionless, some of these products could improve our financial health, while others look set to deliver a dose of pain.
And as more innovative and frictionless products and services come to market, there’s one word that we don’t tend to hear so much about: wisdom.
Financial firms have been busy removing friction from their processes in order to make things easier, but when it comes to themes like consumer credit or pension freedom, is this always a good thing? And should the use of the word ‘innovative’ in a product description ever limit proper scrutiny?
At a time when UK households are swimming in rising levels of debt, and the work to rebuild trust between consumers and financial firms remains on shaky ground, a lack of wisdom means that the financial industry is once again fueling the worst of our consumer instincts.